Western Asset Investment Grade Defined Opportunity Trust Inc. Announces Special Meeting for Perpetual Conversion

TL;DR

<b>Western Asset Investment Grade Defined Opportunity Trust Inc. is holding a special meeting on June 7, 2024, to vote on converting the fund to a perpetual structure, contingent on maintaining at least $50 million in net assets post-tender offer.</b>

AI Summary

Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI) filed a Proxy Statement (DEF 14A) with the SEC on April 4, 2024. The Fund proposes to convert to a perpetual fund by amending its charter to eliminate the term date of December 2, 2024. This conversion is contingent on at least $50 million in net assets remaining after a tender offer. A Special Meeting of Stockholders is scheduled for June 7, 2024, at 10:00 a.m. New York time. The meeting will be held at 280 Park Avenue, New York, New York 10017. The proposal also involves eliminating the Fund's policy to liquidate on or about December 2, 2024.

Why It Matters

For investors and stakeholders tracking Western Asset Investment Grade Defined Opportunity Trust Inc., this filing contains several important signals. Shareholders will vote on whether to transition the fund from a fixed-term structure to a perpetual one, which could impact investment strategy and liquidity. The success of the conversion is tied to the fund's ability to retain sufficient assets after a tender offer, indicating market confidence and investor participation are crucial.

Risk Assessment

Risk Level: medium — Western Asset Investment Grade Defined Opportunity Trust Inc. shows moderate risk based on this filing. The outcome of the vote and the success of the tender offer are uncertain, which could lead to the fund's liquidation as originally planned if the conversion conditions are not met.

Analyst Insight

Stockholders should carefully consider the implications of converting to a perpetual fund and the conditions attached to the proposal before voting.

Key Numbers

• June 7, 2024 — Special Meeting Date (Date of the Special Meeting of Stockholders)
• 10:00 a.m. — Meeting Time (Time of the Special Meeting)
• December 2, 2024 — Original Term Date (The date the Fund was scheduled to end)
• $50 million — Net Asset Threshold (Minimum net assets required for the conversion to be effective)

Key Players & Entities

• Western Asset Investment Grade Defined Opportunity Trust Inc. (company) — Registrant and Fund name
• IGI (company) — Ticker symbol
• June 7, 2024 (date) — Date of the Special Meeting
• December 2, 2024 (date) — Original Term Date for the Fund
• $50 million (dollar_amount) — Minimum net assets required for conversion
• New York, New York 10017 (location) — Address of the Special Meeting

FAQ

Risk Factors

• Net Asset Threshold for Conversion [medium — financial]: The conversion to a perpetual fund is contingent upon at least $50 million of net assets remaining after a tender offer, posing a risk if this threshold is not met.
• Liquidation Risk [medium — operational]: If the conditions for conversion are not met, the Fund will proceed with its scheduled liquidation on or about December 2, 2024.

Key Dates

• 2024-06-07: Special Meeting of Stockholders — Vote on proposal to convert the Fund to a perpetual fund.
• 2024-12-02: Original Term Date — Date the Fund was scheduled to end if not converted.

Glossary

Perpetual Fund

A fund that does not have a fixed termination date. (The proposal aims to change the Fund's structure to this type.)

Charter

The document that establishes the fundamental rules and structure of a corporation or trust. (Amendments to the Charter are required for the proposed conversion.)

Tender Offer

An offer to purchase securities from existing security holders for cash or other securities. (The success of the conversion is dependent on the outcome of a tender offer.)

Key Financial Figures

• $50 million — ch will only be effective upon at least $50 million of net assets remaining in the Fund fol
• $0.001 — 8,022 shares of Common Stock, par value $0.001 per share, the only authorized class of

Filing Documents

• d818205ddef14a.htm (DEF 14A) — 128KB
• g818205g73k63.jpg (GRAPHIC) — 115KB
• g818205g89p54.jpg (GRAPHIC) — 101KB
• 0001193125-24-086992.txt (&nbsp;) — 426KB

From the Filing

DEF 14A 1 d818205ddef14a.htm WESTERN ASSET INVESTMENT GRADE DEFINED OPPORTUNITY TRUST INC. WESTERN ASSET INVESTMENT GRADE DEFINED OPPORTUNITY TRUST INC. SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 WESTERN ASSET INVESTMENT GRADE DEFINED OPPORTUNITY TRUST INC. (Name of Registrant as Specified in Its Charter) Payment of Filing Fee (Check the appropriate box): No fee required. Fee computed on table below per Exchange Act Rules 14a-6(i) (1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: Fee paid previously with preliminary materials. Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a) (2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by the registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: W ESTERN A SSET I NVESTMENT G RADE D EFINED O PPORTUNITY T RUST I NC . (NYSE: IGI) 620 Eighth Avenue, 47th Floor, New York, New York 10018 NOTICE OF SPECIAL MEETING OF STOCKHOLDERS April 4, 2024 To the Stockholders: A Special Meeting of Stockholders (the Meeting) of Western Asset Investment Grade Defined Opportunity Trust Inc. (the Fund) will be held at 280 Park Avenue, New York, New York 10017, on Friday, June 7, 2024 at 10:00 a.m., New York time, for the following purposes: 1. A proposal to convert the Fund to a perpetual fund by (1) amending the Funds articles of incorporation (the Charter) to eliminate the Funds term, which is currently scheduled to end at the close of business on December 2, 2024 (the Term Date), and (2) eliminating the Funds fundamental policy to liquidate on or about December 2, 2024 (the Proposal), each of which will only be effective upon at least $50 million of net assets remaining in the Fund following the completion of a tender offer; and 2. The transaction of such other business as may properly come before the meeting or any adjournments or postponements thereof. The Board of Directors recommends that you vote FOR the Proposal. The Board of Directors has fixed the close of business on March 25, 2024 as the record date for the determination of stockholders entitled to notice of, and to vote at, the meeting and any adjournments or postponements thereof. By Order of the Board of Directors Marc A. De Oliveira Secretary April 4, 2024 IT IS IMPORTANT THAT YOUR SHARES BE REPRESENTED AT THE MEETING IN PERSON OR BY PROXY; IF YOU DO NOT EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE, SIGN AND RETURN THE PROXY CARD (which will be made available to you separately) OR PROVIDE VOTING INSTRUCTIONS BY TELEPHONE OR VIA THE INTERNET. Instructions for Signing Proxy Cards The following general rules for signing proxy cards may be of assistance to you and avoid the time and expense to the Fund in validating your vote if you fail to sign your proxy card properly. 1. Individual Accounts: Sign your name exactly as it appears in the registration on the proxy card. 2. Joint Accounts: Either party may sign, but the name of the party signing should conform exactly to a name shown in the registration. 3. All Other Accounts: The capacity of the individual signing the proxy card should be indicated unless it is reflected in the form of registration. For example: Registration Valid Signature Corporate Accounts (1) ABC Corp ABC Corp. (by John Doe, Treasurer) (2) ABC Corp John Doe, Treasurer (3) ABC Corp., c/o John Doe, Treasurer John Doe (4) BC Corp. Profit Sharing Plan John Doe, Trustee Trust Accounts (1) ABC Trust Jane B. Doe, Trustee (2) Jane B. Doe, Trustee, u/t/d 12/28/78 Jane B. Doe Custodial or Estate Accounts (1) John B. Smith, Cust., f/b/o John B. Smith, Jr. UGMA John B. Smith (2) John B. Smith John B. Smith, Jr., Executor Instructions for Telephone/Internet Voting Various brokerage firms may offer the convenience of providing you with voting instructions via telephone or the Internet for shares hel

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