As filed with the SEC on August 29, 2006.

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-02273

 

 

TRANSAMERICA INCOME SHARES, INC.

(Exact name of registrant as specified in charter)

 

570 Carillon Parkway, St. Petersburg, Florida

 

33716

(Address of principal executive offices)

 

(Zip code)

 

Dennis Gallagher, Esq.  P.O. Box 9012, Clearwater, Florida  33758-9771

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

(727) 299-1800

 

 

Date of fiscal year end:

March 31

 

 

 

 

Date of reporting period:

April 1, 2006 – June 30, 2006

 

 



Item 1. Schedule of Investments.

The unaudited Schedule of Investments of Registrant as of June 30, 2006 are attached.



Transamerica Income Shares, Inc.

 

SCHEDULE OF INVESTMENTS

At June 30, 2006

(all amounts except share amounts in thousands)

(unaudited)

 

 

 

 

Principal

 

Value

 

U.S. GOVERNMENT OBLIGATIONS (0.7%)

 

 

 

 

 

 

 

U.S. Treasury Note

 

 

 

 

 

 

 

4.88%, due 05/15/2009

 

 

 

$

1,000

 

$

993

 

Total U.S. Government Obligations (cost: $994)

 

 

 

 

 

993

 

 

 

 

 

 

 

 

 

CORPORATE DEBT SECURITIES (95.6%)

 

 

 

 

 

 

 

Aerospace (2.0%)

 

 

 

 

 

 

 

Boeing Co. (The)

 

 

 

 

 

 

 

8.75%, due 08/15/2021

 

 

 

2,000

 

2,524

 

TransDigm, Inc., Senior Subordinated Note-144A

 

 

 

 

 

 

 

7.75%, due 07/15/2014

 

 

 

250

 

249

 

Agriculture (1.8%)

 

 

 

 

 

 

 

Dole Food Co., Inc.

 

 

 

 

 

 

 

8.63%, due 05/01/2009

 

 

 

1,000

 

955

 

Michael Foods, Inc.

 

 

 

 

 

 

 

8.00%, due 11/15/2013

 

†

 

1,500

 

1,474

 

Air Transportation (0.9%)

 

 

 

 

 

 

 

FedEx Corp.

 

 

 

 

 

 

 

9.65%, due 06/15/2012

 

 

 

1,000

 

1,177

 

Amusement & Recreation Services (1.5%)

 

 

 

 

 

 

 

Harrah’s Operating Co., Inc.

 

 

 

 

 

 

 

5.50%, due 07/01/2010

 

 

 

1,000

 

976

 

Pokagon Gaming Authority, Senior Note-144A

 

 

 

 

 

 

 

10.38%, due 06/15/2014

 

 

 

70

 

72

 

Speedway Motorsports, Inc.

 

 

 

 

 

 

 

6.75%, due 06/01/2013

 

 

 

1,000

 

970

 

Automotive (2.5%)

 

 

 

 

 

 

 

DaimlerChrysler NA Holding Corp.

 

 

 

 

 

 

 

8.50%, due 01/18/2031

 

 

 

2,675

 

3,029

 

General Motors Corp.

 

 

 

 

 

 

 

7.13%, due 07/15/2013

 

 

 

500

 

411

 

Automotive Service Stations (0.3%)

 

 

 

 

 

 

 

Petro Stopping Centers, LP / Petro Financial Corp.

 

 

 

 

 

 

 

9.00%, due 02/15/2012

 

 

 

400

 

397

 

Beverages (0.5%)

 

 

 

 

 

 

 

Cia Brasileira de Bebidas

 

 

 

 

 

 

 

8.75%, due 09/15/2013

 

 

 

660

 

727

 

Business Credit Institutions (3.6%)

 

 

 

 

 

 

 

Pemex Finance, Ltd.

 

 

 

 

 

 

 

9.03%, due 02/15/2011

 

 

 

4,655

 

4,936

 

Business Services (2.0%)

 

 

 

 

 

 

 

Cardtronics, Inc.-144A

 

 

 

 

 

 

 

9.25%, due 08/15/2013

 

 

 

800

 

788

 

Hertz Corp.-144A

 

 

 

 

 

 

 

8.88%, due 01/01/2014

 

 

 

1,500

 

1,537

 

iPayment, Inc., Senior Subordinated Note-144A

 

 

 

 

 

 

 

9.75%, due 05/15/2014

 

 

 

350

 

348

 

Chemicals & Allied Products (5.6%)

 

 

 

 

 

 

 

Cytec Industries, Inc.

