Notes to Financial Statements (concluded)
2. Investment Advisory Agreement and Other Transactions with
Affiliates:
The Fund entered into an
Investment Advisory Agreement with BlackRock Advisors, LLC (the Advisor), an
indirect, wholly owned subsidiary of BlackRock, Inc. to provide investment
advisory and administration services. Merrill Lynch & Co., Inc. (Merrill
Lynch) and The PNC Financial Services Group, Inc. are principal owners of
BlackRock, Inc.
The Advisor is responsible
for the management of the Funds portfolio and provides the necessary
personnel, facilities, equipment and certain other services necessary to the
operations of the Fund. For such services, the Fund pays the Advisor a monthly
fee at an annual rate of 0.60% of the Funds average daily net assets, plus the
proceeds of any outstanding borrowings used for leverage.
The Advisor has entered into
a sub-advisory agreement with BlackRock Financial Management, Inc. (BFM), an
affiliate of the Advisor, under which the Advisor pays BFM for services it
provides, a monthly fee that is a percentage of the investment advisory fee
paid by the Fund to the Advisor.
For the six months ended
August 31, 2008, the Fund reimbursed the Advisor $4,115 for certain accounting
services, which are included in accounting services in the Statement of
Operations.
Certain officers and/or
directors of the Fund are officers and/or directors of BlackRock, Inc. or its
affiliates. The Fund reimburses the Advisor for compensation paid to the Funds
Chief Compliance Officer.
3. Investments:
Purchases and sales
(including paydowns) of investments, excluding short-term securities, for the
six months ended August 31, 2008 were $205,956,447 and $212,066,670,
respectively.
4. Capital Share Transactions:
The Fund is authorized to
issue 200,000,000 shares, par value $0.10, all of which were initially
classified as Common Shares. The Board is authorized, however, to classify and
reclassify any unissued shares without approval of the holders of Common
Shares.
Shares issued and outstanding
during the six months ended August 31, 2008 and year ended February 29, 2008
increased by 142,855 and 332,989, respectively, as a result of dividend
reinvestment.
5. Commitments:
The Fund may invest in
floating rate loans. In connection with these investments, the Fund may, with
its Advisor, also enter into unfunded corporate loans (commitments).
Commitments may obligate the Fund to furnish temporary financing to a borrower
until permanent financing can be arranged. In connection with these commitments,
the Fund earns a commitment fee, typically set as a percentage of the
commitment amount. Such fee income, which is classified in the Statement of
Operations as facility and other fees, is recognized ratably over the
commitment period. As of August 31, 2008, the Fund had the following unfunded
loan commitments:
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|
|
|
|
|
|
|
|
|
|
|
|
Borrower
|
|
Unfunded
Commitment
(000)
|
|
Value
of
Underlying
Loans
(000)
|
|
|
|
|
|
|
|
Community Health Systems,
Inc.
|
|
$
|
144
|
|
$
|
136
|
|
|
|
|
|
|
|
|
|
6. Short-Term Borrowings:
On May 16, 2008, the Fund
renewed its revolving credit and security agreement funded by a commercial
paper asset securitization program with Citicorp North America, Inc.
(Citicorp), as Agent, certain secondary backstop lenders and certain asset securitization
conduits, as lenders (the Lenders). The agreement was renewed for one year
and has a maximum limit of $309,000,000. Under the Citicorp program, the
conduits will fund advances to the Fund through highly rated commercial paper.
The Fund has granted a security interest in substantially all of its assets to,
and in favor of, the Lenders as security for its obligations to the Lenders.
The interest rate on the Funds borrowings is based on the interest rate
carried by the commercial paper plus a program fee. In addition, the Fund pays
a liquidity fee to the secondary backstop lenders and the agent. These amounts
are shown on the Statement of Operations as borrowing costs.
For the six months ended
August 31, 2008, the daily weighted average interest rate was 1.71%.
7. Capital Loss Carryforward:
On February 29, 2008, the
Fund had a capital loss carryforward of $259,454,191, of which $21,442,332
expires in 2009, $90,564,493 expires in 2010, $85,285,305 expires in 2011,
$17,223,475 expires in 2012, $21,126,025 expires in 2013, $20,233,987 expires
in 2014 and $3,578,574 expires in 2015. This amount will be available to offset
future realized capital gains.
