Western Asset Intermediate Muni Fund Inc. (NYSE: SBI), and Western Asset Managed Municipals Fund Inc. (NYSE: MMU) today announced approval by each Fund’s Board of Directors of a proposal to merge SBI with and into MMU, subject to approval by the stockholders of SBI. If approved, the merger is anticipated to occur during the fourth quarter of 2026. If the proposed merger is approved by the stockholders of SBI, then (i) common stockholders of SBI would receive common stock of MMU, based on SBI’s net asset value (“NAV”) per share, and (ii) holders of SBI’s variable rate demand preferred stock (“VRDPS”) would receive shares of VRDPS of MMU in the same number and with identical terms to their respective VRDPS. In lieu of issuing fractional shares of common stock, MMU will pay cash to each former common stockholder of SBI in an amount equal to the value of the fractional shares of MMU common stock that the investor would otherwise have received in the merger.
The Board of Directors of each Fund has determined that the proposed merger is in the best interests of each Fund and that the interests of existing common stockholders and preferred stockholders of its Fund will not be diluted with respect to NAV and liquidation preference, respectively, as a result of the proposed merger.
