0001497186 2025-06-01 2026-05-31 0001497186 hyi:CommonSharesMember 2025-06-01 2026-05-31 0001497186 hyi:CommonSharesMember 2025-06-01 2025-08-31 0001497186 hyi:CommonSharesMember 2025-09-01 2025-11-30 0001497186 hyi:CommonSharesMember 2025-12-01 2026-02-28 0001497186 hyi:CommonSharesMember 2026-03-01 2026-05-31 0001497186 hyi:CommonSharesMember 2024-06-01 2024-08-31 0001497186 hyi:CommonSharesMember 2024-09-01 2024-11-30 0001497186 hyi:CommonSharesMember 2024-12-01 2025-02-28 0001497186 hyi:CommonSharesMember 2025-03-01 2025-05-31 0001497186 hyi:CommonSharesMember 2026-05-31 0001497186 hyi:InvestmentAndMarketRiskMember 2025-06-01 2026-05-31 0001497186 hyi:BelowInvestmentGradeHighYieldOrJunkBondSecuritiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:FixedIncomeSecuritiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:IssuerRiskMember 2025-06-01 2026-05-31 0001497186 us-gaap:InterestRateRiskMember 2025-06-01 2026-05-31 0001497186 hyi:PrepaymentsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ReinvestmentRiskMember 2025-06-01 2026-05-31 0001497186 us-gaap:CreditRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ForeignSecuritiesAndEmergingMarketsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ForeignCurrencyRiskMember 2025-06-01 2026-05-31 0001497186 hyi:RepurchaseAgreementsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:DerivativesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:LeverageRiskMember 2025-06-01 2026-05-31 0001497186 hyi:LiquidityRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ManagementRiskMember 2025-06-01 2026-05-31 0001497186 hyi:GovernmentInterventionInFinancialMarketsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:AssetBackedMortgageBackedOrMortgageRelatedSecuritiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:MarketPriceDiscountFromNetAssetValueRiskMember 2025-06-01 2026-05-31 0001497186 hyi:AntiTakeoverProvisionsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:USGovernmentDebtSecuritiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:NonUSGovernmentDebtSecuritiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:SeniorLoansRiskMember 2025-06-01 2026-05-31 0001497186 hyi:SecondLienLoansRiskMember 2025-06-01 2026-05-31 0001497186 hyi:LoanParticipationsAndAssignmentsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:CommonStockRiskMember 2025-06-01 2026-05-31 0001497186 hyi:PreferredStockRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ConvertibleSecuritiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ShortSalesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:RiskOfShortEconomicExposureThroughDerivativesMember 2025-06-01 2026-05-31 0001497186 hyi:CounterpartyRiskMember 2025-06-01 2026-05-31 0001497186 hyi:CreditDefaultSwapRiskMember 2025-06-01 2026-05-31 0001497186 hyi:StructuredNotesAndRelatedInstrumentsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:InflationDeflationRiskMember 2025-06-01 2026-05-31 0001497186 hyi:RisksOfFuturesAndOptionsOnFuturesMember 2025-06-01 2026-05-31 0001497186 hyi:WhenIssuedAndDelayedDeliveryTransactionsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:PortfolioTurnoverRiskMember 2025-06-01 2026-05-31 0001497186 hyi:TemporaryDefensiveStrategiesRiskMember 2025-06-01 2026-05-31 0001497186 hyi:RatingAgencyRiskMember 2025-06-01 2026-05-31 0001497186 hyi:MarketEventsRiskMember 2025-06-01 2026-05-31 0001497186 hyi:OperationalRiskMember 2025-06-01 2026-05-31 0001497186 hyi:ValuationRiskMember 2025-06-01 2026-05-31 0001497186 hyi:TaxRisksMember 2025-06-01 2026-05-31 0001497186 hyi:CybersecurityRiskMember 2025-06-01 2026-05-31 pure iso4217:USD iso4217:USD shares shares N-CSR Western Asset High Yield Opportunity Fund Inc. 2026-05-31 <div style="margin-top:2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The following additional information is provided for the Fund as of the fiscal year ended May 31, 2026.</span></div> <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Summary of Fund Expenses</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: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;">0.06</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:3pt;"><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 a prepaid expense. 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 0.0006 5 <div style="margin-top:6pt;"><span style="color:#40A6FF;font-family:Arial Narrow;font-size:10pt;">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:36.65pt;"> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;width:267.85pt;"> <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:10pt;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:65.15pt;"> <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</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;">Net Assets</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;">Attributable to</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;">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:267.85pt;"> <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:65.15pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:49.15pt;"> <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;">0.80%</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:267.85pt;"> <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;">(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:65.15pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:49.15pt;"> <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;">0.47%</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:267.85pt;"> <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:65.15pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:49.15pt;"> <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;">1.27%</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 0.80% of the Fund’s average daily net assets.</span></div> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">(5) “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</span> <span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Net Assets</span> <span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Attributable to</span><span style="color:#40A6FF;font-family:Arial Narrow;font-size:7.5pt;">Common Shares</span> 0.008 0.0047 0.0127 Costs incurred by the Fund in connection with the shelf offering are recorded as a prepaid expense. 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 0.80% of the Fund’s average daily net assets. “Other Expenses” are based on amounts incurred in the fiscal year ended May 31, 2026. <div style="margin-top:6pt;"><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;">$24</span></div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:83.75pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:71.75pt;"> <div style="display:flex;margin:auto;width:12.65pt;"> <div style="display:flex;white-space:nowrap;width:12.65pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:12.65pt;">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: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:12.65pt;"> <div style="display:flex;white-space:nowrap;width:12.65pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:12.65pt;">80</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:87.75pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:5pt;text-align:right;width:71.75pt;"> <div style="display:flex;margin:auto;width:16.2pt;"> <div style="display:flex;white-space:nowrap;width:16.2pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:16.2pt;">163</span></div> </div> </div> </td> </tr> </table> <div style="margin-top:6pt;"><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. </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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> 24 51 80 163 <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 “HYI”. 