N-Q 1 a12-14478_1nq.htm N-Q

 

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

811-7994

 

Western Asset Global Partners Income 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:

August 31

 

 

Date of reporting period:

May 31, 2012

 

 



 

ITEM 1.                  SCHEDULE OF INVESTMENTS

 



 

WESTERN ASSET
GLOBAL PARTNERS INCOME FUND INC.

 

FORM N-Q

MAY 31, 2012


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

CORPORATE BONDS & NOTES — 84.6%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 14.8%

 

 

 

 

 

 

 

 

 

Auto Components — 0.3%

 

 

 

 

 

 

 

 

 

Europcar Groupe SA

 

11.500%

 

5/15/17

 

100,000

EUR

$

 107,421

(a)(b)

Europcar Groupe SA, Senior Notes

 

9.375%

 

4/15/18

 

500,000

EUR

418,865

(a)(c)

Total Auto Components

 

 

 

 

 

 

 

526,286

 

Automobiles — 0.5%

 

 

 

 

 

 

 

 

 

Chrysler Group LLC/CG Co.-Issuer Inc., Secured Notes

 

8.250%

 

6/15/21

 

660,000

 

664,950

 

Escrow GCB General Motors

 

—   

 

 

480,000

 

9,975

*(d)

Escrow GCB General Motors

 

—   

 

 

1,105,000

 

22,964

*(d)

Jaguar Holding Co. II/Jaguar Merger Sub Inc., Senior Notes

 

9.500%

 

12/1/19

 

120,000

 

128,400

(a)(c)

Total Automobiles

 

 

 

 

 

 

 

826,289

 

Diversified Consumer Services — 0.6%

 

 

 

 

 

 

 

 

 

Service Corp. International, Senior Notes

 

7.500%

 

4/1/27

 

290,000

 

292,900

 

ServiceMaster Co., Senior Notes

 

8.000%

 

2/15/20

 

160,000

 

168,600

 

Sotheby’s, Senior Notes

 

7.750%

 

6/15/15

 

520,000

 

569,400

(c)

Total Diversified Consumer Services

 

 

 

 

 

 

 

1,030,900

 

Hotels, Restaurants & Leisure — 5.4%

 

 

 

 

 

 

 

 

 

Affinity Gaming LLC/Affinity Gaming Finance Corp., Senior Notes

 

9.000%

 

5/15/18

 

270,000

 

271,350

(a)

Bossier Casino Venture Holdco Inc., Senior Secured Bonds

 

14.000%

 

2/9/18

 

273,552

 

236,705

(a)(b)(d)(e)

Boyd Gaming Corp., Senior Notes

 

9.125%

 

12/1/18

 

80,000

 

82,400

 

Boyd Gaming Corp., Senior Notes

 

9.000%

 

7/1/20

 

290,000

 

290,000

(a)

Boyd Gaming Corp., Senior Subordinated Notes

 

7.125%

 

2/1/16

 

100,000

 

96,000

(c)

Caesars Entertainment Operating Co. Inc., Senior Notes

 

10.750%

 

2/1/16

 

1,404,000

 

1,116,180

(c)

Carrols Restaurant Group Inc., Senior Secured Notes

 

11.250%

 

5/15/18

 

180,000

 

184,050

(a)

CCM Merger Inc., Senior Notes

 

9.125%

 

5/1/19

 

320,000

 

321,600

(a)

CityCenter Holdings LLC/CityCenter Finance Corp., Secured Notes

 

11.500%

 

1/15/17

 

569,301

 

611,999

(e)

Downstream Development Quapaw, Senior Secured Notes

 

10.500%

 

7/1/19

 

300,000

 

310,500

(a)

El Pollo Loco Inc., Secured Notes

 

17.000%

 

1/1/18

 

414,107

 

367,002

(a)

Enterprise Inns PLC, Senior Secured Bonds

 

6.500%

 

12/6/18

 

494,000

GBP

589,287

 

Hoa Restaurant Group LLC/Hoa Finance Corp., Senior Secured Notes

 

11.250%

 

4/1/17

 

370,000

 

357,975

(a)

Inn of the Mountain Gods Resort & Casino, Senior Secured Notes

 

8.750%

 

11/30/20

 

209,000

 

201,685

(a)

Landry’s Inc., Senior Notes

 

9.375%

 

5/1/20

 

250,000

 

251,875

(a)

Mastro’s Restaurants LLC/RRG Finance Corp., Senior Secured Notes

 

12.000%

 

6/1/17

 

280,000

 

281,400

(a)

MGM Resorts International, Senior Notes

 

5.875%

 

2/27/14

 

360,000

 

370,350

 

MGM Resorts International, Senior Secured Notes

 

10.375%

 

5/15/14

 

40,000

 

45,200

(c)

MGM Resorts International, Senior Secured Notes

 

11.125%

 

11/15/17

 

95,000

 

106,875

(c)

Mohegan Tribal Gaming Authority, Senior Notes

 

11.000%

 

9/15/18

 

55,000

 

39,875

(a)

Mohegan Tribal Gaming Authority, Senior Secured Notes

 

10.500%

 

12/15/16

 

1,030,000

 

952,750

(a)(c)

NCL Corp. Ltd., Senior Notes

 

9.500%

 

11/15/18

 

560,000

 

613,200

(c)

NCL Corp. Ltd., Senior Secured Notes

 

11.750%

 

11/15/16

 

480,000

 

554,400

(c)

Pinnacle Entertainment Inc., Senior Notes

 

8.625%

 

8/1/17

 

250,000

 

272,500

(c)

Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp., Senior Secured Notes

 

9.500%

 

6/15/19

 

80,000

 

82,000

(a)

Seven Seas Cruises S de RL LLC, Senior Secured Notes

 

9.125%

 

5/15/19

 

660,000

 

683,100

(a)(c)

Snoqualmie Entertainment Authority, Senior Secured Notes

 

4.532%

 

2/1/14

 

170,000

 

159,800

(a)(f)

Snoqualmie Entertainment Authority, Senior Secured Notes

 

9.125%

 

2/1/15

 

10,000

 

10,100

(a)

 

See Notes to Schedule of Investments.

