Leading Independent Proxy Advisory Firms ISS & Glass Lewis Recommend Western Asset Corporate Loan Fund Inc. Shareholders Vote...
May 26 2020 - 4:30PM
Business Wire
Western Asset Corporate Loan Fund Inc. (NYSE: TLI) (the “Fund”)
today announced that Institutional Shareholder Services (“ISS”) and
Glass Lewis & Co. (“Glass Lewis”), two of the leading
independent proxy advisory firms, recommend that shareholders vote
to approve the new agreements between the Fund and its investment
manager and subadviser.
With respect to the new management agreement, in their reports
dated May 20, 2020, and May 21, 2020, respectively, ISS and Glass
Lewis noted1:
- “The narrowing of the fund's discount to NAV appears to
coincide with the board's steps to address the fund's discount by
increasing the fund’s distributions, repurchasing shares, and
waiving a portion of the fund’s investment management fee. This
point supports the fund's decision to refrain from open-ending,
liquidating, or converting the fund to an open-end fund.” ISS
report dated May 20, 2020
- “Shareholders should note that the terms of the new management
and subadvisory agreements are substantially identical to the terms
of the current agreements, and that there will be no change to the
existing management fee structure of each of the Funds as a direct
result of these proposals.” Glass Lewis report dated May 21,
2020
With respect to the new subadvisory agreement, in their reports
dated May 20, 2020, and May 21, 2020, respectively, ISS and Glass
Lewis noted1:
- “It appears to be in shareholders' interests to approve this
new agreement given that the services and fees set forth would not
impact shareholders negatively, and the fund's expenses are not
expected to increase.” ISS report dated May 20, 2020
- “Glass Lewis believes that the new investment sub-advisory
agreement is in the best interests of shareholders, who should
directly benefit from the services and duties of the Adviser.”
Glass Lewis report dated May 21, 2020
“We are pleased that ISS and Glass Lewis recognize that approval
of the new agreements between the Fund and its investment manager
and subadviser is in the best interest of all shareholders,” said
Jane Trust, Chairman, President and Chief Executive Officer of
Western Asset Corporate Loan Fund Inc. “The Fund’s investment
manager and subadviser have enabled the Fund to outperform2 its
peers3 and increase distributions to shareholders. We encourage
shareholders to follow the recommendation of the Fund’s Board of
Directors, ISS and Glass Lewis by voting “FOR” the new agreements
to ensure the Fund continues to operate and deliver the returns
they rely on.”
The Western Asset Corporate Loan Fund Inc. management team has a
proven track record of achieving the Fund’s objectives,
including:
- Delivering a 1-year annualized distribution2 of 9.85% as
of April 30, 2020, an increase from 6.58% as of the same period in
2019
- Outperforming Lipper Peer Group3 averages across key
timeframes, including 0.88% vs. 0.62% on a 5-year basis, and
2.99% vs. 2.96% on a 10-year basis
The Fund’s Board of Directors unanimously recommends that
shareholders vote on the WHITE Proxy Card “FOR” the approval
of the new management agreement for the Fund’s manager and the new
subadvisory agreement for the Fund’s subadviser. If shareholders
do not approve these agreements, the Fund may be forced to
liquidate. Liquidation could result in a meaningful loss of value
as well as negative tax consequences for shareholders, particularly
during this period of significant market volatility.
Your Vote Is Important, No
Matter How Many or How Few Shares You Own
You can vote by Internet,
telephone or by signing and dating the WHITE proxy card and mailing it in the
envelope provided.
If you have any questions about
how to vote your shares, or need additional assistance, please
contact:
INNISFREE
Shareholders Call Toll-Free:
(877) 750-8198
Banks and Brokers Call: (212)
750-5833
REMEMBER:
We urge you NOT to vote using any other colored proxy card as
doing so will revoke your vote on the WHITE Proxy Card.
About Western Asset Corporate Loan Fund Inc.
Western Asset Corporate Loan Fund Inc., a non-diversified,
closed-end management investment company, is managed by Legg Mason
Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg
Mason, Inc., and is sub-advised by Western Asset Management
Company, LLC, an affiliate of the investment manager.
An investment in the Fund involves risk, including loss of
principal. Investment return and the value of shares will
fluctuate.
Data and commentary provided in this press release are for
informational purposes only. Legg Mason and its affiliates do not
engage in selling shares of the Fund.
The Fund files its semi-annual and annual reports with the
Securities and Exchange Commission (the “Commission”). These
reports are available on the Commission’s website at www.sec.gov.
For more information about the Fund, please call 1-888-777-0102 or
consult the Fund’s web site at http://www.lmcef.com. Hard copies of
the Fund’s complete audited financial statements are available free
of charge upon request.
Data and commentary provided in this press release are for
informational purposes only. Legg Mason and its affiliates do not
engage in selling shares of the Fund.
Forward Looking Statement
Past performance is no guarantee of future results. The
information provided is not intended to be a forecast of future
events, a guarantee of future results or investment advice.
All investments are subject to risk including the possible loss
of principal. All benchmark performance reflects no deduction for
fees, expenses or taxes. Please note that an investor cannot invest
directly in a benchmark.
1 Permission to use quotations neither sought nor obtained. 2
Based on market price for the period ended April 30, 2020. 3 The
Fund’s Lipper peer group refers to the peer group of high-yield,
levered closed-end funds as selected by Lipper, an independent
nationally recognized provider of investment company
information.
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version on businesswire.com: https://www.businesswire.com/news/home/20200526005819/en/
Media Contact Western Asset Corporate Loan Fund
877-750-8198
OR
Joele Frank, Wilkinson Brimmer Katcher Andy Brimmer / Dan
Katcher / Mahmoud Siddig 212-355-4449
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