WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-6506

Western Asset Intermediate Muni Fund Inc.

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: (888)777-0102

Date of fiscal year end: November 30

Date of reporting period: February 28, 2019

 

 

 


 

ITEM 1.

SCHEDULE OF INVESTMENTS.


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

FORM N-Q

FEBRUARY 28, 2019


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  
MUNICIPAL BONDS - 130.6%           

Alabama - 1.2%

          

Jefferson County, AL, Sewer Revenue, Subordinated Lien Warrants, Series D

     5.000     10/1/21      $ 1,500,000      $ 1,595,670  
          

 

 

 

Arizona - 2.3%

          

Arizona State Lottery Revenue, Refunding

     5.000     7/1/29        205,000        246,228 (a)  

La Paz County, AZ, IDA, Lease Revenue, Charter School Solutions Harmony Public Schools Project

     5.000     2/15/38        500,000        535,140  

Navajo Nation, AZ, Series A, Refunding

     5.000     12/1/25        250,000        272,492 (b)  

Phoenix, AZ, Civic Improvement Corp., Airport Revenue, Junior Lien, Refunding

     5.000     7/1/27        1,000,000        1,153,880  

Pinal County, AZ, Electrical District #3, Electric System Revenue, Refunding

     4.000     7/1/23        1,000,000        1,046,660  
          

 

 

 

Total Arizona

             3,254,400  
          

 

 

 

California - 21.6%

          

Alameda, CA, Corridor Transportation Authority Revenue, Second Subordinated Lien, Series B, Refunding

     5.000     10/1/34        500,000        557,535  

Anaheim, CA, Public Financing Authority Lease, Refunding, Series A

     5.000     5/1/26        2,000,000        2,322,200  

Bay Area Toll Authority, CA, Toll Bridge Revenue, San Francisco Bay Area, Series B-1, (SIFMA Municipal Swap Index
Yield + 1.100%)

     2.840     4/1/24        2,000,000        2,045,320 (c)(d) 

California State MFA Revenue, Senior Lien, LINXS APM Project

     5.000     12/31/34        350,000        399,637 (e)  

California State Pollution Control Financing Authority, Water Furnishing Revenue, Poseidon Resources

     5.000     7/1/27        2,000,000        2,149,240 (b)(e) 

California State, GO, Bid Group B, Refunding

     5.000     8/1/33        1,000,000        1,164,810 (f) 

California Statewide CDA Revenue, Provident Group-Pomona Properties LLC, Series A

     5.600     1/15/36        555,000        585,253 (b)  

Golden State, CA, Tobacco Securitization Corp. Revenue, Tobacco Settlement Funded, Series A-1

     5.000     6/1/34        1,500,000        1,671,255  

Long Beach, CA, Bond Finance Authority Lease Revenue, Series A, Refunding

     5.000     8/1/31        1,855,000        2,038,682  

Los Angeles County, CA, Metropolitan Transportation Authority, Sales Tax Revenue, Senior Proposition C, Series B

     5.000     7/1/35        1,000,000        1,197,160  

Los Angeles County, CA, Public Works Financing Authority, Lease Revenue, Multiple Capital Projects II

     5.000     8/1/22        1,000,000        1,119,370  

 

See Notes to Schedule of Investments.

 

1


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

California - (continued)

          

Los Angeles, CA, Department of Water & Power, Power System Revenue, Series C

     5.000     7/1/37      $ 750,000      $ 873,930  

Modesto, CA, Irrigation District, Electric System Revenue:

          

Series A, Refunding

     5.000     7/1/24        4,130,000        4,445,532  

Series A, Refunding

     5.000     7/1/25        2,000,000        2,150,420  

Morongo Band of Mission Indians, CA, Revenue, Tribal Economic Development, Series A

     5.000     10/1/42        100,000        105,927 (b)  

M-S-R Energy Authority, CA, Natural Gas Revenue, Series B

     6.125     11/1/29        3,000,000        3,712,560  

River Islands, CA, Public Financing Authority Special Tax, Community Facilities District No. 2003-1, Refunding

     5.250     9/1/34        430,000        454,553  

Riverside County, CA, Transportation Commission Sales Tax Revenue, Limited Tax, Series A