 

1


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE AMOUNT †

 

VALUE

 

Hotels, Restaurants & Leisure — continued

 

 

 

 

 

 

 

 

 

Station Casinos Inc., Senior Subordinated Notes

 

6.500%

 

2/1/14

 

475,000

 

$

0

(b)(d)(g)(h)

Station Casinos Inc., Senior Subordinated Notes

 

6.625%

 

3/15/18

 

50,000

 

0

(b)(d)(g)(h)

Total Hotels, Restaurants & Leisure

 

 

 

 

 

 

 

9,460,158

 

Internet & Catalog Retail — 0.2%

 

 

 

 

 

 

 

 

 

Netflix Inc., Senior Notes

 

8.500%

 

11/15/17

 

360,000

 

388,800

(c)

Media — 5.1%

 

 

 

 

 

 

 

 

 

Carmike Cinemas Inc., Secured Notes

 

7.375%

 

5/15/19

 

120,000

 

124,200

(a)

CCH II LLC/CCH II Capital Corp., Senior Notes

 

13.500%

 

11/30/16

 

27,381

 

30,735

(c)

CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes

 

6.625%

 

1/31/22

 

1,700,000

 

1,748,875

(c)

Cengage Learning Acquisitions Inc., Senior Notes

 

10.500%

 

1/15/15

 

110,000

 

82,500

(a)

Cengage Learning Acquisitions Inc., Senior Secured Notes

 

11.500%

 

4/15/20

 

390,000

 

390,975

(a)

Clear Channel Worldwide Holdings Inc., Senior Notes

 

7.625%

 

3/15/20

 

220,000

 

211,200

(a)

Clear Channel Worldwide Holdings Inc., Senior Notes

 

7.625%

 

3/15/20

 

30,000

 

28,350

(a)

DISH DBS Corp., Senior Notes

 

6.625%

 

10/1/14

 

30,000

 

31,875

(c)

DISH DBS Corp., Senior Notes

 

7.875%

 

9/1/19

 

285,000

 

318,488

(c)

Entercom Radio LLC, Senior Notes

 

10.500%

 

12/1/19

 

310,000

 

336,350

 

Good Sam Enterprises LLC, Secured Notes

 

11.500%

 

12/1/16

 

340,000

 

353,600

 

Grupo Televisa SA, Senior Bonds

 

6.625%

 

1/15/40

 

570,000

 

687,644

(c)

LBI Media Inc., Senior Notes

 

8.500%

 

8/1/17

 

50,000

 

10,250

(a)

LBI Media Inc., Senior Secured Notes

 

9.250%

 

4/15/19

 

270,000

 

224,100

(a)

Nara Cable Funding Ltd., Senior Secured Notes

 

8.875%

 

12/1/18

 

500,000

EUR

544,060

(a)

NET Servicos de Comunicacao SA, Bonds

 

7.500%

 

1/27/20

 

610,000

 

695,400

(c)(i)

Nielsen Finance LLC/Nielsen Finance Co., Senior Notes

 

11.500%

 

5/1/16

 

40,000

 

45,400

(c)

Ono Finance II PLC, Senior Bonds

 

10.875%

 

7/15/19

 

579,000

 

466,095

(a)(c)

Polish Television Holding BV, Senior Secured Bonds, step bond

 

11.250%

 

5/15/17

 

300,000

EUR

361,676

(a)(c)

TVN Finance Corp. III AB, Senior Notes

 

7.875%

 

11/15/18

 

100,000

EUR

119,631

(a)

Univision Communications Inc., Senior Notes

 

8.500%

 

5/15/21

 

90,000

 

87,300

(a)

Univision Communications Inc., Senior Secured Notes

 

6.875%

 

5/15/19

 

190,000

 

186,200

(a)

Univision Communications Inc., Senior Secured Notes

 

7.875%

 

11/1/20

 

290,000

 

297,975

(a)

UPC Holding BV, Senior Notes

 

9.875%

 

4/15/18

 

180,000

 

195,300

(a)(c)

UPCB Finance II Ltd., Senior Notes

 

6.375%

 

7/1/20

 

500,000

EUR

598,157

(a)

Ziggo Bond Co. BV, Senior Notes

 

8.000%

 

5/15/18

 

650,000

EUR

864,005

(a)(c)

Total Media

 

 

 

 

 

 

 

9,040,341

 

Multiline Retail — 0.2%

 

 

 

 

 

 

 

 

 

Bon-Ton Stores Inc., Senior Notes

 

10.250%

 

3/15/14

 

120,000

 

83,400

 

Neiman Marcus Group Inc., Senior Secured Notes

 

7.125%

 

6/1/28

 

310,000

 

289,463

(c)

Total Multiline Retail

 

 

 

 

 

 

 

372,863

 

Specialty Retail — 1.4%

 

 

 

 

 

 

 

 

 

American Greetings Corp., Senior Notes

 

7.375%

 

12/1/21

 

380,000

 

397,100

 

Edcon Proprietary Ltd., Senior Secured Notes

 

9.500%

 

3/1/18

 

825,000

EUR

877,297

(a)

Gymboree Corp., Senior Notes

 

9.125%

 

12/1/18

 

520,000

 

464,100

 

Michaels Stores Inc., Senior Subordinated Bonds

 

11.375%

 

11/1/16

 

350,000

 

373,628

(c)

Michaels Stores Inc., Senior Subordinated Notes

 

13.000%

 

11/1/16

 

212,000

 

226,310

(c)

Spencer Spirit Holdings Inc./Spencer Gifts LLC/Spirit Halloween Superstores, Senior Notes

 

11.000%

 

5/1/17

 

210,000

 

218,138

(a)

Total Specialty Retail

 

 

 

 

 

 

 

2,556,573

 

Textiles, Apparel & Luxury Goods — 1.1%

 

 

 

 

 

 

 

 

 

Boardriders SA, Senior Notes

 

8.875%

 

12/15/17

 

700,000

EUR

865,550

(a)

Empire Today LLC/Empire Today Finance Corp., Senior Secured Notes

 

11.375%

 

2/1/17

 

290,000

 

291,450

(a)

 

See Notes to Schedule of Investments.

