ClearBridge Energy Midstream Opportunity Fund Inc. Completes Mergers
ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) has successfully finalized important mergers with ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) and ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR). This strategic move is expected to significantly boost shareholder value in a market that is constantly changing.
Details of the Mergers and Share Conversion
On the effective date prior to market opening, stockholders of CEM and CTR became stockholders of EMO. This conversion was based on a ratio of common shares that transitioned to EMO's common stock, determined by each Fund's net asset value (NAV) just before the mergers took place.
Understanding the Conversion Rates
For every share of CEM owned, shareholders will receive approximately 1.112539 shares of EMO. Likewise, shareholders of CTR will convert their shares at a rate of 1.006926 shares. It's crucial to note that EMO will not issue fractional shares to the stockholders of CEM and CTR.
Impact of Shareholder Conversions
Rather than issuing fractional shares, EMO decided to compensate CEM and CTR stockholders with cash equivalent to the NAV of the fractional shares at the time of conversion. This approach aims to simplify the process for shareholders while ensuring a fair exchange.
Post-Merger Financial Position
As of the close of business before the mergers, EMO's net assets stood at an impressive $849,413,976, with the NAV per common share recorded at $46.6960 based on approximately 18,190,295 shares outstanding. This strong financial position sets a positive tone for EMO’s future endeavors.
Adjustments to Preferred Stock
In addition to the changes in common stock, EMO has issued newly created shares of Mandatory Redeemable Preferred Stock (MRPS) to the holders of former CEM and CTR MRPS. These newly issued shares maintain the same aggregate liquidation preference and equivalent terms, ensuring that the interests of shareholders are safeguarded.
About ClearBridge Energy Midstream Opportunity Fund
EMO functions as a non-diversified, closed-end management investment company, managed by Franklin Templeton Fund Adviser, LLC (formerly known as Legg Mason Partners Fund Advisor, LLC). It is sub-advised by ClearBridge Investments, LLC, offering investors a unique opportunity to benefit from specialized management expertise. With a long-standing history in investment management, Franklin Templeton has demonstrated a solid track record in navigating various investment environments.
Contact Information for Shareholders
Shareholders with questions regarding the mergers or their investments can reach out to Investor Relations at 1-888-777-0102 for assistance. Additional information about the funds and their performance can also be found on their official website.
Frequently Asked Questions
What funds are involved in the mergers?
The mergers include ClearBridge MLP and Midstream Fund Inc. (CEM) and ClearBridge MLP and Midstream Total Return Fund Inc. (CTR), both of which are merging into ClearBridge Energy Midstream Opportunity Fund Inc. (EMO).
How are the conversion rates calculated?
The conversion rates are determined based on each Fund's net asset value (NAV), 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 equivalent to the net asset value of the fractional shares they would have received during the mergers.
What is the total net asset value of EMO post-merger?
Following the merger, EMO's total net assets are 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 of which are respected firms in the investment management industry.
