Western Asset muni funds plan merger pending stockholder vote

Western Asset Intermediate Muni Fund Inc. (NYSE: SBI) and Western Asset Managed Municipals Fund Inc. (NYSE: MMU) announced that the board of directors of each fund has approved a proposal to merge SBI into MMU, subject to approval by SBI stockholders.

If approved, the merger is expected to be completed during the fourth quarter of 2026. Under the terms of the proposal, SBI common stockholders would receive MMU common stock based on SBI's net asset value per share, while holders of SBI's variable rate demand preferred stock would receive an equal number of MMU preferred shares with identical terms. Fractional shares would be settled in cash.

As of May 31, 2026, SBI held net assets of approximately $119.1 million, while MMU held net assets of approximately $599.7 million. Both are diversified closed-end management investment companies.

Both funds share similar investment objectives, strategies, and restrictions, and are managed by Franklin Templeton Fund Adviser, LLC, with Western Asset Management Company, LLC serving as sub-adviser. Both firms are indirect, wholly-owned subsidiaries of Franklin Resources, Inc.

The funds intend to file a combined proxy statement and prospectus with the Securities and Exchange Commission. Because MMU will not be issuing more than 20% of its outstanding common shares in the transaction, MMU stockholders are not required to vote on the merger.

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