 

2


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Textiles, Apparel & Luxury Goods — continued

 

 

 

 

 

 

 

 

 

Oxford Industries Inc., Senior Secured Notes

 

11.375%

 

7/15/15

 

725,000

 

$

774,851

(c)

Total Textiles, Apparel & Luxury Goods

 

 

 

 

 

 

 

1,931,851

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

26,134,061

 

CONSUMER STAPLES — 1.5%

 

 

 

 

 

 

 

 

 

Food & Staples Retailing — 0.2%

 

 

 

 

 

 

 

 

 

Post Holdings Inc., Senior Notes

 

7.375%

 

2/15/22

 

350,000

 

357,000

(a)

Food Products — 0.9%

 

 

 

 

 

 

 

 

 

Boparan Holdings Ltd., Senior Notes

 

9.875%

 

4/30/18

 

400,000

GBP

607,233

(a)

Foodcorp Ltd., Senior Secured Notes

 

8.750%

 

3/1/18

 

230,000

EUR

274,086

(a)

Harmony Foods Corp., Senior Secured Notes

 

10.000%

 

5/1/16

 

140,000

 

142,800

(a)(c)

Simmons Foods Inc., Senior Secured Notes

 

10.500%

 

11/1/17

 

630,000

 

593,775

(a)(c)

Smithfield Foods Inc., Senior Secured Notes

 

10.000%

 

7/15/14

 

61,000

 

70,455

(c)

Total Food Products

 

 

 

 

 

 

 

1,688,349

 

Personal Products — 0.2%

 

 

 

 

 

 

 

 

 

Hypermarcas SA, Notes

 

6.500%

 

4/20/21

 

260,000

 

241,800

(a)

Prestige Brands International Inc., Senior Notes

 

8.125%

 

2/1/20

 

50,000

 

54,250

(a)

Total Personal Products

 

 

 

 

 

 

 

296,050

 

Tobacco — 0.2%

 

 

 

 

 

 

 

 

 

Alliance One International Inc., Senior Notes

 

10.000%

 

7/15/16

 

410,000

 

401,800

(c)

TOTAL CONSUMER STAPLES

 

 

 

 

 

 

 

2,743,199

 

ENERGY — 17.8%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 1.8%

 

 

 

 

 

 

 

 

 

Atwood Oceanics Inc., Senior Notes

 

6.500%

 

2/1/20

 

170,000

 

176,800

 

Hercules Offshore Inc., Senior Notes

 

10.250%

 

4/1/19

 

210,000

 

197,925

(a)

Hercules Offshore LLC, Senior Secured Notes

 

10.500%

 

10/15/17

 

575,000

 

577,875

(a)(c)

Parker Drilling Co., Senior Notes

 

9.125%

 

4/1/18

 

400,000

 

426,000

(c)

Petroleum Geo-Services ASA, Senior Notes

 

7.375%

 

12/15/18

 

200,000

 

208,000

(a)

Pioneer Drilling Co., Senior Notes

 

9.875%

 

3/15/18

 

200,000

 

211,000

(a)(c)

SESI LLC, Senior Notes

 

7.125%

 

12/15/21

 

330,000

 

361,350

(a)(c)

Vantage Drilling Co., Senior Secured Notes

 

11.500%

 

8/1/15

 

950,000

 

1,016,500

(c)

Total Energy Equipment & Services

 

 

 

 

 

 

 

3,175,450

 

Oil, Gas & Consumable Fuels — 16.0%

 

 

 

 

 

 

 

 

 

Arch Coal Inc., Senior Notes

 

8.750%

 

8/1/16

 

440,000

 

424,600

 

Berry Petroleum Co., Senior Notes

 

6.375%

 

9/15/22

 

420,000

 

429,450

 

Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes

 

9.375%

 

5/1/19

 

240,000

 

246,600

 

Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Notes

 

9.375%

 

5/1/19

 

90,000

 

92,475

 

Coffeyville Resources LLC/Coffeyville Finance Inc., Senior Secured Notes

 

9.000%

 

4/1/15

 

260,000

 

278,200

(a)(c)

Compagnie Generale de Geophysique-Veritas, Senior Notes

 

7.750%

 

5/15/17

 

420,000

 

432,862

(c)

Comstock Resources Inc., Senior Notes

 

9.500%

 

6/15/20

 

250,000

 

238,260

 

CONSOL Energy Inc., Senior Notes

 

8.250%

 

4/1/20

 

480,000

 

482,400

(c)

Corral Petroleum Holdings AB, Senior Notes

 

15.000%

 

12/31/17

 

785,542

 

567,554

(a)(b)(e)

Crosstex Energy LP/Crosstex Energy Finance Corp., Senior Notes

 

8.875%

 

2/15/18

 

250,000

 

263,750

(c)

Crosstex Energy LP/Crosstex Energy Finance Corp., Senior Notes

 

7.125%

 

6/1/22

 

250,000

 

248,750

(a)

Denbury Resources Inc., Senior Subordinated Notes

 

8.250%

 

2/15/20

 

100,000

 

108,500

(c)

Dolphin Energy Ltd., Senior Secured Bonds

 

5.888%

 

6/15/19

 

598,459

 

651,572

(a)(c)

Ecopetrol SA, Senior Notes

 

7.625%

 

7/23/19

 

1,000,000

 

1,240,000

(c)

Energy Transfer Equity LP, Senior Notes

 

7.500%

 

10/15/20

 

370,000

 

401,450

(c)

Enterprise Products Operating LLP, Junior Subordinated Notes

 

8.375%

 

8/1/66

 

250,000

 

270,237

(c)(f)

Enterprise Products Operating LLP, Subordinated Notes

 

7.034%

 

1/15/68

 

260,000

 

277,221

(c)(f)

 

See Notes to Schedule of Investments.

 

3


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Oil, Gas & Consumable Fuels — continued

 

 

 

 

 

 

 

 

 

EXCO Resources Inc., Senior Notes

 

7.500%

 

9/15/18

 

520,000

 

$

442,000

(c)

KazMunayGas Finance Sub BV, Senior Notes

 

8.375%

 

7/2/13

 

1,340,000

 

1,406,625

(a)(c)

Kodiak Oil & Gas Corp., Senior Notes

 

8.125%

 

12/1/19

 

350,000

 

360,938

(a)

Magnum Hunter Resources Corp., Senior Notes

 

9.750%

 

5/15/20

 

120,000

 

118,500

(a)

Milagro Oil & Gas Inc., Secured Notes

 

10.500%

 

5/15/16

 

380,000

 

294,500

 

Novatek Finance Ltd., Notes

 

6.604%

 

2/3/21

 

460,000

 

492,090

(a)(c)

Overseas Shipholding Group Inc., Senior Notes

 

8.125%

 

3/30/18

 

705,000

 

504,075

(c)

Pacific Rubiales Energy Corp., Senior Notes

 

7.250%

 

12/12/21

 

480,000

 

516,000

(a)

Pan American Energy LLC, Senior Notes

 

7.875%

 

5/7/21

 

470,000

 

410,075

(a)(c)

Pan American Energy LLC, Senior Notes

 

7.875%

 

5/7/21

 

246,000

 

214,635

(a)

Peabody Energy Corp., Senior Notes

 

7.875%

 

11/1/26

 

330,000

 

343,200

(c)

Petrobras International Finance Co., Senior Notes

 

5.375%

 

1/27/21

 

450,000

 

482,489

 

Petrobras International Finance Co., Senior Notes

 

6.875%

 

1/20/40

 

870,000

 

1,024,465

(c)

Petrobras International Finance Co., Senior Notes

 

6.750%

 

1/27/41

 

390,000

 

451,407

(c)

Petroleos Mexicanos, Notes

 

8.000%

 

5/3/19

 

4,280,000

 

5,350,000

(c)

Petroleum Co. of Trinidad & Tobago Ltd., Senior Notes

 

9.750%

 

8/14/19

 

390,000

 

480,675

(a)(c)

Petronas Capital Ltd.

 

5.250%

 

8/12/19

 

1,555,000

 

1,789,531

(a)(c)(i)

Petroplus Finance Ltd., Senior Notes

 

6.750%

 

5/1/14

 

470,000

 

65,800

(a)(g)

Plains Exploration & Production Co., Senior Notes

 

10.000%

 

3/1/16

 

325,000

 

354,250

(c)

Plains Exploration & Production Co., Senior Notes

 

8.625%

 

10/15/19

 

330,000

 

359,700

(c)

PT Adaro Indonesia, Senior Notes

 

7.625%

 

10/22/19

 

110,000

 

117,425

(a)(c)

PT Pertamina Persero, Notes

 

5.250%

 

5/23/21

 

570,000

 

567,150

(a)(c)

PT Pertamina Persero, Senior Notes

 

4.875%

 

5/3/22

 

420,000

 

404,250

(a)

Quicksilver Resources Inc., Senior Notes

 

11.750%

 

1/1/16

 

1,020,000

 

1,050,600

(c)

Range Resources Corp., Senior Subordinated Notes

 

8.000%

 

5/15/19

 

10,000

 

10,950

(c)

Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Bonds

 

6.750%

 

9/30/19

 

570,000

 

675,450

(a)(c)

Reliance Holdings USA Inc., Senior Notes

 

4.500%

 

10/19/20

 

530,000

 

495,296

(a)

Samson Investment Co., Senior Notes

 

9.750%

 

2/15/20

 

580,000

 

577,825

(a)

SandRidge Energy Inc., Senior Notes

 

7.500%

 

3/15/21

 

110,000

 

107,250

 

Teekay Corp., Senior Notes

 

8.500%

 

1/15/20

 

615,000

 

636,525

(c)

TNK-BP Finance SA, Senior Notes

 

7.875%

 

3/13/18

 

880,000

 

996,600

(a)(c)

Westmoreland Coal Co./Westmoreland Partners, Senior Secured Notes

 

10.750%

 

2/1/18

 

340,000

 

314,500

(a)

Xinergy Ltd., Senior Secured Notes

 

9.250%

 

5/15/19

 

560,000

 

344,400

(a)

Total Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

28,413,057

 

TOTAL ENERGY

 

 

 

 

 

 

 

31,588,507

 

FINANCIALS — 7.0%

 

 

 

 

 

 

 

 

 

Capital Markets — 0.2%

 

 

 

 

 

 

 

 

 

Goldman Sachs Group Inc., Subordinated Notes

 

6.750%

 

10/1/37

 

300,000

 

295,952

(c)

Commercial Banks — 1.8%

 

 

 

 

 

 

 

 

 

BankAmerica Institutional Capital A, Junior Subordinated Bonds

 

8.070%

 

12/31/26

 

620,000

 

626,200

(a)(c)

Barclays Bank PLC, Subordinated Notes

 

6.050%

 

12/4/17

 

370,000

 

372,917

(a)

Barclays Bank PLC, Subordinated Notes

 

10.179%

 

6/12/21

 

160,000

 

188,948

(a)(c)

Credit Agricole SA, Subordinated Notes

 

8.375%

 

10/13/19

 

290,000

 

220,400

(a)(c)(f)(j)

Intesa Sanpaolo SpA, Senior Notes

 

3.625%

 

8/12/15

 

940,000

 

809,362

(a)(c)

Royal Bank of Scotland Group PLC, Junior Subordinated Bonds

 

7.648%

 

9/30/31

 

200,000

 

154,500

(f)(j)

Royal Bank of Scotland Group PLC, Subordinated Notes

 

5.000%

 

10/1/14

 

610,000

 

597,667

(c)

Santander Issuances SAU, Notes

 

5.911%

 

6/20/16

 

200,000

 

187,123

(a)

Total Commercial Banks

 

 

 

 

 

 

 

3,157,117

 

Consumer Finance — 1.2%

 

 

 

 

 

 

 

 

 

Ally Financial Inc., Senior Bonds

 

0.000%

 

12/1/12

 

400,000

 

391,400

(c)

Ally Financial Inc., Senior Notes

 

8.000%

 

3/15/20

 

1,060,000

 

1,200,450

(c)

GMAC International Finance BV, Senior Bonds

 

7.500%

 

4/21/15

 

410,000

EUR

525,976

(c)

Total Consumer Finance

 

 

 

 

 

 

 

2,117,826

 

 

See Notes to Schedule of Investments.

 

4


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Diversified Financial Services — 3.2%

 

 

 

 

 

 

 

 

 

Bankrate Inc., Senior Secured Notes

 

11.750%

 

7/15/15

 

660,000

 

$

745,800

(c)

Boats Investments (Netherlands) BV, Secured Notes

 

8.887%

 

12/15/15

 

671,220

EUR

356,885

(e)(f)

Capital One Capital V, Junior Subordinated Notes, Cumulative Trust Preferred Securities

 

10.250%

 

8/15/39

 

310,000

 

322,400

(c)

Countrywide Capital III, Junior Subordinated Notes

 

8.050%

 

6/15/27

 

130,000

 

132,437

 

International Lease Finance Corp., Medium-Term Notes

 

6.375%

 

3/25/13

 

296,000

 

303,030

(c)

International Lease Finance Corp., Medium-Term Notes, Senior Notes

 

5.625%

 

9/20/13

 

460,000

 

468,625

 

International Lease Finance Corp., Senior Notes

 

8.625%

 

9/15/15

 

70,000

 

76,563

(c)

International Lease Finance Corp., Senior Notes

 

8.875%

 

9/1/17

 

980,000

 

1,100,050

(c)

International Lease Finance Corp., Senior Notes

 

8.250%

 

12/15/20

 

90,000

 

100,575

(c)

