ClearBridge Energy MLP Total Return Fund Inc. ("CTR") Announces Increased Quarterly Distribution Rate for February 2013
NEW YORK--(BUSINESS WIRE)-- ClearBridge Energy MLP Total Return Fund Inc. (NYS: CTR) today announced a quarterly distribution of $0.3300 per common share payable in February 2013. The Fund had previously paid a quarterly distribution of $0.3250 per share.
The distribution schedule appears below:
In declaring the new rate, the Fund cited increased distributions received from the Fund's energy MLP portfolio holdings which are reflected in the Fund's increased distribution rate of $0.3300 per common share.
It is currently anticipated that substantially all of this distribution will be treated for tax purposes as a return of capital. The final determination of such amount will be made in early 2014 when the Fund can determine its earnings and profits. The final tax status of the distribution may differ substantially from this preliminary information.
This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund's distributions that have been declared by the Board of Directors. In early 2014, after definitive information is available, the Fund will send stockholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a stockholder's tax return (e.g., ordinary income, long-term capital gain or return of capital).
The types of MLPs in which the Fund intends to invest historically have made cash distributions to limited partners or members that exceed the amount of taxable income allocable to limited partners or members, due to a variety of factors, including significant non-cash deductions such as depreciation and depletion. If the cash distributions exceed the taxable income reported in a particular tax year, the excess cash distributions would not be taxed as income to the Fund in that tax year but rather would be treated as a return of capital for United States federal income tax purposes to the extent of the Fund's basis in its MLP units. Similarly, the Fund expects to distribute cash in excess of its earnings and profits to Common Stockholders which may be treated as a return of capital to the extent of the Common Stockholders' cost basis in the Fund's Common Stock. As a result, the Fund's Common Stockholders should expect to receive distributions that are generally tax-deferred and represent a return of capital although no assurance can be given in this regard. For tax purposes, a return of capital generally represents a return of a Common Stockholder's initial investment in the Fund rather than a distribution of the Fund's earnings. Any distribution received by Common Stockholders that is treated as a return of capital generally will result in a reduction in basis in their shares, which may increase the capital gain, or reduce the capital loss, realized upon the sale of such shares.
ClearBridge Energy MLP Total Return Fund Inc. is a non-diversified, closed-end management investment company which is advised by Legg Mason Partners Fund Advisor, LLC ("LMPFA") and subadvised by ClearBridge Investments, LLC ("ClearBridge"). LMPFA and ClearBridge are wholly owned subsidiaries of Legg Mason, Inc. ("Legg Mason").
For more information, please contact the Fund at 1-888-777-0102 or visit the Fund's web site at www.lmcef.com.
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 Fund.
For ClearBridge Energy MLP Total Return Fund Inc.
Maria Rosati, 212-805-6036
KEYWORDS: United States North America New York
The article ClearBridge Energy MLP Total Return Fund Inc. ("CTR") Announces Increased Quarterly Distribution Rate for February 2013 originally appeared on Fool.com.
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