     5.250     6/1/26        300,000        346,458 (g)  

Riverside, CA, Electric Revenue:

          

Series A, Refunding

     5.000     10/1/36        750,000        894,630  

Series A, Refunding

     5.000     10/1/43        250,000        290,398  

Riverside, CA, Sewer Revenue, Series A,

Refunding

     5.000     8/1/35        750,000        897,322  

San Francisco, CA, City & County Airport Commission, International Airport Revenue, Series A

     5.000     1/1/33        645,000        752,309 (e)  
          

 

 

 

Total California

             30,174,501  
          

 

 

 

Colorado - 5.1%

          

Base Village, Metropolitan District #2, CO, GO, Series A, Refunding

     5.500     12/1/36        500,000        502,640  

Denver, CO, City & County Special Facility Apartment Revenue, United Airlines Inc. Project, Refunding

     5.000     10/1/32        100,000        106,314 (e)  

E-470 Public Highway Authority Revenue, CO, Series C

     5.250     9/1/25        2,000,000        2,085,420  

Public Authority for Colorado Energy, Natural Gas Purchase Revenue, Series 2008

     6.125     11/15/23        3,940,000        4,403,186  
          

 

 

 

Total Colorado

             7,097,560  
          

 

 

 

Connecticut - 1.3%

          

Connecticut State HEFA Revenue:

          

Bristol Hospital, Series B, AGC

     5.500     7/1/21        705,000        707,122  

Sacred Heart University Issue, Series I-1, Refunding

     5.000     7/1/36        250,000        282,165  

 

See Notes to Schedule of Investments.

 

2


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Connecticut - (continued)

          

Connecticut State Special Tax Revenue, Transportation Infrastructure, Series A

     5.000     1/1/37      $ 500,000      $ 556,225  

Connecticut State, GO, Series E

     5.000     10/15/34        210,000        232,449  
          

 

 

 

Total Connecticut

             1,777,961  
          

 

 

 

District of Columbia - 0.1%

          

District of Columbia Revenue, Ingleside Rock Creek Project, Series A

     4.125     7/1/27        140,000        141,877  
          

 

 

 

Florida - 7.4%

          

Broward County, FL, Airport System Revenue, Series 2017

     5.000     10/1/36        250,000        282,890 (e)  

Florida State Development Finance Corp., Educational Facilities Revenue, Renaissance Charter School Inc. Project

     6.000     6/15/35        150,000        154,725 (b)  

Florida State Mid-Bay Bridge Authority Revenue, Series A, Refunding

     5.000     10/1/27        545,000        621,513  

Jacksonville, FL, Sales Tax Revenue, Better Jacksonville, Refunding

     5.000     10/1/30        1,500,000        1,632,075  

Miami-Dade County, FL, Aviation Revenue:

          

Series A, Refunding

     5.000     10/1/31        4,000,000        4,325,080 (e) 

Series A, Refunding

     5.000     10/1/32        1,000,000        1,079,500 (e) 

Miami-Dade County, FL, Expressway Authority Toll System Revenue, Series B, Refunding

     5.000     7/1/26        1,500,000        1,723,455  

Miami-Dade County, FL, Health Facilities Authority Hospital Revenue, Nicklaus Children’s Hospital, Refunding

     5.000     8/1/36        250,000        282,345  

Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Communities, Refunding

     5.000     8/1/36        250,000        269,692  
          

 

 

 

Total Florida

             10,371,275  
          

 

 

 

Georgia - 6.1%

          

Atlanta, GA, Water & Wastewater Revenue, Series A

     6.000     11/1/23        2,000,000        2,058,020 (g)  

Burke County, GA, Development Authority, Pollution Control Revenue, Oglethorpe Power Corp. Vogtle Project

     2.400     4/1/20        1,000,000        998,200 (c)(d) 

DeKalb Private Hospital Authority Revenue, GA, Anticipation CTFS, Children’s Healthcare of Atlanta Inc.

     5.000     11/15/29        2,000,000        2,041,840  

DeKalb, Newton & Gwinnett Counties, GA, Joint Development Authority Revenue, GGC Foundation LLC Project

     6.000     7/1/29        1,000,000        1,014,170 (g)  

 

See Notes to Schedule of Investments.

