Western Asset Global Corporate Fund Finalizes Tender Offer Success
Western Asset Global Corporate Fund Finalizes Tender Offer Success
Western Asset Global Corporate Defined Opportunity Fund Inc. (NYSE: GDO) has communicated the successful conclusion of its issuer tender offer for its common stock. This initiative allowed the Fund to offer to repurchase up to 100% of its outstanding shares, with the resulting increase in shareholder value and strategic restructuring.
Details of the Tender Offer
The Fund announced the outcomes of this offer, which saw approximately 7,429,768 shares tendered. This figure represents 49.70% of the total outstanding common shares. The accepted shares were repurchased at a set price of $12.96 each, aligning with the net asset value as of the close of trading.
Payment for these repurchased shares is scheduled around the beginning of October. The remainder of the shares that were not tendered will continue to exist on the market, reinforcing the Fund's liquidity and ongoing investment capabilities.
Transition to Perpetual Structure
As part of the restructuring process, stockholders have successfully approved a crucial proposal to transition the Fund to a perpetual status. This strategic decision will eliminate the fixed term that was to conclude in December, facilitating a more flexible investment strategy moving forward.
Implications for Shareholders
With the Fund’s successful tender offer and the elimination of its term, the transformation is expected to enhance investment opportunities and provide increased stability for stakeholders. Following the tender offer, the Fund’s total net assets are estimated to be around $97.4 million.
Moreover, the Fund is set to change its name to Western Asset Global Corporate Opportunity Fund Inc. around the beginning of November, while retaining the ticker symbol GDO. This rebranding aligns with its perpetual structure and ongoing commitment to delivering value to investors.
Investment Management Adjustments
Another significant aspect of the transition involves the Fund’s management team. They have agreed to waive 10 basis points (0.10%) of the annual management fee for an extended two-year period following approval, further supporting shareholder interests and potential returns.
About Western Asset
The Fund is expertly managed by Franklin Templeton Fund Adviser, LLC, benefiting from the experience and resources of the Franklin Templeton group. The involvement of established subsidiaries across various regions, such as Western Asset Management Company, underscores its robust advisory framework.
With a longstanding history in the investment management arena, Franklin Resources, Inc. strives to achieve superior results through innovative solutions. The organization oversees over $1.6 trillion in assets across multiple investment strategies, positioning itself as a leader in the sector.
Frequently Asked Questions
What is the recent tender offer by the Western Asset Global Corporate Fund?
The Fund announced a tender offer allowing shareholders to sell up to 100% of their shares back to the Fund, which resulted in the repurchase of around 7.4 million shares.
What does the transition to a perpetual fund mean for shareholders?
This transition will eliminate the fixed term of the Fund, offering greater flexibility in investment decisions and potentially enhanced returns for shareholders.
When can shareholders expect payment for the repurchased shares?
The payment for the repurchased shares is planned for around the beginning of October.
What changes will occur in the Fund's management fees?
The Fund's management has agreed to waive 10 basis points of its annual fee for a two-year period, aimed at maximizing shareholder value.
How will the Fund be rebranded post-tender offer?
Following the tender offer completion, the Fund will be renamed to Western Asset Global Corporate Opportunity Fund Inc. while keeping its ticker symbol GDO.
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