8. Subsequent Events:
The Fund paid an ordinary
income dividend in the amount of $0.053000 per share on September 30, 2008 to
shareholders of record on September 15, 2008.
On September 15, 2008, Bank
of America Corporation announced that it has agreed to acquire Merrill Lynch,
one of the principal owners of BlackRock, Inc. The purchase has been approved by
the directors of both companies. Subject to shareholder and regulatory
approvals, the transaction is expected to close in the first quarter of 2009.
As of August 31, 2008, the
Fund had a swap contract outstanding with Lehman Brothers Holdings Inc. (Lehman)
as the counterparty with net unrealized depreciation of $2,055,880 and swaps
interest receivable of approximately $78,000. On September 15, 2008, Lehman
filed for Chapter 11 bankruptcy, and on that date, the Fund terminated this
contract and realized a loss of approximately $1,309,000.
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BLACKROCK DEBT STRATEGIES
FUND, INC.
|
AUGUST 31, 2008
|
21
|
Disclosure of Investment
Advisory Agreement and Subadvisory Agreement
The Board (the members of
which are referred to as Directors) of the BlackRock Debt Strategies Fund,
Inc. (the Fund) met in April and May 2008 to consider approving the
continuation of the Funds investment advisory agreement (the Advisory
Agreement) with the Advisor. The Board also considered the approval of the
Funds subadvisory agreement (the Subadvisory Agreement and, together with
the Advisory Agreement, the Agreements) between the Advisor and BlackRock
Financial Management, Inc. (the Subadvisor). The Advisor and the Subadvisor
are collectively referred to herein as the Advisors and, together with
BlackRock, Inc., BlackRock.
Activities and Composition of the Board
The Board of the Fund
consists of thirteen individuals, eleven of whom are not interested persons
of the Fund as defined in the 1940 Act (the Independent Directors). The
Directors are responsible for the oversight of the operations of the Fund and
perform the various duties imposed on the directors of investment companies by
the 1940 Act. The Independent Directors have retained independent legal counsel
to assist them in connection with their duties. The Chairman of the Board is an
Independent Director. The Board has established four standing committees: an
Audit Committee, a Governance and Nominating Committee, a Compliance Committee
and a Performance Oversight Committee.
Advisory Agreement and Subadvisory Agreement
Upon the consummation of the
combination of BlackRock, Inc.s investment management business with Merrill
Lynch & Co., Inc.s investment management business, including Merrill Lynch
Investment Managers, L.P., and certain affiliates, the Fund entered into the
Advisory Agreement and the Subadvisory Agreement, each with an initial two-year
term. Consistent with the 1940 Act, after the Advisory Agreements and
Subadvisory Agreements respective initial two-year term, the Board is required
to consider the continuation of the Funds Advisory Agreement and Subadvisory
Agreement on an annual basis. In connection with this process, the Board
assessed, among other things, the nature, scope and quality of the services
provided to the Fund by the personnel of BlackRock and its affiliates,
including investment advisory services, administrative services, secondary
market support services, oversight of fund accounting and custody, and
assistance in meeting legal and regulatory requirements. The Board also
received and assessed information regarding the services provided to the Fund
by certain unaffiliated service providers.
Throughout the year, the
Board also considered a range of information in connection with its oversight
of the services provided by BlackRock and its affiliates. Among the matters the
Board considered were: (a) investment performance for one-, three- and
five-year periods, as applicable, against peer funds, as well as senior
management and portfolio managers analysis of the reasons for
underperformance, if applicable; (b) fees, including advisory, administration
and other fees paid to BlackRock and its affiliates by the Fund, as applicable;
(c) Fund operating expenses paid to third parties; (d) the resources devoted to
and compliance reports relating to the Funds investment objective, policies
and restrictions; (e) the Funds compliance with its Code of Ethics and
compliance policies and procedures; (f) the nature, cost and character of non-investment
management services provided by BlackRock and its affiliates; (g) BlackRocks
and other service providers internal controls; (h) BlackRocks implementation
of the proxy voting guidelines approved by the Board; (i) execution quality;
(j) valuation and liquidity procedures; and (k) reviews of BlackRocks
business, including BlackRocks response to the increasing scale of its
business.