ISS Financing PLC, Senior Secured Bonds

 

11.000%

 

6/15/14

 

300,000

EUR

392,280

(a)(c)

MBNA Capital A, Junior Subordinated Notes

 

8.278%

 

12/1/26

 

250,000

 

252,812

(c)

Telenet Finance III Luxembourg S.C.A., Senior Secured Notes

 

6.625%

 

2/15/21

 

500,000

EUR

612,068

(a)

TransUnion Holding Co. Inc., Senior Notes

 

9.625%

 

6/15/18

 

310,000

 

328,600

(a)(e)

ZFS Finance USA Trust II, Bonds

 

6.450%

 

12/15/65

 

500,000

 

487,500

(a)(f)

Total Diversified Financial Services

 

 

 

 

 

 

 

5,679,625

 

Insurance — 0.6%

 

 

 

 

 

 

 

 

 

American International Group Inc., Senior Notes

 

8.250%

 

8/15/18

 

450,000

 

542,459

(c)

ING Capital Funding Trust III, Junior Subordinated Bonds

 

4.070%

 

9/30/12

 

100,000

 

83,054

(f)(j)

Liberty Mutual Group, Junior Subordinated Bonds

 

7.800%

 

3/15/37

 

200,000

 

196,000

(a)

MetLife Capital Trust IV, Junior Subordinated Notes

 

7.875%

 

12/15/37

 

250,000

 

275,000

(a)(c)

Total Insurance

 

 

 

 

 

 

 

1,096,513

 

TOTAL FINANCIALS

 

 

 

 

 

 

 

12,347,033

 

HEALTH CARE — 5.1%

 

 

 

 

 

 

 

 

 

Health Care Equipment & Supplies — 0.4%

 

 

 

 

 

 

 

 

 

Biomet Inc., Senior Notes

 

10.000%

 

10/15/17

 

20,000

 

21,375

(c)

Biomet Inc., Senior Toggle Notes

 

10.375%

 

10/15/17

 

202,000

 

216,014

(c)(e)

Ontex IV SA, Senior Notes

 

9.000%

 

4/15/19

 

300,000

EUR

306,034

(a)

Ontex IV SA, Senior Notes

 

9.000%

 

4/15/19

 

200,000

EUR

204,022

(a)

Total Health Care Equipment & Supplies

 

 

 

 

 

 

 

747,445

 

Health Care Providers & Services — 4.3%

 

 

 

 

 

 

 

 

 

Acadia Healthcare Co. Inc., Senior Notes

 

12.875%

 

11/1/18

 

470,000

 

524,050

 

American Renal Associates Holdings Inc., Senior Notes

 

9.750%

 

3/1/16

 

354,187

 

370,125

(e)

American Renal Holdings, Senior Secured Notes

 

8.375%

 

5/15/18

 

300,000

 

316,500

 

AMERIGROUP Corp., Senior Notes

 

7.500%

 

11/15/19

 

220,000

 

236,500

(c)

CHS/Community Health Systems Inc., Senior Notes

 

8.000%

 

11/15/19

 

540,000

 

554,175

 

CRC Health Corp., Senior Subordinated Notes

 

10.750%

 

2/1/16

 

1,080,000

 

934,200

(c)

Crown Newco 3 PLC, Senior Subordinated Notes

 

8.875%

 

2/15/19

 

380,000

GBP

503,664

(a)

DJO Finance LLC/DJO Finance Corp., Senior Notes

 

10.875%

 

11/15/14

 

200,000

 

204,500

 

ExamWorks Group Inc., Senior Notes

 

9.000%

 

7/15/19

 

210,000

 

214,200

(a)

Fresenius Medical Care U.S. Finance Inc., Senior Notes

 

6.875%

 

7/15/17

 

750,000

 

824,063

(c)

Fresenius U.S. Finance II Inc., Senior Notes

 

9.000%

 

7/15/15

 

160,000

 

183,600

(a)(c)

HCA Inc., Senior Secured Notes

 

8.500%

 

4/15/19

 

620,000

 

687,425

(c)

INC Research LLC, Senior Notes

 

11.500%

 

7/15/19

 

160,000

 

152,200

(a)

InVentiv Health Inc., Senior Notes

 

10.000%

 

8/15/18

 

330,000

 

280,500

(a)

Physiotherapy Associates Holdings Inc., Senior Notes

 

11.875%

 

5/1/19

 

90,000

 

90,450

(a)

Tenet Healthcare Corp., Senior Secured Notes

 

10.000%

 

5/1/18

 

491,000

 

562,195

(c)

Universal Hospital Services Inc., Senior Secured Notes

 

8.500%

 

6/1/15

 

635,000

 

650,081

(c)(e)(f)

US Oncology Inc. Escrow

 

—   

 

 

255,000

 

5,100

*

 

See Notes to Schedule of Investments.

 

5


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Health Care Providers & Services — continued

 

 

 

 

 

 

 

 

 

Vanguard Health Holdings Co., II LLC, Senior Notes

 

8.000%

 

2/1/18

 

250,000

 

$

246,250

(c)

Total Health Care Providers & Services

 

 

 

 

 

 

 

7,539,778

 

Pharmaceuticals — 0.4%

 

 

 

 

 

 

 

 

 

ConvaTec Healthcare E SA, Senior Notes

 

10.875%

 

12/15/18

 

660,000

EUR

801,809

(a)(c)

TOTAL HEALTH CARE

 

 

 

 

 

 

 

9,089,032

 

INDUSTRIALS — 10.2%

 

 

 

 

 

 

 

 

 

Aerospace & Defense — 1.0%

 

 

 

 

 

 

 

 

 

Ducommun Inc., Senior Notes

 

9.750%

 

7/15/18

 

220,000

 

233,750

 

Kratos Defense & Security Solutions Inc., Senior Secured Notes

 

10.000%

 

6/1/17

 

610,000

 

649,650

(c)

Triumph Group Inc., Senior Notes

 

8.625%

 

7/15/18

 

190,000

 

209,950

(c)

Wyle Services Corp., Senior Subordinated Notes

 

10.500%

 

4/1/18

 

560,000

 

606,200

(a)(c)

Total Aerospace & Defense

 

 

 

 

 

 

 

1,699,550

 

Airlines — 1.4%

 

 

 

 

 

 

 

 

 

American Airlines Pass-Through Trust, Secured Notes

 

7.000%

 

1/31/18

 

167,460

 

165,785

(a)

BAA SH PLC, Senior Secured Notes

 

7.125%

 

