The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

ClearBridge Energy MLP Total Return Fund Inc. Raises Approximately $800 Million

Wednesday, June 27, 2012

ClearBridge Energy MLP Total Return Fund Inc. Raises Approximately $800 Million10:51 EDT Wednesday, June 27, 2012Starts Trading on the NYSENEW YORK, June 27, 2012 /PRNewswire/ -- ClearBridge Energy MLP Total Return Fund Inc. (the "Fund") announced today that pricing has been completed for its initial public offering. The Fund offering raised $700 million in its common stock offering; assuming full exercise of the underwriters' overallotment option, which may or may not occur, the Fund will have raised $796.75 million. Its shares began trading today on the New York Stock Exchange under the symbol "CTR".The Fund's investment objective is to provide a high level of total return, consisting of cash distributions and capital appreciation. There can be no assurance that the Fund will achieve its investment objective.The Fund seeks to achieve its objective by investing primarily in energy master limited partnerships ("MLPs"). Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in energy MLPs (the "80% policy"). For purposes of the 80% policy, the Fund considers investments in MLPs to include investments that offer economic exposure to public and private MLPs in the form of MLP equity securities, securities of entities holding primarily general partner or managing member interests in MLPs, securities that are derivatives of interests in MLPs, including I-Shares, exchange-traded funds that primarily hold MLP interests and debt securities of MLPs. Energy entities are engaged in the business of exploring, developing, producing, gathering, transporting, processing, storing, refining, distributing, mining or marketing natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal. "Managed Assets" means net assets plus the amount of any borrowings and assets attributable to any preferred stock of the Fund that may be outstanding."As new infrastructure comes online due to increasing U.S. production of oil, natural gas and natural gas liquids, we believe that MLP distribution rates are poised to accelerate," stated Chris Eades, Portfolio Manager and Director of Research for ClearBridge Advisors, LLC. "CTR is intended to focus on MLPs with higher distribution growth rates, which we think can help the Fund deliver attractive distributions and offer the potential for above-average total returns." "In this low-yielding environment, investors are clamoring for income, and CTR offers an attractive income alternative." stated William Golden, Head of Product for Legg Mason. "The Fund is just one example of how Legg Mason and our investment managers are providing timely and innovative solutions to meet evolving investor needs." ClearBridge Energy MLP Total Return Fund Inc. is a newly organized, non-diversified, closed-end management investment company which is advised by Legg Mason Partners Fund Advisor, LLC and subadvised by ClearBridge Advisors, LLC, both of which are wholly owned subsidiaries of Legg Mason Inc. ("Legg Mason").The underwriting syndicate was led by Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC and Ameriprise Financial Services, Inc.For more information, please contact the Fund at 1-888-777-0102 or visit the Fund's web site at: www.lmcef.com About Legg Mason Legg Mason is a global asset management firm with $627 billion in assets under management as of May 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 ClearBridgeClearBridge Advisors, LLC is Legg Mason's largest equity manager with approximately $56.6 billion in assets under management, including $3 billion in energy MLPs, as of March 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.Investors should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. This press release and the prospectus, which contains this and other information about the Fund, should be read carefully before investing. A copy of the final prospectus relating to these securities may be obtained by contacting your financial advisor. 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's common stock is traded on the New York Stock Exchange.Similar to stocks, the Fund's share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. All investments are subject to risk, including the risk of loss. MLP distributions are not guaranteed and there is no assurance that all distributions will be tax deferred. Diversification does not assure a profit or prevent against a loss in a declining market.This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Fund's present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund's filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objective will be attained.  SOURCE Legg MasonFor further information: Media: Maria Rosati, +1-212-805-6036 , mrosati@leggmason.com