Board Considerations in Approving the Advisory Agreement and
Subadvisory Agreement
To assist the Board in its
evaluation of the Agreements, the Directors received information from BlackRock
in advance of the April 22, 2008 meeting which detailed, among other things,
the organization, business lines and capabilities of the Advisors, including:
(a) the responsibilities of various departments and key personnel and
biographical information relating to key personnel; (b) financial statements
for BlackRock; (c) the advisory and/or administrative fees paid by the Fund to
the Advisors, including comparisons, compiled by Lipper Inc. (Lipper), an
independent third party, with the management fees, which include advisory and
administration fees, of funds with similar investment objectives (Peers); (d)
the profitability of BlackRock and certain industry profitability analyses for
advisors to registered investment companies; (e) the expenses of BlackRock in
providing various services; (f) non-investment advisory reimbursements, if
applicable, and fallout benefits to BlackRock; (g) economies of scale, if
any, generated through the Advisors management of all of the BlackRock
closed-end funds (the Fund Complex); (h) the expenses of the Fund, including
comparisons of the Funds expense ratios (both before and after any fee
waivers) with the expense ratios of its Peers; (i) an internal comparison of
management fees classified by Lipper, if applicable; and (j) the Funds
performance for the past one-, three- and five-year periods, as applicable, as
well as the Funds performance compared to its Peers.
The Board also considered
other matters it deemed important to the approval process, where applicable,
such as payments made to BlackRock or its affiliates relating to the
distribution of Fund shares, services related to the valuation and pricing of
Fund portfolio holdings, and direct and indirect benefits to BlackRock and its
affiliates from their relationship with the Fund.
In addition to the foregoing
materials, independent legal counsel to the Independent Directors provided a
legal memorandum outlining, among other things, the duties of the Board under
the 1940 Act, as well as the general principles of relevant law in reviewing
and approving advisory contracts, the requirements of the 1940 Act in such
matters, an advisors fiduciary duty with respect to advisory agreements and
compensation, and the standards used by courts in determining whether
investment company boards of directors have fulfilled their duties and the
factors to be considered by boards in voting on advisory agreements.
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22
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BLACKROCK DEBT STRATEGIES FUND, INC.
|
AUGUST 31, 2008
|
Disclosure of Investment Advisory Agreement and
Subadvisory Agreement (continued)
The Independent Directors
reviewed this information and discussed it with independent legal counsel prior
to the meeting on April 22, 2008. At the Board meeting on April 22, 2008,
BlackRock made a presentation to and responded to questions from the Board.
Following the meeting on April 22, 2008, the Board presented BlackRock with
questions and requests for additional information. BlackRock responded to these
requests with additional written materials provided to the Directors prior to
the meetings on May 29 and 30, 2008. At the Board meetings on May 29 and 30,
2008, BlackRock responded to further questions from the Board. In connection
with BlackRocks presentations, the Board considered each Agreement and, in
consultation with independent legal counsel, reviewed the factors set out in
judicial decisions and SEC statements relating to the renewal of the
Agreements.
Matters Considered by the Board
In connection with its
deliberations with respect to the Agreements, the Board considered all factors
it believed relevant with respect to the Fund, including the following: the
nature, extent and quality of the services provided by the Advisors; the
investment performance of the Fund; the costs of the services to be provided
and profits to be realized by the Advisors and their affiliates from their
relationship with the Fund; the extent to which economies of scale would be
realized as the Fund Complex grows; and whether BlackRock realizes other
benefits from its relationship with the Fund.
A. Nature, Extent and Quality of the Services:
In evaluating the nature, extent and quality
of the Advisors services, the Board reviewed information concerning the types
of services that the Advisors provide and are expected to provide to the Fund,
narrative and statistical information concerning the Funds performance record
and how such performance compares to the Funds Peers, information describing
BlackRocks organization and its various departments, the experience and
responsibilities of key personnel and available resources. The Board noted the
willingness of the personnel of BlackRock to engage in open, candid discussions
with the Board. The Board further considered the quality of the Advisors
investment process in making portfolio management decisions.
In addition to advisory
services, the Directors considered the quality of the administrative and
non-investment advisory services provided to the Fund. The Advisors and their
affiliates provided the Fund with such administrative and other services, as
applicable (in addition to any such services provided by others for the Fund),
and officers and other personnel as are necessary for the operations of the
Fund. In addition to investment management services, the Advisors and their
affiliates provided the Fund with services such as: preparing shareholder
reports and communications, including annual and semi-annual financial
statements and the Funds website; communications with analysts to support
secondary market trading; assisting with daily accounting and pricing;
preparing periodic filings with regulators and stock exchanges; overseeing and
coordinating the activities of other service providers; administering and
organizing Board meetings and preparing the Board materials for such meetings;
providing legal and compliance support (such as helping to prepare proxy
statements and responding to regulatory inquiries); and performing other Fund
administrative tasks necessary for the operation of the Fund (such as tax
reporting and fulfilling regulatory filing requirements). The Board considered
the Advisors policies and procedures for assuring compliance with applicable
laws and regulations.
