ClearBridge American Energy MLP Fund Inc. (“CBA”) Sets New Rate and Announces Distribution for February 2016

NEW YORK--()--ClearBridge American Energy MLP Fund Inc. (NYSE:CBA) announced today its quarterly distribution for February 2016.

The following dates apply to the distribution schedule below:

           
Month     Record Date     Ex-Dividend Date     Payable Date
February     2/19/2016     2/17/2016     2/26/2016
 

Ticker

   

Fund Name

   

Amount

   

Change from Previous
Distribution

CBA     ClearBridge American Energy MLP Fund Inc.     $0.2000     $(0.1050)
           

The energy markets have experienced significant turmoil over the last 18 months, and while we believe MLP fundamentals for many midstream MLPs have held up relatively well, MLP securities have declined significantly.

During this turbulent period for MLP securities, the fund’s distributable cash flow has declined as a result of the following three factors: (1) portfolio deleveraging in the fund (2) mergers of companies in the portfolio where the acquiring company has a lower yield and (3) distribution cuts from a few select portfolio holdings.

Given the continued uncertainty regarding the path and timing of an eventual recovery in the MLP market, we believe a reduction in the distribution is the appropriate course of action. As a result of current market dynamics, we expect MLP distribution growth to be substantially slower than it has been historically. Indeed, in our view, many MLPs will keep distributions flat to improve coverage ratios and bolster balance sheets.

The distribution may be treated as dividend income, return of capital or a combination thereof for tax purposes. This press release is not for tax reporting purposes. In 2017, after definitive information is available, the Funds will send stockholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Funds during the prior calendar year should be characterized for purposes of reporting the distributions on a stockholder’s tax return (e.g., dividend income or return of capital).

For more information about the Fund, please call 1-888-777-0102 or consult the Fund’s website at www.lmcef.com. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Funds.

Contacts

Legg Mason, Inc.
Maria Rosati, 212-805-6036
mrosati@leggmason.com

Contacts

Legg Mason, Inc.
Maria Rosati, 212-805-6036
mrosati@leggmason.com