 

3


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     Value  

Georgia - (continued)

          

Main Street Natural Gas Inc., GA, Gas Project Revenue:

          

Series A

     5.000     5/15/33      $ 250,000      $ 279,825  

Subordinated, Series E, LIQ - Royal Bank of Canada (SIFMA Municipal Swap Index Yield + 0.570%)

     2.310     12/1/23        1,500,000        1,492,575 (c)(d) 

Private Colleges & Universities Authority, GA, Revenue, Savannah College of Art & Design Inc. Project

     5.000     4/1/28        500,000        560,495  
          

 

 

 

Total Georgia

             8,445,125  
          

 

 

 

Illinois - 13.0%

          

Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax, Series 2018

     5.000     4/1/38        500,000        540,095  

Chicago, IL, Board of Education, GO:

          

Dedicated, Series G, Refunding

     5.000     12/1/34        270,000        281,434  

Series C, Refunding

     5.000     12/1/24        250,000        266,240  

Chicago, IL, GO:

          

Series B, Refunding

     5.500     1/1/30        1,000,000        1,088,570  

Series C, Refunding

     5.000     1/1/25        500,000        541,425  

Chicago, IL, Metropolitan Water Reclamation District Greater Chicago, GO, Green Bond, Series B

     5.000     12/1/29        850,000        966,305  

Chicago, IL, O’Hare International Airport Revenue:

          

Senior Lien, Series D

     5.250     1/1/36        500,000        574,400  

Senior Lien, Series D

     5.250     1/1/37        400,000        457,636  

Series A, Refunding

     5.000     1/1/31        1,750,000        1,929,095 (e) 

Chicago, IL, Wastewater Transmission Revenue, Second Lien, Series B, Refunding

     5.000     1/1/36        600,000        657,510  

Chicago, IL, Waterworks Revenue:

          

Second Lien, Series 2017, Refunding

     5.000     11/1/29        500,000        575,705  

Second Lien, Series 2017-2, Refunding, AGM

     5.000     11/1/32        630,000        715,189  

Illinois State Finance Authority Revenue:

          

Memorial Health System

     5.250     4/1/29        1,670,000        1,674,576  

Southern Illinois Healthcare Enterprises Inc., Refunding

     5.000     3/1/32        200,000        225,672  

Southern Illinois Healthcare Enterprises Inc., Refunding

     5.000     3/1/34        500,000        558,890  

Illinois State Sports Facilities Authority Revenue, State Tax Supported, Refunding, AGM

     5.250     6/15/30        3,000,000        3,344,190  

 

See Notes to Schedule of Investments.

 

4


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Illinois - (continued)

          

Illinois State University, Auxiliary Facilities System Revenue, Series A, Refunding, AGM

     5.000     4/1/28      $ 100,000      $ 116,563  

Illinois State, GO:

          

Series 2016, Refunding

     5.000     2/1/26        600,000        650,538  

Series 2016, Refunding

     5.000     2/1/29        500,000        536,055  

Series A

     5.000     12/1/42        300,000        308,511  

Series A, Refunding

     5.000     10/1/29        1,300,000        1,402,336  

Series D

     5.000     11/1/26        450,000        489,168  

Metropolitan Pier & Exposition Authority, IL, Revenue, McCormick Place Expansion Project, Refunding

     5.000     12/15/31        250,000        273,850  
          

 

 

 

Total Illinois

             18,173,953  
          

 

 

 

Indiana - 5.7%

          

Hammond Multi-School Building Corp.:

          

First Mortgage State Intercept

     5.000     7/15/34        750,000        851,535  

First Mortgage State Intercept

     5.000     7/15/35        1,035,000        1,168,649  

Indiana State Finance Authority, Environmental Revenue, U.S. Steel Corp., Refunding

     6.000     12/1/19        1,000,000        1,019,490  

Indianapolis, IN, Department of Public Utilities Gas Utility Revenue, Second Lien, Series A, Refunding

     5.250     8/15/29        4,000,000        4,521,560  

Valparaiso, IN, Exempt Facility Revenue, Pratt Paper LLC Project

     5.875     1/1/24        295,000        322,677 (e)  
          