B. The Investment Performance of the Fund and BlackRock:
As previously noted, the Board received
performance information regarding the Fund and its Peers. Among other things,
the Board received materials reflecting the Funds historic performance and the
Funds one-, three- and five-year total returns (as applicable) relative to its
Peers (including the Peers median performance). The Board was provided with a
description of the methodology used by Lipper to select the Funds Peers. The
Board noted that it regularly reviews the performance of the Fund throughout
the year. The Board reviewed a narrative and statistical analysis of the Lipper
data that was prepared by BlackRock, which analyzed various factors that affect
Lipper rankings.
The Board noted that in
general the Fund performed better than its Peers in that the Funds performance
was at or above the median in at least two of the one-, three- and five-year
periods reported.
C. Consideration of the Advisory Fees and the Cost of the
Services and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Fund:
In evaluating the management fees and expenses that a Fund is expected
to bear, the Board considered the Funds current management fee structure and
the Funds expense ratios in absolute terms as well as relative to the fees and
expense ratios of its applicable Peers. The Board, among other things, reviewed
comparisons of the Funds gross management fees before and after any applicable
reimbursements and fee waivers and total expense ratios before and after any
applicable waivers with those of applicable Peers. The Board also reviewed a
narrative analysis of the Peer rankings prepared by Lipper and summarized by
BlackRock at the request of the Board. This summary placed the Peer rankings
into context by analyzing various factors that affect these comparisons.
The Board noted that the Fund
paid contractual management fees lower than or equal to the median contractual
fees paid by its Peers. This comparison was made without giving effect to any
expense reimbursements or fee waivers.
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BLACKROCK DEBT STRATEGIES
FUND, INC.
|
AUGUST 31, 2008
|
23
|
Disclosure of Investment Advisory Agreement and
Subadvisory Agreement (concluded)
The Board also compared the
management fees charged and services provided by the Advisors to closed-end
funds in general versus other types of clients (such as open-end investment
companies and separately managed institutional accounts) in similar investment
categories. The Board noted certain differences in services provided and costs
incurred by the Advisor with respect to closed-end funds compared to these
other types of clients and the reasons for such differences.
In connection with the
Boards consideration of the fees and expense information, the Board reviewed
the considerable investment management experience of the Advisors and
considered the high level of investment management, administrative and other
services provided by the Advisors.
D. Profitability of BlackRock:
The Board also considered BlackRocks
profitability in conjunction with its review of fees. The Board reviewed
BlackRocks profitability with respect to the Fund Complex and other fund
complexes managed by the Advisors. In reviewing profitability, the Board
recognized that one of the most difficult issues in determining profitability
is establishing a method of allocating expenses. The Board also reviewed
BlackRocks assumptions and methodology of allocating expenses, noting the
inherent limitations in allocating costs among various advisory products. The
Board also recognized that individual fund or product line profitability of
other advisors is generally not publicly available.
The Board recognized that
profitability may be affected by numerous factors including, among other
things, the types of funds managed, expense allocations and business mix, and
therefore comparability of profitability is somewhat limited. Nevertheless, to
the extent available, the Board considered BlackRocks operating margin
compared to the operating margin estimated by BlackRock for a leading
investment management firm whose operations consist primarily of advising
closed-end funds. The comparison indicated that BlackRocks operating margin
was approximately the same as the operating margin of such firm.
In evaluating the
reasonableness of the Advisors compensation, the Board also considered any
other revenues paid to the Advisors, including partial reimbursements paid to
the Advisors for certain non-investment advisory services, if applicable. The
Board noted that these payments were less than the Advisors costs for
providing these services. The Board also considered indirect benefits (such as
soft dollar arrangements) that the Advisors and their affiliates are expected
to receive which are attributable to their management of the Fund.