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">prices.</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:36.65pt;"> <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;">per Common share</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: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: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: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:41.82pt;"> <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: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:41.82pt;"> <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: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:41.82pt;"> <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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.05</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.78</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.09</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.91</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;">(0.33)%</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;">(1.09)%</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.09</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">10.91</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.16</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.84</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;">(0.58)%</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;">(7.85)%</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.25</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.00</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.95</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.87</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;">(5.86)%</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;">(7.33)%</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.10</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">10.46</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.81</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.54</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;">(6.01)%</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;">(9.36)%</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: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: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: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:41.82pt;"> <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: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:41.82pt;"> <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: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:41.82pt;"> <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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.19</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.44</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: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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.28</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.09</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;">(0.73)%</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> <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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.39</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.95</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.40</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.27</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;">(0.08)%</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;">(2.61)%</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;">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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.22</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.72</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.33</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.14</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;">(0.89)%</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: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;">(3.46)%</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.12</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:31.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:19.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.34</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: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;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">12.20</span></div> </div> </div> </td> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:41.82pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:29.82pt;"> <div style="display:flex;margin:auto;width:21.53pt;"> <div style="display:flex;white-space:nowrap;width:21.53pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:auto;">$</span><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;width:21.53pt;">11.61</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;">(0.66)%</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;">(2.33)%</span></div> </div> </div> </td> </tr> </table> <div style="margin-top:3pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:8pt;">Source of market prices: NYSE.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The NAV per Common Share on May 31, 2026 was $11.62 and the market price per Common Stock at the close of business on May 31, 2026 was $10.63, representing a 8.52% discount from such net asset value. As of May 31, 2026, the Fund has 12,814,003 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">share repurchases or tender offers will actually reduce market discount.</span></div> 12.05 11.78 12.09 11.91 -0.0033 -0.0109 12.09 10.91 12.16 11.84 -0.0058 -0.0785 11.25 11 11.95 11.87 -0.0586 -0.0733 11.1 10.46 11.81 11.54 -0.0601 -0.0936 12.19 11.44 12.28 12.09 -0.0073 -0.0538 12.39 11.95 12.4 12.27 -0.0008 -0.0261 12.22 11.72 12.33 12.14 -0.0089 -0.0346 12.12 11.34 12.2 11.61 -0.0066 -0.0233 11.62 10.63 0.0852 12814003 <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:191.57pt;"> <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:46.97pt;"> <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:191.57pt;"> <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:13.99pt;"> </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:46.97pt;"> <div style="line-height:0.5pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <div style="display:flex;margin:auto;width:13.99pt;"> </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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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:191.57pt;"> <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: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> <td style="border-bottom:0.3pt solid #B2B2B2;padding-bottom:1.65pt;padding-top:1.65pt;vertical-align:Bottom;white-space:nowrap;width:46.97pt;"> <div style="line-height:10.6pt;margin-left:6pt;margin-right:6pt;text-align:right;width:34.97pt;"> <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> <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;">(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 to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. There can be no assurance the Fund will achieve its investment objectives.</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;">The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities. “High-yield” refers to below investment grade quality (also commonly referred to as “junk bonds”). High-yield fixed income securities of below investment grade quality are regarded as having predominately speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. “Fixed income securities” include bonds, debentures, notes, commercial paper and other similar types of debt instruments, as well as preferred stock, convertible securities, Senior Loans, Second Lien Loans, loan participations, payment-in-kind securities, zero-coupon bonds, mortgage-backed securities, asset-backed securities, bank certificates of deposit, fixed time deposits and bankers’ acceptances. Corporate securities are those securities that are issued or originated by U.S. or foreign public or private corporations and other business entities, and do not include securities issued by governments, agencies or supranational entities. Certain fixed income instruments, such as convertible securities, may also include the right to participate in equity appreciation, and Western Asset will generally evaluate those instruments based primarily on their debt characteristics.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may invest in derivative instruments primarily for hedging and risk management purposes, although the Fund may also use derivative instruments for investment purposes. Investing in derivative instruments is not a principal investment strategy of the Fund. Derivative instruments include options contracts, futures contracts, options on futures contracts, indexed securities, currency forwards, credit linked notes, credit default swaps and other swap agreements. The Fund may use derivative instruments to gain exposure to or hedge its exposure to high-yield securities primarily through the use of credit default swaps, but may also use other derivative instruments, provided that the Fund’s exposure to credit derivative instruments, as measured by the total notional amount of all such instruments, will not exceed 20% of its net assets. With respect to this limitation, the Fund may net derivatives with opposite exposure to the same underlying instrument. Notwithstanding the foregoing limitation, the Fund may invest without limit in derivative instruments related to currencies and interest rates, subject to the requirements of the 1940 Act provided that such currency and interest rate derivatives are used for hedging purposes only. To the extent that the security or index underlying the derivative or synthetic instrument is or is composed of corporate high-yield fixed income securities, the Fund will include such derivative and synthetic instruments for the purposes of the Fund’s policy to invest at least 80% of its net assets in a portfolio of high-yield corporate fixed income </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. Credit derivatives, by their design, have a high correlation to the underlying securities. The Fund may not change its policy to invest, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed income securities with varying maturities unless it provides shareholders with at least 60 days’ written notice of such change.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">Below investment grade fixed income securities are rated below “BBB-” by S&amp;P or Fitch, below “Baa3” by Moody’s or comparably rated by another NRSRO or, if unrated, determined by Western Asset to be of comparable quality. Below investment grade fixed income securities are commonly referred to as “high-yield” 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 the event that a security receives different ratings from different NRSROs, 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;">Under normal market conditions, the Fund may also invest up to 20% of its net assets in fixed income securities issued by U.S. or foreign governments, agencies and instrumentalities and/or fixed income securities that are investment grade 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 net assets in securities that, at the time of investment, are considered Illiquid Securities.</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 net assets in government debt securities, including those of emerging market issuers or of other non-US issuers.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">No more than 10% of the Fund’s net assets may be invested in any issuer, except securities issued by the U.S. government and its agencies.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may purchase equity securities (including but not limited to common stock, preferred stock, convertible securities, and warrants of U.S. and non-U.S. issuers) directly. The Fund may sell certain equities or fixed income securities short including, but not limited to, U.S. Treasuries, for investment and/or hedging purposes.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">The Fund may lend portfolio securities so long as the terms and the structure of such loans are not inconsistent with the requirements of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund does not currently intend to make loans of portfolio securities with a value in excess of 33 1/3% of the value of its net assets (including such loans).</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Temporary Defensive Strategies</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. At times Western Asset may judge that conditions in the markets for fixed income securities make pursuing the Fund’s primary investment strategy inconsistent with the best interests of its shareholders. At such times Western Asset may, temporarily, use alternative strategies, primarily designed to reduce fluctuations in the value of the Fund’s assets. If the Fund takes a temporary defensive position, it may be </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">unable to achieve its investment objectives. In implementing these “defensive” strategies, the Fund may 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. It is impossible to predict if, when or for how long the Fund will use these alternative strategies. There can be no assurance that such strategies will be successful.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Other Investment Companies</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may invest in securities of other closed-end or open-end investment companies, including exchange traded funds (“ETFs”), that invest primarily in bonds or other securities and instruments of the types in which the Fund may invest directly to the extent permitted by the 1940 Act. The Fund will not consider an investment in securities of other closed-end or open-end investment companies toward meeting its policy of investing at least 80% of its net assets in high-yield securities unless such closed-end or open-end investment company has a policy of investing at least 80% of its net assets in high-yield securities.</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 Fund may invest in other investment companies during periods when it has large amounts of uninvested cash, such as during periods when there is a shortage of attractive bonds available in the market, or when Western Asset believes share prices of other investment companies offer attractive values. The Fund may invest in investment companies, including money market funds, that are advised by Western Asset or its affiliates to the extent permitted by applicable law and/or pursuant to exemptive relief from the SEC. As a shareholder in an investment company, the Fund will bear its ratable share of that investment company’s expenses, and would remain subject to payment of the Fund’s management fees and other expenses with respect to assets so invested. Shareholders would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies. Western Asset will take expenses into account when evaluating the investment merits of an investment in an investment company relative to available bond investments. In addition, the securities of other investment companies may also be leveraged and will therefore be subject to the same leverage risks described herein. The net asset value and market value of leveraged shares will be more volatile and the yield to shareholders will tend to fluctuate more than the yield generated by unleveraged shares. Other investment companies may have investment policies that differ from those of the Fund. In addition, to the extent the Fund invests in other investment companies, the Fund will be dependent upon the investment and research abilities of persons other than Western Asset.