 

 

 

Total Indiana

             7,883,911  
          

 

 

 

Kentucky - 2.1%

          

Kentucky State PEA, Gas Supply Revenue:

          

Series A

     4.000     4/1/24        1,600,000        1,699,296 (c)(d) 

Series B

     4.000     1/1/25        1,200,000        1,288,404 (c)(d) 
          

 

 

 

Total Kentucky

             2,987,700  
          

 

 

 

Louisiana - 4.5%

          

New Orleans, LA, Aviation Board, General Airport Revenue:

          

Series B

     5.000     1/1/29        2,000,000        2,235,220 (e) 

Series B

     5.000     1/1/30        2,000,000        2,226,120 (e) 

Port New Orleans Board of Commissioners, Series B, Refunding, AGM

     5.000     4/1/38        1,625,000        1,841,304 (e) 
          

 

 

 

Total Louisiana

             6,302,644  
          

 

 

 

 

See Notes to Schedule of Investments.

 

5


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Massachusetts - 1.7%

          

Massachusetts State Department of Transportation, Metropolitan Highway System Revenue, Series B-1, Refunding

     5.000     1/1/35      $ 350,000      $ 416,195  

Massachusetts State DFA Revenue:

          

Brandeis University, Series S-1, Refunding

     5.000     10/1/36        500,000        576,585 (a)  

Partners Healthcare System, Refunding

     5.000     7/1/37        250,000        284,063  

UMass Boston Student Housing Project

     5.000     10/1/28        200,000        226,774  

Wellforce Issue, Series A

     5.000     7/1/39        250,000        277,893  

Massachusetts State Port Authority Revenue, Series A, Refunding

     5.000     7/1/36        500,000        583,620 (e)  
          

 

 

 

Total Massachusetts

             2,365,130  
          

 

 

 

Michigan - 3.1%

          

Detroit, MI, Downtown Development Authority, Tax Increment Revenue, Series A, Refunding, AGM

     5.000     7/1/38        250,000        268,900  

Great Lakes, MI, Water Authority Water Supply System Revenue:

          

Senior Lien, Series C, Refunding

     5.000     7/1/33        800,000        919,248  

Senior Lien, Series C, Refunding

     5.000     7/1/35        350,000        399,059  

Michigan State Finance Authority Ltd. Authority Obligation Revenue, Higher Education, Thomas M Cooley Law School Project, Refunding

     6.250     7/1/29        600,000        617,688 (b)  

Michigan State Finance Authority Revenue:

          

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C

     5.000     7/1/33        275,000        306,300  

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series D2, Refunding, AGM

     5.000     7/1/24        1,000,000        1,152,240  

Michigan State Finance Authority, Hospital Revenue, Trinity Health Credit Group, Series A, Refunding

     5.000     12/1/42        250,000        281,428  

Michigan State Strategic Fund Limited Obligation Revenue, I-75 Improvement Project

     5.000     12/31/43        300,000        329,202 (e)  
          

 

 

 

Total Michigan

             4,274,065  
          

 

 

 

 

See Notes to Schedule of Investments.

 

6


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Missouri - 0.3%

          

Missouri State Health Educational Facilities Authority Senior Living Facilities Revenue, Lutheran Senior Services Projects, Series A

     5.000     2/1/34      $ 150,000      $ 163,292  

St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Series A

     5.000     9/1/38        300,000        307,983  
          

 

 

 

Total Missouri

             471,275  
          

 

 

 

Nebraska - 0.4%

          

Central Plains, NE, Energy Project, Gas Project Revenue, Project #3, Series A, Refunding

     5.000     9/1/36        500,000        580,665  
          

 

 

 

Nevada - 2.9%

          

Humboldt County, NV, PCR, Idaho Power Co. Project, Refunding

     5.150     12/1/24        4,000,000        4,061,760  
          

 

 

 

New Jersey - 11.2%

          

Casino Reinvestment Development Authority, NJ, Luxury Tax Revenue, Refunding, AGM

     5.000     11/1/28        1,000,000        1,106,850  

New Jersey State EDA Revenue:

          

