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border-spacing: 0px;"> <tr style="height:8.15pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:301.02pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Sales Load (as a percentage of offering price)</span><span style="color:#000000;font-family:Arial Narrow;font-size:5.33pt;margin-left:0.0pt;position:relative;top:-2pt;">(1)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.98pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:15.98pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">1.00</span></div> <div style="display:flex;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:301.02pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Offering Expense (as a percentage of offering price)</span><span style="color:#000000;font-family:Arial Narrow;font-size:5.33pt;margin-left:0.0pt;position:relative;top:-2pt;">(2)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.98pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:15.98pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">0.10</span></div> <div style="display:flex;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">%</span></div> </div> </div> </td> </tr> <tr style="height:13.45pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:301.02pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Dividend Reinvestment Plan Fees</span><span style="color:#000000;font-family:Arial Narrow;font-size:5.33pt;margin-left:0.0pt;position:relative;top:-2pt;">(3)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.98pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:15.98pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">5.00</span></div> </div> </div> </td> </tr> </table> <div style="margin-top:8pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(1) Represents the estimated commission with respect to the Common Stock being sold in at-the-market offerings. UBS Securities LLC will be entitled to compensation of up to 1.00% of the gross proceeds of the sale of any Common Stock under the Sales Agreement, with the exact amount of such compensation to be mutually agreed upon in writing by the Fund and UBS Securities LLC from time to time.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(2) Costs incurred by the Fund in connection with the shelf offering are recorded as deferred offering costs.  These costs are amortized on a pro-rata basis as shares are sold and are presented as a reduction to the net proceeds from the sale of shares.  Any deferred charges remaining at the end of the life of the shelf offering period will be expensed.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(3) Common Stockholders will pay brokerage charges if they direct the Plan Agent to sell shares of Common Stock held in a dividend reinvestment account. There are no fees charged to stockholders for participating in the Fund’s dividend reinvestment plan. However, stockholders participating in the Plan that elect to sell their shares obtained pursuant to the plan would pay $5.00 per transaction to sell shares.</span></div> as a percentage of offering price 0.01 0.001 5 <div style="margin-top:8pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Annual Operating Expenses</span><span style="color:#000000;font-family:Arial Narrow;font-size:1pt;"> </span></div> <table cellpadding="0" style="empty-cells:show;width:333pt; border-spacing: 0px;"> <tr style="height:17.65pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:202.87pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;line-height:9.5pt;margin-left:0.0pt;"> </span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:130.13pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Percentage of Net Assets Attributable</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">to Common Shares</span></div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:202.87pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Management Fees</span><span style="color:#000000;font-family:Arial Narrow;font-size:5.33pt;margin-left:0.0pt;position:relative;top:-2pt;">(4)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:130.13pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:114.13pt;"> <div style="display:flex;margin:auto;width:20.65pt;"> <div style="display:flex;white-space:nowrap;width:20.65pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:20.65pt;">1.21%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:202.87pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Interest Payments on Borrowed Funds</span><span style="color:#000000;font-family:Arial Narrow;font-size:5.33pt;margin-left:0.0pt;position:relative;top:-2pt;">(5)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:130.13pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:114.13pt;"> <div style="display:flex;margin:auto;width:20.65pt;"> <div style="display:flex;white-space:nowrap;width:20.65pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:20.65pt;">2.06%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:202.87pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Other Expenses</span><span style="color:#000000;font-family:Arial Narrow;font-size:5.33pt;margin-left:0.0pt;position:relative;top:-2pt;">(6)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:130.13pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:114.13pt;"> <div style="display:flex;margin:auto;width:20.65pt;"> <div style="display:flex;white-space:nowrap;width:20.65pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:20.65pt;">0.28%</span></div> </div> </div> </td> </tr> <tr style="height:13.45pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:202.87pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt;">Total Annual Fund Operating Expenses</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:130.13pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:114.13pt;"> <div style="display:flex;margin:auto;width:20.65pt;"> <div style="display:flex;white-space:nowrap;width:20.65pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:8pt;font-weight:bold;width:20.65pt;">3.55%</span></div> </div> </div> </td> </tr> </table> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(4) The Investment Manager receives an annual fee, payable monthly, in an amount equal to 0.85% of the Fund’s average weekly “Managed Assets”. Managed Assets means net assets plus the amount of any borrowings (including loans from certain financial institutions, the use of reverse repurchase agreements and/or the issuance of debt securities, collectively “Borrowings”). For the purposes of this table, we have assumed that the Fund has utilized Borrowings in an aggregate amount of 31% of its Managed Assets, which equals the average level of Borrowings for the Fund’s fiscal year ended May 31, 2026. If the Fund were to use Borrowings in excess of 31%, the amount of management fees paid to the Investment Manager would be higher because the fees paid are calculated on the Fund’s Managed Assets, which include assets purchased with Borrowings.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(5) The Fund has utilized Borrowings in an aggregate amount of 31% of its Managed Assets, which equals the average level of leverage for the Fund’s fiscal year ended May 31, 2026. The expenses and rates associated with leverage may vary.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(6) “Other Expenses” are based on amounts incurred in the fiscal year ended May 31, 2026.</span></div> <span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Percentage of Net Assets Attributable</span><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">to Common Shares</span> 0.0121 0.0206 0.0028 0.0355 Costs incurred by the Fund in connection with the shelf offering are recorded as deferred offering costs.  These costs are amortized on a pro-rata basis as shares are sold and are presented as a reduction to the net proceeds from the sale of shares.  Any deferred charges remaining at the end of the life of the shelf offering period will be expensed. The Investment Manager receives an annual fee, payable monthly, in an amount equal to 0.85% of the Fund’s average weekly “Managed Assets”. Managed Assets means net assets plus the amount of any borrowings (including loans from certain financial institutions, the use of reverse repurchase agreements and/or the issuance of debt securities, collectively “Borrowings”). For the purposes of this table, we have assumed that the Fund has utilized Borrowings in an aggregate amount of 31% of its Managed Assets, which equals the average level of Borrowings for the Fund’s fiscal year ended May 31, 2026. If the Fund were to use Borrowings in excess of 31%, the amount of management fees paid to the Investment Manager would be higher because the fees paid are calculated on the Fund’s Managed Assets, which include assets purchased with Borrowings. “Other Expenses” are based on amounts incurred in the fiscal year ended May 31, 2026. <div style="margin-top:8pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Examples</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">An investor would pay the following expenses on a $1,000 investment in the Fund, assuming a 5% annual return:</span></div> <table cellpadding="0" style="empty-cells:show;width:333pt; border-spacing: 0px;"> <tr style="height:8.15pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:77.75pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">One Year</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:83.75pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Three Years</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:83.75pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Five Years</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:87.75pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Ten Years</span></div> </div> </td> </tr> <tr style="height:13.45pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:77.75pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Center;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">$46</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:83.75pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:71.75pt;"> <div style="display:flex;margin:auto;width:16.2pt;"> <div style="display:flex;white-space:nowrap;width:16.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:16.2pt;">118</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:83.75pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:71.75pt;"> <div style="display:flex;margin:auto;width:16.2pt;"> <div style="display:flex;white-space:nowrap;width:16.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:16.2pt;">192</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:87.75pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:71.75pt;"> <div style="display:flex;margin:auto;width:16.2pt;"> <div style="display:flex;white-space:nowrap;width:16.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:16.2pt;">388</span></div> </div> </div> </td> </tr> </table> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The above table and example are intended to assist investors in understanding the various costs and expenses directly or indirectly associated with investing in Shares of the Fund. The “Example” assumes that all dividends and other distributions are reinvested at net asset value and that the percentage amounts listed in the table above under Total Annual Operating Expenses remain the same in the years shown. The above table and example and the assumption in the example of a 5% annual return are required by regulations of the SEC that are applicable to all investment companies; the assumed 5% annual return is not a prediction of, and does not represent, the projected or actual performance of the Fund’s Common Shares.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">The example should not be considered a representation of past or future expenses, and the Fund’s actual expenses may be greater than or less than those shown. The Fund’s actual rate of return may be greater or less than the hypothetical 5% return shown in the example.</span></div> 46 118 192 388 <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Market Price and Net Asset Valuation (NAV) Information</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund’s Common Stock is traded on the NYSE under the symbol “EHI”. The below table details for the period indicated the high and low closing market prices, the NAV, and premium to or discount from NAV, on the date of each of the high and low market prices.</span></div> <table cellpadding="0" style="empty-cells:show;width:333pt; border-spacing: 0px;"> <tr style="height:27.15pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;"> </span></div> </div> </td> <td colspan="2" style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:63.64pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Quarterly Closing</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Market Price</span></div> </div> </td> <td colspan="2" style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:83.64pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Quarterly Closing</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">NAV Price</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">on Date of Market Price</span></div> </div> </td> <td colspan="2" style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:87.64pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Quarterly Closing</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Premium/(Discount)</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">on Date of Market Price</span></div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:0.5pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;"> </span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:31.82pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">High</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:31.82pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Low</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:41.82pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">High</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:41.82pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Low</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:41.82pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">High</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:45.82pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Low</span></div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Fiscal Year 2026:</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">August 31, 2025</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.63</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.37</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.83</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.71</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(2.93)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(5.07)%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">November 30, 2025</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.70</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.28</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.92</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.71</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(3.18)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(6.41)%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">February 28, 2026</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.55</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.26</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.75</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.74</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(2.96)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(7.12)%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2026</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.38</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">5.82</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.67</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.43</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(4.35)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(9.49)%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Fiscal Year 2025:</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">August 31, 2024</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">7.25</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.94</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">7.23</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">7.20</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">0.28%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(3.61)%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">November 30, 2024</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">7.07</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.59</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">7.47</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">7.03</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(5.35)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(6.26)%</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">February 28, 2025</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.89</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.56</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.96</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.90</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(1.01)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(4.93)%</span></div> </div> </div> </td> </tr> <tr style="height:13.45pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:98.09pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2025</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.79</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.16</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.96</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:17.98pt;"> <div style="display:flex;white-space:nowrap;width:17.98pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:17.98pt;">6.51</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(2.44)%</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:45.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:24.2pt;"> <div style="display:flex;white-space:nowrap;width:24.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:24.2pt;">(5.38)%</span></div> </div> </div> </td> </tr> </table> <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;">Source of market prices: NYSE.</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The NAV per Common Share on May 31, 2026 was $6.55 and the market price per Common Stock at the close of business on May 31, 2026 was $6.00, representing a 8.40% discount from such net asset value. As of May 31, 2026, the Fund has 30,299,742 outstanding shares of Common Stock.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Shares of a closed-end investment company may frequently trade at prices lower than NAV. The Fund’s Common Stock has traded in the market below, at and above net asset value since the commencement of the Fund’s operations. The Fund cannot determine the reasons why the Fund’s Common Stock trades at a premium to or discount from NAV, nor can the </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Fund predict whether its Stock will trade in the future at a premium to or discount from NAV, or the level of any premium or discount. The Board regularly monitors the relationship between the market price and NAV of the Common Stock. If the Common Stock were to trade at a substantial discount to NAV for an extended period of time, the Board may consider the repurchase of the Fund’s Common Stock on the open market, the making of a tender offer for such shares or other programs intended to reduce the discount. The Fund cannot assure you that its Board will decide to take or propose any of these actions, or that share repurchases or tender offers will actually reduce market discount.