E. Economies of Scale:
In reviewing the Funds fees and expenses, the
Board examined the potential benefits of economies of scale, and whether any
economies of scale should be reflected in the Funds fee structure, for example
through the use of breakpoints for the Fund or the Fund Complex. In this
regard, the Board reviewed information provided by BlackRock, noting that most
closed-end fund complexes do not have fund-level breakpoints because closed-end
funds generally do not experience substantial growth after their initial public
offering and each fund is managed independently consistent with its own
investment objectives. The Board noted that only three closed-end funds in the
Fund Complex have breakpoints in their fee structures. Information provided by
Lipper also revealed that only one closed-end fund complex used a complex-level
breakpoint structure. The Board found, based on its review of comparable funds,
that the Funds management fee is appropriate in light of the scale of the
Fund.
F. Other Factors:
In evaluating fees, the Board also considered indirect benefits or
profits the Advisors or their affiliates may receive as a result of their
relationships with the Fund (fall-out benefits). The Directors, including the
Independent Directors, considered the intangible benefits that accrue to the
Advisors and their affiliates by virtue of their relationships with the Fund,
including potential benefits accruing to the Advisors and their affiliates as a
result of participating in offerings of the Funds shares, potentially stronger
relationships with members of the broker-dealer community, increased name
recognition of the Advisors and their affiliates, enhanced sales of other
investment funds and products sponsored by the Advisors and their affiliates
and increased assets under management which may increase the benefits realized
by the Advisors from soft dollar arrangements with broker-dealers. The Board
also considered the unquantifiable nature of these potential benefits.
Conclusion with Respect to the Agreements
In reviewing and approving
the continuation of the Agreements, the Directors did not identify any single
factor discussed above as all-important or controlling, but considered all
factors together, and different Directors may have attributed different weights
to the various factors considered. The Independent Directors were also assisted
by the advice of independent legal counsel in making this determination. The
Directors, including the Independent Directors, unanimously determined that
each of the factors described above, in light of all the other factors and all
of the facts and circumstances applicable to the Fund, was acceptable for the
Fund and supported the Directors conclusion that the terms of each Agreement
were fair and reasonable, that the Funds fees are reasonable in light of the
services to be provided to the Fund and that each Agreement should be approved.
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24
|
BLACKROCK DEBT STRATEGIES FUND, INC.
|
AUGUST 31, 2008
|
|
|
|
Officers and Directors
|
|
Richard E. Cavanagh,
Chairman of the Board and Director
|
Karen P. Robards, Vice
Chair of the Board,
|
Chair of the Audit Committee and Director
|
G. Nicholas Beckwith, III,
Director
|
Richard S. Davis, Director
|
Kent Dixon, Director
|
Frank J. Fabozzi, Director
|
Kathleen F. Feldstein,
Director
|
James T. Flynn, Director
|
Henry Gabbay, Director
|
Jerrold B. Harris, Director
|
R. Glenn Hubbard, Director
|
W. Carl Kester, Director
|
Robert S. Salomon, Jr.,
Director
|
Donald C. Burke, Fund
President and Chief Executive Officer
|
Anne F. Ackerley, Vice
President
|
Neal J. Andrews, Chief
Financial Officer
|
Jay M. Fife, Treasurer
|
Brian P. Kindelan, Chief
Compliance Officer of the Fund
|
Howard Surloff, Secretary
|
|
Custodian
|
|
The Bank of New York Mellon
|
New York, NY 10286
|
|
Transfer
Agent
|
|
BNY Mellon Shareowner
Services
|
Jersey City, NJ 07310
|
|
Accounting
Agent
|
|
State Street Bank and Trust
Company
|
Princeton, NJ 08540
|
|
Independent
Registered Public Accounting Firm
|
|
Deloitte & Touche LLP
|
Princeton, NJ 08540
|
|
Legal
Counsel
|
|
Skadden, Arps, Slate,
Meagher & Flom LLP
|
New York, NY 10036
|
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BLACKROCK DEBT STRATEGIES
FUND, INC.
|
AUGUST 31, 2008
|
25
|
|
|
Availability
of Quarterly Schedule of Investments
|
|
The Fund files its complete
schedule of portfolio holdings with the Securities and Exchange Commission
(SEC) for the first and third quarters of each fiscal year on Form N-Q. The
Funds Forms N-Q are available on the SECs website at http://www.sec.gov and
may also be reviewed and copied at the SECs Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room may
be obtained by calling (800) SEC-0330. The Funds Forms N-Q may also be
obtained upon request and without charge by calling (800) 441-7762.
