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 811-08497
Name of Fund: BlackRock Corporate High Yield Fund III, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Corporate High Yield Fund III, Inc., 800 Scudders Mill
Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton,
NJ 08543-9011
Registrant's telephone number, including area code: (800) 882-0052
Date of fiscal year end: 05/31/2008
Date of reporting period: 06/01/2007 - 08/31/2007
Item 1 - Schedule of Investments
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
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Aerospace & Defense - 4.4% $ 1,947,000 Alliant Techsystems, Inc., 2.75% due 9/15/2011 (b)(i) $ 2,389,943
560,000 Bombardier, Inc., 8% due 11/15/2014 (i) 578,200
1,425,000 DRS Technologies, Inc., 6.875% due 11/01/2013 1,396,500
975,000 Esterline Technologies Corp., 7.75% due 6/15/2013 967,687
1,425,000 L-3 Communications Corp., 7.625% due 6/15/2012 1,449,937
1,625,000 L-3 Communications Corp., 5.875% due 1/15/2015 1,539,687
1,380,000 L-3 Communications Corp., 3% due 8/01/2035 (b)(i) 1,571,475
1,375,000 L-3 Communications Corp. Series B, 6.375% due 10/15/2015 1,330,312
470,000 TransDigm, Inc., 7.75% due 7/15/2014 472,350
1,950,000 Vought Aircraft Industries, Inc., 8% due 7/15/2011 1,891,500
--------------
13,587,591
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Airlines - 0.5% 987,345 Continental Airlines, Inc. Series 1997-4-B, 6.90% due 7/02/2018 (m) 937,360
41,100 Continental Airlines, Inc. Series 1998-1-C, 6.541% due 9/15/2009 (m) 40,689
419,800 Continental Airlines, Inc. Series 2001-1-C, 7.033% due 12/15/2012 (m) 407,206
--------------
1,385,255
-----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 0.7% 215,000 Compagnie Generale de Geophysique SA, 7.50% due
5/15/2015 216,075
70,000 The Goodyear Tire & Rubber Co., 7.857% due 8/15/2011 69,300
602,000 The Goodyear Tire & Rubber Co., 8.625% due 12/01/2011 (i) 611,391
1,285,000 Lear Corp., 8.75% due 12/01/2016 1,188,625
--------------
2,085,391
-----------------------------------------------------------------------------------------------------------------------------------
Automobiles - 0.4% 785,000 Ford Capital BV, 9.50% due 6/01/2010 761,450
700,000 Ford Motor Co., 8.90% due 1/15/2032 581,000
--------------
1,342,450
-----------------------------------------------------------------------------------------------------------------------------------
Beverages - 0.5% 1,500,000 Constellation Brands, Inc., 8.125% due 1/15/2012 1,503,750
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Biotechnology - 0.4% 1,140,000 Angiotech Pharmaceuticals, Inc., 9.371% due 12/01/2013 (d) 1,128,600
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Building Products - 1.5% 699,000 Goodman Global Holding Co., Inc., 8.36% due 6/15/2012 (d) 685,020
1,350,000 Goodman Global Holding Co., Inc., 7.875% due 12/15/2012 1,336,500
500,000 Masonite International Corp., 11% due 4/06/2015 407,500
2,330,000 Momentive Performance Materials, Inc., 10.125% due 12/01/2014 (g)(i) 2,166,900
--------------
4,595,920
-----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 2.8% 880,000 American Pacific Corp., 9% due 2/01/2015 866,800
525,000 Hexion U.S. Finance Corp., 9.75% due 11/15/2014 567,000
625,000 Hexion U.S. Finance Corp., 10.058% due 11/15/2014 (d) 637,500
820,000 Ineos Group Holdings Plc, 8.50% due 2/15/2016 (i) 754,400
825,000 Innophos, Inc., 8.875% due 8/15/2014 812,625
455,000 Key Plastics LLC, 11.75% due 3/15/2013 (i) 400,400
1,700,000 MacDermid, Inc., 9.50% due 4/15/2017 (i) 1,581,000
2,065,000 NOVA Chemicals Corp., 8.484% due 11/15/2013 (d) 2,003,050
724,000 Nalco Finance Holdings, Inc., 10.065% due 2/01/2014 (a) 629,880
550,000 Terra Capital, Inc. Series B, 7% due 2/01/2017 528,000
--------------
8,780,655
-----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & Supplies 1,600,000 Ashtead Capital, Inc., 9% due 8/15/2016 (i) 1,584,000
- 6.2% 3,000,000 Corrections Corp. of America, 7.50% due 5/01/2011 3,015,000
570,000 DI Finance Series B, 9.50% due 2/15/2013 578,550
1,385,000 PNA Intermediate Holding Corp., 12.558% due
2/15/2013 (d)(i) 1,333,063