3/1/17

 

400,000

GBP

612,108

 

Continental Airlines Inc., Pass-Through Certificates

 

7.373%

 

12/15/15

 

21,939

 

22,296

 

Continental Airlines Inc., Pass-Through Certificates

 

9.250%

 

5/10/17

 

3,910

 

4,286

 

Continental Airlines Inc., Pass-Through Certificates, Subordinated Secured Notes

 

7.339%

 

4/19/14

 

52,347

 

52,871

(c)

Continental Airlines Inc., Senior Secured Notes

 

6.750%

 

9/15/15

 

260,000

 

263,250

(a)(c)

DAE Aviation Holdings Inc., Senior Notes

 

11.250%

 

8/1/15

 

950,000

 

983,250

(a)(c)

Delta Air Lines Inc., Pass-Through Certificates, Subordinated Secured Notes

 

9.750%

 

12/17/16

 

99,616

 

106,589

(c)

Delta Air Lines Inc., Senior Secured Notes

 

9.500%

 

9/15/14

 

147,000

 

155,453

(a)(c)

United Air Lines Inc., Senior Secured Notes

 

9.875%

 

8/1/13

 

128,000

 

132,480

(a)(c)

Total Airlines

 

 

 

 

 

 

 

2,498,368

 

Building Products — 0.6%

 

 

 

 

 

 

 

 

 

Ashton Woods USA LLC/Ashton Woods Finance Co., Senior Subordinated Notes

 

11.000%

 

6/30/15

 

224,200

 

204,022

(a)(d)

Building Materials Corp. of America, Senior Notes

 

6.750%

 

5/1/21

 

370,000

 

379,250

(a)(c)

Rearden G Holdings EINS GmbH, Senior Notes

 

7.875%

 

3/30/20

 

200,000

 

204,000

(a)

Spie BondCo 3 SCA, Secured Notes

 

11.000%

 

8/15/19

 

279,000

EUR

328,597

(a)

Total Building Products

 

 

 

 

 

 

 

1,115,869

 

Commercial Services & Supplies — 1.8%

 

 

 

 

 

 

 

 

 

Altegrity Inc., Senior Subordinated Notes

 

10.500%

 

11/1/15

 

50,000

 

46,250

(a)

Altegrity Inc., Senior Subordinated Notes

 

11.750%

 

5/1/16

 

780,000

 

713,700

(a)(c)

American Reprographics Co., Senior Notes

 

10.500%

 

12/15/16

 

460,000

 

453,100

 

Cenveo Corp., Secured Notes

 

8.875%

 

2/1/18

 

200,000

 

182,000

 

Geo Group Inc., Senior Notes

 

7.750%

 

10/15/17

 

455,000

 

487,987

(c)

JM Huber Corp., Senior Notes

 

9.875%

 

11/1/19

 

200,000

 

211,000

(a)

Monitronics International Inc., Senior Notes

 

9.125%

 

4/1/20

 

580,000

 

565,500

(a)

RSC Equipment Rental Inc./RSC Holdings III LLC, Senior Notes

 

8.250%

 

2/1/21

 

180,000

 

191,250

 

Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes

 

7.750%

 

4/15/20

 

360,000

 

371,700

(a)

Total Commercial Services & Supplies

 

 

 

 

 

 

 

3,222,487

 

Construction & Engineering — 0.7%

 

 

 

 

 

 

 

 

 

Abengoa Finance SAU, Senior Notes

 

8.875%

 

11/1/17

 

350,000

 

313,250

(a)

Odebrecht Finance Ltd., Senior Notes

 

7.000%

 

4/21/20

 

550,000

 

602,250

(a)(c)

Odebrecht Finance Ltd., Senior Notes

 

6.000%

 

4/5/23

 

220,000

 

228,250

(a)

Total Construction & Engineering

 

 

 

 

 

 

 

1,143,750

 

Electrical Equipment — 0.2%

 

 

 

 

 

 

 

 

 

NES Rentals Holdings Inc., Senior Secured Notes

 

12.250%

 

4/15/15

 

400,000

 

386,000

(a)(c)

 

See Notes to Schedule of Investments.

 

6


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Industrial Conglomerates — 0.2%

 

 

 

 

 

 

 

 

 

Leucadia National Corp., Senior Notes

 

8.125%

 

9/15/15

 

40,000

 

$

44,900

(c)

Sinochem Overseas Capital Co., Ltd., Senior Notes

 

4.500%

 

11/12/20

 

370,000

 

369,790

(a)

Total Industrial Conglomerates

 

 

 

 

 

 

 

414,690

 

Machinery — 0.6%

 

 

 

 

 

 

 

 

 

Dematic SA, Senior Secured Notes

 

8.750%

 

5/1/16

 

510,000

 

530,400

(a)(c)

Global Brass and Copper Inc., Senior Secured Notes

 

9.500%

 

6/1/19

 

250,000

 

253,750

(a)

Lonking Holdings Ltd., Senior Notes

 

8.500%

 

6/3/16

 

230,000

 

205,850

(a)

Total Machinery

 

 

 

 

 

 

 

990,000

 

Marine — 0.6%

 

 

 

 

 

 

 

 

 

Horizon Lines LLC, Secured Notes

 

13.000%

 

10/15/16

 

312,958

 

288,704

(e)

Horizon Lines LLC, Senior Secured Notes

 

11.000%

 

10/15/16

 

219,000

 

213,525

(a)

Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Senior Secured Notes

 

8.625%

 

11/1/17

 

670,000

 

633,150

(c)

Total Marine

 

 

 

 

 

 

 

1,135,379

 

Road & Rail — 1.5%

 

 

 

 

 

 

 

 

 

Florida East Coast Holdings Corp., Senior Notes

 

10.500%

 

8/1/17

 

874,178

 

712,455

(e)

Gategroup Finance Luxembourg SA, Senior Notes

 

6.750%

 

3/1/19

 

100,000

EUR

121,486

(a)

Jack Cooper Holdings Corp., Senior Secured Notes

 

13.250%

 

12/15/15

 

546,000

 

540,540

(a)(c)

Kansas City Southern de Mexico, Senior Notes

 

12.500%

 

4/1/16

 

740,000

 

843,600

(c)

Quality Distribution LLC/QD Capital Corp., Secured Notes

 

9.875%

 

11/1/18

 

460,000

 

502,550

(c)

Total Road & Rail

 

 

 

 

 

 

 

2,720,631

 

Trading Companies & Distributors — 0.3%

 

 

 

 

 

 

 

 