</span></div> <div style="line-height:12.0pt;text-align:left;"><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;">Investment and Market Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. An investment in the Fund is subject to investment risk, including the possible loss of the entire amount that you invest. Your investment in Common Stock represents an indirect investment in the fixed income securities and other assets owned by the Fund, most of which could be purchased directly. The value of the Fund’s portfolio securities may move up or down, sometimes rapidly and unpredictably. The Fund intends to take advantage of that Western Assets believes to be current market dislocations by buying debt and other securities at depressed prices, but if such dislocations do not persist during the period when the Fund is investing the net proceeds of this offering, the Fund’s returns may be adversely affected. In addition, if the current global economic downturn continues or deteriorates further, the ability of issuers to service their obligations could be materially and adversely affected. At any point in time, your Common Stock may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.</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;">. High yield bonds, often called “junk” bonds, have a higher risk of issuer default or may be in default and are considered speculative. Changes in economic conditions or developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of such securities to make principal and interest payments than is the case for higher grade debt securities. The value of lower-quality debt securities often fluctuates in response to company, political, or economic developments and can decline significantly over short as well as long periods of time or during periods of general or regional economic difficulty. High yield bonds may also have lower liquidity as compared to higher-rated securities, which means the Fund may have difficulty selling them at times, and it may have to apply a greater degree of judgment in establishing a price for purposes of valuing Fund shares. High yield bonds generally are issued by less creditworthy issuers. Issuers of high yield bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield bond holders, leaving few or no assets available to repay high yield bond holders. The Fund may incur expenses to the extent </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. High yield bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high yield bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income.</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;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;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 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;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 shareholders. 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 (“call protection”). 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. Senior Loans and Second Lien Loans typically do not have call protection. For premium bonds (bonds acquired at prices that exceed their par or principal value) purchased by the Fund, prepayment risk may be enhanced.</span></div> <div style="margin-top:6pt;"><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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">income securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the Fund’s Common Stock price or its overall return.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. Credit risk is the risk that one or more fixed income securities in the Fund’s portfolio will decline in price or fail to pay interest or principal when due because the issuer of the security experiences a decline in its financial status. If the recent adverse conditions in the credit markets continue to adversely affect the broader global economy, the credit quality of issuers of fixed income securities in which the Fund may invest would be more likely to decline, all other things being equal. Changes by an NRSRO in its rating of securities and in the ability of an issuer to make scheduled payments may also affect the value of the Fund’s investments. To the extent the Fund invests in below investment grade securities, it will be exposed to a greater amount of credit risk than a fund which invests solely in investment grade securities. The prices of lower grade securities are generally more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn, than are the prices of higher grade securities. Fixed income securities of below investment grade quality are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and therefore involve a greater risk of default.</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;">. A fund that invests in foreign (non-U.S.) securities may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. Investments in foreign securities (including those denominated in U.S. dollars) are subject to economic and political developments in the countries and regions where the issuers operate or are domiciled, or where the securities are traded, such as changes in economic or monetary policies. Values may also be affected by restrictions on receiving the investment proceeds from a foreign country. Less information may be publicly available about foreign companies than about U.S. companies. Foreign companies are generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, the Fund’s investments in foreign securities may be subject to the risk of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of foreign currency, confiscatory taxation, political or financial instability and adverse diplomatic developments. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad. Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to non-U.S. withholding taxes, and special U.S. tax considerations may apply.</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, it is (i) represented in the J.P. Morgan Emerging Markets Bond Index Global Diversified or the J.P. </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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;">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></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 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="line-height:12.0pt;text-align:left;"><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, primarily for hedging and risk management purposes although the Fund may also use derivative instruments for investment purposes. Derivative instruments include options contracts, derivative instruments related to currencies, forward contracts, futures contracts, options on futures contracts, indexed securities, credit linked notes, credit default swaps and other swap agreements. A derivative is a financial contract whose value depends on changes in the value of one or more underlying assets or reference rates. Derivatives are subject to a number of risks described elsewhere in this prospectus, 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 Fund 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;">Leverage Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. As a fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as preferred shares or debt instruments. However, the Fund may borrow for temporary or emergency purposes as permitted by the 1940 Act. The Fund may take on leveraging risk by, among other things, purchasing securities on a when-issued or delayed delivery basis, entering into credit default swaps or futures contracts, engaging in short sales or writing options on portfolio securities. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying asset or creates investment risk with respect to a larger pool of assets than the Fund would otherwise have. Engaging in such transactions may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.</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;">. 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;">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, the Non-U.S. Subadvisers and each individual portfolio manager 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;">Government Intervention in Financial Markets Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. U.S. federal and state governments and foreign governments, their regulatory agencies or self-regulatory organizations may take additional actions that affect the regulation of the securities in which the Fund invests, or the issuers of such securities, in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund itself is regulated. Such legislation or regulation could limit or preclude the Fund’s ability to achieve its investment objectives. Western Asset will monitor developments and seek to manage the Fund’s portfolio in a manner consistent with achieving the Fund’s investment objectives, but there can be no assurance that it will be successful in doing so.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Asset-Backed, Mortgage-Backed or Mortgage-Related Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. To the extent the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than other investments in fixed income </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. Mortgage derivatives held by the Fund may have especially volatile prices and may have a disproportionate effect on the Fund’s share price. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. In addition, mortgage-related securities are subject to prepayment risk—the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline. This can reduce the Fund’s returns because the Fund may have to reinvest that money at lower prevailing interest rates. The Fund’s investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities.</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 Stock in a relatively short period following completion of this offering. Whether investors will realize gains or losses upon the sale of the Common Stock will depend not upon the Fund’s net asset value but upon whether the market price of the Common Stock at the time of sale is above or below the investor’s purchase price for the Common Stock. Because the market price of the Common Stock will be determined by factors such as relative supply of and demand for the Common Stock in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot predict whether the Common Stock will trade at, above or below net asset value or at, above or below the initial public offering price. The Fund’s Common Stock is 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="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">U.S. Government Debt Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. U.S. government debt securities generally do not involve the credit risks associated with investments in other types of debt securities, although, as a result, the yields available from U.S. government debt securities are generally lower than the yields available from other securities. Like other debt securities, however, the values of U.S. government securities change as interest rates fluctuate. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s net asset value. Since the magnitude of these fluctuations will generally be greater at times when the Fund’s average maturity is longer, under certain market conditions the Fund may, for temporary defensive purposes, accept lower current income from short-term investments rather than investing in higher yielding long-term securities.</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 Debt Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund intends to invest in non-U.S. government 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 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;">Senior Loans Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may invest in 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 risks 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 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><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;">Second Lien Loans Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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;">Common Stock Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may purchase equity securities (including but not limited to common stock, preferred stock, convertible securities, and warrants of U.S. and non-U.S. issuers) directly. 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;">. The Fund may invest in preferred stock. 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 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. Certain of the preferred stocks in which the Fund may invest may be convertible preferred stocks, which have risks similar to convertible securities as described below in “—Convertible Securities Risk.”</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;">Convertible Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may invest in convertible securities. 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;">Short Sales Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. To the extent the Fund makes use of short sales for investment and/or risk management purposes, the Fund may be subject to risks associated with selling short. Short sales are transactions in which the Fund sells securities or other instruments that the Fund does not own. Short sales expose the Fund to the risk that it will be required to cover its short position at a time when the securities have appreciated in value, thus resulting in a loss to the Fund. The Fund may engage in short sales where it does not own or have the right to acquire the security sold short at no additional cost. The Fund’s loss on a short sale theoretically could be unlimited in a case where the Fund is unable, for whatever reason, to close out its short position. In addition, the Fund’s short selling strategies may limit its ability to benefit from increases in the markets. If the Fund engages in short sales, it will segregate liquid assets, enter into offsetting transactions, own positions covering its obligations or otherwise cover such obligations; however, such segregation and cover requirements will not limit or offset losses on related positions. Short selling also involves a form of financial leverage that may exaggerate any losses realized by the Fund. Also, there is the risk that the counterparty to a short sale may fail to honor its contractual terms, causing a loss to the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Risk of Short Economic Exposure Through Derivatives</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The use by the Fund of derivatives such as options, forwards or futures contracts for investment and/or risk management purposes may subject the Fund to risks associated with short economic exposure through </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such derivatives. Taking a short economic position through derivatives exposes the Fund to the risk that it will be obligated to make payments to its counterparty if the underlying asset appreciates in value, thus resulting in a loss to the Fund. The Fund’s loss on a short position using derivatives theoretically could be unlimited.</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;">. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to derivatives or other transactions supported by another party’s credit will affect the value of those instruments. Certain entities that have served as counterparties in the markets for these transactions have recently incurred significant financial hardships including bankruptcy and losses as a result of exposure to sub-prime mortgages and other lower quality credit investments that have experienced recent defaults or otherwise suffered extreme credit deterioration. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.</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 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 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. The sale of a credit default swap is a form of leverage.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Structured Notes and Related Instruments Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may invest in “structured” notes and other related instruments, which are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets, such as indexes reflecting bonds. Structured instruments may be issued by </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">corporations, including banks, as well as by governmental agencies. Structured instruments frequently are assembled in the form of medium-term notes, but a variety of forms are available and may be used in particular circumstances. The terms of such structured instruments normally provide that their principal and/or interest payments are to be adjusted upwards or downwards (but ordinarily not below zero) to reflect changes in the embedded index while the structured instruments are outstanding. As a result, the interest and/or principal payments that may be made on a structured product may vary widely, depending on a variety of factors, including the volatility of the embedded index and the effect of changes in the embedded index on principal and/or interest payments. The rate of return on structured notes may be determined by applying a multiplier to the performance or differential performance of the referenced index(es) or other asset(s). Application of a multiplier involves leverage that will serve to magnify the potential for gain and the risk of loss.</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 shareholders. 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;">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="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><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;">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 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;">Portfolio Turnover Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. 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 shareholders, 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 shareholders. The portfolio turnover rate of the Fund will vary from year to year, as well as within a given year.</span></div> <div style="margin-top:6pt;"><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="line-height:12.0pt;text-align:left;"><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;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, 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 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;">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 shareholders 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;">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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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;">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 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><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;">Investment and Market Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. An investment in the Fund is subject to investment risk, including the possible loss of the entire amount that you invest. Your investment in Common Stock represents an indirect investment in the fixed income securities and other assets owned by the Fund, most of which could be purchased directly. The value of the Fund’s portfolio securities may move up or down, sometimes rapidly and unpredictably. The Fund intends to take advantage of that Western Assets believes to be current market dislocations by buying debt and other securities at depressed prices, but if such dislocations do not persist during the period when the Fund is investing the net proceeds of this offering, the Fund’s returns may be adversely affected. In addition, if the current global economic downturn continues or deteriorates further, the ability of issuers to service their obligations could be materially and adversely affected. At any point in time, your Common Stock may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.</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;">. High yield bonds, often called “junk” bonds, have a higher risk of issuer default or may be in default and are considered speculative. Changes in economic conditions or developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of such securities to make principal and interest payments than is the case for higher grade debt securities. The value of lower-quality debt securities often fluctuates in response to company, political, or economic developments and can decline significantly over short as well as long periods of time or during periods of general or regional economic difficulty. High yield bonds may also have lower liquidity as compared to higher-rated securities, which means the Fund may have difficulty selling them at times, and it may have to apply a greater degree of judgment in establishing a price for purposes of valuing Fund shares. High yield bonds generally are issued by less creditworthy issuers. Issuers of high yield bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of high yield bond holders, leaving few or no assets available to repay high yield bond holders. The Fund may incur expenses to the extent </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. High yield bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high yield bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income.</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;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;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 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;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 shareholders. 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 (“call protection”). 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. Senior Loans and Second Lien Loans typically do not have call protection. For premium bonds (bonds acquired at prices that exceed their par or principal value) purchased by the Fund, prepayment risk may be enhanced.</span></div> <div style="margin-top:6pt;"><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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">income securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the Fund’s Common Stock price or its overall return.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Credit Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. Credit risk is the risk that one or more fixed income securities in the Fund’s portfolio will decline in price or fail to pay interest or principal when due because the issuer of the security experiences a decline in its financial status. If the recent adverse conditions in the credit markets continue to adversely affect the broader global economy, the credit quality of issuers of fixed income securities in which the Fund may invest would be more likely to decline, all other things being equal. Changes by an NRSRO in its rating of securities and in the ability of an issuer to make scheduled payments may also affect the value of the Fund’s investments. To the extent the Fund invests in below investment grade securities, it will be exposed to a greater amount of credit risk than a fund which invests solely in investment grade securities. The prices of lower grade securities are generally more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn, than are the prices of higher grade securities. Fixed income securities of below investment grade quality are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and therefore involve a greater risk of default.