School Facilities Construction, Series NN, Refunding

     5.000     3/1/28        2,825,000        3,024,982  

School Facilities Construction, Series NN, Refunding, State Appropriations

     5.000     3/1/29        2,175,000        2,320,703  

Special Facility, Port Newark Container Terminal LLC Project, Refunding

     5.000     10/1/37        150,000        160,722 (e)  

New Jersey State EDA, Special Facilities Revenue, Continental Airlines Inc. Project

     4.875     9/15/19        345,000        349,271 (e)  

New Jersey State EFA Revenue, University of Medicine & Dentistry, Series B, Refunding

     7.125     12/1/23        2,000,000        2,026,760 (g)  

New Jersey State Higher Education Student Assistance Authority, Student Loan Revenue, Series A

     5.375     6/1/24        645,000        649,560  

New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Series B

     5.250     6/15/23        4,000,000        4,255,120  

New Jersey State Turnpike Authority Revenue, Series G, Refunding

     5.000     1/1/35        1,000,000        1,161,100  

Tobacco Settlement Financing Corp., NJ Revenue, Series A, Refunding

     5.000     6/1/35        500,000        558,340  
          

 

 

 

Total New Jersey

             15,613,408  
          

 

 

 

 

See Notes to Schedule of Investments.

 

7


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

New York - 11.7%

          

Hudson Yards Infrastructure Corp., NY, Second Indenture Revenue, Series A, Refunding

     5.000     2/15/35      $ 1,000,000      $ 1,153,240  

New York State Dormitory Authority, Sales Tax Revenue:

          

Group 2, Series E, Refunding

     5.000     3/15/36        3,500,000        4,118,975  

Group 3, Series E, Refunding

     5.000     3/15/38        1,500,000        1,749,900  

New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Junior Lien, Series A

     5.000     1/1/36        1,000,000        1,128,900  

New York State Thruway Authority, State Personal Income Tax Revenue, Series A

     5.000     3/15/26        200,000        224,902  

New York State Transportation Development

          

Corp., Special Facilities Revenue:

          

American Airlines Inc., John F. Kennedy International Airport Project, Refunding

     5.000     8/1/31        600,000        622,434 (e)  

Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project

     5.000     1/1/31        2,050,000        2,351,145 (e) 

LaGuardia Airport Terminal B Redevelopment Project

     5.000     7/1/30        1,225,000        1,342,294 (e) 

Niagara Area Development Corp., NY, Solid Waste Disposal Facility Revenue, Covanta Project, Series B, Refunding

     3.500     11/1/24        750,000        746,925 (b)  

Port Authority of New York & New Jersey Revenue, Consolidated, Series 183, Refunding

     5.000     10/15/30        1,500,000        1,723,890 (e) 

Utility Debt Securitization Authority, NY, Revenue, Restructuring, Series TE

     5.000     12/15/27        1,000,000        1,147,480  
          

 

 

 

Total New York

             16,310,085  
          

 

 

 

North Carolina - 0.1%

          

North Carolina State Turnpike Authority, Triangle Expressway System Revenue, Senior Lien, Refunding

     5.000     1/1/30        100,000        114,002  
          

 

 

 

Ohio - 0.4%

          

American Municipal Power-Ohio Inc., OH, Revenue, AMP Fremont Energy Center Project, Series A, Refunding

     5.000     2/15/29        500,000        602,560  
          

 

 

 

Oklahoma - 1.9%

          

Grand River Dam Authority, OK, Revenue, Series A

     5.000     6/1/30        2,500,000        2,604,975 (g)  

Payne County, OK, Economic Development Authority Revenue, Epworth Living at The Ranch, Series A

     6.250     11/1/31        130,000        50,050 *(h)  
          

 

 

 

Total Oklahoma

             2,655,025  
          

 

 

 

 

See Notes to Schedule of Investments.

