ClearBridge Energy MLP Opportunity Fund Inc. Announces Refinancing
ClearBridge Energy MLP Opportunity Fund Inc. (“the Fund”) (NYSE: EMO)
announced today it completed a private placement of $150 million of
fixed-rate senior secured notes on February 7, 2013. Net proceeds from
the offering will be used to repay outstanding borrowings on a floating
rate line of credit, make new portfolio investments, and for general
corporate purposes. After the private placement, the Fund’s total
leverage is $190 million or 22.3% of managed assets, comprised of 79% in
fixed-rate securities and 21% in floating rate financing.
The table below summarizes the key terms of the offering.
Security
|
|
|
Amount
|
|
|
Rate
|
|
|
Maturity
|
Senior secured notes
|
Series A
|
|
|
$40M
|
|
|
3.27%
|
|
|
2/07/20
|
Series B
|
|
|
$50M
|
|
|
3.87%
|
|
|
2/07/23
|
Series C
|
|
|
$60M
|
|
|
4.02%
|
|
|
2/07/25
|
For more information, please contact the Fund at 1-888-777-0102 or visit
the Fund’s website at: www.lmcef.com
ClearBridge Energy MLP Opportunity Fund Inc. is a non-diversified,
closed-end management investment company which is advised by Legg Mason
Partners Fund Advisor, LLC (“LMPFA”) and subadvised by ClearBridge
Investments, LLC (“ClearBridge”) (formerly ClearBridge Advisors, LLC).
The Fund seeks to achieve its objective by investing at least 80% of its
managed assets in master limited partnerships (“MLPs”) in the energy
sector, under normal market conditions. The Fund focuses its investments
on MLPs with operations in crude oil, natural gas liquids and refined
products infrastructure, though this may change over time, as the
dynamic nature of the energy markets may create new and potentially
attractive opportunities. There is no assurance that the Fund’s
investment objective will be obtained.
LMPFA and ClearBridge are wholly owned subsidiaries of Legg Mason, Inc.
(“Legg Mason”).
About Legg Mason
Legg Mason is a global asset management firm with $649 billion in assets
under management as of December 31, 2012. Legg Mason provides active
asset management in many major investment centers throughout the world.
Legg Mason is headquartered in Baltimore, Maryland, and its common stock
is listed on the New York Stock Exchange (symbol: LM).
About ClearBridge
ClearBridge Investments, LLC is Legg Mason’s largest equity manager with
approximately $56 billion in assets under management, including $3.7
billion in energy MLPs, as of December 31, 2012. Led by the insight of
proprietary, fundamental research and a team of portfolio managers with
an average of 24 years of investment industry experience, their
investment process provides clients with a diverse menu of
equity-focused strategies in a number of investment vehicles and
personalized, value-added client service.
All investments are subject to risk, including the risk of loss. The
Fund's concentration of investments in energy related MLPs subject it to
the risks of MLPs and the energy sector, including the risks of declines
in energy and commodity prices, decreases in energy demand, adverse
weather conditions, natural or other disasters, changes in government
regulation, and changes in tax laws. Leverage may result in greater
volatility of NAV and the market price of common shares and increases a
shareholder's risk of loss. Derivative instruments can be illiquid, may
disproportionately increase losses, and have a potentially large impact
on Fund performance. The Fund may invest in small capitalization or
illiquid securities which can increase the risk and volatility of the
Fund.
ClearBridge Energy MLP Opportunity Fund Inc. is not sold or distributed
by Legg Mason or any Legg Mason affiliate. Shares of the fund are bought
and sold through non-affiliated broker/dealers and trade on nationally
recognized stock exchanges.