ClearBridge Energy Midstream Opportunity Fund Inc. Announces Unaudited Balance Sheet Information as of May 31, 2020
June 05 2020 - 8:00AM
Business Wire
ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO)
announced today the unaudited statement of assets and liabilities,
the net asset value and asset coverage ratio of the Fund as of May
31, 2020.
As of May 31, 2020, the Fund’s net assets were $231.2 million,
and its net asset value per share was $3.22. The Fund’s asset
coverage ratio under the Investment Company Act of 1940 (the “1940
Act”) with respect to senior indebtedness was 615% and the Fund’s
asset coverage ratio under the 1940 Act with respect to total
leverage was 340%.
As of May 31, 2020 Amount
(millions) Per Share
Investments
$
309.6
$
4.31
Cash and Cash Equivalents
20.8
$
0.29
Other Assets
1.1
$
0.02
Total Assets
$
331.5
$
4.62
Senior Notes*
$
53.3
$
0.74
Loans Outstanding*
-
-
Mandatory Redeemable Preferred Shares*
43.1
0.60
Total Leverage
$
96.4
$
1.34
Income Tax Payable
$
2.7
$
0.04
Deferred Tax Liability
-
-
Other Liabilities
1.2
0.02
Total Liabilities
$
3.9
$
0.06
Net Assets
$
231.2
$
3.22
Outstanding Shares
71,713,987
* The Fund's asset coverage ratio under the 1940 Act with
respect to senior indebtedness was 615%. * The Fund's asset
coverage ratio under the 1940 Act with respect to total leverage
was 340%.
Top Ten Equity Holdings (as of May 31, 2020)**
Market Value Name (millions) % of Investments *** MPLX LP
$
26.0
8.4%
Magellan Midstream Partners LP
$
21.2
6.9%
Enterprise Products Partners LP
$
21.2
6.8%
Energy Transfer LP
$
19.9
6.4%
Targa Resources Corp.
$
15.3
4.9%
Williams Cos. Inc.
$
13.7
4.4%
Western Midstream Partners LP
$
13.5
4.4%
BP Midstream Partners LP
$
13.4
4.3%
Plains GP Holdings LP
$
13.2
4.3%
Cheniere Energy Partners LP
$
12.0
3.9%
$
169.4
54.7%
** Subject to change at any time *** Percent of Total Equity
Investments
The net assets as of May 31, 2020 reflect a change in estimate
of the Fund’s tax liabilities. The Fund may rely to some extent on
information provided by the underlying securities in which it
invests (collectively, the “MLPs”), which may not necessarily be
timely, to estimate taxable income and to estimate the associated
current and deferred tax liability. Such estimates are made in good
faith. From time to time, as new information becomes available, the
Fund modifies its estimates or assumptions regarding the tax
liabilities.
Due to significant market volatility experienced by Midstream
energy companies during the first quarter of 2020, the Fund
repositioned its portfolio to reduce borrowings and remain in
compliance with applicable leverage limits. As a result of this
portfolio turnover, and based on new information received from the
MLPs, the Fund anticipates that it will have current taxable income
and pay current tax expense. For MLPs taxed as partnerships, the
Fund previously recognized as an ordinary expense its allocable
share of accelerated depreciation deductions flowed through from
the underlying MLPs. Section 751 of the Internal Revenue Code
effectively requires that upon sale of those MLPs, the accelerated
depreciation deductions get recaptured as ordinary income instead
of receiving capital gain or loss treatment, and this is the
primary driver for the Fund projecting current taxable income. The
actual and estimated amount of ordinary income recapture is
provided by the MLPs.
The change in estimate was recorded on May 29, 2020. Additional
revisions may be required in the future as new information becomes
available or additional portfolio turnover occurs, and there could
be a material impact on the Fund’s net asset value at that
time.
ClearBridge Energy Midstream 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”). LMPFA
and ClearBridge are wholly owned subsidiaries of Legg Mason, Inc.
(“Legg Mason”).
This financial data is unaudited.
The Fund files its semi-annual and annual
reports with the Securities and Exchange Commission (“SEC”), as
well as its complete schedule of portfolio holdings for the first
and third quarters of each fiscal year as an exhibit to its reports
on Form N-PORT. These reports are available on the SEC’s website at
www.sec.gov. To obtain information on Form N-PORT or a semi-annual
or annual report from the Fund, shareholders can call
1-888-777-0102.
For more information about the Fund, please call 1-888-777-0102
or consult the Fund’s website at 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.
Category: Financials
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Investors: Fund Investor Services 1-888-777-0102
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