 

8


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Oregon - 1.4%

          

Portland, OR, River District Urban Renewal & Redevelopment, Series C

     5.000     6/15/28      $ 570,000      $ 623,289  

Washington Multnomah & Yamhill Counties, OR, School District #1 West Union, GO, Hillsboro, School Board Guaranty

     5.000     6/15/34        500,000        586,165  

Yamhill County, OR, Hospital Authority Revenue:

          

Friendsview Retirement Community, Refunding

     5.000     11/15/31        350,000        378,277  

Friendsview Retirement Community, Refunding

     5.000     11/15/36        325,000        345,225  
          

 

 

 

Total Oregon

             1,932,956  
          

 

 

 

Pennsylvania - 2.9%

          

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue, Tobacco Master Settlement Payment

     5.000     6/1/30        200,000        233,116  

Cumberland County, PA, Municipal Authority Revenue, Diakon Lutheran Social Ministries Project, Refunding

     5.000     1/1/27        500,000        552,105  

Montgomery County, PA, IDA Revenue, New Regional Medical Center Project, FHA

     5.000     8/1/24        1,925,000        2,008,603 (g) 

Philadelphia, PA, Authority for Industrial Development, City Service Agreement Revenue, Rebuild Project

     5.000     5/1/35        500,000        566,070  

State Public School Building Authority, PA, Lease Revenue:

          

Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding

     5.000     6/1/31        150,000        172,506  

Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding

     5.000     6/1/33        450,000        511,596  
          

 

 

 

Total Pennsylvania

             4,043,996  
          

 

 

 

Puerto Rico - 0.7%

          

Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, Restructured, Series A-1

     4.750     7/1/53        1,000,000        920,770  
          

 

 

 

South Carolina - 0.3%

          

South Carolina State Ports Authority Revenue, Series 2018

     5.000     7/1/36        400,000        455,396 (e)  
          

 

 

 

Tennessee - 5.7%

          

Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Revenue, Subordinated, Green Bond, Series A

     5.000     7/1/42        300,000        342,966  

 

See Notes to Schedule of Investments.

 

9


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Tennessee - (continued)

          

Tennessee State Energy Acquisition Corp., Natural Gas Revenue:

          

Series A

     5.250     9/1/20      $ 2,030,000      $ 2,113,758  

Series A

     5.250     9/1/23        4,940,000        5,497,874  
          

 

 

 

Total Tennessee

             7,954,598  
          

 

 

 

Texas - 7.2%

          

Arlington, TX, Special Tax Revenue, Subordinated Lien, Series C, BAM

     5.000     2/15/41        250,000        276,675  

Austin, TX, Airport System Revenue, Series 2014

     5.000     11/15/27        1,000,000        1,138,860 (e) 

Harris County, TX, Houston Sports Authority Revenue, Senior Lien, Series A, Refunding, AGM

     5.000     11/15/25        1,000,000        1,148,620  

Houston, TX, Airport System Revenue:

          

Special Facilities, United Airlines Inc., Airport Improvements Project

     5.000     7/15/28        500,000        576,190 (e)  

Subordinated, Series A

     5.000     7/1/36        1,055,000        1,205,665 (e) 

Love Field, TX, Airport Modernization Corp., General Airport Revenue, Series 2017

     5.000     11/1/31        90,000        102,586 (e)  

North Texas Tollway Authority Revenue:

          

First Tier, Series A, Refunding

     5.000     1/1/36        500,000        569,495  

First Tier, Series B, Refunding

     5.000     1/1/34        1,300,000        1,464,060  

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Senior Living Ventana Project, Series A

     6.625     11/15/37        130,000        143,868  

Texas State Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue, Series 2012

     5.000     12/15/22        2,000,000        2,185,440  

Texas State Water Development Board Revenue, State Water Implementation Fund, Series A

     5.000     10/15/43        1,100,000        1,263,944  
          

 

 

 

Total Texas

             10,075,403  
          

 

 

 

U.S. Virgin Islands - 0.6%

          

Virgin Islands Public Finance Authority Revenue:

          

Matching Fund Loan, Senior Lien, Series A

     5.000     10/1/29        300,000        291,750  

Subordinated, Matching Fund Loan, Cruzan Project, Series A

     6.000     10/1/39        335,000        322,438  

Subordinated, Matching Fund Loan, Diageo Project, Series A

     6.625     10/1/29        150,000        146,325  

Subordinated, Matching Fund Loan, Diageo Project, Series A

     6.750     10/1/37        100,000        97,550  
          

 

 

 

Total U.S. Virgin Islands

             858,063  
          

 

 

 

 

See Notes to Schedule of Investments.

