Western Asset Global Corporate Defined Opportunity Fund Inc. Announces Final Results of Issuer Tender Offer for Common Stock and Elimination of Term

Rhea-AI Summary

Western Asset Global Corporate Defined Opportunity Fund Inc. (NYSE: GDO) announced the final results of its issuer tender offer for up to 100% of outstanding common stock. Approximately 7,429,768 shares (49.70% of outstanding) were tendered at $12.96 per share. The fund will have approximately $97.4 million in total net assets post-tender. Payment for tendered shares is expected around October 7, 2024.

Stockholders approved converting GDO to a perpetual fund, eliminating its scheduled termination on December 2, 2024. The fund will change its name to Western Asset Global Corporate Opportunity Fund Inc. on November 1, 2024, retaining the GDO ticker. The investment manager agreed to a 10 basis point management fee waiver for two years until June 10, 2026.

Positive

• Successful completion of tender offer with 49.70% of outstanding shares tendered
• Conversion to perpetual fund structure, eliminating scheduled termination
• Retention of $97.4 million in total net assets post-tender
• 10 basis point management fee waiver for two years

Negative

• Reduction in fund size due to tender offer

Insights

Financial Analyst

The tender offer results and subsequent changes for Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) are significant for investors. The fund repurchased approximately 49.70% of outstanding shares at $12.96 per share, reducing total net assets to about $97.4 million. This substantial buyback demonstrates the fund's commitment to returning value to shareholders.

The elimination of the fund's term structure and conversion to a perpetual fund is a major shift in strategy. This change provides the fund with more flexibility in managing its portfolio over the long term, potentially benefiting investors who prefer ongoing exposure to global corporate bonds. The name change to "Western Asset Global Corporate Opportunity Fund Inc." reflects this new open-ended approach.

Importantly, the 0.10% management fee waiver for two years is a positive development for investors, as it will slightly reduce the fund's expense ratio, potentially improving returns. However, investors should note that this waiver is temporary, expiring on June 10, 2026.

Overall, these changes position GDO as a more flexible investment vehicle, which could attract new investors looking for long-term exposure to global corporate bonds without a predetermined liquidation date.

NEW YORK--(BUSINESS WIRE)-- Western Asset Global Corporate Defined Opportunity Fund Inc. (NYSE: GDO) (the “Fund”) announced today the expiration and final results for its issuer tender offer for up to 100% of the outstanding shares of common stock (“Shares”) of the Fund (the “Tender Offer”). The Tender Offer expired on Tuesday, October 1, 2024 at 5:00 p.m., New York City time.

Based on current information, approximately 7,429,768 Shares were duly tendered and not withdrawn, representing approximately 49.70% of the Fund’s common shares outstanding. The Shares accepted for tender were repurchased at a price of $12.96 per Share, 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 October 1, 2024. Shares that were not tendered will remain outstanding. Following the Tender Offer, the Fund will have approximately total net assets of $97.4 million.

Payment for such Shares will be made on or about October 7, 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.

As previously announced on June 11, 2024, stockholders approved the proposal to convert the Fund to a perpetual fund by eliminating the Fund’s term, which was scheduled to end at the close of business on December 2, 2024, and eliminating the Fund’s fundamental policy to liquidate on or about December 2, 2024.

As a result of the successful completion of the Tender Offer, the proposals described in the Fund’s proxy statement dated April 4, 2024, and in the offer to purchase relating to the Tender Offer will be implemented. In particular:

• Since the Fund maintained at least $50 million of net assets following the Tender Offer, the Fund will change its name from “Western Asset Global Corporate Defined Opportunity Fund Inc.” to “Western Asset Global Corporate Opportunity Fund Inc.” on or about November 1, 2024. The Fund’s ticker symbol will remain “GDO”. The Fund’s CUSIP, 95790C107, will not change; and
• The Fund’s investment manager has agreed to waive 10 basis points (0.10%) of its annual management fee (the “Fee Waiver”) for a period of two years following the proposal’s approval. The Fee Waiver will terminate on June 10, 2026.

About the Fund

The Fund is a non-diversified, limited-term, closed-end management investment company managed by Franklin Templeton Fund Adviser, LLC (formerly known as Legg Mason Partners Fund Advisor, LLC) and is sub-advised by Western Asset Management Company, LLC (“Western Asset”), Western Asset Management Company Pte. Ltd. (“Western Asset Singapore”), Western Asset Management Company Ltd (“Western Asset Japan”) and Western Asset Management Company Limited (“Western Asset London”) are the Fund’s subadvisers. FTFA, Western Asset, Western Asset Singapore, Western Asset Japan and Western Asset London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc.

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 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 is contained in the Fund’s filings with the SEC.

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 July 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/20241002282958/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 was the tender offer price for GDO shares?

The tender offer price for GDO shares was $12.96 per share, equal to 100% of the per share net asset value as of the close of trading on October 1, 2024.

When will GDO change its name following the tender offer?

GDO will change its name from 'Western Asset Global Corporate Defined Opportunity Fund Inc.' to 'Western Asset Global Corporate Opportunity Fund Inc.' on or about November 1, 2024.

How long will the management fee waiver for GDO last?

The 10 basis point (0.10%) management fee waiver for GDO will last for a period of two years, terminating on June 10, 2026.

What percentage of GDO's outstanding shares were tendered in the offer?

Approximately 49.70% of GDO's outstanding common shares were tendered in the offer.