</span></div> 6.63 6.37 6.83 6.71 -0.0293 -0.0507 6.7 6.28 6.92 6.71 -0.0318 -0.0641 6.55 6.26 6.75 6.74 -0.0296 -0.0712 6.38 5.82 6.67 6.43 -0.0435 -0.0949 7.25 6.94 7.23 7.2 0.0028 -0.0361 7.07 6.59 7.47 7.03 -0.0535 -0.0626 6.89 6.56 6.96 6.9 -0.0101 -0.0493 6.79 6.16 6.96 6.51 -0.0244 -0.0538 6.55 6 0.084 30299742 <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Senior Securities Table</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund engaged in senior securities during the prior ten years as follows:</span><span style="color:#000000;font-family:Arial Narrow;font-size:1pt;"> </span></div> <table cellpadding="0" style="empty-cells:show;width:333pt; border-spacing: 0px;"> <tr style="height:46.15pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;margin-left:0.0pt;">Fiscal Year Ended</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:53.24pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Total</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Amount</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Outstanding</span><span style="color:#40A6FF;font-family:Arial Narrow;font-size:5pt;position:relative;top:-1.88pt;">(1)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:43.64pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Asset</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Coverage</span> <br/></div> <div style="margin-left:4pt;margin-right:4pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">per 1,000</span><span style="color:#40A6FF;font-family:Arial Narrow;font-size:5pt;position:relative;top:-1.88pt;">(2)</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:41.22pt;"> <div style="line-height:10.1pt;text-align:left;"> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Average</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Market</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Value</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Per</span> <br/></div> <div style="margin-left:4pt;margin-right:8pt;text-align:Center;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Unit</span><span style="color:#40A6FF;font-family:Arial Narrow;font-size:5pt;position:relative;top:-1.88pt;">(3)</span></div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:8pt;margin-left:0.0pt;">Revolving Credit Facility:</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2026*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">82,700,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,400</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2025*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">75,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,697</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2024*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">70,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,328</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2023*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">70,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,315</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2022*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">77,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,505</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2021*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">85,500,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,829</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2020*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">158,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,706</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2019*</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">180,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,583</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2018</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">168,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,829</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:11.3pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2017</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">171,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,992</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> <tr style="height:13.45pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:194.9pt;"> <div style="line-height:10.6pt;text-align:left;"> <div style="margin-right:6pt;text-align:Left;white-space:nowrap;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;margin-left:8pt;">May 31, 2016</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:53.24pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:41.24pt;"> <div style="display:flex;margin:auto;width:41.06pt;"> <div style="display:flex;white-space:nowrap;width:41.06pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:41.06pt;">120,000,000</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:43.64pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:31.64pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">3,729</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.22pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:25.22pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> <div style="display:flex;white-space:nowrap;width:13.99pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:13.99pt;">N/A</span></div> </div> </div> </td> </tr> </table> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">* The Fund had open reverse repurchase agreements at May 31, 2026, 2025, 2024, 2023, 2022, 2021, 2020, and 2019.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(1) Total amount of senior securities outstanding at the end of the period presented.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(2) Asset coverage per $1,000 of indebtedness is the value of net assets plus the senior securities outstanding at the end of the period divided by the senior securities outstanding at the end of the period.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(3) Not applicable, as these senior securities were not registered for public trading.</span></div> 82700000 3400 75000000 3697 70000000 3328 70000000 3315 77000000 3505 85500000 3829 158000000 3706 180000000 3583 168000000 3829 171000000 3992 120000000 3729 <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">* The Fund had open reverse repurchase agreements at May 31, 2026, 2025, 2024, 2023, 2022, 2021, 2020, and 2019.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(1) Total amount of senior securities outstanding at the end of the period presented.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(2) Asset coverage per $1,000 of indebtedness is the value of net assets plus the senior securities outstanding at the end of the period divided by the senior securities outstanding at the end of the period.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(3) Not applicable, as these senior securities were not registered for public trading.</span></div> Not applicable, as these senior securities were not registered for public trading. <div style="line-height:10.0pt;text-align:left;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Investment Objectives</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund’s primary investment objective is high current income and secondary investment objective is total return.</span></div> <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Principal Investment Policies and Strategies</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Under normal market conditions, the Fund will invest at least 10% and up to 80% of its total assets in (i) below investment grade (high yield) fixed income (debt) securities issued by corporate issuers.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Under normal market conditions, the Fund will invest at least 10% and up to 80% of its assets in emerging market fixed income securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Under normal market conditions, the Fund will invest at least 10% and up to 80% of its assets in investment grade fixed income securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund usually will attempt to maintain a portfolio with a weighted average credit quality rated at least B3 by Moody’s or B- by S&amp;P or an equivalent rating from any nationally recognized statistical rating organization.  If a security is rated by multiple nationally recognized statistical rating organizations (“NRSROs”) and receives different ratings, the Fund will treat the security as being rated in the lowest rating category received from an NRSRO.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">For temporary defensive purposes and in order to keep the Fund’s cash fully invested, the Fund may deviate from its investment objectives and policies and invest some or all of its assets in investments of non-corporate issuers, including high-quality, short-term debt securities. In addition, in anticipation of or in response to adverse market conditions, for cash management purposes, or for defensive purposes, the Fund may invest up to 100% of its assets in U.S. government securities, certificates of deposit, repurchase agreements, or short term commercial paper.  The Fund may also invest in money market funds, including funds affiliated with the Fund’s manager and subadvisers.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">As a temporary defensive strategy, the Fund may employ alternative strategies, including investment of all of the Fund’s assets in securities rated investment grade by any nationally recognized statistical rating organization, or in unrated securities of comparable quality.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 20% of its managed assets in all types of equity securities, including common stocks traded on an exchange or in the over the counter market, preferred stocks, warrants, rights, convertible securities, depositary receipts, trust certificates, limited partnership interests, shares of other investment companies and REITs.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund has no specific policy with regard to turnover.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 15% of its managed assets in illiquid securities.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest up to 10% of its total assets in any combination of publicly or privately traded mortgage REITs and hybrid REITs.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in zero coupon securities, pay-in-kind bonds and deferred payment securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in certain bank obligations, including certificates of deposit, bankers’ acceptances, and fixed time deposits.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in collateralized debt obligations, collateralized bond obligations and collateralized loan obligations.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The average portfolio duration of the Fund will normally be within one to seven years based on the Investment Manager’s forecast for interest rates. Duration is a measure of the expected life of a debt security that is used to determine the sensitivity of a security’s price to changes in interest rates.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may not purchase or sell commodities or commodities contracts or oil, gas or mineral programs, but may purchase, sell, or enter into futures contracts, options on futures contracts, forward contracts, or interest rate, securities-related or other hedging instruments, including swap agreements and other derivative instruments.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Principal Risk Factors</span></div> <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There is no assurance that the Fund will meet its investment objectives. You may lose money on your investment in the Fund. The value of the Fund’s shares may go up or down, sometimes rapidly and unpredictably. Market conditions, financial conditions of issuers represented in the Fund’s portfolio, investment strategies, portfolio management, and other factors affect the volatility of the Fund’s shares. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The following section includes a summary of the principal risks of investing in the Fund.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Fixed Income Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> In addition to the risks described elsewhere in this section with respect to valuations and liquidity, fixed income securities, including high-yield securities, are also subject to certain risks, including:</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Issuer Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The value of fixed income securities may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods and services.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Interest Rate Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The market price of the Fund’s investments will change in response to changes in interest rates and other factors. During periods of declining interest rates, the market price of fixed income securities generally rises. Conversely, during periods of rising interest rates, the market price of such securities generally declines. The </span></div> <div style="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:0.00pt;">magnitude of these fluctuations in the market price of fixed income securities is generally greater for securities with longer maturities. Fluctuations in the market price of the Fund’s securities will not affect interest income derived from securities already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may utilize certain strategies, including investments in structured notes or interest rate swap or cap transactions, for the purpose of reducing the interest rate sensitivity of the portfolio and decreasing the Fund’s exposure to interest rate risk, although there is no assurance that it will do so or that such strategies will be successful.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Prepayment Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding securities, which may result in a decline in the Fund’s income and distributions to stockholders. This is known as prepayment or “call” risk. Debt securities frequently have call features that allow the issuer to redeem the security at dates prior to its stated maturity at a specified price (typically greater than par) only if certain prescribed conditions are met. An issuer may choose to redeem a debt security if, for example, the issuer can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Reinvestment Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Reinvestment risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the market price of Common Shares or overall returns.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Below Investment Grade (High-Yield or Junk Bond) Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund may invest in high-yield debt securities. Debt securities rated below investment grade are commonly referred to as “high-yield” securities or “junk bonds” and are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal in accordance with the terms of the obligations and involve major risk exposure to adverse conditions. Debt securities rated C or lower by Moody’s, CCC or lower by S&amp;P or CC or lower by Fitch or comparably rated by another nationally recognized statistical rating organization (“NRSRO”) or, if unrated, determined by Western Asset to be of comparable quality are considered to have extremely poor prospects of ever attaining any real investment standing, to have a current identifiable vulnerability to default, to be unlikely to have the capacity to pay interest and repay principal when due in the event of adverse business, financial or economic conditions and/or to be in default or not current in the payment of interest or principal. Ratings may not accurately reflect the actual credit risk associated with a corporate security.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Debt securities rated below investment grade generally offer a higher current yield than that available from higher grade issues, but typically involve greater risk. These securities are especially sensitive to adverse changes in general economic conditions, to changes in the financial condition of their issuers and to price fluctuation in response to changes in interest rates. During periods of economic downturn or rising interest rates, issuers of below investment grade instruments may experience financial stress that could adversely affect their ability to make payments of principal and interest and increase the possibility of default. The secondary market for high-yield securities may not be as liquid as the secondary market for more highly rated securities, a factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. There are fewer dealers in the market for high-yield securities than for investment grade obligations. The prices quoted by different dealers may vary significantly, and the spread between the bid and asked price is generally much larger for high-yield securities than for higher quality instruments. Under continuing adverse market or economic conditions, the secondary market for high-yield securities could contract further, independent of any specific adverse changes in the condition of a particular issuer, and these securities may become illiquid. In addition, adverse publicity and investor perceptions, whether or not based on fundamental analysis, may also decrease the values and liquidity of below investment grade securities, especially in a market characterized by a low volume of trading.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities held by the Fund, thereby reducing the value of your investment in the Fund’s common stock. In addition, default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled entity is the fact that it frequently may be difficult to obtain information as to the true financial condition of such issuer. Western Asset’s judgment about the credit quality of an issuer and the relative value of its securities may prove to be wrong. Investments in below investment grade securities may present special tax issues for the Fund to the extent that the issuers of these securities default on their obligations pertaining thereto, and the U.S. federal income tax consequences to the Fund as a holder of such distressed securities may not be clear.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Foreign Securities and Emerging Markets Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk as compared to investment in U.S. securities or issuers with predominantly domestic exposure, such as less liquid, less regulated, less transparent and more volatile markets. The markets for some foreign securities are relatively new, and the rules and policies relating to these markets are not fully developed and may change. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">foreign markets and issuers generally, such as unfavorable or unsuccessful government actions, tariffs and tax disputes, reduction of government or central bank support, inadequate accounting standards, lack of information and political, economic, financial or social instability. Foreign investments may also be adversely affected by U.S. government or international economic sanctions, which could eliminate the value of an investment. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The risks of foreign investment are greater for investments in emerging markets. “Emerging market country” is defined as any country which is, at the time of investment, (i) represented in the J.P. Morgan Emerging Markets Bond Index Global Diversified or the J.P. Morgan Corporate Emerging Market Bond Index Broad or (ii) categorized by the World Bank in its annual categorization as middle- or low-income. Emerging market countries typically have economic and political systems that are less fully developed, and that can be expected to be less stable, than those of more advanced countries. Low trading volumes may result in a lack of liquidity and in price volatility. Emerging market countries may have policies that restrict investment by foreigners, that require governmental approval prior to investments by foreign persons, or that prevent foreign investors from withdrawing their money at will. An investment in emerging market securities should be considered speculative.