Western Asset Managed Municipals Fund Inc., Western Asset Municipal Partners Fund Inc., Western Asset Intermediate Muni Fund Inc. Announce Results of Stockholder Votes at Special Meeting of Stockholders Relating to Proposed Mergers
- Merger between MNP and MMU approved by stockholders
- Merger expected to be effective in mid-to-late October 2023
- Each share of MNP will convert into full shares of MMU based on net asset value
- MMU will pay cash for fractional shares
- ARPS for MNP and MMU will be redeemed prior to the closing of the merger
- VRDPS for MNP will be replaced with newly issued shares of MMU's VRDPS
- Merger with SBI not approved
Stockholders of MNP voted to approve the merger of MNP with and into Western Asset Managed Municipals Fund Inc. (NYSE: MMU) (the “Merger”) in accordance with the Maryland General Corporation Law (“MGCL”). The merger of Western Asset Intermediate Muni Fund Inc. (NYSE: SBI) with and into MMU did not receive sufficient favorable votes from SBI stockholders at SBI’s re-convened Special Meeting of Stockholders and was consequently not approved. SBI will continue as its own closed-end management investment company.
Previously, on July 14, 2023, stockholders of MMU voted to approve the Merger in accordance with the MGCL. It is currently anticipated that the Merger will be effective in mid-to-late October 2023, subject to all regulatory requirements and customary closing conditions being satisfied.
Upon completion of the Merger, each share of common stock of MNP, par value
Prior to the closing of the Merger, MNP’s currently outstanding Auction Rate Cumulative Preferred Stock (“ARPS”) will be redeemed in connection with—and prior to the closing of—the Merger, pursuant to the redemption terms outlined in the Articles Supplementary for MNP’s ARPS. In addition, MMU’s currently outstanding ARPS will be redeemed in connection with—and prior to the closing of—the Merger, pursuant to the redemption terms outlined in the Articles Supplementary for MMU’s ARPS. The redemption price per share will be equal to the sum of the liquidation preference plus any accumulated, but unpaid, dividends thereon for both MNP’s ARPS and MMU’s ARPS.
With respect to the currently outstanding Variable Rate Demand Preferred Stock (“VRDPS”) for MNP, prior to the closing of the Merger, MMU will issue and deliver to each stockholder of MNP’s Series 1 VRDPS newly issued shares of MMU’s VRDPS with the same aggregate liquidation preference and terms as MNP’s Series 1 VRDPS issued and outstanding immediately before the date of the Merger. As the liquidation preference for the newly issued shares of MMU’s VRDPS that will replace the MNP’s Series 1 VRDPS will be equal to the liquidation preference of the existing MMU’s Series 1 VRDPS, MMU will issue a corresponding number of newly issued shares of MMU’s VRDPS so that the aggregate liquidation preference for the replaced MNP’s Series 1 VRDPS remains the same.
MMU is a closed-end, non-diversified management investment company. SBI and MNP are diversified, closed-end management investment companies. MMU, SBI and MNP are each managed by Legg Mason Partners Fund Advisor, LLC, (“LMPFA) and sub-advised by Western Asset Management Company, LLC (“Western Asset”). Both LMPFA and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc.
For more information, please call Investor Relations on 1-888-777-0102, or consult the funds’ web sites www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of each fund’s complete audited financial statements are available free of charge upon request.
THIS PRESS RELEASE IS NOT AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SHARES OF THE FUNDS. 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 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 IS CONTAINED IN EACH FUND’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
About Western Asset
Western Asset is one of the world’s leading fixed-income managers with 50 years of experience and
Western Asset is an independent specialist investment manager of Franklin Templeton.
About Franklin Templeton
Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 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 offices in more than 30 countries and approximately 1,300 investment professionals, the
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/20230814733884/en/
Media: Fund Investor Services-1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
When will the merger between MNP and MMU be effective?
What will happen to the shares of MNP after the merger?
Will MMU issue fractional shares to MNP stockholders?
What will happen to the ARPS for MNP and MMU?
What will happen to the VRDPS for MNP?
