Western Asset High Yield Defined Opportunity Fund Inc. Announces Stockholder Proposal
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI) has announced a significant proposal approved by its Board of Directors. The proposal aims to convert the Fund from its scheduled termination on September 30, 2025, into a perpetual fund, subject to stockholder approval.
The proposal includes a tender offer for 100% of the Fund's outstanding shares at net asset value. If post-tender offer assets remain at $75 million or greater, the Fund will eliminate its term and be renamed to 'Western Asset High Yield Opportunity Fund Inc.' If assets fall below $75 million, the tender offer will be cancelled, and the Fund will proceed with its scheduled termination.
If the term elimination is approved, the Fund will continue trading on NYSE under its current ticker and implement a 20-basis point fee waiver for one year. The tender offer is expected to occur during the third quarter of 2025.
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI) ha annunciato una proposta significativa approvata dal suo Consiglio di Amministrazione. La proposta mira a convertire il Fondo dalla sua scadenza programmata del 30 settembre 2025 in un fondo perpetuo, soggetto all'approvazione degli azionisti.
La proposta include un'offerta di acquisto per il 100% delle azioni in circolazione del Fondo al valore netto degli attivi. Se, dopo l'offerta di acquisto, gli attivi rimangono superiori a 75 milioni di dollari, il Fondo eliminerà il suo termine e verrà rinominato 'Western Asset High Yield Opportunity Fund Inc.'. Se gli attivi scendono sotto i 75 milioni di dollari, l'offerta di acquisto verrà annullata e il Fondo procederà con la sua scadenza programmata.
Se l'eliminazione del termine viene approvata, il Fondo continuerà a essere scambiato su NYSE con il suo attuale simbolo e attuerà una esenzione di commissione di 20 punti base per un anno. Si prevede che l'offerta di acquisto si svolga durante il terzo trimestre del 2025.
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI) ha anunciado una propuesta significativa aprobada por su Junta Directiva. La propuesta tiene como objetivo convertir el Fondo de su fecha de finalización programada del 30 de septiembre de 2025 en un fondo perpetuo, sujeto a la aprobación de los accionistas.
La propuesta incluye una oferta de compra por el 100% de las acciones en circulación del Fondo al valor neto de los activos. Si, después de la oferta de compra, los activos permanecen en 75 millones de dólares o más, el Fondo eliminará su término y será renombrado como 'Western Asset High Yield Opportunity Fund Inc.'. Si los activos caen por debajo de 75 millones de dólares, la oferta de compra será cancelada y el Fondo procederá con su finalización programada.
Si se aprueba la eliminación del término, el Fondo continuará cotizando en NYSE bajo su actual símbolo y implementará una exención de tarifas de 20 puntos básicos durante un año. Se espera que la oferta de compra tenga lugar durante el tercer trimestre de 2025.
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI)는 이사회에서 승인된 중요한 제안을 발표했습니다. 이 제안은 2025년 9월 30일에 예정된 종료에서 기한이 없는 펀드로 전환하는 것을 목표로 하며, 주주 승인에 따라 달라집니다.
제안에는 펀드의 미출자 주식 100%에 대한 순자산 가치로 매수 제안이 포함되어 있습니다. 매수 제안 후 자산이 7500만 달러 이상 유지되면, 펀드는 기한을 없애고 'Western Asset High Yield Opportunity Fund Inc.'로 이름이 변경됩니다. 자산이 7500만 달러 이하로 떨어지면 매수 제안이 취소되고 펀드는 예정된 종료를 진행합니다.
기한 제거가 승인되면, 펀드는 현재의 티커로 NYSE에서 계속 거래되며, 20베이시스 포인트 수수료 면제를 1년 동안 시행합니다. 매수 제안은 2025년 3분기 중에 실시될 것으로 예상됩니다.
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI) a annoncé une proposition significative approuvée par son Conseil d'Administration. La proposition vise à convertir le Fonds de sa résiliation programmée le 30 septembre 2025 en un fonds perpétuel, sous réserve de l'approbation des actionnaires.