</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;">. A fund that invests in foreign (non-U.S.) securities may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. Investments in foreign securities (including those denominated in U.S. dollars) are subject to economic and political developments in the countries and regions where the issuers operate or are domiciled, or where the securities are traded, such as changes in economic or monetary policies. Values may also be affected by restrictions on receiving the investment proceeds from a foreign country. Less information may be publicly available about foreign companies than about U.S. companies. Foreign companies are generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, the Fund’s investments in foreign securities may be subject to the risk of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of foreign currency, confiscatory taxation, political or financial instability and adverse diplomatic developments. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad. Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to non-U.S. withholding taxes, and special U.S. tax considerations may apply.</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, it is (i) represented in the J.P. Morgan Emerging Markets Bond Index Global Diversified or the J.P. </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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;">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></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 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="line-height:12.0pt;text-align:left;"><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, primarily for hedging and risk management purposes although the Fund may also use derivative instruments for investment purposes. Derivative instruments include options contracts, derivative instruments related to currencies, forward contracts, futures contracts, options on futures contracts, indexed securities, credit linked notes, credit default swaps and other swap agreements. A derivative is a financial contract whose value depends on changes in the value of one or more underlying assets or reference rates. Derivatives are subject to a number of risks described elsewhere in this prospectus, 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 Fund 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;">Leverage Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. As a fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as preferred shares or debt instruments. However, the Fund may borrow for temporary or emergency purposes as permitted by the 1940 Act. The Fund may take on leveraging risk by, among other things, purchasing securities on a when-issued or delayed delivery basis, entering into credit default swaps or futures contracts, engaging in short sales or writing options on portfolio securities. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying asset or creates investment risk with respect to a larger pool of assets than the Fund would otherwise have. Engaging in such transactions may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.</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;">. 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;">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, the Non-U.S. Subadvisers and each individual portfolio manager 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;">Government Intervention in Financial Markets Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. U.S. federal and state governments and foreign governments, their regulatory agencies or self-regulatory organizations may take additional actions that affect the regulation of the securities in which the Fund invests, or the issuers of such securities, in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund itself is regulated. Such legislation or regulation could limit or preclude the Fund’s ability to achieve its investment objectives. Western Asset will monitor developments and seek to manage the Fund’s portfolio in a manner consistent with achieving the Fund’s investment objectives, but there can be no assurance that it will be successful in doing so.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Asset-Backed, Mortgage-Backed or Mortgage-Related Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. To the extent the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than other investments in fixed income </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">securities. Mortgage derivatives held by the Fund may have especially volatile prices and may have a disproportionate effect on the Fund’s share price. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. In addition, mortgage-related securities are subject to prepayment risk—the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline. This can reduce the Fund’s returns because the Fund may have to reinvest that money at lower prevailing interest rates. The Fund’s investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities.</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 Stock in a relatively short period following completion of this offering. Whether investors will realize gains or losses upon the sale of the Common Stock will depend not upon the Fund’s net asset value but upon whether the market price of the Common Stock at the time of sale is above or below the investor’s purchase price for the Common Stock. Because the market price of the Common Stock will be determined by factors such as relative supply of and demand for the Common Stock in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot predict whether the Common Stock will trade at, above or below net asset value or at, above or below the initial public offering price. The Fund’s Common Stock is 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="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">U.S. Government Debt Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. U.S. government debt securities generally do not involve the credit risks associated with investments in other types of debt securities, although, as a result, the yields available from U.S. government debt securities are generally lower than the yields available from other securities. Like other debt securities, however, the values of U.S. government securities change as interest rates fluctuate. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s net asset value. Since the magnitude of these fluctuations will generally be greater at times when the Fund’s average maturity is longer, under certain market conditions the Fund may, for temporary defensive purposes, accept lower current income from short-term investments rather than investing in higher yielding long-term securities.