2,845,000 Quebecor World, Inc., 9.75% due 1/15/2015 (i) 2,674,300
210,000 Sally Holdings LLC, 9.25% due 11/15/2014 206,850
1,780,000 Sally Holdings LLC, 10.50% due 11/15/2016 1,699,900
3,000,000 Waste Services, Inc., 9.50% due 4/15/2014 3,030,000
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 750,000 West Corp., 9.50% due 10/15/2014 $ 753,750
2,850,000 West Corp., 11% due 10/15/2016 2,892,750
1,420,000 Yankee Acquisition Corp., 9.75% due 2/15/2017 1,270,900
--------------
19,039,063
-----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 1,750,000 Dycom Industries, Inc., 8.125% due 10/15/2015 1,750,000
1.4% 571,000 Loral Spacecom Corp., 14% due 11/15/2015 (g) 604,174
1,915,000 Nortel Networks Ltd., 9.61% due 7/15/2011 (d)(i) 1,919,788
--------------
4,273,962
-----------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 0.4% 1,250,000 Viasystems, Inc., 10.50% due 1/15/2011 1,250,000
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Construction Materials - 0.5% 545,000 Nortek, Inc., 8.50% due 9/01/2014 471,425
1,000,000 Texas Industries, Inc., 7.25% due 7/15/2013 981,250
--------------
1,452,675
-----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 5.8% 1,370,000 Berry Plastics Holding Corp., 8.875% due 9/15/2014 1,366,575
1,915,000 Berry Plastics Holding Corp., 9.569% due 9/15/2014 (d) 1,895,850
2,200,000 Graham Packing Co., Inc., 9.875% due 10/15/2014 2,156,000
1,050,000 Graphic Packaging International Corp., 8.50% due 8/15/2011 1,060,500
640,000 Graphic Packaging International Corp., 9.50% due 8/15/2013 646,400
2,637,000 Owens-Brockway Glass Container, Inc., 8.875% due 2/15/2009 2,679,851
1,000,000 Owens-Brockway Glass Container, Inc., 8.25% due 5/15/2013 1,025,000
1,355,000 Packaging Dynamics Finance Corp., 10% due 5/01/2016 (i) 1,356,694
1,200,000 Pregis Corp., 12.375% due 10/15/2013 1,284,000
2,000,000 Rock-Tenn Co., 8.20% due 8/15/2011 2,050,000
2,375,000 Smurfit-Stone Container Enterprises, Inc., 8% due 3/15/2017 2,265,156
--------------
17,786,026
-----------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.1% 220,000 Keystone Automotive Operations, Inc., 9.75% due 11/01/2013 176,000
-----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services 710,000 Ford Motor Credit Co. LLC, 8.11% due 1/13/2012 (d) 650,224
- 0.5% 200,000 Ford Motor Credit Co. LLC, 7.80% due 6/01/2012 184,260
600,000 General Motors Acceptance Corp., 7.25% due 3/02/2011 551,221
250,000 General Motors Acceptance Corp., 8% due 11/01/2031 224,591
--------------
1,610,296
-----------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication 350,000 Qwest Communications International, Inc., 7.50% due
Services - 1.8% 2/15/2014 343,875
1,550,000 Qwest Corp., 8.944% due 6/15/2013 (d) 1,635,250
525,000 Qwest Corp., 7.625% due 6/15/2015 540,750
3,000,000 Windstream Corp., 8.125% due 8/01/2013 3,097,500
--------------
5,617,375
-----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 2.6% 1,875,000 Edison Mission Energy, 7.50% due 6/15/2013 1,889,062
2,600,000 Mirant North America LLC, 7.375% due 12/31/2013 2,587,000
420,000 NSG Holdings LLC, 7.75% due 12/15/2025 (i)(m) 407,925
1,200,000 Sierra Pacific Resources, 8.625% due 3/15/2014 1,269,880
2,026,828 Tenaska Alabama Partners LP, 7% due 6/30/2021 (i)(m) 2,009,178
--------------
8,163,045
-----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.7% 380,000 Belden CDT, Inc., 7% due 3/15/2017 (i) 368,600
1,200,000 Coleman Cable, Inc., 9.875% due 10/01/2012 (i) 1,155,000
551,000 UCAR Finance, Inc., 10.25% due 2/15/2012 575,795
--------------
2,099,395
-----------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & 1,315,000 NXP BV, 8.11% due 10/15/2013 (d) 1,191,719
Instruments - 1.4% 2,310,000 NXP BV, 9.50% due 10/15/2015 1,998,150
55,000 Sanmina-SCI Corp., 6.75% due 3/01/2013 46,750
1,135,000 Sanmina-SCI Corp., 8.125% due 3/01/2016 981,775
--------------
4,218,394
-----------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & Services - 320,000 Compagnie Generale de Geophysique-Veritas, 7.75% due 5/15/2017 323,200
1.8% 720,000 North American Energy Partners, Inc., 8.75% due 12/01/2011 723,600
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Ocean RIG ASA, 9.36% due 4/04/2011 (d) $ 1,975,000
2,690,000 SemGroup LP, 8.75% due 11/15/2015 (i) 2,589,125
--------------
5,610,925
-----------------------------------------------------------------------------------------------------------------------------------
Food & Staples Retailing - 800,000 AmeriQual Group LLC, 9.50% due 4/01/2012 (i) 744,000
2.1% 2,000,000 National Beef Packing Co. LLC, 10.50% due 8/01/2011 2,060,000
1,440,000 Rite Aid Corp., 9.375% due 12/15/2015 (i) 1,310,400
2,555,000 Rite Aid Corp., 7.50% due 3/01/2017 2,376,150
--------------
6,490,550
-----------------------------------------------------------------------------------------------------------------------------------
Food Products - 1.0% 3,024,000 Del Monte Corp., 8.625% due 12/15/2012 3,054,240
-----------------------------------------------------------------------------------------------------------------------------------
Gas Utilities - 0.4% 1,320,000 El Paso Performance-Linked Trust, 7.75% due 7/15/2011 (i) 1,352,394
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & 600,000 The Cooper Cos., Inc., 7.125% due 2/15/2015 573,000
Supplies - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 300,000 Accellent, Inc., 10.50% due 12/01/2013 277,500
Services - 5.9% 1,195,000 Community Health Systems, Inc., 8.875% due 7/15/2015 (i) 1,193,506
725,000 Omnicare, Inc., 6.75% due 12/15/2013 674,250
800,000 Omnicare, Inc. Series OCR, 3.25% due 12/15/2035 (b) 627,000
3,000,000 Service Corp. International, 7% due 6/15/2017 2,835,000
4,215,000 Tenet Healthcare Corp., 6.50% due 6/01/2012 3,498,450
2,260,000 Tenet Healthcare Corp., 9.875% due 7/01/2014 2,000,100
3,000,000 US Oncology, Inc., 9% due 8/15/2012 3,000,000
1,550,000 United Surgical Partners International, Inc., 8.875% due 5/01/2017 1,480,250
330,000 Universal Hospital Services, Inc., 8.50% due 6/01/2015 (g)(i) 306,182
310,000 Universal Hospital Services, Inc., 8.759% due 6/01/2015 (i) 299,150
2,000,000 Vanguard Health Holding Co. II, LLC, 9% due 10/01/2014 1,870,000
--------------
18,061,388
-----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 185,000 American Real Estate Partners LP, 7.125% due 2/15/2013 173,900
- 8.1% 1,265,000 American Real Estate Partners LP, 7.125% due 2/15/2013 (i) 1,189,100
1,350,000 Caesars Entertainment, Inc., 7.875% due 3/15/2010 1,356,750
100,000 Caesars Entertainment, Inc., 8.125% due 5/15/2011 99,000
785,000 French Lick Resorts & Casino LLC, 10.75% due 4/15/2014 (i) 624,075
300,000 Galaxy Entertainment Finance Co. Ltd., 10.409% due
12/15/2010 (d)(i) 303,000
550,000 Galaxy Entertainment Finance Co. Ltd., 9.875% due
12/15/2012 (i) 558,250
2,000,000 Great Canadian Gaming Corp., 7.25% due 2/15/2015 (i) 1,920,000
595,000 Greektown Holdings, LLC, 10.75% due 12/01/2013 (i) 595,000
2,395,000 Harrah's Operating Co., Inc., 5.75% due 10/01/2017 1,796,250
1,550,000 Inn of the Mountain Gods Resort & Casino, 12% due 11/15/2010 1,635,250
325,000 Landry's Restaurants, Inc. Series B, 7.50% due 12/15/2014 325,406
1,290,000 Little Traverse Bay Bands of Odawa Indians, 10.25% due
2/15/2014 (i) 1,296,450
2,025,000 Penn National Gaming, Inc., 6.875% due 12/01/2011 2,025,000
1,340,000 Pinnacle Entertainment, Inc., 7.50% due 6/15/2015 (i) 1,232,800
975,000 San Pasqual Casino, 8% due 9/15/2013 (i) 976,219
910,000 Shingle Springs Tribal Gaming Authority, 9.375% due
6/15/2015 (i) 896,350
1,225,000 Station Casinos, Inc., 6.50% due 2/01/2014 1,038,188
1,625,000 Station Casinos, Inc., 7.75% due 8/15/2016 1,555,938
650,000 Station Casinos, Inc., 6.625% due 3/15/2018 523,250
90,000 Travelport LLC, 9.875% due 9/01/2014 90,675
370,000 Travelport LLC, 10.246% due 9/01/2014 (d) 370,000
2,060,000 Tropicana Entertainment, LLC, 9.625% due 12/15/2014 (i) 1,524,400
1,800,000 Universal City Florida Holding Co. I, 10.106% due 5/01/2010 (d) 1,818,000
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,200,000 Wynn Las Vegas LLC, 6.625% due 12/01/2014 $ 1,161,000
--------------
25,084,251
-----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 1.3% 1,575,000 American Greetings Corp., 7.375% due 6/01/2016 1,488,375
1,365,000 Jarden Corp., 7.50% due 5/01/2017 1,276,275
1,600,000 Standard-Pacific Corp., 9.25% due 4/15/2012 1,168,000
