Western Asset Intermediate Muni Fund Inc. and Western Asset Managed Municipals Fund Inc. Announce Board Approval of Proposed Merger Plan

Business Wire

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. The proposed merger seeks to achieve certain economies of scale and other operational efficiencies by combining MMU and SBI that have similar investment objectives, investment strategies, policies and restrictions and are managed by the same investment adviser, Franklin Templeton Fund Adviser, LLC (“FTFA”) and sub-advised by Western Asset Management Company, LLC (“Western Asset”). Both FTFA and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc.

In connection with the proposal to merge SBI with and into MMU, the Funds intend to file a combined proxy statement and prospectus with the Securities and Exchange Commission (“SEC”). Since MMU will not be issuing more than 20% of its outstanding shares of common stock as a result of the merger, MMU stockholders are not required to vote on and approve the merger.

Investors and stockholders are advised to read the proxy statement and prospectus when it becomes available because it will contain important information. When filed with the SEC, the proxy statement and prospectus and other documents filed by the Funds will be available free of charge at the SEC’s website, http://www.sec.gov. Stockholders can also obtain copies of these documents, when available, for free by calling the Funds at 1-888-777-0102.

SBI, its directors, executive officers, investment adviser, members of its management and employees may be deemed to be participants in the solicitation of proxies from SBI’s stockholders in connection with the proposed merger. Information concerning the interests of the participants in the solicitation will be set forth in the combined proxy statement and prospectus to be filed with the SEC and is or will be set forth in the stockholder reports of SBI on Form N-CSR on file and/or to be filed with the SEC.

As of May 31, 2026, SBI had net assets of approximately $119,121,599; and MMU had net assets of approximately $599,709,893. Both SBI and MMU are diversified closed-end management investment companies.

For more information, please call Investor Relations on 1-888-777-0102, or consult the Funds’ websites at www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of each Fund’s complete audited financial statements are available free of charge upon request.

THIS PRESS RELEASE IS NOT AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SHARES OF THE FUNDS. THIS PRESS RELEASE MAY CONTAIN STATEMENTS REGARDING PLANS AND EXPECTATIONS FOR THE FUTURE THAT CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT ARE FORWARD-LOOKING AND CAN BE IDENTIFIED BY THE USE OF WORDS SUCH AS “MAY,” “WILL,” “EXPECT,” “ANTICIPATE,” “ESTIMATE,” “BELIEVE,” “CONTINUE” OR OTHER SIMILAR WORDS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON EACH FUND’S CURRENT PLANS AND EXPECTATIONS, AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.

ADDITIONAL INFORMATION CONCERNING SUCH RISKS AND UNCERTAINTIES IS CONTAINED IN EACH FUND’S FILINGS WITH THE SEC.

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Category: Fund Announcement

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds