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ClearBridge Energy MLP Opportunity Fund raises EUR540m

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ClearBridge Energy MLP Opportunity Fund Inc raised approximately USD540 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 approximately USD621 million. Its shares began trading today on the New York Stock Exchange under the symbol “EMO.”

The Fund’s investment objective is to provide long-term investors a high level of total return with an emphasis on cash distributions. There can be no assurance the Fund will achieve its investment objective or earn a return on its assets, and you could lose some or all of your investment.

Under normal market conditions, the Fund will invest at least 80% of its managed assets in master limited partnerships in the energy sector. The Fund considers master limited partnerships (“MLPs”) to be in the energy sector if they derive at least 50% of their revenues from the businesses 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. When a company is organised as an MLP, it benefits from a structure that combines the tax benefits associated with limited partnerships with the liquidity of publicly traded securities.

“Following last year’s successful offering of ClearBridge Energy MLP Fund Inc(NYSE: CEM), we developed a second MLP vehicle focused on emerging growth opportunities in U.S. energy infrastructure. New drilling and completion technologies are transforming the US oil and gas industry and may result in increasing supplies of lower-cost crude oil and natural gas liquids (NGLs). EMO will focus on MLPs with operations in crude oil, natural gas liquids and refined products infrastructure. We believe that the combination of structurally higher global oil prices and increased supply of domestic oil and natural gas liquids will position the Fund for long-term growth,” says Chris Eades, Portfolio Manager and Co-Director of Research for ClearBridge Advisors.

“We are seeing increased interest in MLPs by investors as they allow for attractive tax-deferred distributions and capital appreciation potential, simplified tax reporting within the closed-end structure, and diversification in an overall investment portfolio. With EMO, we are furthering our goal to bring innovative products to a wider audience,” stated Tom Hirschmann, Head of US Sales for Legg Mason.
ClearBridge Energy MLP Opportunity Fund Inc is a newly organised, 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, and BofA Merrill Lynch.

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