--------------
3,932,650
-----------------------------------------------------------------------------------------------------------------------------------
Household Products - 0.2% 700,000 Church & Dwight Co., Inc., 6% due 12/15/2012 652,750
-----------------------------------------------------------------------------------------------------------------------------------
IT Services - 1.4% 2,180,000 SunGard Data Systems, Inc., 9.125% due 8/15/2013 2,250,850
2,105,000 SunGard Data Systems, Inc., 10.25% due 8/15/2015 2,168,150
--------------
4,419,000
-----------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & 2,100,000 The AES Corp., 8.75% due 5/15/2013 (i) 2,184,000
Energy Traders - 1.7% 1,625,000 NRG Energy, Inc., 7.25% due 2/01/2014 1,608,750
1,475,000 NRG Energy, Inc., 7.375% due 2/01/2016 1,456,562
--------------
5,249,312
-----------------------------------------------------------------------------------------------------------------------------------
Insurance - 0.2% 680,000 USI Holdings Corp., 9.433% due 11/15/2014 (d)(i) 632,400
-----------------------------------------------------------------------------------------------------------------------------------
Internet Software & Services - 420,000 Impress Holdings B.V., 8.485% due 9/15/2013 (d)(i) 420,328
0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Leisure Equipment & Products - 2,000,000 Quiksilver, Inc., 6.875% due 4/15/2015 1,850,000
0.6%
-----------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.3% 1,280,000 AGY Holding Corp., 11% due 11/15/2014 (i) 1,299,200
555,000 Accuride Corp., 8.50% due 2/01/2015 513,375
470,000 RBS Global, Inc., 9.50% due 8/01/2014 474,700
1,000,000 RBS Global, Inc., 11.75% due 8/01/2016 1,035,000
560,000 RBS Global, Inc., 8.875% due 9/01/2016 547,400
--------------
3,869,675
-----------------------------------------------------------------------------------------------------------------------------------
Marine - 1.3% 1,525,000 Navios Maritime Holdings, Inc., 9.50% due 12/15/2014 1,557,406
2,325,000 Teekay Shipping Corp., 8.875% due 7/15/2011 2,394,750
--------------
3,952,156
-----------------------------------------------------------------------------------------------------------------------------------
Media - 20.1% 1,340,000 Affinion Group, Inc., 11.50% due 10/15/2015 1,340,000
1,850,000 Allbritton Communications Co., 7.75% due 12/15/2012 1,808,375
225,000 American Media Operations, Inc. Series B, 10.25% due
5/01/2009 198,000
1,125,000 Barrington Broadcasting Group LLC, 10.50% due
8/15/2014 (i) 1,130,625
510,000 Bonten Media Acquisition Co., 9% due 6/01/2015 (g)(i) 431,726
350,000 CBD Media Holdings LLC, 9.25% due 7/15/2012 353,500
2,600,000 CBD Media, Inc., 8.625% due 6/01/2011 2,590,250
2,000,000 CMP Susquehanna Corp., 9.875% due 5/15/2014 1,850,000
2,275,000 CSC Holdings, Inc. Series B, 7.625% due 4/01/2011 2,240,875
75,000 Cablevision Systems Corp. Series B, 9.82% due 4/01/2009 (d) 76,875
475,000 Cablevision Systems Corp. Series B, 8% due 4/15/2012 454,812
1,600,000 Cadmus Communications Corp., 8.375% due 6/15/2014 1,520,000
380,000 CanWest Media, Inc., 8% due 9/15/2012 370,025
4,165,000 Charter Communications Holdings I, LLC, 11%
due 10/01/2015 4,075,362
3,715,000 Charter Communications Holdings II, LLC, 10.25%
due 9/15/2010 3,752,150
1,367,000 Dex Media West LLC, 9.875% due 8/15/2013 1,442,185
1,975,000 Echostar DBS Corp., 7.125% due 2/01/2016 1,930,562
420,000 Harland Clarke Holdings Corp., 9.50% due 5/15/2015 375,900
350,000 Harland Clarke Holdings Corp., 10.308% due 5/15/2015 (d) 313,250
2,010,000 Idearc, Inc., 8% due 11/15/2016 1,984,875
240,000 Intelsat Bermuda Ltd., 11.409% due 6/15/2013 (d) 246,600
680,000 Intelsat Bermuda Ltd., 8.886% due 1/15/2015 (d) 685,100
700,000 Intelsat Bermuda Ltd., 11.25% due 6/15/2016 732,375
1,125,000 Intelsat Corp., 9% due 6/15/2016 1,147,500
2,150,000 Intelsat Subsidiary Holding Co. Ltd., 8.625% due 1/15/2015 2,163,437
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,113,000 Liberty Media Corp., 0.75% due 3/30/2023 (b) $ 1,259,081
2,425,000 Mediacom LLC, 9.50% due 1/15/2013 2,425,000