 

 

 

 

 

 

 

6.00%, due 10/01/2015

 

 

 

700

 

665

 

ICI Wilmington, Inc.

 

 

 

 

 

 

 

4.38%, due 12/01/2008

 

 

 

3,400

 

3,281

 


 

IMC Global, Inc.

 

 

 

 

 

 

 

10.88%, due 06/01/2008

 

 

 

475

 

506

 

Ineos Group Holdings PLC-144A

 

 

 

 

 

 

 

8.50%, due 02/15/2016

 

†

 

800

 

749

 

Lubrizol Corp.

 

 

 

 

 

 

 

5.50%, due 10/01/2014

 

 

 

2,500

 

2,359

 

Commercial Banks (10.9%)

 

 

 

 

 

 

 

Bank of America Corp.

 

 

 

 

 

 

 

7.80%, due 02/15/2010

 

 

 

2,250

 

2,403

 

Barclays Bank PLC

 

 

 

 

 

 

 

6.28%, due 12/15/2034

 

(a) (b)

 

1,500

 

1,310

 

HBOS PLC-144A

 

 

 

 

 

 

 

5.92%, due 10/01/2015

 

(a) (b)

 

1,400

 

1,290

 

HSBC Capital Funding LP-144A

 

 

 

 

 

 

 

10.18%, due 06/30/2030

 

(a) (b)

 

1,500

 

2,050

 

HSBK Europe BV-144A

 

 

 

 

 

 

 

7.75%, due 05/13/2013

 

 

 

500

 

501

 

Popular North America, Inc.

 

 

 

 

 

 

 

5.20%, due 12/12/2007

 

 

 

1,000

 

989

 

Shinsei Finance Cayman, Ltd.-144A

 

 

 

 

 

 

 

6.42%, due 07/20/2016

 

(a) (b)

 

1,000

 

939

 

Wachovia Capital Trust III

 

 

 

 

 

 

 

5.80%, due 03/15/2011

 

(a) (b)

 

2,101

 

2,039

 

Wells Fargo & Co.

 

 

 

 

 

 

 

4.20%, due 01/15/2010

 

 

 

2,000

 

1,911

 

ZFS Finance USA Trust I-144A

 

 

 

 

 

 

 

6.45%, due 12/15/2065

 

† (b)

 

1,500

 

1,372

 

Communication (7.5%)

 

 

 

 

 

 

 

Comcast Corp.

 

 

 

 

 

 

 

7.05%, due 03/15/2033

 

 

 

2,050

 

2,080

 

Echostar DBS Corp.-144A

 

 

 

 

 

 

 

7.13%, due 02/01/2016

 

 

 

1,250

 

1,203

 

Intelsat Subsidiary Holding Co., Ltd.

 

 

 

 

 

 

 

8.25%, due 01/15/2013

 

 

 

800

 

794

 

Kabel Deutschland GmbH-144A

 

 

 

 

 

 

 

10.63%, due 07/01/2014

 

 

 

1,000

 

1,055

 

News America Holdings

 

 

 

 

 

 

 

9.25%, due 02/01/2013

 

 

 

3,985

 

4,614

 

XM Satellite Radio, Inc., Senior Note-144A

 

 

 

 

 

 

 

9.75%, due 05/01/2014

 

†

 

450

 

412

 

Department Stores (1.7%)

 

 

 

 

 

 

 

Bon-Ton Stores (The), Inc.-144A

 

 

 

 

 

 

 

10.25%, due 03/15/2014

 

†

 

800

 

742

 

Neiman-Marcus Group, Inc.-144A

 

 

 

 

 

 

 

9.00%, due 10/15/2015

 

†

 

1,500

 

1,567

 

Electric Services (5.6%)

 

 

 

 

 

 

 

AES Gener SA

 

 

 

 

 

 

 

7.50%, due 03/25/2014

 

†

 

1,500

 

1,505

 

Dominion Resources, Inc.

 

 

 

 

 

 

 

5.69%, due 05/15/2008

 

 

 

1,900

 

1,894

 

PSEG Funding Trust

 

 

 

 

 

 

 

5.38%, due 11/16/2007

 

 

 

4,250

 

4,219

 

Electronic Components & Accessories (0.6%)

 

 

 

 

 

 

 

Sensata Technologies BV, Senior Note-144A

 

 

 

 

 

 

 

8.00%, due 05/01/2014

 

†

 

850

 

820

 

Finance (0.2%)

 

 

 

 

 

 

 

American Real Estate Partners, LP/American Real Estate Finance Corp.

