ClearBridge Energy Midstream Opportunity Fund Inc. Announces Final Results of Issuer Tender Offer for Common Stock

Rhea-AI Summary

ClearBridge Energy Midstream Opportunity Fund (NYSE: EMO) has announced the final results of its issuer tender offer, which expired on June 20, 2024. The Tender Offer aimed to repurchase up to 50% of its outstanding common stock shares. A total of 7,259,865 shares were tendered, exceeding the 6,393,645 shares limit, resulting in an oversubscription. Consequently, approximately 88.08% of shares from each stockholder who tendered their shares were accepted for repurchase at a price of $44.45 per share, equating to 100% of the per share net asset value as of June 20, 2024. Payment for the accepted shares is scheduled for June 25, 2024. Shares not tendered remain outstanding.

Positive

• Tender offer was oversubscribed, indicating strong shareholder interest.
• 88.08% of tendered shares were accepted for repurchase.
• Repurchase price set at $44.45 per share, equal to 100% of net asset value.

Negative

• Some shareholders may be dissatisfied as only 88.08% of their tendered shares were accepted.
• Oversubscription suggests potential unmet demand among shareholders wishing to sell.

Insights

Financial Analyst

ClearBridge Energy Midstream Opportunity Fund's recent tender offer's final results are significant for shareholders and potential investors. The repurchase of 6,393,645 shares at $44.45 each, equal to the net asset value (NAV), is a positive indicator that the fund is willing to return capital to shareholders.

The oversubscription of the tender offer, with 7,259,865 shares tendered, demonstrates strong investor interest and confidence in the fund. The pro-rata acceptance of 88.08% means that not all shares offered for tender were repurchased, indicating a high level of demand.

This reduction in outstanding shares could lead to a potential increase in earnings per share (EPS) and could be seen as a move to create shareholder value by reducing the share count, thus potentially boosting the NAV for remaining shares. Lower share counts can often lead to higher dividend payouts per share, making the stock more attractive.

For retail investors, understanding the financial impact is crucial. The repurchase price aligning with the NAV ensures fair value for tendering shareholders. The repurchase could signal management's confidence in the fund's valuation and future prospects.

However, investors should also consider the opportunity cost of holding shares versus tendering them. With the fund continuing to operate, future performance will be a key determinant of whether holding the shares was the better decision.

NEW YORK--(BUSINESS WIRE)-- ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) (the “Fund”) announced today the final results for its issuer tender offer for up to 50% of the outstanding shares of common stock (“Shares”) of the Fund (the “Tender Offer”). The Tender Offer expired on Thursday, June 20, 2024 at 5:00 p.m., New York City time.

A total of 7,259,865 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeds 6,393,645 Shares, the tender offer has been oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund will purchase Shares from all tendering stockholders on a pro rata basis, disregarding fractions. Accordingly, on a pro rata basis, approximately 88.08% of Shares for each stockholder who properly tendered shares have been accepted for payment. The Shares accepted for tender were repurchased at a price of $44.45 equal to 100% of the per Share net asset value, as of the close of the regular trading session of the New York Stock Exchange on June 20, 2024.

Payment for such Shares will be made on or about June 25, 2024. Shares that were not tendered will remain outstanding.

Any questions about the Tender Offer can be directed to Georgeson LLC, the information agent for the Tender Offer, toll free at (866) 920-4920.

About the Fund

The Fund is a non-diversified, closed-end management investment company that is managed by Franklin Templeton Fund Adviser, LLC (formerly known as Legg Mason Partners Fund Advisor, LLC) (“FTFA”), and subadvised by ClearBridge Investments, LLC (“ClearBridge”). FTFA and ClearBridge are both indirect wholly-owned subsidiaries of Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton.

THIS PRESS RELEASE IS NOT A PROSPECTUS, CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE PURCHASE OR SALE OF FUND SHARES. 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. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT ARE FORWARD-LOOKING AND CAN BE IDENTIFIED BY THE USE OF WORDS SUCH AS “MAY,” “WILL,” “EXPECT,” “ANTICIPATE,” “ESTIMATE,” “BELIEVE,” “CONTINUE” OR OTHER SIMILAR WORDS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON THE 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 THE FUND’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION

For more information about the Fund, please call Fund Investor Services: 1-888-777-0102, or consult the Fund’s web site at www.franklintempleton.com/investments/options/closed-end-funds. The information contained on the Fund’s web site is not part of this press release. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.

About Franklin Templeton

Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of May 31, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.

Category: Fund Announcement

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624548269/en/

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

Media Contact: Lisa Tibbitts

+1 (904) 942-4451

Lisa.Tibbitts@franklintempleton.com

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

FAQ

What are the final results of ClearBridge Energy Midstream Opportunity Fund's tender offer?

The tender offer was oversubscribed with 7,259,865 shares tendered. Approximately 88.08% of shares from each stockholder were accepted for repurchase.

When did ClearBridge Energy Midstream Opportunity Fund's tender offer expire?

The tender offer expired on June 20, 2024, at 5:00 p.m., New York City time.

What was the repurchase price for ClearBridge Energy Midstream Opportunity Fund's tender offer?

The repurchase price was set at $44.45 per share, equal to 100% of the per share net asset value.

How many shares were accepted for repurchase in ClearBridge Energy Midstream Opportunity Fund's tender offer?

Approximately 88.08% of the tendered shares were accepted for repurchase.

When will the payment for repurchased shares be made by ClearBridge Energy Midstream Opportunity Fund?

Payment for the accepted shares will be made on or about June 25, 2024.