Western Asset Corporate Loan Fund Inc.
Announces Plan of Liquidation
BrandywineGLOBAL – Global Income
Opportunities Fund Inc. (NYSE: BWG),
ClearBridge MLP and Midstream Fund Inc.
(NYSE: CEM),
ClearBridge Energy Midstream Opportunity
Fund Inc. (NYSE: EMO),
ClearBridge MLP and Midstream Total Return
Fund Inc. (NYSE: CTR),
LMP Capital and Income Fund Inc. (NYSE:
SCD),
Western Asset Corporate Loan Fund Inc.
(NYSE: TLI),
Western Asset Global Corporate Defined
Opportunity Fund Inc. (NYSE: GDO),
Western Asset Global High Income Fund Inc.
(NYSE: EHI),
Western Asset High Income Fund II Inc.
(NYSE: HIX),
Western Asset High Income Opportunity Fund
Inc. (NYSE: HIO),
Western Asset High Yield Defined Opportunity
Fund Inc. (NYSE: HYI),
Western Asset Investment Grade Defined
Opportunity Trust Inc. (NYSE: IGI)
Western Asset Managed Municipals Fund Inc.
(NYSE: MMU),
Western Asset Middle Market Debt Fund Inc.
(XWAMX),
Western Asset Middle Market Income Fund Inc.
(XWMFX),
Western Asset Mortgage Opportunity Fund Inc.
(NYSE: DMO),
Western Asset Municipal Defined Opportunity
Trust Inc. (NYSE: MTT),
Western Asset Municipal High Income Fund
Inc. (NYSE: MHF),
Western Asset Municipal Partners Fund Inc.
(NYSE: MNP),
Western Asset Variable Rate Strategic Fund
Inc. (NYSE: GFY)
(each, a “Fund” and, together, the
“Funds”)
Each of the Funds today announced voting results from their
respective Special Meeting of Shareholders (the “Special Meeting”),
where shareholders of each Fund were asked to vote on a new
management agreement with the Fund’s manager and new subadvisory
agreement(s) with the Fund’s subadviser(s). These new agreements
were proposed in connection with the pending combination of Legg
Mason, Inc. (“Legg Mason”), the parent company of the Fund’s
investment manager and subadviser(s), and Franklin Resources, Inc.,
a global investment management organization operating as Franklin
Templeton (the “Transaction”), which will result in the automatic
termination of each Fund’s current management and subadvisory
agreements.
To date, shareholders of each of the following 19 Funds have
voted to approve new management and subadvisory agreements:
BrandywineGLOBAL – Global Income Opportunities Fund Inc. (“BWG”),
Clarion Partners Real Estate Income Fund Inc. (“CPREIF”),
ClearBridge MLP and Midstream Fund Inc. (“CEM”), ClearBridge Energy
Midstream Opportunity Fund Inc. (“EMO”), ClearBridge MLP and
Midstream Total Return Fund Inc. (“CTR”), LMP Capital and Income
Fund Inc. (“SCD”), Western Asset Emerging Markets Debt Fund Inc.
(“EMD”), Western Asset Global Corporate Defined Opportunity Fund
Inc. (“GDO”), Western Asset Global High Income Fund Inc. (“EHI”),
Western Asset High Income Fund II Inc. (“HIX”), Western Asset High
Income Opportunity Fund Inc. (“HIO”), Western Asset High Yield
Defined Opportunity Fund Inc. (“HYI”), Western Asset Intermediate
Muni Fund Inc. (“SBI”), Western Asset Investment Grade Defined
Opportunity Trust Inc. (“IGI”), Western Asset Managed Municipals
Fund Inc. (“MMU”), Western Asset Mortgage Opportunity Fund Inc.
(“DMO”), Western Asset Municipal Defined Opportunity Trust Inc.
(“MTT”), Western Asset Municipal High Income Fund Inc. (“MHF”) and
Western Asset Municipal Partners Fund Inc. (“MNP”). The new
management and subadvisory agreements for each of these Funds will
become effective upon the consummation of the Transaction. Western
Asset Corporate Loan Fund Inc. (“TLI”) and Western Asset Variable
Rate Strategic Fund Inc. (“GFY”) did not receive the requisite vote
required by the Investment Company Act of 1940, as amended, to
approve the new management and subadvisory agreements. The Board of
TLI has approved a plan to liquidate and dissolve TLI, subject to
shareholder approval of such plan in accordance with Maryland law.
Additional information on GFY will be provided in a separate press
release.
At the Special Meeting, Western Asset Middle Market Debt Fund
Inc. (“XWAMX”) and Western Asset Middle Market Income Fund Inc.
(“XWMFX”) (the “Subject Funds”) did not achieve the requisite
quorum to hold their Special Meetings. For the Funds that do not
approve new management or subadvisory agreements prior to the
completion of the Transaction, the current management and
subadvisory agreements for these Funds will automatically
terminate.
The board of directors of each Subject Fund has approved interim
management and subadvisory agreements for its respective Subject
Fund that will take effect upon consummation of the Transaction and
will continue for a period of 150 days. During this time, the
manager and subadviser for each Subject Fund will provide ongoing
services to the Subject Fund and the board of directors of each
Subject Fund will continue to evaluate long-term plans for the
Subject Funds. These considerations will include whether to set a
new record date and continue soliciting for shareholder approval of
new management and subadvisory agreements or to propose that
shareholders approve the dissolution of the Subject Fund. Further
details on plans for each Subject Fund will be provided at a later
date.
An investment in a Fund involves risk, including loss of
principal. Investment return and the value of shares will
fluctuate.
Any data and commentary provided in this press release are for
informational purposes only. This press release may contain
statements regarding plans and expectations for the future that
constitute forward-looking statements within the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
based on each Fund’s current plans and expectations, and are
subject to risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. Additional information concerning such risks and
uncertainties are contained in each Fund’s filings with the
SEC.
Each Fund files its semi-annual and annual reports with the
Securities and Exchange Commission (the “Commission”). These
reports are available on the Commission’s website at www.sec.gov.
For more information, please call Investor Relations:
1-888-777-0102, or consult the Funds’ web site at www.lmcef.com.
Hard copies of the Funds’ complete audited financial statements are
available free of charge upon request.
Category: Fund Announcement
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version on businesswire.com: https://www.businesswire.com/news/home/20200707005407/en/
Media: Fund Investor Services-1-888-777-0102
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