 

10


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Utah - 0.2%

          

Utah State Charter School Finance Authority, Charter School Revenue, Syracuse Arts Academy Project, UT CSCE

     5.000     4/15/37      $ 250,000      $ 276,685  
          

 

 

 

Virginia - 2.8%

          

Virginia Beach, VA, Development Authority, Residential Care Facility Revenue, Westminster-Canterbury on Chesapeake Bay, Refunding

     5.000     9/1/40        1,250,000        1,390,787  

Virginia State Small Business Financing Authority Revenue:

          

Second Lien, Elizabeth River Crossings OpCo LLC Project

     5.000     1/1/27        2,000,000        2,127,560 (e)  

Senior Lien, 95 Express Lanes LLC

     5.000     7/1/34        350,000        367,549 (e)  
          

 

 

 

Total Virginia

             3,885,896  
          

 

 

 

Washington - 0.7%

          

Washington State Health Care Facilities Authority Revenue, Multicare Health System, Series B, AGC

     5.750     8/15/29        1,000,000        1,018,090 (g)  
          

 

 

 

Wisconsin - 4.0%

          

Central Brown County, WI, Water Authority System Revenue, Series A, Refunding

     5.000     11/1/35        2,105,000        2,361,389  

La Crosse, WI, Resource Recovery Revenue, Northern States Power Co. Project, Refunding

     6.000     11/1/21        2,000,000        2,185,900 (e)  

Public Finance Authority, WI, Ltd. Obligation Pilot Revenue, American Dream @ Meadowlands Project

     6.500     12/1/37        200,000        222,364 (b)  

Public Finance Authority, WI, Revenue, Denver International Airport Great Hall Project

     5.000     9/30/37        175,000        192,706 (e)  

Village of Mount Pleasant, WI, Tax Increment Revenue, Series A

     5.000     4/1/43        500,000        558,705  
          

 

 

 

Total Wisconsin

             5,521,064  
          

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $175,191,926)

 

     182,197,469  
          

 

 

 
SHORT-TERM INVESTMENTS - 2.7%           
MUNICIPAL BONDS - 2.7%           

California - 0.2%

          

California State PCFA, Solid Waste Disposal Revenue, Edco Disposal Corp. Project, Series A, LOC-Wells Fargo Bank N.A.

     1.780     10/1/37        220,000        220,000 (e)(i)(j) 
          

 

 

 

New York - 0.3%

          

New York State HFA Revenue, 42nd & 10th

          

Housing, LIQ-FHLMC, LOC-FHLMC

     1.700     11/1/41        400,000        400,000 (i)(j)  
          

 

 

 

 

See Notes to Schedule of Investments.

 

11


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

North Carolina - 0.1%

          

North Carolina State Medical Care Commission, Health Care Facilities Revenue, Novant Health Group, Series B,
SPA-JPMorgan Chase

     1.750     11/1/34      $ 100,000      $ 100,000 (i)(j)  
          

 

 

 

Texas - 2.1%

          

University of Texas System Revenue, Financing System Bonds, Taxable Subordinated, Series G-1, LIQ-University of Texas Investment Management Co.

     2.380     8/1/45        3,000,000        3,000,000 (i)(j) 
          

 

 

 

TOTAL MUNICIPAL BONDS
(Cost - $3,720,000)

             3,720,000  
          

 

 

 
                  SHARES         
MONEY MARKET FUNDS - 0.0%           

Dreyfus Government Cash Management, Institutional Shares
(Cost - $16,824)

     2.374        16,824        16,824  
          

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost - $3,736,824)

 

          3,736,824  
          

 

 

 

TOTAL INVESTMENTS - 133.3%
(Cost - $178,928,750)

 

          185,934,293  

Auction Rate Cumulative Preferred Stock, at Liquidation Value - (0.4)%

 

        (600,000

Variable Rate Demand Preferred Stock, at Liquidation Value - (34.0)%

 

        (47,400,000

Other Assets in Excess of Liabilities - 1.1%

             1,574,822  
          

 

 

 

TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0%

 

      $ 139,509,115  
          

 

 

 

 

See Notes to Schedule of Investments.

 

12


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

 

*

Non-income producing security.