La proposition comprend une offre d'achat pour 100 % des actions en circulation du Fonds à la valeur nette des actifs. Si, après l'offre d'achat, les actifs restent à 75 millions de dollars ou plus, le Fonds supprimera son terme et sera renommé 'Western Asset High Yield Opportunity Fund Inc.'. Si les actifs tombent en dessous de 75 millions de dollars, l'offre d'achat sera annulée et le Fonds poursuivra sa résiliation programmée.
Si l'élimination du terme est approuvée, le Fonds continuera à être négocié sur la NYSE sous son symbole actuel et mettra en œuvre une exonération de frais de 20 points de base pendant un an. L'offre d'achat devrait avoir lieu au cours du troisième trimestre de 2025.
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI) hat einen bedeutenden Vorschlag bekanntgegeben, der von seinem Vorstand genehmigt wurde. Der Vorschlag zielt darauf ab, den Fonds von seiner geplanten Auflösung am 30. September 2025 in einen unbefristeten Fonds umzuwandeln, vorbehaltlich der Genehmigung der Aktionäre.
Der Vorschlag umfasst ein Übernahmeangebot für 100% der ausstehenden Anteile des Fonds zum Nettovermögenswert. Wenn die Vermögenswerte nach dem Übernahmeangebot 75 Millionen Dollar oder mehr betragen, wird der Fonds seine Frist aufheben und in 'Western Asset High Yield Opportunity Fund Inc.' umbenannt. Fallen die Vermögenswerte unter 75 Millionen Dollar, wird das Übernahmeangebot storniert und der Fonds wird mit seiner geplanten Auflösung fortfahren.
Wenn die Aufhebung der Frist genehmigt wird, wird der Fonds weiterhin unter seinem aktuellen Ticker an der NYSE gehandelt und eine 20-Basis-Punkte-Gebührenbefreiung für ein Jahr implementieren. Das Übernahmeangebot wird voraussichtlich im dritten Quartal 2025 stattfinden.
- Shareholders get flexibility to either exit at NAV or remain invested
- 20-basis point fee waiver for one year if term elimination is approved
- Continuation of NYSE listing under same ticker if approved
- Risk of tender offer cancellation if assets fall below $75 million threshold
- Potential loss of guaranteed exit opportunity if term elimination is approved
Insights
This structural proposal represents a pivotal moment for HYI shareholders, offering a strategic choice between liquidation and continued investment. The proposed conversion from a term fund to a perpetual structure carries several important implications:
The 100% tender offer at NAV provides an equitable exit opportunity for investors who originally invested with the termination date in mind. This is particularly significant as closed-end funds often trade at discounts to NAV, making this a potentially attractive liquidation option.
The
The
For investors choosing to remain invested, the perpetual structure offers several advantages:
- Enhanced portfolio management flexibility without the constraints of a termination date
- Continued access to the high-yield market through a professionally managed vehicle
- Potential for longer-term income generation without forced liquidation
The proposal effectively balances the interests of shareholders seeking liquidity with those preferring continued market exposure, while maintaining appropriate scale for operational efficiency.
Due to the termination of HYI scheduled to occur on September 30, 2025, the proposal asks stockholders of the Fund to vote to approve an amendment to the Fund’s articles of incorporation to remove the scheduled term and convert the Fund into a perpetual fund (the “Amendment Proposal”). The Amendment Proposal will be contingent on the results of a tender offer for
If the Fund’s term is eliminated, the Fund’s name will be changed to “Western Asset High Yield Opportunity Fund Inc.” to reflect the elimination. In addition, if the Fund’s term is eliminated, the common shares of the Fund will continue to trade on the New York Stock Exchange under its current ticker symbol, and the Fund will implement a 20-basis point fee waiver for one year following stockholder approval of the Amendment Proposal.
If the Fund’s Amendment Proposal is approved, its tender offer is expected to occur during the third quarter of 2025.
THIS PRESS RELEASE IS NOT AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SHARES OF THE FUND. 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 IS 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 Western Asset
Western Asset is one of the world’s leading fixed-income managers with 50 years of experience and
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
Category: Fund Announcement
Source: Legg Mason Closed End Funds
Source: Franklin Resources, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250214382002/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
When is HYI's tender offer expected to take place in 2025?
What is the minimum asset threshold for HYI's tender offer to proceed?
What fee reduction will HYI implement if the term elimination is approved?
What will HYI's new name be if the term elimination is approved?
When is HYI's current scheduled termination date?