 

 

 

 

 

 

 

7.13%, due 02/15/2013

 

 

 

350

 

336

 

Food & Kindred Products (1.7%)

 

 

 

 

 

 

 

ConAgra Foods, Inc.

 

 

 

 

 

 

 

9.75%, due 03/01/2021

 

 

 

1,375

 

1,698

 

 

 



 

Tyson Foods, Inc.

 

 

 

 

 

 

 

6.60%, due 04/01/2016

 

 

 

620

 

606

 

Food Stores (0.9%)

 

 

 

 

 

 

 

Stater Brothers Holdings, Inc.

 

 

 

 

 

 

 

8.13%, due 06/15/2012

 

 

 

1,200

 

1,185

 

Gas Production & Distribution (2.6%)

 

 

 

 

 

 

 

El Paso Corp.-144A

 

 

 

 

 

 

 

7.63%, due 09/01/2008

 

 

 

1,000

 

1,012

 

Kinder Morgan Energy Partners, LP

 

 

 

 

 

 

 

7.75%, due 03/15/2032

 

 

 

1,500

 

1,614

 

Markwest Energy Part/Finance-144A

 

 

 

 

 

 

 

8.50%, due 07/15/2016

 

 

 

275

 

273

 

Northwest Pipeline

 

 

 

 

 

 

 

9.00%, due 08/01/2022

 

 

 

631

 

651

 

Holding & Other Investment Offices (2.6%)

 

 

 

 

 

 

 

Hospitality Properties Trust REIT

 

 

 

 

 

 

 

6.30%, due 06/15/2016

 

 

 

1,968

 

1,938

 

Hutchison Whampoa International, Ltd.-144A

 

 

 

 

 

 

 

7.45%, due 11/24/2033

 

 

 

1,500

 

1,586

 

Hotels & Other Lodging Places (3.8%)

 

 

 

 

 

 

 

Host Marriott, LP

 

 

 

 

 

 

 

7.13%, due 11/01/2013

 

 

 

1,500

 

1,494

 

Intrawest Corp.

 

 

 

 

 

 

 

7.50%, due 10/15/2013

 

 

 

1,000

 

995

 

Park Place Entertainment Corp.

 

 

 

 

 

 

 

7.00%, due 04/15/2013

 

 

 

1,500

 

1,527

 

Station Casinos, Inc., Subordinated Note

 

 

 

 

 

 

 

6.63%, due 03/15/2018

 

 

 

500

 

453

 

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.

 

 

 

 

 

 

 

6.63%, due 12/01/2014

 

 

 

800

 

754

 

Industrial Machinery & Equipment (1.1%)

 

 

 

 

 

 

 

Cummins Engine Co., Inc.

 

 

 

 

 

 

 

5.65%, due 03/01/2098

 

 

 

2,000

 

1,488

 

Insurance (2.0%)

 

 

 

 

 

 

 

Oil Insurance Ltd.

 

 

 

 

 

 

 

7.56%, due 06/30/2011

 

(a) (b)

 

1,500

 

1,493

 

Reinsurance Group of America

 

 

 

 

 

 

 

6.75%, due 12/15/2065

 

(b)

 

1,400

 

1,289

 

Metal Mining (2.3%)

 

 

 

 

 

 

 

Barrick Gold Finance, Inc.

 

 

 

 

 

 

 

7.50%, due 05/01/2007

 

 

 

2,000

 

2,028

 

Teck Cominco, Ltd.

 

 

 

 

 

 

 

6.13%, due 10/01/2035

 

 

 

1,225

 

1,097

 

Mortgage Bankers & Brokers (4.9%)

 

 

 

 

 

 

 

Galaxy Entertainment Finance Co., Ltd., Senior Note-144A

 

 

 

 

 

 

 

9.88%, due 12/15/2012

 

†

 

500

 

520

 

Glencore Funding LLC-144A

 

 

 

 

 

 

 

6.00%, due 04/15/2014

 

 

 

1,500

 

1,370

 

ILFC E-Capital Trust II-144A

 

 

 

 

 

 

 

6.25%, due 12/21/2065

 

(b)

 

900

 

850

 

Innophos Investments Holdings, Inc.