 

(a)

Securities traded on a when-issued or delayed delivery basis.

 

(b)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

 

(c)

Maturity date shown represents the mandatory tender date.

 

(d)

Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

 

(e)

Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).

 

(f)

All or a portion of this security is held at the broker as collateral for open futures contracts.

 

(g)

Pre-Refunded bonds are escrowed with U.S. government obligations and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.

 

(h)

The coupon payment on these securities is currently in default as of February 28, 2019.

 

(i)

Variable rate demand obligations (“VRDOs”) have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice. The interest rate generally resets on a daily or weekly basis and is determined on the specific interest rate reset date by the Remarketing Agent, pursuant to a formula specified in official documents for the VRDO, or set at the highest rate allowable as specified in official documents for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index. The SIFMA Municipal Swap Index is compiled from weekly interest rate resets of tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board’s Short-term Obligation Rate Transparency System.

 

(j)

Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.

 

See Notes to Schedule of Investments.

 

13


WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

  
Schedule of investments (unaudited) (cont’d)    February 28, 2019

 

Abbreviations used in this schedule:

 

AGC    — Assured Guaranty Corporation - Insured Bonds
AGM    — Assured Guaranty Municipal Corporation - Insured Bonds
BAM    — Build America Mutual - Insured Bonds
CDA    — Communities Development Authority
CSCE    — Charter School Credit Enhancement
CTFS    — Certificates
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EFA    — Educational Facilities Authority
FHA    — Federal Housing Administration - Insured Bonds
FHLMC    — Federal Home Loan Mortgage Corporation
GO    — General Obligation
HEFA    — Health & Educational Facilities Authority
HFA    — Housing Finance Agency
IDA    — Industrial Development Authority
LIQ    — Liquidity Facility
LOC    — Letter of Credit
MFA    — Municipal Finance Authority
PCFA    — Pollution Control Financing Authority
PCR    — Pollution Control Revenue
PEA    — Public Energy Authority
SIFMA    — Securities Industry and Financial Markets Association
SPA    — Standby Bond Purchase Agreement - Insured Bonds

At February 28, 2019, the Fund had the following open futures contracts:

 

     Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value
     Unrealized
Appreciation
 
Contracts to Sell:               

U.S. Treasury Ultra Long-Term Bonds

     18        6/19      $ 2,917,657      $ 2,872,688      $ 44,969  

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

 

See Notes to Schedule of Investments.

 

14


Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Intermediate Muni Fund Inc. (the “Fund”) was incorporated in Maryland on December 19, 1991 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s investment objective is to provide common shareholders a high level of current income exempt from regular federal income taxes consistent with prudent investing. Under normal market conditions, the Fund invests at least 80% of its total assets in municipal obligations. In addition, under normal market conditions, the Fund will invest at least 80% of its total assets in debt securities that are, at the time of investment, rated investment grade by a nationally recognized statistical rating organization or, if unrated, of equivalent quality as determined by the investment manager.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments

 

15


Notes to Schedule of Investments (unaudited) (continued)

 

owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

 

   

Level 1 – quoted prices in active markets for identical investments

 

   

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

   

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

 

16


Notes to Schedule of Investments (unaudited) (continued)

 

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

 

ASSETS

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
     TOTAL  

Municipal Bonds†

     —        $ 182,197,469        —        $ 182,197,469  

Short-Term Investments†:

           

Municipal Bonds

     —          3,720,000        —          3,720,000  

Money Market Funds

   $ 16,824        —          —          16,824  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Short-Term Investments

     16,824        3,720,000        —          3,736,824  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments

   $ 16,824      $ 185,917,469        —        $ 185,934,293  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other Financial Instruments:

           

Futures Contracts

   $ 44,969        —          —        $ 44,969  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 61,793      $ 185,917,469        —        $ 185,979,262  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

See Schedule of Investments for additional detailed categorizations.

 

17


 

ITEM 2.

CONTROLS AND PROCEDURES.

 

  (a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3.

EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Western Asset Intermediate Muni Fund Inc.

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

 

April 23, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

 

April 23, 2019

By   /s/    RICHARD F. SENNETT        
  Richard F. Sennett
  Principal Financial Officer

Date:

 

April 23, 2019