Press release from PR Newswire
ClearBridge American Energy MLP Fund Inc. Raises $1.2 Billion
Wednesday, June 26, 2013
ClearBridge American Energy MLP Fund Inc. Raises $1.2 Billion10:00 EDT Wednesday, June 26, 2013
Starts Trading on the NYSE
NEW YORK, June 26, 2013 /PRNewswire/ -- ClearBridge American Energy MLP Fund Inc. (the "Fund") announced today that pricing has been completed for its initial public offering. The Fund raised gross proceeds of approximately $1.05 billion in its common stock offering; assuming full exercise of the underwriters' overallotment option, which may or may not occur, the Fund will have raised approximately $1.2 billion. Its shares began trading today on the New York Stock Exchange under the symbol "CBA".
The Fund's investment objective is to provide a high level of total return, with an equal emphasis on current distributions and capital appreciation. There can be no assurance that the Fund will achieve its investment objective.
The Fund seeks to achieve its investment 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 U.S. based energy MLPs (the "80% policy"). Initially, the Fund intends to focus its investments on MLPs that, in the Fund's opinion, are poised to benefit from the growing production and usage of natural gas, while minimizing exposure to commodity price fluctuations. 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.
"The resurgence of U.S. energy production is a true American success story. And the natural gas market is one of the biggest beneficiaries. Natural gas has seen a significant shift in supply and demand fundamentals since the advent of the shale revolution," stated Chris Eades, Portfolio Manager and Director of Research for ClearBridge Investments, LLC. "CBA is intended to initially focus on natural gas MLPs, which we believe are poised to benefit as natural gas demand ? and production ? rises."
"Income is a growing need for investors, and they continue to seek out alternatives to traditional income-producing investments. MLPs' combination of potential tax-advantages and the opportunity for growth can make them compelling for these investors," stated William Golden, Head of U.S. Product for Legg Mason. "As part of the ClearBridge suite of MLP products, the Fund offers one more way for Legg Mason clients to access timely investment solutions."
ClearBridge American Energy MLP 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 Investments, LLC, both of which are wholly owned subsidiaries of Legg Mason, Inc. ("Legg Mason").
The underwriting syndicate was led by BofA Merrill Lynch, Citigroup, and Morgan Stanley.
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 $654 billion in assets under management as of May 31, 2013. The Company 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 Investments is a well established global equity manager focusing on proprietary research and fundamental investing. With over 45 years of experience building portfolios for clients seeking income solutions, high active share or managed volatility, long-tenured portfolio managers provide strong leadership in a centralized investment structure.
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, and can increase an investor's risk of loss. 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.
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 Mason
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