EMDWESTERN ASSET EMERGING MARKETS DEBT FUND INC.
Feb 16, 9:18 PM ET
Western Asset EM Debt Fund board approves mergers of EMD and SBW into ESD
The boards of three Western Asset closed-end funds approved proposals to merge Western Asset Emerging Markets Income Fund (EMD) and Western Asset Worldwide Income Fund (SBW) into Western Asset Emerging Markets Debt Fund (ESD), subject to stockholder approval, with the mergers anticipated in the third quarter of 2016. The filing also says ESD's board approved changing its primary investment objective to high current income, which would also need stockholder approval, and that EMD and SBW stockholders would receive ESD common stock based on each fund's net asset value per share if approved.
- EMD and SBW would each merge into ESD, subject to stockholder approval of each fund; neither merger depends on the other.
- Mergers are anticipated to occur during the third quarter of 2016; fractional shares would be paid in cash.
- Net assets as of January 31, 2016: EMD about $330 million, SBW about $152 million, ESD about $495 million.
- ESD's primary objective would become high current income and its secondary objective capital appreciation.