 

 

 

 

 

 

 

13.17%, due 02/15/2015

 

*

 

413

 

413

 

Kinder Morgan Finance Co., ULC

 

 

 

 

 

 

 

6.40%, due 01/05/2036

 

 

 

2,050

 

1,677

 

MUFG Capital Finance 1, Ltd.

 

 

 

 

 

 

 

6.35%, due 07/25/2016

 

(a) (b)

 

750

 

723

 

Stripes Acquisition LLC/Susser Finance Corp.-144A

 

 

 

 

 

 

 

10.63%, due 12/15/2013

 

 

 

1,000

 

1,055

 

Motion Pictures (3.8%)

 

 

 

 

 

 

 

Time Warner, Inc.

 

 

 

 

 

 

 

9.13%, due 01/15/2013

 

 

 

4,500

 

5,146

 


 

Oil & Gas Extraction (2.9%)

 

 

 

 

 

 

 

Chesapeake Energy Corp.

 

 

 

 

 

 

 

6.88%, due 01/15/2016

 

 

 

1,500

 

1,418

 

Delta Petroleum Corp.

 

 

 

 

 

 

 

7.00%, due 04/01/2015

 

 

 

455

 

423

 

Gazprom International SA-144A

 

 

 

 

 

 

 

7.20%, due 02/01/2020

 

 

 

600

 

608

 

Occidental Petroleum Corp.

 

 

 

 

 

 

 

10.13%, due 09/15/2009

 

 

 

500

 

566

 

PetroHawk Energy Corp.-144A

 

 

 

 

 

 

 

9.13%, due 07/15/2013

 

 

 

1,000

 

995

 

Paper & Paper Products (1.6%)

 

 

 

 

 

 

 

Celulosa Arauco y Constitucion SA

 

 

 

 

 

 

 

8.63%, due 08/15/2010

 

 

 

2,000

 

2,177

 

Paperboard Containers & Boxes (0.5%)

 

 

 

 

 

 

 

Graham Packaging Co., Inc.

 

 

 

 

 

 

 

9.88%, due 10/15/2014

 

†

 

650

 

644

 

Personal Credit Institutions (1.2%)

 

 

 

 

 

 

 

Ford Motor Credit Co.

 

 

 

 

 

 

 

9.47%, due 04/15/2012

 

*

 

1,100

 

1,117

 

General Motors Acceptance Corp.

 

 

 

 

 

 

 

5.13%, due 05/09/2008

 

 

 

600

 

575

 

Primary Metal Industries (0.4%)

 

 

 

 

 

 

 

Texas Industries, Inc.

 

 

 

 

 

 

 

7.25%, due 07/15/2013

 

 

 

500

 

495

 

Printing & Publishing (2.0%)

 

 

 

 

 

 

 

Media General, Inc.

 

 

 

 

 

 

 

6.95%, due 09/01/2006

 

 

 

2,150

 

2,152

 

RH Donnelley Corp.-144A

 

 

 

 

 

 

 

8.88%, due 01/15/2016

 

 

 

500

 

504

 

Radio & Television Broadcasting (4.7%)

 

 

 

 

 

 

 

Chancellor Media Corp.

 

 

 

 

 

 

 

8.00%, due 11/01/2008

 

 

 

1,415

 

1,471

 

Univision Communications, Inc.

 

 

 

 

 

 

 

7.85%, due 07/15/2011

 

 

 

1,950

 

1,965

 

Viacom, Inc., Senior Note-144A

 

 

 

 

 

 

 

6.25%, due 04/30/2016

 

 

 

3,100

 

3,009

 

Real Estate (1.1%)

 

 

 

 

 

 

 

Colonial Realty, LP

 

 

 

 

 

 

 

7.00%, due 07/14/2007

 

 

 

1,500

 

1,514

 

Restaurants (0.4%)

 

 

 

 

 

 

 

Carrols Corp.

 

 

 

 

 

 

 

9.00%, due 01/15/2013

 

 

 

500

 

501

 

Security & Commodity Brokers (3.0%)

 

 

 

 

 

 

 

E*Trade Financial Corp.

 

 

 

 

 

 

 

8.00%, due 06/15/2011

 

 

 

1,500

 

1,530

 

Goldman Sachs Group, Inc., Subordinated Note

 

 

 

 

 

 

 

6.45%, due 05/01/2036

 

 

 

1,175

 

1,126

 

Residential Capital Corp.