280,000 Network Communications, Inc., 10.75% due 12/01/2013 280,000
400,000 Nexstar Finance, Inc., 7% due 1/15/2014 378,000
3,000,000 Nielsen Finance LLC, 10% due 8/01/2014 3,075,000
1,060,000 Nielsen Finance LLC, 9.919% due 8/01/2016 (a) 707,550
2,193,000 PanAmSat Corp., 9% due 8/15/2014 2,231,378
2,975,000 Paxson Communications Corp., 8.61% due 1/15/2012 (d)(i) 2,934,094
794,939 ProtoStar I Ltd., 12.50% due 10/15/2012 (b)(d)(i) 834,686
2,000,000 Quebecor Media, Inc., 7.75% due 3/15/2016 1,902,500
1,400,000 R.H. Donnelley Corp. Series A-2, 6.875% due 1/15/2013 1,319,500
735,000 R.H. Donnelley Corp. Series A-3, 8.875% due 1/15/2016 753,375
1,232,000 Rainbow National Services LLC, 10.375% due 9/01/2014 (i) 1,341,340
2,475,000 Salem Communications Corp., 7.75% due 12/15/2010 2,456,438
696,000 Sinclair Broadcast Group, Inc., 8% due 3/15/2012 702,960
500,000 Sirius Satellite Radio, Inc., 9.625% due 8/01/2013 472,500
3,970,000 TL Acquisitions, Inc., 10.50% due 1/15/2015 (i) 3,741,725
1,110,000 Umbrella Acquisition, 9.75% due 3/15/2015 (g)(i) 1,057,275
1,225,000 Young Broadcasting, Inc., 10% due 3/01/2011 1,102,500
--------------
62,189,261
-----------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 5.1% 2,300,000 Aleris International, Inc., 9% due 12/15/2014 (g) 2,144,939
200,000 Blaze Recycling & Metals LLC, 10.875% due 7/15/2012 (i) 197,500
1,950,000 Chaparral Steel Co., 10% due 7/15/2013 2,213,250
535,000 FMG Finance Pty Ltd., 10% due 9/01/2013 (i) 572,450
770,000 FMG Finance Pty Ltd., 10.625% due 9/01/2016 (i) 881,650
1,975,000 Foundation PA Coal Co., 7.25% due 8/01/2014 1,891,062
1,150,000 Freeport-McMoRan Copper & Gold, Inc., 8.564% due 4/01/2015 (d) 1,184,500
3,465,000 Freeport-McMoRan Copper & Gold, Inc., 8.375% due 4/01/2017 3,690,225
1,018,000 Indalex Holding Corp. Series B, 11.50% due 2/01/2014 954,375
1,975,000 Novelis, Inc., 7.25% due 2/15/2015 1,915,750
--------------
15,645,701
-----------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 0.6% 1,327,000 CenterPoint Energy, Inc. Series B, 3.75% due 5/15/2023 (b) 1,939,079
-----------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 0.3% 125,000 Dollar General Corp., 10.625% due 7/15/2015 (i) 112,500
875,000 Neiman Marcus Group, Inc., 9% due 10/15/2015 (g) 912,169
--------------
1,024,669
-----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels - 510,000 Berry Petroleum Co., 8.25% due 11/01/2016 502,350
5.1% 1,550,000 Chaparral Energy, Inc., 8.50% due 12/01/2015 1,387,250
1,710,000 Compton Petroleum Finance Corp., 7.625% due 12/01/2013 1,624,500
1,100,000 Copano Energy LLC, 8.125% due 3/01/2016 1,105,500
2,472,390 Corral Finans AB, 6.86% due 4/15/2010 (g)(i) 2,337,631
2,800,000 EXCO Resources, Inc., 7.25% due 1/15/2011 2,821,000
2,000,000 Encore Acquisition Co., 6.25% due 4/15/2014 1,825,000
1,220,000 Forest Oil Corp., 7.25% due 6/15/2019 (i) 1,174,250
380,000 KCS Energy, Inc., 7.125% due 4/01/2012 364,800
1,725,000 OPTI Canada, Inc., 8.25% due 12/15/2014 (i) 1,746,563
780,000 Sabine Pass LNG LP, 7.50% due 11/30/2016 758,550
--------------
15,647,394
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 5.4% 2,000,000 Abitibi-Consolidated, Inc., 9.194% due 6/15/2011 (d) 1,720,000
670,000 Abitibi-Consolidated, Inc., 6% due 6/20/2013 495,800
195,000 Abitibi-Consolidated, Inc., 8.85% due 8/01/2030 148,200
1,000,000 Ainsworth Lumber Co. Ltd., 8.948% due 10/01/2010 (d) 770,000
1,975,000 Boise Cascade LLC, 8.235% due 10/15/2012 (d) 1,955,250
840,000 Bowater Canada Finance Corp., 7.95% due 11/15/2011 714,000
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,825,000 Bowater, Inc., 8.694% due 3/15/2010 (d) $ 2,542,500
3,200,000 Domtar, Inc., 7.125% due 8/15/2015 2,976,000
1,450,000 NewPage Corp., 11.606% due 5/01/2012 (d) 1,537,000
1,755,000 NewPage Corp., 12% due 5/01/2013 1,833,975
885,000 Norske Skog Canada Ltd. Series D, 8.625% due 6/15/2011 778,800
950,000 Verso Paper Holdings LLC Series B, 9.125% due 8/01/2014 950,000
340,000 Verso Paper Holdings LLC Series B, 11.375% due 8/01/2016 346,800
--------------
16,768,325
-----------------------------------------------------------------------------------------------------------------------------------
Personal Products - 0.4% 1,400,000 Chattem, Inc., 7% due 3/01/2014 1,351,000
-----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 0.9% 2,000,000 Elan Finance Plc, 9.558% due 11/15/2011 (d) 1,960,000
930,000 PTS Acquisition Corp., 9.50% due 4/15/2015 (g)(i) 841,650
--------------
2,801,650
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts 1,175,000 FelCor Lodging LP, 8.50% due 6/01/2011 1,230,812
(REITs) - 0.4%
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & 3,025,000 Forest City Enterprises, Inc., 7.625% due 6/01/2015 2,843,500
Development - 2.6% 1,510,000 Realogy Corp., 10.50% due 4/15/2014 (i) 1,272,175
2,390,000 Realogy Corp., 11% due 4/15/2014 (g)(i) 1,935,900
2,835,000 Realogy Corp., 12.375% due 4/15/2015 (i) 2,087,269
--------------
8,138,844
-----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 1.7% 600,000 Avis Budget Car Rental LLC, 7.625% due 5/15/2014 585,000
2,800,000 Avis Budget Car Rental LLC, 8.058% due 5/15/2014 (d) 2,716,000
370,000 Britannia Bulk Plc, 11% due 12/01/2011 366,300
2,125,000 St. Acquisition Corp., 12.50% due 5/15/2017 (i) 1,439,688
--------------
5,106,988
-----------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor 280,000 Amkor Technology, Inc., 7.75% due 5/15/2013 259,700
Equipment - 2.3% 1,370,000 Amkor Technology, Inc., 9.25% due 6/01/2016 1,328,900
5,010,000 Freescale Semiconductor, Inc., 9.125% due 12/15/2014 (g) 4,483,950
1,215,000 Spansion, Inc., 8.746% due 6/01/2013 (d)(i) 1,154,250
--------------
7,226,800
-----------------------------------------------------------------------------------------------------------------------------------
Software - 0.2% 637,406 BMS Holdings, Inc., 12.40% due 2/15/2012 (d)(g)(i) 594,770
-----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 4.9% 350,000 Asbury Automotive Group, Inc., 7.625% due 3/15/2017 (i) 322,000
2,875,000 Autonation, Inc., 7.36% due 4/15/2013 (d) 2,702,500
775,000 Autonation, Inc., 7% due 4/15/2014 729,469
310,000 Beverages & More, Inc., 9.25% due 3/01/2012 (i) 302,250
945,000 Buffets, Inc., 12.50% due 11/01/2014 727,650
470,000 Claire's Stores, Inc., 9.25% due 6/01/2015 (i) 407,725
810,000 Claire's Stores, Inc., 9.625% due 6/01/2015 (g)(i) 633,364
650,000 Claire's Stores, Inc., 10.50% due 6/01/2017 (i) 481,000
1,760,000 General Nutrition Centers, Inc., 10.009% due 3/15/2014 (g)(i) 1,590,972
1,420,000 General Nutrition Centers, Inc., 10.75% due 3/15/2015 (g)(i) 1,270,561
900,000 Group 1 Automotive, Inc., 2.25% due 6/15/2036 (b)(k) 691,875
1,700,000 Michaels Stores, Inc., 10% due 11/01/2014 (i) 1,704,250
2,110,000 Michaels Stores, Inc., 11.375% due 11/01/2016 (i) 2,051,975
530,000 Sensata Technologies BV, 8% due 5/01/2014 498,200
1,110,000 United Auto Group, Inc., 7.75% due 12/15/2016 1,060,050
--------------
15,173,841
-----------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury 2,000,000 Levi Strauss & Co., 8.875% due 4/01/2016 2,010,000
Goods - 0.7%
-----------------------------------------------------------------------------------------------------------------------------------
Trading Companies & 1,200,000 United Rentals North America, Inc., 7.75% due 11/15/2013 1,236,000
Distributors - 0.4%
-----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 1,650,000 Centennial Cellular Operating Co. LLC, 10.125% due
Services - 6.4% 6/15/2013 1,728,375
1,370,000 Centennial Communications Corp., 11.11% due 1/01/2013 (d) 1,404,250
1,350,000 Cricket Communications, Inc., 9.375% due 11/01/2014 1,323,000
1,750,000 Cricket Communications, Inc., 9.375% due 11/01/2014 (i) 1,715,000
850,000 Digicel Group Ltd., 8.875% due 1/15/2015 (i) 776,730
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Face
Industry Amount Corporate Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,283,000 Digicel Group Ltd., 9.125% due 1/15/2015 (g)(i) $ 2,086,205
1,200,000 Dobson Communications Corp., 9.61% due 10/15/2012 (d) 1,224,000
620,000 iPCS, Inc., 7.481% due 5/01/2013 (d)(i) 598,300
3,330,000 MetroPCS Wireless, Inc., 9.25% due 11/01/2014 (i) 3,280,050
2,400,000 Nordic Telephone Co. Holdings ApS, 8.875% due
5/01/2016 (i) 2,484,000
210,000 Orascom Telecom Finance SCA, 7.875% due 2/08/2014 191,625