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Non-U.S. Government, or Sovereign, Debt Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund invests in non-U.S. government, or sovereign, debt securities. The ability of a government issuer, especially in an emerging market country, to make timely and complete payments on its debt obligations will be strongly influenced by the government issuer’s balance of payments, including export performance, its access to international credits and investments, fluctuations of interest rates and the extent of its foreign reserves. A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports could be vulnerable to fluctuations in international prices of these commodities or imports. To the extent that a country receives payment for its exports in currencies other than U.S. dollars, its ability to make debt payments denominated in U.S. dollars could be adversely affected. If a government issuer cannot generate sufficient earnings from foreign trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, commercial banks, and multinational organizations. There are no bankruptcy proceedings similar to those in the United States by which defaulted non-U.S. government debt may be collected. Additional factors that may influence a government issuer’s ability or willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability of sufficient foreign exchange on the date a payment is due, the relative size of its debt service burden to the economy as a whole, and the issuer’s policy towards the </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">International Monetary Fund, the International Bank for Reconstruction and Development and other international agencies to which a government debtor may be subject.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Foreign Currency Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The value of investments denominated in foreign currencies increases or decreases as the rates of exchange between those currencies and the U.S. dollar change. Currency conversion costs and currency fluctuations could erase investment gains or add to investment losses. Currency exchange rates can be volatile, and are affected by factors such as general economic conditions, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls and speculation. The Fund may be unable or may choose not to hedge its foreign currency exposure.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Liquidity Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund may invest in illiquid securities. Illiquid securities are securities that cannot be disposed of within seven days in the ordinary course of business at approximately the value at which the Fund has valued the securities. Liquidity risk exists when particular investments are difficult to sell. Securities may become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments in order to segregate assets or for other cash needs, the Fund may suffer a loss.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Common Stock Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the Fund. In addition, the prices of common stocks are sensitive to general movements in the stock market, and a drop in the stock market may depress the prices of common stocks to which the Fund has exposure. Common stock prices fluctuate for several reasons including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or economic events affecting an issuer occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. The value of the common stocks in which the Fund may invest will be affected by changes in the stock markets generally, which may be the result of domestic or international political or economic news, changes in interest rates or changing investor sentiment. At times, stock markets can be volatile and stock prices can change substantially. The common stocks of smaller companies are more sensitive to these changes than those of larger companies. Common stock risk will affect the Fund’s net asset value per share, which will fluctuate as the value of the securities held by the Fund change.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Preferred Stock Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Generally, the Fund has a greater flexibility to invest in equity securities. Preferred stocks are unique securities that combine some of the characteristics of both common stocks and bonds. Preferred stocks generally pay a fixed rate of return and are sold on the basis of current yield, like bonds. However, because they are equity securities, preferred stock provides equity ownership of a company, and the income is paid in the form of dividends. Preferred stocks typically have a yield advantage over common </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">stocks as well as comparably-rated fixed income investments. Preferred stocks are typically subordinated to bonds and other debt instruments in a company’s capital structure, in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stocks also may be subject to optional or mandatory redemption provisions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Convertible Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> A convertible security is a bond, debenture, note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or a different issuer within a particular period of time at a specified price or formula. Before conversion, convertible securities have characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than comparable nonconvertible securities. Similar to traditional fixed income securities, the market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the convertible security tends to reflect the market price of the underlying common stock. As the market price of the underlying common stock declines, the convertible security tends to trade increasingly on a yield basis and thus may not decline in price to the same extent as the underlying common stock. The credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value. Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Risks of Warrants and Rights.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Warrants and rights are subject to the same market risks as stocks, but may be more volatile in price. Warrants and rights do not carry the right to dividends or voting rights with respect to their underlying securities, and they do not represent any rights in the assets of the issuer. An investment in warrants or rights may be considered speculative. In addition, the value of a warrant or right does not necessarily change with the value of the underlying security and a warrant or right ceases to have value if it is not exercised prior to its expiration date. The purchase of warrants or rights involves the risk that the Fund could lose the purchase value of a warrant or right if the right to subscribe to additional shares is not exercised prior to the warrants’ or rights’ expiration. Also, the purchase of warrants and rights involves the risk that the effective price paid for the warrant or right added to the subscription price of the related security may exceed the value of the subscribed security’s market price such as when there is no movement in the price of the underlying security.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">REITs Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. An equity or hybrid REIT may be affected by changes in the value of the underlying properties owned by the REIT. A mortgage or hybrid REIT may be affected by changes in interest rates and the ability of the issuers of its portfolio mortgages to repay their obligations. Mortgage and hybrid REITs are subject to the risks of accelerated prepayments of mortgage pools or pass-through securities, reliance on short-term financing and more highly leveraged capital structures. REITs are dependent upon the skills of their managers and are not diversified.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs are generally dependent upon maintaining cash flows to repay borrowings and to make distributions to stockholders and are subject to the risk of default by lessees and borrowers. REITs whose underlying assets are concentrated in properties used by a particular industry, such as healthcare, are also subject to industry related risks. Certain “special purpose” REITs may invest their assets in specific real estate sectors, such as hotels, nursing homes or warehouses, and are therefore subject to the risks associated with adverse developments in any such sectors.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs (especially mortgage REITs) are also subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations can be expected to rise, but mortgages are often refinanced, which may reduce the yield on investments in mortgage REITs. Rising interest rates may cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could cause the value of a REIT’s investment in fixed rate obligations can be expected to decline. If the REIT invests in adjustable rate mortgage loans (the interest rates on which are reset periodically), yields on a REIT’s investments in such loans will gradually align themselves to reflect changes in market interest rates. This causes the value of such investments to fluctuate less dramatically in response to interest rate fluctuations than would investments in fixed rate obligations.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs may have limited financial resources, may trade less frequently and in a limited volume and maybe subject to more abrupt or erratic price movements than larger company securities. In addition to these risks, REITs may be affected by changes in the value of the underlying property owned by the trusts or by the quality of any credit they extend. Further, REITs are dependent upon management skills and generally may not be diversified. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs are subject to management fees and other expenses. Therefore, investments in REITs will cause the Fund to bear its proportionate share of the costs of the REITs’ operations. At the same time, the Fund will continue to pay its own management fees and expenses with respect to all of its assets, including any portion invested in REITs.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Mortgage-Backed and Asset-Backed Securities Risks.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Mortgage-backed securities include, among other things, participation interests in pools of residential mortgage loans purchased from individual lenders by a federal agency or originated and issued by private lenders and involve, among others, the following risks:</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit and Market Risks of Mortgage-Backed Securities.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Investments by the Fund in fixed rate and floating rate mortgage-backed securities will entail credit risks (i.e., the risk of non-payment of interest and principal) and market risks (i.e., the risk that interest rates and other factors could cause the value of the instrument to decline). Many issuers or servicers of mortgage-backed securities may guarantee timely payment of interest and principal on the securities, whether or not payments are made when due on the underlying mortgages. This kind of guarantee generally increases the quality of a security, but does not mean that the security’s market value and yield will not change. The value of all mortgage-backed securities also may change because of changes in the market’s perception of the creditworthiness of the organization that issues or guarantees them. In addition, an unexpectedly high rate of defaults on the mortgages held by a mortgage pool may limit substantially the pool’s ability to make payments of principal or interest to the Fund as a holder of such securities, reducing the values of those securities or in some cases rendering them worthless. The Fund also may purchase securities that are not guaranteed or subject to any credit support.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Like bond investments, the value of fixed rate mortgage-backed securities will tend to rise when interest rates fall, and fall when rates rise. Floating rate mortgage-backed securities will generally tend to have more moderate changes in price when interest rates rise or fall, but their current yield will be affected.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">In addition, the mortgage-backed securities market in general may be adversely affected by changes in governmental legislation or regulation. Factors that could affect the value of a mortgage-backed security include, among other things, the types and amounts of insurance which an individual mortgage or specific mortgage-backed security carries, the default and delinquency rate of the mortgage pool, the amount of time the mortgage loan has been outstanding, the loan-to-value ratio of each mortgage and the amount of overcollateralization or undercollateralization of the mortgage pool.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Asset-backed securities represent participation in, or are secured by and payable from, assets such as installment sales or loan contracts, leases, credit card receivables, and other categories of receivables. Certain debt instruments may only pay principal at maturity or may only represent the right to receive payments of principal or payments of interest on underlying pools or mortgages, assets, or government securities, but not both. The value of these types of instruments may change more drastically than debt securities that pay both principal and interest. The Fund may obtain a below market yield or incur a loss on such instruments during periods of declining interest rates. Principal only and interest only </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments are subject to extension risk. For mortgage derivatives and structured securities that have imbedded leverage features, small changes in interest or prepayment rates may cause large and sudden price movements. Mortgage derivatives can also become illiquid and hard to value in declining markets.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Prepayment, Extension and Redemption Risks of Mortgage-Backed Securities.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Mortgage-backed securities may reflect an interest in monthly payments made by the borrowers who receive the underlying mortgage loans. Although the underlying mortgage loans are for specified periods of time, such as 20 or 30 years, the borrowers can, and historically have, paid them off sooner. When a prepayment happens, a portion of the mortgage-backed security which represents an interest in the underlying mortgage loan will be prepaid. A borrower is more likely to prepay a mortgage which bears a relatively high rate of interest. This means that in times of declining interest rates, a portion of the Fund’s higher yielding securities are likely to be redeemed and the Fund will probably be unable to replace them with securities having as great a yield. Prepayments can result in lower yields to stockholders. The increased likelihood of prepayment when interest rates decline also limits market price appreciation of mortgage-backed securities. This is known as prepayment risk. Mortgage-backed securities also are subject to extension risk. Extension risk is the possibility that rising interest rates may cause prepayments to occur at a slower than expected rate. This particular risk may effectively change a security which was considered short or intermediate term into a long-term security. The values of long-term securities generally fluctuate more widely in response to changes in interest rates than short or intermediate-term securities. In addition, a mortgage-backed security may be subject to redemption at the option of the issuer. If a mortgage-backed security held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem or “pay-off” the security, which could have an adverse effect on the Fund’s ability to achieve its investment objective.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Liquidity Risk of Mortgage-Backed Securities.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The liquidity of mortgage-backed securities varies by type of security; at certain times the Fund may encounter difficulty in disposing of such investments. Because mortgage-backed securities have the potential to be less liquid than other securities, the Fund may be more susceptible to liquidity risks than funds that invest in other securities. In the past, in stressed markets, certain types of mortgage-backed securities suffered periods of illiquidity when disfavored by the market.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Collateralized Mortgage Obligations. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There are certain risks associated specifically with collateralized mortgage obligations (“CMOs”). CMOs are debt obligations collateralized by mortgage loans or mortgage pass-through securities. The average life of CMOs is determined using mathematical models that incorporate prepayment assumptions and other factors that involve estimates of future economic and market conditions. These estimates may vary from actual future results, particularly during periods of extreme </span></div> <div style="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:0.00pt;">market volatility. Further, under certain market conditions, such as those that occurred in 1994, 2007, 2008 and 2009, the average weighted life of certain CMOs may not accurately reflect the price volatility of such securities. For example, in periods of supply and demand imbalances in the market for such securities and/or in periods of sharp interest rate movements, the prices of CMOs may fluctuate to a greater extent than would be expected from interest rate movements alone. CMOs issued by private entities are not obligations issued or guaranteed by the United States Government, its agencies or instrumentalities or by any government agency, although the securities underlying a CMO may be subject to a guarantee. Therefore, if the collateral securing the CMO, as well as any third party credit support or guarantees, is insufficient to make payments when due, the holder could sustain a loss.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Adjustable Rate Mortgages.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Adjustable Rate Mortgages (“ARMs”) contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the lifetime of the security. In addition, many ARMs provide for additional limitations on the maximum amount by which the mortgage interest rate may adjust for any single adjustment period. Alternatively, certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly payment is not sufficient to pay the interest accruing on an ARM, any excess interest is added to the principal balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the excess is used to reduce the then-outstanding principal balance of the ARM.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">In addition, certain ARMs may provide for an initial fixed, below-market or “teaser” interest rate. During this initial fixed-rate period, the payment due from the related mortgagor may be less than that of a traditional loan. However, after the “teaser” rate expires, the monthly payment required to be made by the mortgagor may increase dramatically when the interest rate on the mortgage loan adjusts. This increased burden on the mortgagor may increase the risk of delinquency or default on the mortgage loan and in turn, losses on the mortgage-backed security into which that loan has been bundled.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Interest and Principal Only Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> One type of stripped mortgage-backed security pays to one class all of the interest from the mortgage assets (the interest-only, or “IO” class), while the other class will receive all of the principal (the principal-only, or “PO” class). The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on the Fund’s yield to maturity from these securities. If the assets underlying the IO class experience greater than anticipated prepayments of principal, the Fund may fail to recoup fully, or at all, its initial </span></div> <div style="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:0.00pt;">investment in these securities. Conversely, PO class securities tend to decline in value if prepayments are slower than anticipated.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Derivatives Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may utilize a variety of derivative instruments for investment or risk management purposes, such as options, futures contracts, swap agreements and credit default swaps. Generally derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index, and may relate to individual debt or equity instruments, interest rates, currencies or currency exchange rates and related indexes. Derivatives are subject to a number of risks, such as liquidity risk, interest rate risk, credit risk and management risk. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to its derivative transactions will affect the value of those instruments. By using derivatives that expose the Fund to counterparties, the Fund assumes the risk that its counterparties could experience financial hardships that could call into question their continued ability to perform their obligations. In addition, in the event of the insolvency of a counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market value. If the Fund is owed this fair market value in the termination of the derivative transaction and its claim is unsecured, the Fund will be treated as a general creditor of such counterparty, and will not have any claim with respect to the underlying security. As a result, concentrations of such derivatives in any one counterparty would subject the Fund to an additional degree of risk with respect to defaults by such counterparty. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the value of a derivative may not correlate perfectly with an underlying asset, interest rate or index. Suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial. If the Fund invests in a derivative instrument, it could lose more than the principal amount invested. Derivative instruments can be illiquid, may disproportionately increase losses and may have a potentially large impact on the Fund’s performance.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund operates under Rule 18f-4 under the 1940 Act which, among other things, governs the use of derivative investments and certain financing transactions (e.g. reverse repurchase agreements) by registered investment companies. Among other things, Rule 18f-4 requires funds that invest in derivative instruments beyond a specified limited amount to apply a value at risk (VaR) based limit to their use of certain derivative instruments and financing transactions and to adopt and implement a derivatives risk management program. A fund that uses derivative instruments in a limited amount is not subject to the full requirements of Rule 18f-4. Compliance with Rule 18f-4 by the Fund could, among other things, make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance. Rule 18f-4 may limit the Fund’s ability to use </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">derivatives as part of its investment strategy and may not work as intended to limit losses from derivatives.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Risks of Futures and Options on Futures. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The use by the Fund of futures contracts and options on futures contracts to hedge interest rate risks involves special considerations and risks, as described below.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Successful use of hedging transactions depends upon Western Asset’s ability to correctly predict the direction of changes in interest rates. There can be no assurance that any particular hedging strategy will succeed.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There might be imperfect correlation, or even no correlation, between the price movements of a futures or option contract and the movements of the interest rates being hedged. Such a lack of correlation might occur due to factors unrelated to the interest rates being hedged, such as market liquidity and speculative or other pressures on the markets in which the hedging instrument is traded.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Hedging strategies, if successful, can reduce risk of loss by wholly or partially offsetting the negative effect of unfavorable movements in the interest rates being hedged. However, hedging strategies can also reduce opportunity for gain by offsetting the positive effect of favorable movements in the hedged interest rates.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There is no assurance that a liquid secondary market will exist for any particular futures contract or option thereon at any particular time. If the Fund were unable to liquidate a futures contract or an option on a futures contract position due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. The Fund would continue to be subject to market risk with respect to the position.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There is no assurance that the Fund will use hedging transactions. For example, if the Fund determines that the cost of hedging will exceed the potential benefit to the Fund, the Fund will not enter into such transactions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit Default Swap Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in credit default swap transactions for hedging or investment purposes. Credit default swap agreements, a type of derivatives transaction, involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. The “buyer” in a credit default contract is obligated to pay the “seller” a periodic stream of payments over the term of the contract, provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or “par value,” of the reference obligation through either physical settlement or cash settlement. The Fund may be either the buyer or seller in a credit default swap transaction. If the Fund is a buyer and no event of default occurs, the Fund will have made a series of periodic payments and </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">recover nothing of monetary value. However, if an event of default occurs, the Fund (if the buyer) will receive the full notional value of the reference obligation either through a cash payment in exchange for the asset or a cash payment in addition to owning the reference assets. As a seller, the Fund receives a fixed rate of income throughout the term of the contract, which typically is between six months and five years, provided that there is no event of default. Market developments related to credit default swaps have prompted increased scrutiny with respect to these instruments. As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, credit default swaps may in the future be subject to increased regulation. Such regulation may limit the Fund’s ability to use credit default swaps. Although the Fund will seek to realize gains by writing credit default swaps that increase in value, to realize gains on writing credit default swaps, an active secondary market for such instruments must exist or the Fund must otherwise be able to close out these transactions at advantageous times. If no such secondary market exists or the Fund is otherwise unable to close out these transactions at advantageous times, writing credit default swaps may not be profitable for the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The market for credit default swaps has become more volatile in recent years as the creditworthiness of certain counterparties has been questioned and/or downgraded. If a counterparty’s credit becomes significantly impaired, multiple requests for collateral posting in a short period of time could increase the risk that the Fund may not receive adequate collateral. The Fund may exit its obligations under a credit default swap only by terminating the contract and paying applicable breakage fees, or by entering into an offsetting credit default swap position, which may cause the Fund to incur more losses.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Repurchase Agreements Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Subject to its investment objective and policies, the Fund may invest in repurchase agreements for leverage or investment purposes. Repurchase agreements typically involve the acquisition by the Fund of debt securities from a selling financial institution such as a bank, savings and loan association or broker-dealer. The agreement provides that the Fund will sell the securities back to the institution at a fixed time in the future. The Fund does not bear the risk of a decline in the value of the underlying security unless the seller defaults under its repurchase obligation. In the event of the bankruptcy or other default of a seller of a repurchase agreement, the Fund could experience both delays in liquidating the underlying securities and losses, including (1) possible decline in the value of the underlying security during the period in which the Fund seeks to enforce its rights thereto; (2) possible lack of access to income on the underlying security during this period; and (3) expenses of enforcing its rights. While repurchase agreements involve certain risks not associated with direct investments in debt securities, the Fund follows procedures approved by the Fund’s Board of Directors that are designed to minimize such risks. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose financial condition will be continually monitored by Western Asset. In addition, as described above, the value </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of the collateral underlying the repurchase agreement will be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Fund generally will seek to liquidate such collateral. However, the exercise of the Fund’s right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Fund could suffer a loss.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Reverse Repurchase Agreements Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund’s use of reverse repurchase agreements involves many of the same risks involved in the Fund’s use of leverage, as the proceeds from reverse repurchase agreements generally will be invested in additional securities. There is a risk that the market value of the securities acquired in the reverse repurchase agreement may decline below the price of the securities that the Fund has sold but remains obligated to repurchase. In addition, there is a risk that the market value of the securities retained by the Fund may decline. If the buyer of securities under a reverse repurchase agreement were to file for bankruptcy or experience insolvency, the Fund may be adversely affected. Also, in entering into reverse repurchase agreements, the Fund would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the underlying securities. In addition, due to the interest costs associated with reverse repurchase agreements transactions, the Fund’s net asset value will decline, and, in some cases, the Fund may be worse off than if it had not used such instruments.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Senior Loans Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in first lien senior secured loans (“Senior Loans”) issued by banks, other financial institutions, and other investors to corporations, partnerships, limited liability companies and other entities to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, debt refinancings and, to a lesser extent, for general operating and other purposes. An investment in Senior Loans involves risk that the borrowers under Senior Loans may default on their obligations to pay principal or interest when due. In the event a borrower fails to pay scheduled interest or principal payments on a Senior Loan held by the Fund, the Fund will experience a reduction in its income and a decline in the market value of the Senior Loan, which will likely reduce dividends and lead to a decline in the net asset value of the Fund. If the Fund acquires a Senior Loan from another lender, for example, by acquiring a participation, the Fund may also be subject to credit risk with respect to that lender.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund will generally invest in Senior Loans that are secured with specific collateral. However, there can be no assurance that liquidation of collateral would satisfy the borrower’s obligation in the event of non-payment or that such collateral could be readily liquidated. In the event of the bankruptcy of a borrower, the Fund could experience delays and limitations on its ability to realize the benefits of the collateral securing the Senior Loan. Senior Loans are typically structured as floating rate instruments in which the interest </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rate payable on the obligation fluctuates with interest rate changes. As a result, the yield on Senior Loans will generally decline in a falling interest rate environment causing the Fund to experience a reduction in the income it receives from a Senior Loan. Senior Loans are generally of below investment grade quality and may be unrated at the time of investment; are generally not registered with the SEC or state securities commissions; and are generally not listed on any securities exchange. In addition, the amount of public information available on Senior Loans is generally less extensive than that available for other types of assets.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Second Lien Loans Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Second senior secured lien loans (“Second Lien Loans”) generally are subject to similar risks as those associated with investments in Senior Loans. Because Second Lien Loans are subordinated or unsecured and thus lower in priority of payment to Senior Loans, they are subject to the additional risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured obligations of the borrower. This risk is generally higher for subordinated unsecured loans or debt, which are not backed by a security interest in any specific collateral. Second Lien Loans generally have greater price volatility than Senior Loans and may be less liquid. There is also a possibility that originators will not be able to sell participations in Second Lien Loans, which would create greater credit risk exposure for the holders of such loans. Second Lien Loans share the same risks as other below investment grade securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Loan Participations and Assignments Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund may invest in participations in loans or assignments of all or a portion of loans from third parties. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. Certain participations may be structured in a manner designed to avoid purchasers of participations being subject to the credit risk of the lender with respect to the participation, but even under such a structure, in the event of the lender’s insolvency, the lender’s servicing of the participation may be delayed and the assignability of the participation impaired. The Fund will acquire participations only if the lender interpositioned between the Fund and the borrower is determined by Western Asset to be creditworthy.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Smaller Company Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The general risks associated with income-producing securities are particularly pronounced for securities issued by companies with smaller market capitalizations. These companies may have limited product lines, markets or financial </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">resources or they may depend on a few key employees. As a result, they may be subject to greater levels of credit, market and issuer risk. Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities and their values may fluctuate more sharply than other securities. Companies with medium-sized market capitalizations may have risks similar to those of smaller companies.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Management Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund is subject to management risk because it is an actively managed investment portfolio. Western Asset, Western Asset Management Company Pte. Ltd. in Singapore (“Western Singapore”) and Western Asset Management Company Limited in London (“Western Asset London”, together with Western Singapore, the “Non-U.S. Subadvisers” and individually, each a “Non-U.S. Subadviser”) and each individual investment professional may not be successful in selecting the best performing securities or investment techniques, and the Fund’s performance may lag behind that of similar funds.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Potential Conflicts of Interest Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> FTFA, Western Asset, the Non-U.S. Subadvisers (together with FTFA and Western Asset, the “Managers”) and the Fund’s investment professionals have interests which may conflict with the interests of the Fund. In particular, FTFA also manages, and Western Asset serves as subadviser to, another closed-end investment company listed on the NYSE that has an investment objective and investment strategies that are substantially similar to the Fund. Further, the Managers may at some time in the future manage and/or advise other investment funds or accounts with the same investment objective and strategies as the Fund. As a result, the Managers and the Fund’s investment professionals may devote unequal time and attention to the management of the Fund and those other funds and accounts, and may not be able to formulate as complete a strategy or identify equally attractive investment opportunities as might be the case if they were to devote substantially more attention to the management of the Fund. The Managers and the Fund’s investment professionals may identify a limited investment opportunity that may be suitable for multiple funds and accounts, and the opportunity may be allocated among these several funds and accounts, which may limit the Fund’s ability to take full advantage of the investment opportunity. Additionally, transaction orders may be aggregated for multiple accounts for purpose of execution, which may cause the price or brokerage costs to be less favorable to the Fund than if similar transactions were not being executed concurrently for other accounts. At times, an investment professional may determine that an investment opportunity may be appropriate for only some accounts for which he or she exercises investment responsibility, or may decide that certain accounts should take differing positions with respect to a particular security. In these cases, the investment professional may place separate transactions for one or more funds or accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment or benefit of one or more other funds and accounts. For example, an investment professional may determine that it would be in the interest of another account </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to sell a security that the Fund holds, potentially resulting in a decrease in the market value of the security held by the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Rating Agency Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Credit ratings are issued by rating agencies which are private services that provide ratings of the credit quality of debt obligations, including convertible securities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risks or the liquidity of securities. Rating agencies may fail to make timely changes in credit ratings and an issuer’s current financial condition may be better or worse than a rating indicates. In addition, in recent years there have been instances in which the initial rating assigned by a rating agency to a security failed to take account of adverse economic developments which subsequently occurred, leading to losses that were not anticipated based on the initial rating. To the extent that the issuer of a security pays a rating agency for the analysis of its security, an inherent conflict of interest may exist that could affect the reliability of the rating. The ratings of a debt security may change over time. As a result, debt instruments held by the Fund could receive a higher rating or a lower rating during the period in which they are held. The Fund will not necessarily sell a security when its rating is reduced below its rating at the time of purchase.