 

 

 

 

 

 

 

6.38%, due 06/30/2010

 

 

 

1,375

 

1,356

 

Telecommunications (2.5%)

 

 

 

 

 

 

 

Sprint Capital Corp.

 

 

 

 

 

 

 

8.75%, due 03/15/2032

 

 

 

1,800

 

2,171

 

Verizon Global Funding Corp.

 

 

 

 

 

 

 

7.75%, due 12/01/2030

 

 

 

1,100

 

1,186

 

Water Transportation (1.6%)

 

 

 

 

 

 

 

Royal Caribbean Cruises, Ltd.

 

 

 

 

 

 

 

8.75%, due 02/02/2011

 

 

 

2,000

 

2,150

 

Wholesale Trade Nondurable Goods (0.8%)

 

 

 

 

 

 

 

Domino’s, Inc.

 

 

 

 

 

 

 

8.25%, due 07/01/2011

 

 

 

1,094

 

1,135

 

Total Corporate Debt Securities (cost: $132,058)

 

 

 

 

 

129,898

 


 

 

 

 

 

Shares

 

Value

 

PREFERRED STOCKS (1.3%)

 

 

 

 

 

 

 

Holding & Other Investment Offices (0.6%)

 

 

 

 

 

 

 

Tanger Factory Outlet Centers REIT

 

 

 

33,334

 

806

 

Telecommunications (0.7%)

 

 

 

 

 

 

 

Centaur Funding Corp.-144A

 

‡

 

852

 

999

 

Total Preferred Stocks (cost: $1,671)

 

 

 

 

 

1,805

 

 

 

 

 

 

Principal

 

Value

 

SECURITY LENDING COLLATERAL (7.4%)

 

 

 

 

 

 

 

Debt (7.4%)

 

 

 

 

 

 

 

Repurchase Agreements (7.4%)

 

††

 

 

 

 

 

Credit Suisse First Boston Corp. 5.35%, dated 06/30/2006 to be repurchased at $1,000 on 07/03/2006

 

 

 

1,000

 

1,000

 

Goldman Sachs Group, Inc. (The) 5.35%, dated 06/30/2006 to be repurchased at $7,003 on 07/03/2006

 

 

 

7,000

 

7,000

 

Merrill Lynch & Co. 5.30%, dated 06/30/2006 to be repurchased at $2,077 on 07/03/2006

 

 

 

2,076

 

2,076

 

Total Security Lending Collateral (cost: $10,076)

 

 

 

 

 

10,076

 

 

 

 

 

 

 

 

 

Total Investment Securities (cost: $144,799)

 

#

 

 

 

$

142,772

 

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

 

†

 

At June 30, 2006, all or a portion of this security is on loan.  The value at June 30, 2006, of all securities on loan is $9,837.

 

(a

)

The security has a perpetual maturity.  The date shown is the next call date.

 

(b

)

Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity date.  Rate is listed as of June 30, 2006.

 

*

 

Floating or variable rate note. Rate is listed as of June 30, 2006.

 

‡

 

Non-income producing.

 

††

 

Cash collateral for the Repurchase Agreements, valued at $10,305, that serve as collateral for securities lending are invested in corporate bonds with interest rates and maturity dates ranging from 0.00% - 9.50% and 7/12/2006 - 12/29/2049, respectively.

 

#

 

Aggregate cost for Federal income tax purposes is $145,644.  Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $1,052 and $3,924, respectively.  Net unrealized depreciation for tax purposes is $2,872.

 

 

 

DEFINITIONS:

 

144A

144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933.  These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers.  At June 30, 2006, these securities aggregated  $28,475 or 20.9% of the net assets of the Fund.

 

REIT

Real Estate Investment Trust

 



Item 2. Controls and Procedures.

(a)          Based on their evaluation of Registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940, as of June 30, 2006, Registrant’s principal executive officer and principal financial officer found Registrant’s disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by Registrant in the reports that it files on Form N-Q (a) is accumulated and communicated to Registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

(b)         There have been no significant changes in Registrant’s internal controls over financial reporting that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, is attached.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Transamerica Income Shares, Inc.

 

 

(Registrant)

 

 

 

 

By:

/s/ John K. Carter

 

 

 

Chief Executive Officer

 

 

Date: August 29, 2006

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:

/s/ John K. Carter

 

 

Chief Executive Officer

Date:

August 29, 2006

 

 

 

 

By:

/s/ Glenn E. Brightman

 

 

Principal Financial Officer

Date:

August 29, 2006