380,000 Orascom Telecom Finance SCA, 7.875% due 2/08/2014 (i) 346,750
2,600,000 Rural Cellular Corp., 8.25% due 3/15/2012 2,704,000
--------------
19,862,285
-----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds (Cost - $376,294,192) - 117.7% 363,248,281
-----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Loan Interests (l)
-----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.8% 2,830,000 Wellman, Inc. Second Lien Term Loan, 12.106% due 2/10/2010 2,462,100
-----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 0.2% 860,000 Berry Plastics Corp. Term Loan B, 11.97% due 6/15/2014 739,600
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 1,495,790 Rotech Healthcare, Inc. Term Loan B, 11.36% due 9/26/2011 1,286,380
Services - 0.4%
-----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 3,112,755 Travelport, Inc. Term Loan, 12.36% due 3/22/2012 2,920,801
- 1.0%
-----------------------------------------------------------------------------------------------------------------------------------
Household Products - 0.2% 24,970 Spectrum Brands, Inc. Letter of Credit, 5.515% due 4/15/2013 24,200
505,139 Spectrum Brands, Inc. Term Loan B-1, 9.754% due 4/15/2013 489,564
89,891 Spectrum Brands, Inc. Term Loan B-2, 9.565% due 4/15/2013 84,498
--------------
598,262
-----------------------------------------------------------------------------------------------------------------------------------
Machinery - 0.1% 360,925 Rexnord Corp. Payment In Kind Term Loan, 12.58% due
3/02/2013 341,074
-----------------------------------------------------------------------------------------------------------------------------------
Media - 0.1% 400,000 Affinion Group, Inc. Term Loan, 11.678% due 3/01/2012 369,333
-----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels - 1,000,000 SandRidge Energy, Inc. Term Loan, 8.625% due 3/01/2015 977,500
0.3%
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.6% 1,960,000 Verso Paper Holdings LLC Term Loan B, 11.606% due
2/01/2013 1,950,200
-----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.3% 800,000 Michaels Stores, Inc. Term Loan B, 8.125% due 10/31/2013 752,286
-----------------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Loan Interests
(Cost - $13,175,937) - 4.0% 12,397,536
-----------------------------------------------------------------------------------------------------------------------------------
Shares
Held Common Stocks
-----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 82,907 Loral Space & Communications Ltd. (c) 3,322,913
1.1%
-----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.3% 70,784 Medis Technologies Ltd. (c) 746,771
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.1% 203,785 Western Forest Products, Inc. (c) 438,061
-----------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor 98,040 Cypress Semiconductor Corp. (c) 2,454,922
Equipment - 0.8%
-----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost - $8,251,141) - 2.3% 6,962,667
-----------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks
-----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 6,762 Loral Spacecom Corp. Series A, 12% (g) 1,379,523
0.4%
-----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels - 43 EXCO Resources, Inc., 7% (b) 490,200
0.8% 175 EXCO Resources, Inc., 11% 1,995,000
--------------
2,485,200
-----------------------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (Cost - $3,519,212) - 1.2% 3,864,723
-----------------------------------------------------------------------------------------------------------------------------------
Warrants (h)
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 32,042 HealthSouth Corp. (expires 1/16/2014) 25,634
Services - 0.0%
-----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.0% 700 MDP Acquisitions Plc (expires 10/01/2013) 90,699
-----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 825 American Tower Corp. (expires 8/01/2008) 449,625
Services - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Total Warrants (Cost - $53,675) - 0.2% 565,958
-----------------------------------------------------------------------------------------------------------------------------------