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Investments in mortgage-related securities may involve particularly high levels of risk under current market conditions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Inflation/Deflation Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Common Stock and distributions on the Common Stock can decline. In addition, during any periods of rising inflation, the dividend rates or borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to stockholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Counterparty Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the Fund defaults or its credit is downgraded, or is perceived to be less creditworthy, or if the value of the assets underlying a security declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly.  The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty. Subordinated securities are more likely to suffer a credit loss than non-subordinated securities of the same issuer and will be disproportionately affected by a default, downgrade or perceived decline in creditworthiness. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">When-Issued and Delayed-Delivery Transactions Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase fixed income securities on a when-issued basis, and may purchase or sell those securities for delayed </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">delivery. When-issued and delayed-delivery transactions occur when securities are purchased or sold by the Fund with payment and delivery taking place in the future to secure an advantageous yield or price. Securities purchased on a when-issued or delayed-delivery basis may expose the Fund to counterparty risk of default as well as the risk that securities may experience fluctuations in value prior to their actual delivery. The Fund will not accrue income with respect to a when-issued or delayed-delivery security prior to its stated delivery date. Purchasing securities on a when-issued or delayed-delivery basis can involve the additional risk that the price or yield available in the market when the delivery takes place may not be as favorable as that obtained in the transaction itself.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Leverage Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may use leverage through borrowings, including loans from certain financial institutions and/or the issuance of debt securities, and through the issuance of preferred stock. The Fund may use leverage through borrowings in an aggregate amount of up to approximately 33 1/3% of the Fund’s total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, “total net assets”) immediately after such borrowings. Furthermore, the Fund may use leverage through the issuance of preferred stock in an aggregate amount of liquidation preference attributable to the preferred stock combined with the aggregate amount of any borrowings of up to approximately 50% of the Fund’s total net assets immediately after such issuance. The value of your investment may be more volatile if the Fund borrows or uses instruments, such as derivatives, that have a leveraging effect on the Fund’s portfolio. The Fund may also have to sell assets at inopportune times to satisfy its obligations created by the use of leverage or derivatives. The use of leverage is considered to be a speculative investment practice and may result in the loss of a substantial amount, and possibly all, of the Fund’s assets. In addition, the Fund’s portfolio will be leveraged if it exercises its right to delay payment on a redemption, and losses will result if the value of the Fund’s assets declines between the time a redemption request is deemed to be received by the Fund and the time the Fund liquidates assets to meet redemption requests.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Portfolio Turnover Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund’s annual portfolio turnover rate may vary greatly from year to year. Changes to the investments of the Fund may be made regardless of the length of time particular investments have been held. A high portfolio turnover rate may result in increased transaction costs for the Fund in the form of increased dealer spreads and other transactional costs, which may have an adverse impact on the Fund’s performance. In addition, high portfolio turnover may result in the realization of net short-term capital gains by the Fund which, when distributed to stockholders, will be taxable as ordinary income. A high portfolio turnover may increase the Fund’s current and accumulated earnings and profits, resulting in a greater portion of the Fund’s distributions being treated as a dividend to the Fund’s stockholders. The portfolio turnover rate of the Fund will vary from year to year, as well as within a given year.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Temporary Defensive Strategies Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> When Western Asset anticipates unusual market or other conditions, the Fund may temporarily depart from its principal investment strategies as a defensive measure and invest all or a portion of its assets in obligations of the U.S. government, its agencies or instrumentalities; other investment grade debt securities; investment grade commercial paper; certificates of deposit and bankers’ acceptances; repurchase agreements with respect to any of the foregoing investments or any other fixed income securities that Western Asset considers consistent with this strategy. To the extent that the Fund invests defensively, it may not achieve its investment objectives.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Market Price Discount from Net Asset Value Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Shares of closed-end investment companies frequently trade at a discount from their net asset value. This risk is separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be a greater risk to investors expecting to sell their Common Shares in a relatively short period. Whether investors will realize gains or losses upon the sale of Common Shares will depend not upon the Fund’s net asset value but upon whether the market price of Common Shares at the time of sale is above or below the investor’s purchase price for Common Shares. Because the market price of Common Shares will be determined by factors such as relative supply of and demand for Common Shares in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot predict whether Common Shares will trade at, above or below net asset value. The Common Shares are designed primarily for long-term investors and you should not view the Fund as a vehicle for trading purposes.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Anti-Takeover Provisions Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund’s Charter and Bylaws include provisions that are designed to limit the ability of other entities or persons to acquire control of the Fund for short-term objectives, including by converting the Fund to open-end status or changing the composition of the Board, that may be detrimental to the Fund’s ability to achieve its primary investment objective of seeking to maximize current income. The Bylaws provide that the Fund shall be subject to the provisions of the MCSAA (as defined below). There can be no assurance, however, that the provisions of the MCSAA will be sufficient to deter professional arbitrageurs that seek to cause the Fund to take actions that may not be consistent with its investment objective or aligned with the interests of long-term stockholders, such as liquidating debt investments prior to maturity, triggering taxable events for stockholders and decreasing the size of the Fund. See “Certain Provisions in the Charter and Bylaws” and “Certain Provisions in the Charter and Bylaws—Maryland Control Share Acquisition Act” (“MCSAA”). Such provisions may limit the ability of stockholders to sell their shares at a premium over prevailing market prices by discouraging an investor from seeking to obtain control of the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Market Events Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to factors such as economic events, </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes, labor strikes or other factors, political developments, armed conflicts, economic sanctions and countermeasures in response to sanctions, major cybersecurity events, the global and domestic effects of widespread or local health, weather or climate events, and other factors that may or may not be related to the issuer of the security or other asset. Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the Fund’s investments may be negatively affected. Ongoing armed conflicts in Europe and the Middle East have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. For example, following Russia’s invasion of Ukraine in 2022, Russian stocks lost all, or nearly all, of their market value. Further, recent escalations of conflict in the Middle East could lead to disruptions in local, regional, national and global markets and economies for an unknown period of time. The United States and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the United States has recently enacted and proposed to enact significant new tariffs and President Trump has directed various federal agencies to further evaluate key aspects of U.S. trade policy, which could potentially lead to significant changes to current policies, treaties and tariffs. There continues to exist significant uncertainty about the future relationship between the U.S. and other countries with respect to such trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. For example, the United States has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the United States and its trading partners, as well as companies directly or indirectly affected and financial markets generally. The United States government has prohibited U.S. persons from investing in Chinese companies designated as related to the Chinese military. These and possible future restrictions could limit the Fund’s opportunities for investment and require the sale of securities at a loss or make them illiquid. Moreover, the Chinese government is involved in a longstanding dispute with Taiwan that has included threats of invasion. If the political climate between the United States and China does not improve or </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Fund’s assets may go down.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Recently, inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the fund’s investments, impair the fund’s ability to satisfy redemption requests, and negatively impact the fund’s performance.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Valuation Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The sales price the Fund could receive for any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair value methodology. These differences may increase significantly and affect Fund investments more broadly during periods of market volatility. The Fund’s ability to value its investments may be impacted by technological issues and/or errors by pricing services or other third party service providers. The valuation of the Fund’s investments involves subjective judgment.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Tax Risks</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. To qualify for the favorable U.S. federal income tax treatment generally accorded to regulated investment companies, among other things, the Fund must derive in each taxable year at least 90% of its gross income from certain prescribed sources and satisfy certain distribution and asset diversification requirements. If for any taxable year the Fund does not qualify as a regulated investment company, all of its taxable income (including its net capital gain) would be subject to tax at regular corporate rates without any deduction for distributions to stockholders, and such distributions would be taxable as ordinary dividends to the extent of the Fund’s current or accumulated earnings and profits.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Operational Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The valuation of the Fund’s investments may be negatively impacted because of the operational risks arising from factors such as processing errors and human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel, and errors caused by third party service providers or trading counterparties. It is not possible to identify all of the operational risks that may affect the Fund or to develop processes and controls that completely eliminate or mitigate the occurrence of such failures. The Fund and its stockholders could be negatively impacted as a result.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Cybersecurity Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Like other funds and business enterprises, the Fund, the Manager, Western Asset, the relevant listing exchange and their service providers are subject to the risk of cybersecurity incidents occurring from time to time. Cybersecurity incidents, whether </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">intentionally caused by third parties or otherwise, may allow an unauthorized party to gain access to fund assets, fund or customer data (including private stockholder information) or proprietary information, cause the Fund, the Manager, Western Asset, the relevant listing exchange and/or their service providers (including, but not limited to, fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality, or prevent fund investors from purchasing, redeeming or exchanging shares, receiving distributions or receiving timely information regarding the fund or their investment in the fund. The Fund, Western Asset, and the subadvisers have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the Manager. Cybersecurity incidents may result in financial losses to the Fund and its stockholders, and substantial costs may be incurred in order to prevent any future cybersecurity incidents. Issuers of securities in which the fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">New ways to carry out cyber attacks continue to develop. There is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the fund’s ability to plan for or respond to a cyber attack.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Fixed Income Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> In addition to the risks described elsewhere in this section with respect to valuations and liquidity, fixed income securities, including high-yield securities, are also subject to certain risks, including:</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Issuer Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The value of fixed income securities may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods and services.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Interest Rate Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The market price of the Fund’s investments will change in response to changes in interest rates and other factors. During periods of declining interest rates, the market price of fixed income securities generally rises. Conversely, during periods of rising interest rates, the market price of such securities generally declines. The </span></div> <div style="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:0.00pt;">magnitude of these fluctuations in the market price of fixed income securities is generally greater for securities with longer maturities. Fluctuations in the market price of the Fund’s securities will not affect interest income derived from securities already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may utilize certain strategies, including investments in structured notes or interest rate swap or cap transactions, for the purpose of reducing the interest rate sensitivity of the portfolio and decreasing the Fund’s exposure to interest rate risk, although there is no assurance that it will do so or that such strategies will be successful.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Prepayment Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding securities, which may result in a decline in the Fund’s income and distributions to stockholders. This is known as prepayment or “call” risk. Debt securities frequently have call features that allow the issuer to redeem the security at dates prior to its stated maturity at a specified price (typically greater than par) only if certain prescribed conditions are met. An issuer may choose to redeem a debt security if, for example, the issuer can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Reinvestment Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Reinvestment risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the market price of Common Shares or overall returns.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Below Investment Grade (High-Yield or Junk Bond) Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund may invest in high-yield debt securities. Debt securities rated below investment grade are commonly referred to as “high-yield” securities or “junk bonds” and are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal in accordance with the terms of the obligations and involve major risk exposure to adverse conditions. Debt securities rated C or lower by Moody’s, CCC or lower by S&amp;P or CC or lower by Fitch or comparably rated by another nationally recognized statistical rating organization (“NRSRO”) or, if unrated, determined by Western Asset to be of comparable quality are considered to have extremely poor prospects of ever attaining any real investment standing, to have a current identifiable vulnerability to default, to be unlikely to have the capacity to pay interest and repay principal when due in the event of adverse business, financial or economic conditions and/or to be in default or not current in the payment of interest or principal. Ratings may not accurately reflect the actual credit risk associated with a corporate security.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Debt securities rated below investment grade generally offer a higher current yield than that available from higher grade issues, but typically involve greater risk. These securities are especially sensitive to adverse changes in general economic conditions, to changes in the financial condition of their issuers and to price fluctuation in response to changes in interest rates. During periods of economic downturn or rising interest rates, issuers of below investment grade instruments may experience financial stress that could adversely affect their ability to make payments of principal and interest and increase the possibility of default. The secondary market for high-yield securities may not be as liquid as the secondary market for more highly rated securities, a factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. There are fewer dealers in the market for high-yield securities than for investment grade obligations. The prices quoted by different dealers may vary significantly, and the spread between the bid and asked price is generally much larger for high-yield securities than for higher quality instruments. Under continuing adverse market or economic conditions, the secondary market for high-yield securities could contract further, independent of any specific adverse changes in the condition of a particular issuer, and these securities may become illiquid. In addition, adverse publicity and investor perceptions, whether or not based on fundamental analysis, may also decrease the values and liquidity of below investment grade securities, especially in a market characterized by a low volume of trading.