</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 Debt Securities Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund intends to invest in non-U.S. government 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 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;">Senior Loans Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may invest in 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 risks 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 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><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;">Second Lien Loans Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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;">Common Stock Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may purchase equity securities (including but not limited to common stock, preferred stock, convertible securities, and warrants of U.S. and non-U.S. issuers) directly. 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> <span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Preferred Stock Risk</span>. The Fund may invest in preferred stock. 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 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. Certain of the preferred stocks in which the Fund may invest may be convertible preferred stocks, which have risks similar to convertible securities as described below in “—Convertible Securities Risk. <div style="line-height:12.0pt;text-align:left;"><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;">. The Fund may invest in convertible securities. 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;">Short Sales Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. To the extent the Fund makes use of short sales for investment and/or risk management purposes, the Fund may be subject to risks associated with selling short. Short sales are transactions in which the Fund sells securities or other instruments that the Fund does not own. Short sales expose the Fund to the risk that it will be required to cover its short position at a time when the securities have appreciated in value, thus resulting in a loss to the Fund. The Fund may engage in short sales where it does not own or have the right to acquire the security sold short at no additional cost. The Fund’s loss on a short sale theoretically could be unlimited in a case where the Fund is unable, for whatever reason, to close out its short position. In addition, the Fund’s short selling strategies may limit its ability to benefit from increases in the markets. If the Fund engages in short sales, it will segregate liquid assets, enter into offsetting transactions, own positions covering its obligations or otherwise cover such obligations; however, such segregation and cover requirements will not limit or offset losses on related positions. Short selling also involves a form of financial leverage that may exaggerate any losses realized by the Fund. Also, there is the risk that the counterparty to a short sale may fail to honor its contractual terms, causing a loss to the Fund.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Risk of Short Economic Exposure Through Derivatives</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The use by the Fund of derivatives such as options, forwards or futures contracts for investment and/or risk management purposes may subject the Fund to risks associated with short economic exposure through </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">such derivatives. Taking a short economic position through derivatives exposes the Fund to the risk that it will be obligated to make payments to its counterparty if the underlying asset appreciates in value, thus resulting in a loss to the Fund. The Fund’s loss on a short position using derivatives theoretically could be unlimited.</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;">. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to derivatives or other transactions supported by another party’s credit will affect the value of those instruments. Certain entities that have served as counterparties in the markets for these transactions have recently incurred significant financial hardships including bankruptcy and losses as a result of exposure to sub-prime mortgages and other lower quality credit investments that have experienced recent defaults or otherwise suffered extreme credit deterioration. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.</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 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 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. The sale of a credit default swap is a form of leverage.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;font-style:italic;">Structured Notes and Related Instruments Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. The Fund may invest in “structured” notes and other related instruments, which are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets, such as indexes reflecting bonds. Structured instruments may be issued by </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">corporations, including banks, as well as by governmental agencies. Structured instruments frequently are assembled in the form of medium-term notes, but a variety of forms are available and may be used in particular circumstances. The terms of such structured instruments normally provide that their principal and/or interest payments are to be adjusted upwards or downwards (but ordinarily not below zero) to reflect changes in the embedded index while the structured instruments are outstanding. As a result, the interest and/or principal payments that may be made on a structured product may vary widely, depending on a variety of factors, including the volatility of the embedded index and the effect of changes in the embedded index on principal and/or interest payments. The rate of return on structured notes may be determined by applying a multiplier to the performance or differential performance of the referenced index(es) or other asset(s). Application of a multiplier involves leverage that will serve to magnify the potential for gain and the risk of loss.</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 shareholders. 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;">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="line-height:12.0pt;margin-left:8.28pt;text-align:left;"><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;">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 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;">Portfolio Turnover Risk</span><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">. 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 shareholders, 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 shareholders. The portfolio turnover rate of the Fund will vary from year to year, as well as within a given year.</span></div> <div style="margin-top:6pt;"><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="line-height:12.0pt;text-align:left;"><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;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, 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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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 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;">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 shareholders 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;">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 </span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;">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;">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 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><span style="color:#000000;font-family:Arial Narrow;font-size:10pt;line-height:12pt;"> </span></div> 2026-05-31 N-2 0001497186 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 a prepaid expense. 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, in an amount equal to 0.80% of the Fund’s average daily net assets. “Other Expenses” are based on amounts incurred in the fiscal year ended May 31, 2026.