ClearBridge Energy Midstream Fund Merger Enhances Investment Options
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ClearBridge Energy Midstream Opportunity Fund Inc. Completes Mergers
ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) recently completed significant mergers with ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) and ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR). This strategic decision is poised to enhance overall shareholder value in the rapidly evolving market.
Details of the Mergers and Share Conversion
On an effective date before market opening, CEM and CTR stockholders became stockholders of EMO. This conversion involved a ratio of common shares switching to EMO's common stock, calculated based on each Fund's net asset value (NAV) preceding the mergers.
Understanding the Conversion Rates
For each share of CEM held, shareholders will receive approximately 1.112539 shares of EMO. Similarly, shareholders of CTR will convert their shares at a ratio of 1.006926 shares. It's important to note that EMO will not be issuing fractional shares to the stockholders of CEM and CTR.
Impact of Shareholder Conversions
Instead of issuing fractional shares, EMO opted to compensate CEM and CTR stockholders with cash equivalent to the fractional shares' NAV at the time of conversion. The intention behind this move is to streamline the process for shareholders while ensuring fairness in the exchange.
Post-Merger Financial Position
As of the close of business preceding the mergers, EMO's net assets reached an impressive $849,413,976, with the NAV per common share recorded at $46.6960 based on approximately 18,190,295 shares outstanding. This robust financial foundation bodes well for EMO’s path forward.
Adjustments to Preferred Stock
In addition to common stock transitions, EMO issued newly created shares of Mandatory Redeemable Preferred Stock (MRPS) to holders of former CEM and CTR MRPS. These newly issued shares maintain the same aggregate liquidation preference and equivalent terms, ensuring that shareholder interests are preserved.
About ClearBridge Energy Midstream Opportunity Fund
EMO operates as a non-diversified, closed-end management investment company, under the management of Franklin Templeton Fund Adviser, LLC (previously known as Legg Mason Partners Fund Advisor, LLC). It is sub-advised by ClearBridge Investments, LLC, providing investors with a unique opportunity to benefit from specialized management expertise. With a longstanding history of investment management, Franklin Templeton has a proven track record in navigating diverse investment climates.
Contact Information for Shareholders
For any inquiries related to the mergers or investments, shareholders can contact Investor Relations at 1-888-777-0102 for assistance. More information regarding the funds and their performance can also be obtained from their official website.
Frequently Asked Questions
What funds are involved in the mergers?
The mergers involve ClearBridge MLP and Midstream Fund Inc. (CEM) and ClearBridge MLP and Midstream Total Return Fund Inc. (CTR), both merging into ClearBridge Energy Midstream Opportunity Fund Inc. (EMO).
How are the conversion rates calculated?
The conversion rates are based on each Fund's net asset value (NAV) and were specifically calculated as 1.112539 common shares of EMO for each CEM share and 1.006926 common shares of EMO for each CTR share.
What happens to fractional shares?
EMO will not issue fractional shares. Instead, stockholders will receive cash equal to the net asset value of the fractional shares they would have received in the mergers.
What is the total net asset value of EMO post-merger?
Post-merger, EMO's total net assets amount to approximately $849,413,976, with a NAV per common share of $46.6960 as of the last trading day before the mergers.
Who manages EMO?
EMO is managed by Franklin Templeton Fund Adviser, LLC and is sub-advised by ClearBridge Investments, LLC, both reputable firms in the investment management space.
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