Certain Franklin Templeton Closed-End Funds Announce Private Placements of Preferred Stock

Rhea-AI Summary

ClearBridge MLP and Midstream Fund Inc. (CEM), ClearBridge Energy Midstream Opportunity Fund Inc. (EMO), and ClearBridge MLP and Midstream Total Return Fund Inc. (CTR) announced successful private placements of Mandatory Redeemable Preferred Stock (MRPS) on November 17, 2022, raising capital for corporate purposes and refinancing existing leverage. Key offerings include Series L and M for CEM and EMO, totaling approximately $15 million and $17 million, respectively, with rates of 7.12% and 7.28%. CTR issued Series E, raising $11 million at a 7.12% rate, maturing in 2029 and 2032.

Positive

• CEM raised approximately $15 million through the issuance of Series L and M MRPS at a rate of 7.12%.
• EMO successfully raised about $17 million with a 7.28% preferred rate.
• CTR raised $11 million via Series E at a 7.12% rate, supporting ongoing corporate needs.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM), ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) and ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) (each a “Fund” and together, the “Funds”) announced today that each Fund completed private placements of fixed-rate Mandatory Redeemable Preferred Stock (“MRPS”) on November 17, 2022, raising additional capital for each Fund. Net proceeds from the offering will be used for general corporate purposes and to refinance existing leverage.

The table below summarizes the key terms of the offering.

CEM

Security		Aggregate Amount		Rate		Liquidation Preference		Maturity
Mandatory Redeemable Preferred Stock
Series L		$15,000,020		7.12%		$35		November 17, 2029
Series M		$10,000,025		7.28%		$35		November 17, 2032

EMO

Security		Aggregate Amount		Rate		Liquidation Preference		Maturity
Mandatory Redeemable Preferred Stock
Series L		$17,000,070		7.28%		$30		November 17, 2032

CTR

Security		Aggregate Amount		Rate		Liquidation Preference		Maturity
Mandatory Redeemable Preferred Stock
Series E		$11,000,010		7.12%		$30		November 17, 2029

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is investment manager to each Fund and ClearBridge Investments, LLC (“ClearBridge”) is each Fund’s subadviser. LMPFA and ClearBridge are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”). Franklin Resources is a global investment management organization with subsidiaries operating as Franklin Templeton.

For more information about the Funds, please call 1-888-777-0102 or consult the Funds’ website at www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of the Funds’ complete audited financial statements are available free of charge upon request.

Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Funds.

The Funds’ shares are traded on the New York Stock Exchange. Similar to stocks, the Funds’ share prices will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their NAV, and can increase an investor’s risk of loss. All investments are subject to risk, including the risk of loss.

This press release contains “forward-looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from each Fund’s present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Each Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that Fund’s investment objectives will be attained.

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Category: Corporate Action

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds

View source version on businesswire.com: https://www.businesswire.com/news/home/20221118005161/en/

Media Contact: Fund Investor Services 1-888-777-0102

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds

FAQ

What was the capital raised by ClearBridge MLP and Midstream Fund (CEM) on November 17, 2022?

CEM raised approximately $15 million through the issuance of Mandatory Redeemable Preferred Stock.

What is the interest rate for the mandatory redeemable preferred stock issued by EMO?

EMO's preferred stock was issued at a rate of 7.28%.

What are the maturity dates for the preferred stocks of CTR?

The Series E for CTR matures on November 17, 2029.

What is the purpose of the capital raised by the ClearBridge Funds?

The capital raised will be used for general corporate purposes and to refinance existing leverage.