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities held by the Fund, thereby reducing the value of your investment in the Fund’s common stock. In addition, default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled entity is the fact that it frequently may be difficult to obtain information as to the true financial condition of such issuer. Western Asset’s judgment about the credit quality of an issuer and the relative value of its securities may prove to be wrong. Investments in below investment grade securities may present special tax issues for the Fund to the extent that the issuers of these securities default on their obligations pertaining thereto, and the U.S. federal income tax consequences to the Fund as a holder of such distressed securities may not be clear.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Foreign Securities and Emerging Markets Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk as compared to investment in U.S. securities or issuers with predominantly domestic exposure, such as less liquid, less regulated, less transparent and more volatile markets. The markets for some foreign securities are relatively new, and the rules and policies relating to these markets are not fully developed and may change. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">foreign markets and issuers generally, such as unfavorable or unsuccessful government actions, tariffs and tax disputes, reduction of government or central bank support, inadequate accounting standards, lack of information and political, economic, financial or social instability. Foreign investments may also be adversely affected by U.S. government or international economic sanctions, which could eliminate the value of an investment. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The risks of foreign investment are greater for investments in emerging markets. “Emerging market country” is defined as any country which is, at the time of investment, (i) represented in the J.P. Morgan Emerging Markets Bond Index Global Diversified or the J.P. Morgan Corporate Emerging Market Bond Index Broad or (ii) categorized by the World Bank in its annual categorization as middle- or low-income. Emerging market countries typically have economic and political systems that are less fully developed, and that can be expected to be less stable, than those of more advanced countries. Low trading volumes may result in a lack of liquidity and in price volatility. Emerging market countries may have policies that restrict investment by foreigners, that require governmental approval prior to investments by foreign persons, or that prevent foreign investors from withdrawing their money at will. An investment in emerging market securities should be considered speculative.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Non-U.S. Government, or Sovereign, Debt Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund invests in non-U.S. government, or sovereign, debt securities. The ability of a government issuer, especially in an emerging market country, to make timely and complete payments on its debt obligations will be strongly influenced by the government issuer’s balance of payments, including export performance, its access to international credits and investments, fluctuations of interest rates and the extent of its foreign reserves. A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports could be vulnerable to fluctuations in international prices of these commodities or imports. To the extent that a country receives payment for its exports in currencies other than U.S. dollars, its ability to make debt payments denominated in U.S. dollars could be adversely affected. If a government issuer cannot generate sufficient earnings from foreign trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, commercial banks, and multinational organizations. There are no bankruptcy proceedings similar to those in the United States by which defaulted non-U.S. government debt may be collected. Additional factors that may influence a government issuer’s ability or willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability of sufficient foreign exchange on the date a payment is due, the relative size of its debt service burden to the economy as a whole, and the issuer’s policy towards the </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">International Monetary Fund, the International Bank for Reconstruction and Development and other international agencies to which a government debtor may be subject.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Foreign Currency Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The value of investments denominated in foreign currencies increases or decreases as the rates of exchange between those currencies and the U.S. dollar change. Currency conversion costs and currency fluctuations could erase investment gains or add to investment losses. Currency exchange rates can be volatile, and are affected by factors such as general economic conditions, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls and speculation. The Fund may be unable or may choose not to hedge its foreign currency exposure.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Liquidity Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund may invest in illiquid securities. Illiquid securities are securities that cannot be disposed of within seven days in the ordinary course of business at approximately the value at which the Fund has valued the securities. Liquidity risk exists when particular investments are difficult to sell. Securities may become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments in order to segregate assets or for other cash needs, the Fund may suffer a loss.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Common Stock Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the Fund. In addition, the prices of common stocks are sensitive to general movements in the stock market, and a drop in the stock market may depress the prices of common stocks to which the Fund has exposure. Common stock prices fluctuate for several reasons including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or economic events affecting an issuer occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. The value of the common stocks in which the Fund may invest will be affected by changes in the stock markets generally, which may be the result of domestic or international political or economic news, changes in interest rates or changing investor sentiment. At times, stock markets can be volatile and stock prices can change substantially. The common stocks of smaller companies are more sensitive to these changes than those of larger companies. Common stock risk will affect the Fund’s net asset value per share, which will fluctuate as the value of the securities held by the Fund change.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Preferred Stock Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Generally, the Fund has a greater flexibility to invest in equity securities. Preferred stocks are unique securities that combine some of the characteristics of both common stocks and bonds. Preferred stocks generally pay a fixed rate of return and are sold on the basis of current yield, like bonds. However, because they are equity securities, preferred stock provides equity ownership of a company, and the income is paid in the form of dividends. Preferred stocks typically have a yield advantage over common </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">stocks as well as comparably-rated fixed income investments. Preferred stocks are typically subordinated to bonds and other debt instruments in a company’s capital structure, in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stocks also may be subject to optional or mandatory redemption provisions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Convertible Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> A convertible security is a bond, debenture, note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or a different issuer within a particular period of time at a specified price or formula. Before conversion, convertible securities have characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than comparable nonconvertible securities. Similar to traditional fixed income securities, the market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the convertible security tends to reflect the market price of the underlying common stock. As the market price of the underlying common stock declines, the convertible security tends to trade increasingly on a yield basis and thus may not decline in price to the same extent as the underlying common stock. The credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value. Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Risks of Warrants and Rights.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Warrants and rights are subject to the same market risks as stocks, but may be more volatile in price. Warrants and rights do not carry the right to dividends or voting rights with respect to their underlying securities, and they do not represent any rights in the assets of the issuer. An investment in warrants or rights may be considered speculative. In addition, the value of a warrant or right does not necessarily change with the value of the underlying security and a warrant or right ceases to have value if it is not exercised prior to its expiration date. The purchase of warrants or rights involves the risk that the Fund could lose the purchase value of a warrant or right if the right to subscribe to additional shares is not exercised prior to the warrants’ or rights’ expiration. Also, the purchase of warrants and rights involves the risk that the effective price paid for the warrant or right added to the subscription price of the related security may exceed the value of the subscribed security’s market price such as when there is no movement in the price of the underlying security.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">REITs Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. An equity or hybrid REIT may be affected by changes in the value of the underlying properties owned by the REIT. A mortgage or hybrid REIT may be affected by changes in interest rates and the ability of the issuers of its portfolio mortgages to repay their obligations. Mortgage and hybrid REITs are subject to the risks of accelerated prepayments of mortgage pools or pass-through securities, reliance on short-term financing and more highly leveraged capital structures. REITs are dependent upon the skills of their managers and are not diversified.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs are generally dependent upon maintaining cash flows to repay borrowings and to make distributions to stockholders and are subject to the risk of default by lessees and borrowers. REITs whose underlying assets are concentrated in properties used by a particular industry, such as healthcare, are also subject to industry related risks. Certain “special purpose” REITs may invest their assets in specific real estate sectors, such as hotels, nursing homes or warehouses, and are therefore subject to the risks associated with adverse developments in any such sectors.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs (especially mortgage REITs) are also subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations can be expected to rise, but mortgages are often refinanced, which may reduce the yield on investments in mortgage REITs. Rising interest rates may cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could cause the value of a REIT’s investment in fixed rate obligations can be expected to decline. If the REIT invests in adjustable rate mortgage loans (the interest rates on which are reset periodically), yields on a REIT’s investments in such loans will gradually align themselves to reflect changes in market interest rates. This causes the value of such investments to fluctuate less dramatically in response to interest rate fluctuations than would investments in fixed rate obligations.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs may have limited financial resources, may trade less frequently and in a limited volume and maybe subject to more abrupt or erratic price movements than larger company securities. In addition to these risks, REITs may be affected by changes in the value of the underlying property owned by the trusts or by the quality of any credit they extend. Further, REITs are dependent upon management skills and generally may not be diversified. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">REITs are subject to management fees and other expenses. Therefore, investments in REITs will cause the Fund to bear its proportionate share of the costs of the REITs’ operations. At the same time, the Fund will continue to pay its own management fees and expenses with respect to all of its assets, including any portion invested in REITs.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Mortgage-Backed and Asset-Backed Securities Risks.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Mortgage-backed securities include, among other things, participation interests in pools of residential mortgage loans purchased from individual lenders by a federal agency or originated and issued by private lenders and involve, among others, the following risks:</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit and Market Risks of Mortgage-Backed Securities.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Investments by the Fund in fixed rate and floating rate mortgage-backed securities will entail credit risks (i.e., the risk of non-payment of interest and principal) and market risks (i.e., the risk that interest rates and other factors could cause the value of the instrument to decline). Many issuers or servicers of mortgage-backed securities may guarantee timely payment of interest and principal on the securities, whether or not payments are made when due on the underlying mortgages. This kind of guarantee generally increases the quality of a security, but does not mean that the security’s market value and yield will not change. The value of all mortgage-backed securities also may change because of changes in the market’s perception of the creditworthiness of the organization that issues or guarantees them. In addition, an unexpectedly high rate of defaults on the mortgages held by a mortgage pool may limit substantially the pool’s ability to make payments of principal or interest to the Fund as a holder of such securities, reducing the values of those securities or in some cases rendering them worthless. The Fund also may purchase securities that are not guaranteed or subject to any credit support.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Like bond investments, the value of fixed rate mortgage-backed securities will tend to rise when interest rates fall, and fall when rates rise. Floating rate mortgage-backed securities will generally tend to have more moderate changes in price when interest rates rise or fall, but their current yield will be affected.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">In addition, the mortgage-backed securities market in general may be adversely affected by changes in governmental legislation or regulation. Factors that could affect the value of a mortgage-backed security include, among other things, the types and amounts of insurance which an individual mortgage or specific mortgage-backed security carries, the default and delinquency rate of the mortgage pool, the amount of time the mortgage loan has been outstanding, the loan-to-value ratio of each mortgage and the amount of overcollateralization or undercollateralization of the mortgage pool.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Asset-backed securities represent participation in, or are secured by and payable from, assets such as installment sales or loan contracts, leases, credit card receivables, and other categories of receivables. Certain debt instruments may only pay principal at maturity or may only represent the right to receive payments of principal or payments of interest on underlying pools or mortgages, assets, or government securities, but not both. The value of these types of instruments may change more drastically than debt securities that pay both principal and interest. The Fund may obtain a below market yield or incur a loss on such instruments during periods of declining interest rates. Principal only and interest only </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">instruments are subject to extension risk. For mortgage derivatives and structured securities that have imbedded leverage features, small changes in interest or prepayment rates may cause large and sudden price movements. Mortgage derivatives can also become illiquid and hard to value in declining markets.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Prepayment, Extension and Redemption Risks of Mortgage-Backed Securities.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Mortgage-backed securities may reflect an interest in monthly payments made by the borrowers who receive the underlying mortgage loans. Although the underlying mortgage loans are for specified periods of time, such as 20 or 30 years, the borrowers can, and historically have, paid them off sooner. When a prepayment happens, a portion of the mortgage-backed security which represents an interest in the underlying mortgage loan will be prepaid. A borrower is more likely to prepay a mortgage which bears a relatively high rate of interest. This means that in times of declining interest rates, a portion of the Fund’s higher yielding securities are likely to be redeemed and the Fund will probably be unable to replace them with securities having as great a yield. Prepayments can result in lower yields to stockholders. The increased likelihood of prepayment when interest rates decline also limits market price appreciation of mortgage-backed securities. This is known as prepayment risk. Mortgage-backed securities also are subject to extension risk. Extension risk is the possibility that rising interest rates may cause prepayments to occur at a slower than expected rate. This particular risk may effectively change a security which was considered short or intermediate term into a long-term security. The values of long-term securities generally fluctuate more widely in response to changes in interest rates than short or intermediate-term securities. In addition, a mortgage-backed security may be subject to redemption at the option of the issuer. If a mortgage-backed security held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem or “pay-off” the security, which could have an adverse effect on the Fund’s ability to achieve its investment objective.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Liquidity Risk of Mortgage-Backed Securities.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The liquidity of mortgage-backed securities varies by type of security; at certain times the Fund may encounter difficulty in disposing of such investments. Because mortgage-backed securities have the potential to be less liquid than other securities, the Fund may be more susceptible to liquidity risks than funds that invest in other securities. In the past, in stressed markets, certain types of mortgage-backed securities suffered periods of illiquidity when disfavored by the market.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Collateralized Mortgage Obligations. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There are certain risks associated specifically with collateralized mortgage obligations (“CMOs”). CMOs are debt obligations collateralized by mortgage loans or mortgage pass-through securities. The average life of CMOs is determined using mathematical models that incorporate prepayment assumptions and other factors that involve estimates of future economic and market conditions. These estimates may vary from actual future results, particularly during periods of extreme </span></div> <div style="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:0.00pt;">market volatility. Further, under certain market conditions, such as those that occurred in 1994, 2007, 2008 and 2009, the average weighted life of certain CMOs may not accurately reflect the price volatility of such securities. For example, in periods of supply and demand imbalances in the market for such securities and/or in periods of sharp interest rate movements, the prices of CMOs may fluctuate to a greater extent than would be expected from interest rate movements alone. CMOs issued by private entities are not obligations issued or guaranteed by the United States Government, its agencies or instrumentalities or by any government agency, although the securities underlying a CMO may be subject to a guarantee. Therefore, if the collateral securing the CMO, as well as any third party credit support or guarantees, is insufficient to make payments when due, the holder could sustain a loss.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Adjustable Rate Mortgages.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Adjustable Rate Mortgages (“ARMs”) contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the lifetime of the security. In addition, many ARMs provide for additional limitations on the maximum amount by which the mortgage interest rate may adjust for any single adjustment period. Alternatively, certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly payment is not sufficient to pay the interest accruing on an ARM, any excess interest is added to the principal balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the excess is used to reduce the then-outstanding principal balance of the ARM.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">In addition, certain ARMs may provide for an initial fixed, below-market or “teaser” interest rate. During this initial fixed-rate period, the payment due from the related mortgagor may be less than that of a traditional loan. However, after the “teaser” rate expires, the monthly payment required to be made by the mortgagor may increase dramatically when the interest rate on the mortgage loan adjusts. This increased burden on the mortgagor may increase the risk of delinquency or default on the mortgage loan and in turn, losses on the mortgage-backed security into which that loan has been bundled.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Interest and Principal Only Securities Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> One type of stripped mortgage-backed security pays to one class all of the interest from the mortgage assets (the interest-only, or “IO” class), while the other class will receive all of the principal (the principal-only, or “PO” class). The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on the Fund’s yield to maturity from these securities. If the assets underlying the IO class experience greater than anticipated prepayments of principal, the Fund may fail to recoup fully, or at all, its initial </span></div> <div style="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:0.00pt;">investment in these securities. Conversely, PO class securities tend to decline in value if prepayments are slower than anticipated.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Derivatives Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may utilize a variety of derivative instruments for investment or risk management purposes, such as options, futures contracts, swap agreements and credit default swaps. Generally derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index, and may relate to individual debt or equity instruments, interest rates, currencies or currency exchange rates and related indexes. Derivatives are subject to a number of risks, such as liquidity risk, interest rate risk, credit risk and management risk. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to its derivative transactions will affect the value of those instruments. By using derivatives that expose the Fund to counterparties, the Fund assumes the risk that its counterparties could experience financial hardships that could call into question their continued ability to perform their obligations. In addition, in the event of the insolvency of a counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market value. If the Fund is owed this fair market value in the termination of the derivative transaction and its claim is unsecured, the Fund will be treated as a general creditor of such counterparty, and will not have any claim with respect to the underlying security. As a result, concentrations of such derivatives in any one counterparty would subject the Fund to an additional degree of risk with respect to defaults by such counterparty. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the value of a derivative may not correlate perfectly with an underlying asset, interest rate or index. Suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial. If the Fund invests in a derivative instrument, it could lose more than the principal amount invested. Derivative instruments can be illiquid, may disproportionately increase losses and may have a potentially large impact on the Fund’s performance.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund operates under Rule 18f-4 under the 1940 Act which, among other things, governs the use of derivative investments and certain financing transactions (e.g. reverse repurchase agreements) by registered investment companies. Among other things, Rule 18f-4 requires funds that invest in derivative instruments beyond a specified limited amount to apply a value at risk (VaR) based limit to their use of certain derivative instruments and financing transactions and to adopt and implement a derivatives risk management program. A fund that uses derivative instruments in a limited amount is not subject to the full requirements of Rule 18f-4. Compliance with Rule 18f-4 by the Fund could, among other things, make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance. Rule 18f-4 may limit the Fund’s ability to use </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">derivatives as part of its investment strategy and may not work as intended to limit losses from derivatives.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Risks of Futures and Options on Futures. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The use by the Fund of futures contracts and options on futures contracts to hedge interest rate risks involves special considerations and risks, as described below.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Successful use of hedging transactions depends upon Western Asset’s ability to correctly predict the direction of changes in interest rates. There can be no assurance that any particular hedging strategy will succeed.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There might be imperfect correlation, or even no correlation, between the price movements of a futures or option contract and the movements of the interest rates being hedged. Such a lack of correlation might occur due to factors unrelated to the interest rates being hedged, such as market liquidity and speculative or other pressures on the markets in which the hedging instrument is traded.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Hedging strategies, if successful, can reduce risk of loss by wholly or partially offsetting the negative effect of unfavorable movements in the interest rates being hedged. However, hedging strategies can also reduce opportunity for gain by offsetting the positive effect of favorable movements in the hedged interest rates.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There is no assurance that a liquid secondary market will exist for any particular futures contract or option thereon at any particular time. If the Fund were unable to liquidate a futures contract or an option on a futures contract position due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses. The Fund would continue to be subject to market risk with respect to the position.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;margin-left:-8.28pt;">•</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">There is no assurance that the Fund will use hedging transactions. For example, if the Fund determines that the cost of hedging will exceed the potential benefit to the Fund, the Fund will not enter into such transactions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit Default Swap Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in credit default swap transactions for hedging or investment purposes. Credit default swap agreements, a type of derivatives transaction, involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. The “buyer” in a credit default contract is obligated to pay the “seller” a periodic stream of payments over the term of the contract, provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or “par value,” of the reference obligation through either physical settlement or cash settlement. The Fund may be either the buyer or seller in a credit default swap transaction. If the Fund is a buyer and no event of default occurs, the Fund will have made a series of periodic payments and </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">recover nothing of monetary value. However, if an event of default occurs, the Fund (if the buyer) will receive the full notional value of the reference obligation either through a cash payment in exchange for the asset or a cash payment in addition to owning the reference assets. As a seller, the Fund receives a fixed rate of income throughout the term of the contract, which typically is between six months and five years, provided that there is no event of default. Market developments related to credit default swaps have prompted increased scrutiny with respect to these instruments. As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, credit default swaps may in the future be subject to increased regulation. Such regulation may limit the Fund’s ability to use credit default swaps. Although the Fund will seek to realize gains by writing credit default swaps that increase in value, to realize gains on writing credit default swaps, an active secondary market for such instruments must exist or the Fund must otherwise be able to close out these transactions at advantageous times. If no such secondary market exists or the Fund is otherwise unable to close out these transactions at advantageous times, writing credit default swaps may not be profitable for the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The market for credit default swaps has become more volatile in recent years as the creditworthiness of certain counterparties has been questioned and/or downgraded. If a counterparty’s credit becomes significantly impaired, multiple requests for collateral posting in a short period of time could increase the risk that the Fund may not receive adequate collateral. The Fund may exit its obligations under a credit default swap only by terminating the contract and paying applicable breakage fees, or by entering into an offsetting credit default swap position, which may cause the Fund to incur more losses.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Repurchase Agreements Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Subject to its investment objective and policies, the Fund may invest in repurchase agreements for leverage or investment purposes. Repurchase agreements typically involve the acquisition by the Fund of debt securities from a selling financial institution such as a bank, savings and loan association or broker-dealer. The agreement provides that the Fund will sell the securities back to the institution at a fixed time in the future. The Fund does not bear the risk of a decline in the value of the underlying security unless the seller defaults under its repurchase obligation. In the event of the bankruptcy or other default of a seller of a repurchase agreement, the Fund could experience both delays in liquidating the underlying securities and losses, including (1) possible decline in the value of the underlying security during the period in which the Fund seeks to enforce its rights thereto; (2) possible lack of access to income on the underlying security during this period; and (3) expenses of enforcing its rights. While repurchase agreements involve certain risks not associated with direct investments in debt securities, the Fund follows procedures approved by the Fund’s Board of Directors that are designed to minimize such risks. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose financial condition will be continually monitored by Western Asset. In addition, as described above, the value </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">of the collateral underlying the repurchase agreement will be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Fund generally will seek to liquidate such collateral. However, the exercise of the Fund’s right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Fund could suffer a loss.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Reverse Repurchase Agreements Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund’s use of reverse repurchase agreements involves many of the same risks involved in the Fund’s use of leverage, as the proceeds from reverse repurchase agreements generally will be invested in additional securities. There is a risk that the market value of the securities acquired in the reverse repurchase agreement may decline below the price of the securities that the Fund has sold but remains obligated to repurchase. In addition, there is a risk that the market value of the securities retained by the Fund may decline. If the buyer of securities under a reverse repurchase agreement were to file for bankruptcy or experience insolvency, the Fund may be adversely affected. Also, in entering into reverse repurchase agreements, the Fund would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the underlying securities. In addition, due to the interest costs associated with reverse repurchase agreements transactions, the Fund’s net asset value will decline, and, in some cases, the Fund may be worse off than if it had not used such instruments.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Senior Loans Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in first lien senior secured loans (“Senior Loans”) issued by banks, other financial institutions, and other investors to corporations, partnerships, limited liability companies and other entities to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, debt refinancings and, to a lesser extent, for general operating and other purposes. An investment in Senior Loans involves risk that the borrowers under Senior Loans may default on their obligations to pay principal or interest when due. In the event a borrower fails to pay scheduled interest or principal payments on a Senior Loan held by the Fund, the Fund will experience a reduction in its income and a decline in the market value of the Senior Loan, which will likely reduce dividends and lead to a decline in the net asset value of the Fund. If the Fund acquires a Senior Loan from another lender, for example, by acquiring a participation, the Fund may also be subject to credit risk with respect to that lender.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund will generally invest in Senior Loans that are secured with specific collateral. However, there can be no assurance that liquidation of collateral would satisfy the borrower’s obligation in the event of non-payment or that such collateral could be readily liquidated. In the event of the bankruptcy of a borrower, the Fund could experience delays and limitations on its ability to realize the benefits of the collateral securing the Senior Loan. Senior Loans are typically structured as floating rate instruments in which the interest </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">rate payable on the obligation fluctuates with interest rate changes. As a result, the yield on Senior Loans will generally decline in a falling interest rate environment causing the Fund to experience a reduction in the income it receives from a Senior Loan. Senior Loans are generally of below investment grade quality and may be unrated at the time of investment; are generally not registered with the SEC or state securities commissions; and are generally not listed on any securities exchange. In addition, the amount of public information available on Senior Loans is generally less extensive than that available for other types of assets.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Second Lien Loans Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Second senior secured lien loans (“Second Lien Loans”) generally are subject to similar risks as those associated with investments in Senior Loans. Because Second Lien Loans are subordinated or unsecured and thus lower in priority of payment to Senior Loans, they are subject to the additional risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured obligations of the borrower. This risk is generally higher for subordinated unsecured loans or debt, which are not backed by a security interest in any specific collateral. Second Lien Loans generally have greater price volatility than Senior Loans and may be less liquid. There is also a possibility that originators will not be able to sell participations in Second Lien Loans, which would create greater credit risk exposure for the holders of such loans. Second Lien Loans share the same risks as other below investment grade securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Loan Participations and Assignments Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund may invest in participations in loans or assignments of all or a portion of loans from third parties. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. Certain participations may be structured in a manner designed to avoid purchasers of participations being subject to the credit risk of the lender with respect to the participation, but even under such a structure, in the event of the lender’s insolvency, the lender’s servicing of the participation may be delayed and the assignability of the participation impaired. The Fund will acquire participations only if the lender interpositioned between the Fund and the borrower is determined by Western Asset to be creditworthy.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Smaller Company Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The general risks associated with income-producing securities are particularly pronounced for securities issued by companies with smaller market capitalizations. These companies may have limited product lines, markets or financial </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">resources or they may depend on a few key employees. As a result, they may be subject to greater levels of credit, market and issuer risk. Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities and their values may fluctuate more sharply than other securities. Companies with medium-sized market capitalizations may have risks similar to those of smaller companies.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Management Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund is subject to management risk because it is an actively managed investment portfolio. Western Asset, Western Asset Management Company Pte. Ltd. in Singapore (“Western Singapore”) and Western Asset Management Company Limited in London (“Western Asset London”, together with Western Singapore, the “Non-U.S. Subadvisers” and individually, each a “Non-U.S. Subadviser”) and each individual investment professional may not be successful in selecting the best performing securities or investment techniques, and the Fund’s performance may lag behind that of similar funds.