Electronic copies of most
financial reports are available on the Funds website or shareholders can sign
up for e-mail notifications of quarterly statements, annual and semi-annual
reports by enrolling in the Funds electronic delivery program.
Shareholders
Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial
advisor to enroll. Please note that not all investment advisors, banks or
brokerages may offer this service.
The Fund will mail only one
copy of shareholder documents, including annual and semi-annual reports and
proxy statements, to shareholders with multiple accounts at the same address.
This practice is commonly called householding and it is intended to reduce
expenses and eliminate duplicate mailings of shareholder documents. Mailings of
your shareholder documents may be householded indefinitely unless you instruct
us otherwise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please contact the Fund at
(800) 441-7762.
Quarterly performance,
semi-annual and annual reports and other information regarding the Fund may be
found on BlackRocks website, which can be accessed at
http://www.blackrock.com. This reference to BlackRocks website is intended to
allow investors public access to information regarding the Fund and does not,
and is not intended to, incorporate BlackRocks website into this report.
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26
|
BLACKROCK DEBT STRATEGIES FUND, INC.
|
AUGUST 31, 2008
|
|
|
|
Additional Information (concluded)
|
|
|
BlackRock
Privacy Principles
|
|
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively,
Clients) and to safeguarding their non-public personal information. The following information is provided to help you understand
what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with
select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or
different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or
regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i)
information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii)
information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as
permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third
parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock
products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about
its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including
procedures relating to the proper storage and disposal of such information.
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BLACKROCK DEBT STRATEGIES
FUND, INC.
|
AUGUST 31, 2008
|
27
|
This report is
transmitted to shareholders only. It is not a prospectus. The Fund leverages
its Common Shares, which creates risk for Common Shareholders, including the
likelihood of greater volatility of net asset value and market price of Common
Shares, and the risk that fluctuations in short-term interest rates may reduce
the Common Shares yield. Past performance results shown in this report should
not be considered a representation of future performance. Statements and other
information herein are as dated and are subject to change.
A description
of the policies and procedures that the Fund uses to determine how to vote
proxies relating to portfolio securities is available (1) without charge, upon
request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3)
on the Securities and Exchange Commissions website at http://www.sec.gov.
Information about how the Fund voted proxies relating to securities held in the
Funds portfolio during the most recent 12-month period ended June 30 is available
upon request and without charge (1) at www.blackrock.com or by calling (800)
441-7762 and (2) on the Securities and Exchange Commissions website at
http://www.sec.gov.
BlackRock Debt
Strategies Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
#DEBT-8/08
Item 2
|
Code of Ethics Not Applicable to this semi-annual report
|
Item 3
|
Audit Committee Financial Expert Not Applicable to this semi-annual report
|
Item 4
|
Principal Accountant Fees and Services Not Applicable to this semi-annual report
|
Item 5
|
Audit Committee of Listed Registrants Not Applicable to this semi-annual report
|
Item 6
|
Investments
(a) The registrants Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
|
Item 7
|
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not Applicable to this semi-annual report
|
Item 8
|
Portfolio Managers of Closed-End Management Investment Companies Not Applicable to this semi-annual report
|
Item 9
|
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable
|
Item 10
|
Submission of Matters to a Vote of Security Holders The registrants Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrants Secretary. There have been no material changes to these procedures.
|
Item 11
|
Controls and Procedures
|
11(a)
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The registrants principal executive and principal financial officers or persons performing similar functions have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
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11(b)
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There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
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Item 12
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Exhibits attached hereto
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12(a)(1)
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Code of Ethics Not Applicable to this semi-annual report
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12(a)(2)
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Certifications Attached hereto
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12(a)(3)
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Not Applicable
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12(b)
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Certifications Attached hereto
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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.
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BlackRock Debt Strategies Fund, Inc.
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By:
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/s/ Donald C. Burke
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Donald C. Burke
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Chief Executive Officer of
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BlackRock Debt Strategies Fund, Inc.
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Date: October 20, 2008
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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.
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By:
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/s/ Donald C. Burke
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Donald C. Burke
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Chief Executive Officer (principal executive officer) of
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BlackRock Debt Strategies Fund, Inc.
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Date: October 20, 2008
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By:
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/s/ Neal J. Andrews
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Neal J. Andrews
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Chief Financial Officer (principal financial officer) of
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BlackRock Debt Strategies Fund, Inc.
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Date: October 20, 2008
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