 

H&E Equipment Services Inc., Senior Notes

 

8.375%

 

7/15/16

 

455,000

 

470,925

(c)

UR Financing Escrow Corp., Secured Notes

 

5.750%

 

7/15/18

 

2,000

 

2,040

(a)

UR Financing Escrow Corp., Senior Notes

 

7.625%

 

4/15/22

 

98,000

 

100,450

(a)(c)

Total Trading Companies & Distributors

 

 

 

 

 

 

 

573,415

 

Transportation — 1.2%

 

 

 

 

 

 

 

 

 

CMA CGM, Senior Notes

 

8.500%

 

4/15/17

 

240,000

 

135,600

(a)(c)

CMA CGM, Senior Notes

 

8.875%

 

4/15/19

 

700,000

EUR

489,036

(a)

Hapag-Lloyd AG, Senior Notes

 

9.750%

 

10/15/17

 

710,000

 

644,325

(a)(c)

Syncreon Global Ireland Ltd./Syncreon Global Finance US Inc., Senior Notes

 

9.500%

 

5/1/18

 

770,000

 

771,925

(a)(c)

Total Transportation

 

 

 

 

 

 

 

2,040,886

 

Transportation Infrastructure — 0.1%

 

 

 

 

 

 

 

 

 

Aguila 3 SA, Senior Secured Notes

 

7.875%

 

1/31/18

 

180,000

 

184,500

(a)

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

18,125,525

 

INFORMATION TECHNOLOGY — 2.3%

 

 

 

 

 

 

 

 

 

Communications Equipment — 0.3%

 

 

 

 

 

 

 

 

 

Lucent Technologies Inc., Debentures

 

6.450%

 

3/15/29

 

880,000

 

609,400

(c)

Electronic Equipment, Instruments & Components — 0.5%

 

 

 

 

 

 

NXP BV/NXP Funding LLC, Senior Secured Notes

 

9.750%

 

8/1/18

 

850,000

 

962,625

(a)(c)

IT Services — 0.8%

 

 

 

 

 

 

 

 

 

First Data Corp., Senior Notes

 

9.875%

 

9/24/15

 

940,000

 

937,650

(c)

First Data Corp., Senior Notes

 

10.550%

 

9/24/15

 

330,000

 

330,000

 

Sterling Merger Inc., Senior Notes

 

11.000%

 

10/1/19

 

70,000

 

72,975

(a)

Total IT Services

 

 

 

 

 

 

 

1,340,625

 

Semiconductors & Semiconductor Equipment — 0.4%

 

 

 

 

 

 

Freescale Semiconductor Inc., Senior Secured Notes

 

9.250%

 

4/15/18

 

140,000

 

148,050

(a)(c)

Freescale Semiconductor Inc., Senior Subordinated Notes

 

10.125%

 

12/15/16

 

214,000

 

225,770

(c)

 

See Notes to Schedule of Investments.

 

7


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Semiconductors & Semiconductor Equipment — continued

 

 

 

 

 

 

 

STATS ChipPAC Ltd., Senior Notes

 

7.500%

 

8/12/15

 

244,000

 

$

262,300

(a)(c)

Total Semiconductors & Semiconductor Equipment

 

 

 

636,120

 

Software — 0.3%

 

 

 

 

 

 

 

 

 

Lawson Software Inc., Senior Notes

 

10.000%

 

4/1/19

 

380,000

EUR

473,394

(a)

TOTAL INFORMATION TECHNOLOGY

 

 

 

 

 

 

 

4,022,164

 

MATERIALS — 11.7%

 

 

 

 

 

 

 

 

 

Chemicals — 1.3%

 

 

 

 

 

 

 

 

 

Braskem Finance Ltd., Senior Notes

 

7.000%

 

5/7/20

 

540,000

 

583,200

(a)(c)

Georgia Gulf Corp., Senior Secured Notes

 

9.000%

 

1/15/17

 

340,000

 

383,350

(a)(c)

Ineos Finance PLC, Senior Secured Notes

 

9.000%

 

5/15/15

 

310,000

 

326,275

(a)

Kerling PLC, Senior Secured Notes

 

10.625%

 

1/28/17

 

268,000

EUR

300,729

(a)(c)

Styrolution GmbH, Senior Secured Notes

 

7.625%

 

5/15/16

 

500,000

EUR

523,967

(a)

Styrolution Group GmbH, Senior Secured Notes

 

7.625%

 

5/15/16

 

120,000

EUR

125,752

(a)

Total Chemicals

 

 

 

 

 

 

 

2,243,273

 

Containers & Packaging — 2.2%

 

 

 

 

 

 

 

 

 

Ardagh Packaging Finance PLC, Senior Notes

 

9.250%

 

10/15/20

 

1,000,000

EUR

1,231,864

(a)

Longview Fibre Paper & Packaging Inc., Senior Secured Notes

 

8.000%

 

6/1/16

 

280,000

 

279,300

(a)

Pretium Packaging LLC/Pretium Finance Inc., Senior Secured Notes

 

11.500%

 

4/1/16

 

510,000

 

521,475

 

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Notes

 

9.250%

 

5/15/18

 

290,000

 

273,325

(a)

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Notes

 

9.875%

 

8/15/19

 

390,000

 

389,512

(a)

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC, Senior Secured Notes

 

6.875%

 

2/15/21

 

200,000

 

204,000

(a)

Suzano Trading Ltd., Senior Notes

 

5.875%

 

1/23/21

 

500,000

 

463,750

(a)

Viskase Cos. Inc., Senior Secured Notes

 

9.875%

 

1/15/18

 

610,000

 

635,925

(a)(c)

Total Containers & Packaging

 

 

 

 

 

 

 

3,999,151

 

Metals & Mining — 6.6%

 

 

 

 

 

 

 

 

 

China Oriental Group Co., Ltd.