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Potential Conflicts of Interest Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> FTFA, Western Asset, the Non-U.S. Subadvisers (together with FTFA and Western Asset, the “Managers”) and the Fund’s investment professionals have interests which may conflict with the interests of the Fund. In particular, FTFA also manages, and Western Asset serves as subadviser to, another closed-end investment company listed on the NYSE that has an investment objective and investment strategies that are substantially similar to the Fund. Further, the Managers may at some time in the future manage and/or advise other investment funds or accounts with the same investment objective and strategies as the Fund. As a result, the Managers and the Fund’s investment professionals may devote unequal time and attention to the management of the Fund and those other funds and accounts, and may not be able to formulate as complete a strategy or identify equally attractive investment opportunities as might be the case if they were to devote substantially more attention to the management of the Fund. The Managers and the Fund’s investment professionals may identify a limited investment opportunity that may be suitable for multiple funds and accounts, and the opportunity may be allocated among these several funds and accounts, which may limit the Fund’s ability to take full advantage of the investment opportunity. Additionally, transaction orders may be aggregated for multiple accounts for purpose of execution, which may cause the price or brokerage costs to be less favorable to the Fund than if similar transactions were not being executed concurrently for other accounts. At times, an investment professional may determine that an investment opportunity may be appropriate for only some accounts for which he or she exercises investment responsibility, or may decide that certain accounts should take differing positions with respect to a particular security. In these cases, the investment professional may place separate transactions for one or more funds or accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment or benefit of one or more other funds and accounts. For example, an investment professional may determine that it would be in the interest of another account </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">to sell a security that the Fund holds, potentially resulting in a decrease in the market value of the security held by the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Rating Agency Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Credit ratings are issued by rating agencies which are private services that provide ratings of the credit quality of debt obligations, including convertible securities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risks or the liquidity of securities. Rating agencies may fail to make timely changes in credit ratings and an issuer’s current financial condition may be better or worse than a rating indicates. In addition, in recent years there have been instances in which the initial rating assigned by a rating agency to a security failed to take account of adverse economic developments which subsequently occurred, leading to losses that were not anticipated based on the initial rating. To the extent that the issuer of a security pays a rating agency for the analysis of its security, an inherent conflict of interest may exist that could affect the reliability of the rating. The ratings of a debt security may change over time. As a result, debt instruments held by the Fund could receive a higher rating or a lower rating during the period in which they are held. The Fund will not necessarily sell a security when its rating is reduced below its rating at the time of purchase.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Investments in mortgage-related securities may involve particularly high levels of risk under current market conditions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Inflation/Deflation Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Common Stock and distributions on the Common Stock can decline. In addition, during any periods of rising inflation, the dividend rates or borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to stockholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Counterparty Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the Fund defaults or its credit is downgraded, or is perceived to be less creditworthy, or if the value of the assets underlying a security declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly.  The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty. Subordinated securities are more likely to suffer a credit loss than non-subordinated securities of the same issuer and will be disproportionately affected by a default, downgrade or perceived decline in creditworthiness. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">When-Issued and Delayed-Delivery Transactions Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase fixed income securities on a when-issued basis, and may purchase or sell those securities for delayed </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">delivery. When-issued and delayed-delivery transactions occur when securities are purchased or sold by the Fund with payment and delivery taking place in the future to secure an advantageous yield or price. Securities purchased on a when-issued or delayed-delivery basis may expose the Fund to counterparty risk of default as well as the risk that securities may experience fluctuations in value prior to their actual delivery. The Fund will not accrue income with respect to a when-issued or delayed-delivery security prior to its stated delivery date. Purchasing securities on a when-issued or delayed-delivery basis can involve the additional risk that the price or yield available in the market when the delivery takes place may not be as favorable as that obtained in the transaction itself.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Leverage Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may use leverage through borrowings, including loans from certain financial institutions and/or the issuance of debt securities, and through the issuance of preferred stock. The Fund may use leverage through borrowings in an aggregate amount of up to approximately 33 1/3% of the Fund’s total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, “total net assets”) immediately after such borrowings. Furthermore, the Fund may use leverage through the issuance of preferred stock in an aggregate amount of liquidation preference attributable to the preferred stock combined with the aggregate amount of any borrowings of up to approximately 50% of the Fund’s total net assets immediately after such issuance. The value of your investment may be more volatile if the Fund borrows or uses instruments, such as derivatives, that have a leveraging effect on the Fund’s portfolio. The Fund may also have to sell assets at inopportune times to satisfy its obligations created by the use of leverage or derivatives. The use of leverage is considered to be a speculative investment practice and may result in the loss of a substantial amount, and possibly all, of the Fund’s assets. In addition, the Fund’s portfolio will be leveraged if it exercises its right to delay payment on a redemption, and losses will result if the value of the Fund’s assets declines between the time a redemption request is deemed to be received by the Fund and the time the Fund liquidates assets to meet redemption requests.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Portfolio Turnover Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund’s annual portfolio turnover rate may vary greatly from year to year. Changes to the investments of the Fund may be made regardless of the length of time particular investments have been held. A high portfolio turnover rate may result in increased transaction costs for the Fund in the form of increased dealer spreads and other transactional costs, which may have an adverse impact on the Fund’s performance. In addition, high portfolio turnover may result in the realization of net short-term capital gains by the Fund which, when distributed to stockholders, will be taxable as ordinary income. A high portfolio turnover may increase the Fund’s current and accumulated earnings and profits, resulting in a greater portion of the Fund’s distributions being treated as a dividend to the Fund’s stockholders. The portfolio turnover rate of the Fund will vary from year to year, as well as within a given year.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Temporary Defensive Strategies Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> When Western Asset anticipates unusual market or other conditions, the Fund may temporarily depart from its principal investment strategies as a defensive measure and invest all or a portion of its assets in obligations of the U.S. government, its agencies or instrumentalities; other investment grade debt securities; investment grade commercial paper; certificates of deposit and bankers’ acceptances; repurchase agreements with respect to any of the foregoing investments or any other fixed income securities that Western Asset considers consistent with this strategy. To the extent that the Fund invests defensively, it may not achieve its investment objectives.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Market Price Discount from Net Asset Value Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> Shares of closed-end investment companies frequently trade at a discount from their net asset value. This risk is separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be a greater risk to investors expecting to sell their Common Shares in a relatively short period. Whether investors will realize gains or losses upon the sale of Common Shares will depend not upon the Fund’s net asset value but upon whether the market price of Common Shares at the time of sale is above or below the investor’s purchase price for Common Shares. Because the market price of Common Shares will be determined by factors such as relative supply of and demand for Common Shares in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot predict whether Common Shares will trade at, above or below net asset value. The Common Shares are designed primarily for long-term investors and you should not view the Fund as a vehicle for trading purposes.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Anti-Takeover Provisions Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The Fund’s Charter and Bylaws include provisions that are designed to limit the ability of other entities or persons to acquire control of the Fund for short-term objectives, including by converting the Fund to open-end status or changing the composition of the Board, that may be detrimental to the Fund’s ability to achieve its primary investment objective of seeking to maximize current income. The Bylaws provide that the Fund shall be subject to the provisions of the MCSAA (as defined below). There can be no assurance, however, that the provisions of the MCSAA will be sufficient to deter professional arbitrageurs that seek to cause the Fund to take actions that may not be consistent with its investment objective or aligned with the interests of long-term stockholders, such as liquidating debt investments prior to maturity, triggering taxable events for stockholders and decreasing the size of the Fund. See “Certain Provisions in the Charter and Bylaws” and “Certain Provisions in the Charter and Bylaws—Maryland Control Share Acquisition Act” (“MCSAA”). Such provisions may limit the ability of stockholders to sell their shares at a premium over prevailing market prices by discouraging an investor from seeking to obtain control of the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Market Events Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to factors such as economic events, </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes, labor strikes or other factors, political developments, armed conflicts, economic sanctions and countermeasures in response to sanctions, major cybersecurity events, the global and domestic effects of widespread or local health, weather or climate events, and other factors that may or may not be related to the issuer of the security or other asset. Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the Fund’s investments may be negatively affected. Ongoing armed conflicts in Europe and the Middle East have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. For example, following Russia’s invasion of Ukraine in 2022, Russian stocks lost all, or nearly all, of their market value. Further, recent escalations of conflict in the Middle East could lead to disruptions in local, regional, national and global markets and economies for an unknown period of time. The United States and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the United States has recently enacted and proposed to enact significant new tariffs and President Trump has directed various federal agencies to further evaluate key aspects of U.S. trade policy, which could potentially lead to significant changes to current policies, treaties and tariffs. There continues to exist significant uncertainty about the future relationship between the U.S. and other countries with respect to such trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. For example, the United States has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the United States and its trading partners, as well as companies directly or indirectly affected and financial markets generally. The United States government has prohibited U.S. persons from investing in Chinese companies designated as related to the Chinese military. These and possible future restrictions could limit the Fund’s opportunities for investment and require the sale of securities at a loss or make them illiquid. Moreover, the Chinese government is involved in a longstanding dispute with Taiwan that has included threats of invasion. If the political climate between the United States and China does not improve or </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Fund’s assets may go down.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Recently, inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the fund’s investments, impair the fund’s ability to satisfy redemption requests, and negatively impact the fund’s performance.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Valuation Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The sales price the Fund could receive for any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair value methodology. These differences may increase significantly and affect Fund investments more broadly during periods of market volatility. The Fund’s ability to value its investments may be impacted by technological issues and/or errors by pricing services or other third party service providers. The valuation of the Fund’s investments involves subjective judgment.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Tax Risks</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. To qualify for the favorable U.S. federal income tax treatment generally accorded to regulated investment companies, among other things, the Fund must derive in each taxable year at least 90% of its gross income from certain prescribed sources and satisfy certain distribution and asset diversification requirements. If for any taxable year the Fund does not qualify as a regulated investment company, all of its taxable income (including its net capital gain) would be subject to tax at regular corporate rates without any deduction for distributions to stockholders, and such distributions would be taxable as ordinary dividends to the extent of the Fund’s current or accumulated earnings and profits.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Operational Risk.</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;"> The valuation of the Fund’s investments may be negatively impacted because of the operational risks arising from factors such as processing errors and human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel, and errors caused by third party service providers or trading counterparties. It is not possible to identify all of the operational risks that may affect the Fund or to develop processes and controls that completely eliminate or mitigate the occurrence of such failures. The Fund and its stockholders could be negatively impacted as a result.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Cybersecurity Risk. </span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Like other funds and business enterprises, the Fund, the Manager, Western Asset, the relevant listing exchange and their service providers are subject to the risk of cybersecurity incidents occurring from time to time. Cybersecurity incidents, whether </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">intentionally caused by third parties or otherwise, may allow an unauthorized party to gain access to fund assets, fund or customer data (including private stockholder information) or proprietary information, cause the Fund, the Manager, Western Asset, the relevant listing exchange and/or their service providers (including, but not limited to, fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality, or prevent fund investors from purchasing, redeeming or exchanging shares, receiving distributions or receiving timely information regarding the fund or their investment in the fund. The Fund, Western Asset, and the subadvisers have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the Manager. Cybersecurity incidents may result in financial losses to the Fund and its stockholders, and substantial costs may be incurred in order to prevent any future cybersecurity incidents. Issuers of securities in which the fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">New ways to carry out cyber attacks continue to develop. There is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the fund’s ability to plan for or respond to a cyber attack.</span></div> 2026-05-31 N-2 0001228509 false Represents the estimated commission with respect to the Common Stock being sold in at-the-market offerings. UBS Securities LLC will be entitled to compensation of up to 1.00% of the gross proceeds of the sale of any Common Stock under the Sales Agreement, with the exact amount of such compensation to be mutually agreed upon in writing by the Fund and UBS Securities LLC from time to time. Costs incurred by the Fund in connection with the shelf offering are recorded as deferred offering costs.  These costs are amortized on a pro-rata basis as shares are sold and are presented as a reduction to the net proceeds from the sale of shares.  Any deferred charges remaining at the end of the life of the shelf offering period will be expensed. Common Stockholders will pay brokerage charges if they direct the Plan Agent to sell shares of Common Stock held in a dividend reinvestment account. There are no fees charged to stockholders for participating in the Fund’s dividend reinvestment plan. However, stockholders participating in the Plan that elect to sell their shares obtained pursuant to the plan would pay $5.00 per transaction to sell shares. The Investment Manager receives an annual fee, payable monthly The Fund has utilized Borrowings in an aggregate amount of 31% of its Managed Assets, which equals the average level of leverage for the Fund’s fiscal year ended May 31, 2026. The expenses and rates associated with leverage may vary. “Other Expenses” are based on amounts incurred in the fiscal year ended May 31, 2026. The Fund had open reverse repurchase agreements at May 31, 2026, 2025, 2024, 2023, 2022, 2021, 2020, and 2019. Total amount of senior securities outstanding at the end of the period presented. Asset coverage per $1,000 of indebtedness is the value of net assets plus the senior securities outstanding at the end of the period divided by the senior securities outstanding at the end of the period.