ClearBridge MLP and Midstream Fund Inc. Announces Unaudited Balance Sheet Information as of August 31, 2020
September 08 2020 - 8:00AM
Business Wire
ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) announced
today the unaudited statement of assets and liabilities, the net
asset value and asset coverage ratio of the Fund as of August 31,
2020.
As of August 31, 2020, the Fund’s net assets were $254.1
million, and its net asset value per share was $18.22. The Fund’s
asset coverage ratio under the Investment Company Act of 1940 (the
“1940 Act”) with respect to senior indebtedness was 506% and the
Fund’s asset coverage ratio under the 1940 Act with respect to
total leverage was 294%.
As of August 31, 2020 Amount
(millions) Per Share
Investments
$
379.2
$
27.19
Cash and Cash Equivalents
14.7
1.05
Other Assets
1.3
0.10
Total Assets
$
395.2
$
28.34
Senior Notes*
$
76.1
$
5.46
Loans Outstanding*
-
-
Mandatory Redeemable Preferred Shares*
55.0
3.94
Total Leverage
$
131.1
$
9.40
Income Tax Payable
$
8.2
$
0.59
Deferred Tax Liability
-
-
Other Liabilities
1.8
0.13
Total Liabilities
$
10.0
$
0.72
Net Assets
$
254.1
$
18.22
Outstanding Shares
13,944,046
* The Fund's asset coverage ratio under the 1940 Act with
respect to senior indebtedness was 506%. * The Fund's asset
coverage ratio under the 1940 Act with respect to total leverage
was 294%. Top Ten Equity Holdings (as of August 31,
2020)** Market Value Name (millions) % of Investments ***
Enterprise Products Partners LP
$
32.9
8.7%
MPLX LP
$
30.8
8.1%
Energy Transfer LP
$
28.3
7.5%
Magellan Midstream Partners LP
$
25.1
6.6%
Williams Cos. Inc.
$
23.5
6.2%
ONEOK Inc.
$
17.8
4.7%
Enbridge Inc.
$
16.9
4.5%
Kinder Morgan Inc.
$
15.6
4.1%
DCP Midstream LP
$
14.5
3.8%
Targa Resources Corp.
$
14.4
3.8%
$
219.8
58.0%
** Subject to change at any time
*** Percent of Total Equity Investments
The net assets as of August 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.
As a result of 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 August 27, 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.
During the month ended August 31, 2020, the Fund repurchased in
the open market and retired 103,464 of its common shares under the
stock repurchase plan for a total amount of $1,656,083.
ClearBridge MLP and Midstream 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 Franklin Resources, Inc.
(“Franklin Resources”).
On July 31, 2020, Franklin Resources acquired Legg Mason, Inc.
(“Legg Mason”) in an all-cash transaction. As a result of the
transaction, LMPFA and ClearBridge, previously wholly-owned
subsidiaries of Legg Mason, became wholly-owned subsidiaries of
Franklin Resources.
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. Franklin Resources and its affiliates
do not engage in selling shares of the Fund.
Category: Financials
Source: Franklin Resources, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20200908005479/en/
Investor Contact: Fund Investor Services
1-888-777-0102
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