Beneficial
Interest Other Interests (e)
-----------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% $ 750,000 Adelphia Escrow 0
940,601 Adelphia Recovery Trust 94
-----------------------------------------------------------------------------------------------------------------------------------
Total Other Interests (Cost - $3,075) - 0.0% 94
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
Beneficial
Interest Short-Term Securities Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,496,948 BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.33% (f)(j) $ 3,496,948
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost - $3,496,948) - 1.1% 3,496,948
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $404,794,180*) - 126.5% 390,536,207
Liabilities in Excess of Other Assets - (26.5%) (81,884,478)
--------------
Net Assets - 100.0% $ 308,651,729
==============
* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 405,197,635
==============
Gross unrealized appreciation $ 5,562,201
Gross unrealized depreciation (20,223,629)
--------------
Net unrealized depreciation $ (14,661,428)
==============
(a) Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase.
(b) Convertible security.
(c) Non-income producing security.
(d) Floating rate security.
(e) Other interests represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(f) Represents the current yield as of August 31, 2007.
(g) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(h) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(i) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(j) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
------------------------------------------------------------------------------------
Affiliate Net Activity Interest Income
------------------------------------------------------------------------------------
BlackRock Liquidity Series, LLC Cash Sweep Series $ 1,927,242 $ 74,242
------------------------------------------------------------------------------------
(k) Represents a step bond.
(l) Floating rate loan interests in which the Fund invests generally pay
interest at rates that are periodically determined by reference to a base
lending rate plus a premium. The base lending rates are generally (i) the
lending rate offered by one or more major European banks, such as LIBOR
(London InterBank Offered Rate), (ii) the prime rate offered by one or
more major U.S. banks or (iii) the certificate of deposit rate.
(m) Subject to principal paydowns.
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report which may combine industry sub-classifications for reporting
ease. Industries are shown as a percent of net assets.
BlackRock Corporate High Yield Fund III, Inc.
Schedule of Investments as of August 31, 2007 (Unaudited)
o Swaps outstanding as of August 31, 2007 were as follows:
------------------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
------------------------------------------------------------------------------------
Sold credit default protection on Ford Motor Co.
and receive 3.80%
Broker, JPMorgan Chase
Expires March 2010 $ 3,000,000 $ (202,467)
Sold credit default protection on Ford Motor Co.
and receive 3.80%
Broker, UBS Warburg
Expires March 2010 $ 1,000,000 (67,489)
Sold credit default protection on Ford Motor Co.
and receive 5%
Broker, Goldman Sachs & Co.
Expires June 2010 $ 4,000,000 (184,052)
------------------------------------------------------------------------------------
Total $ (454,008)
============
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's 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 and Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
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.
BlackRock Corporate High Yield Fund III, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Corporate High Yield Fund III, Inc.
Date: October 22, 2007
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/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Corporate High Yield Fund III, Inc.
Date: October 22, 2007
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Corporate High Yield Fund III, Inc.
Date: October 22, 2007