 

7.000%

 

11/17/17

 

490,000

 

382,200

(a)

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

270,000

 

288,900

(a)(c)

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

250,000

 

267,500

(a)(c)

Evraz Group SA, Notes

 

8.250%

 

11/10/15

 

130,000

 

136,452

(a)(c)

Evraz Group SA, Notes

 

6.750%

 

4/27/18

 

1,110,000

 

1,028,137

(a)(c)

Evraz Group SA, Senior Notes

 

9.500%

 

4/24/18

 

540,000

 

567,810

(a)(c)

FMG Resources (August 2006) Pty Ltd., Senior Notes

 

7.000%

 

11/1/15

 

100,000

 

100,500

(a)

FMG Resources (August 2006) Pty Ltd., Senior Notes

 

8.250%

 

11/1/19

 

550,000

 

570,625

(a)(c)

Midwest Vanadium Pty Ltd., Senior Secured Notes

 

11.500%

 

2/15/18

 

840,000

 

525,000

(a)(c)

Mirabela Nickel Ltd., Senior Notes

 

8.750%

 

4/15/18

 

200,000

 

145,000

(a)

Molycorp Inc., Senior Secured Notes

 

10.000%

 

6/1/20

 

360,000

 

360,900

(a)

New World Resources NV, Senior Bonds

 

7.375%

 

5/15/15

 

330,000

EUR

390,703

(a)

Novelis Inc., Senior Notes

 

8.750%

 

12/15/20

 

400,000

 

425,000

(c)

Optima Specialty Steel Inc., Senior Secured Notes

 

12.500%

 

12/15/16

 

260,000

 

269,750

(a)

Rio Tinto Finance USA Ltd., Senior Notes

 

9.000%

 

5/1/19

 

260,000

 

357,712

(c)

Ryerson Holding Corp., Senior Secured Notes

 

0.000%

 

2/1/15

 

810,000

 

439,425

(c)

Southern Copper Corp., Senior Notes

 

5.375%

 

4/16/20

 

200,000

 

220,670

(c)

Southern Copper Corp., Senior Notes

 

6.750%

 

4/16/40

 

730,000

 

769,562

(c)

Tempel Steel Co., Senior Secured Notes

 

12.000%

 

8/15/16

 

210,000

 

204,750

(a)(c)

Thompson Creek Metals Co. Inc., Senior Notes

 

12.500%

 

5/1/19

 

420,000

 

422,100

 

Vale Overseas Ltd., Notes

 

8.250%

 

1/17/34

 

460,000

 

594,502

(c)

Vale Overseas Ltd., Notes

 

6.875%

 

11/21/36

 

1,757,000

 

2,019,273

(c)(i)

Vedanta Resources PLC, Senior Notes

 

8.750%

 

1/15/14

 

627,000

 

644,243

(a)(c)

Vedanta Resources PLC, Senior Notes

 

6.750%

 

6/7/16

 

450,000

 

414,000

(a)

Vedanta Resources PLC, Senior Notes

 

9.500%

 

7/18/18

 

100,000

 

96,500

(a)

Total Metals & Mining

 

 

 

 

 

 

 

11,641,214

 

 

See Notes to Schedule of Investments.

 

8


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Paper & Forest Products — 1.6%

 

 

 

 

 

 

 

 

 

Appleton Papers Inc., Senior Secured Notes

 

10.500%

 

6/15/15

 

560,000

 

$

599,200

(a)(c)

Appleton Papers Inc., Senior Secured Notes

 

11.250%

 

12/15/15

 

407,000

 

430,402

(c)

Celulosa Arauco y Constitucion SA, Senior Notes

 

7.250%

 

7/29/19

 

62,000

 

73,881

(c)

Celulosa Arauco y Constitucion SA, Senior Notes

 

4.750%

 

1/11/22

 

160,000

 

163,135

(a)

Empresas CMPC SA, Notes

 

4.750%

 

1/19/18

 

250,000

 

261,363

(a)

Fibria Overseas Finance Ltd., Senior Notes

 

7.500%

 

5/4/20

 

240,000

 

242,400

(a)

Fibria Overseas Finance Ltd., Senior Notes

 

6.750%

 

3/3/21

 

250,000

 

243,125

(a)(c)

Inversiones CMPC SA, Senior Notes

 

4.500%

 

4/25/22

 

190,000

 

190,492

(a)

PE Paper Escrow GmbH, Senior Secured Notes

 

12.000%

 

8/1/14

 

150,000

 

161,250

(a)(c)

Verso Paper Holdings LLC, Senior Subordinated Notes

 

11.375%

 

8/1/16

 

234,000

 

114,660

 

Verso Paper Holdings LLC/Verso Paper Inc., Senior Secured Notes

 

11.750%

 

1/15/19

 

190,190

 

145,495

(a)

Verso Paper Holdings LLC/Verso Paper Inc., Senior Secured Notes

 

11.750%

 

1/15/19

 

60,000

 

60,225

(a)

Verso Paper Holdings LLC/Verso Paper Inc., Senior Secured Notes

 

8.750%

 

2/1/19

 

440,000

 

158,400

 

Total Paper & Forest Products

 

 

 

 

 

 

 

2,844,028

 

TOTAL MATERIALS

 

 

 

 

 

 

 

20,727,666

 

TELECOMMUNICATION SERVICES — 8.3%

 

 

 

 

 

 

 

 

 

Diversified Telecommunication Services — 5.1%

 

 

 

 

 

 

 

 

 

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

1,363,000

 

899,580

(a)(c)

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

730,000

 

481,800

(a)(c)

Axtel SAB de CV, Senior Notes

 

9.000%

 

9/22/19

 

356,000

 

234,960

(a)

Cincinnati Bell Telephone Co., Senior Debentures

 

6.300%

 

12/1/28

 

50,000

 

41,250

(c)

Cogent Communications Group Inc., Senior Secured Notes

 

8.375%

 

2/15/18

 

380,000

 

408,500

(a)(c)

Inmarsat Finance PLC, Senior Notes

 

7.375%

 

12/1/17

 

250,000

 

267,500

(a)(c)

Intelsat Jackson Holdings Ltd., Senior Notes

 

11.250%

 

6/15/16

 

150,000

 

156,938

(c)

Intelsat Jackson Holdings SA, Senior Notes

 

7.250%

 

10/15/20

 

450,000

 

448,875

 

Intelsat Jackson Holdings SA, Senior Notes

 

7.500%

 

4/1/21

 

150,000

 

150,750

 

Intelsat Luxembourg SA, Senior Notes

 

11.250%

 

2/4/17

 

200,000

 

197,000

 

Level 3 Financing Inc., Senior Notes

 

8.625%

 

7/15/20

 

600,000

 

613,500

(a)(c)

Qtel International Finance Ltd., Senior Notes

 

4.750%

 

2/16/21

 

220,000

 

230,120

(a)

Telemar Norte Leste SA, Senior Notes

 

5.500%

 

10/23/20

 

380,000

 

376,200

(a)

TW Telecom Holdings Inc., Senior Notes

 

8.000%

 

3/1/18

 

380,000

 

414,200

(c)

UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes

 

8.250%

 

5/23/16

 

480,000

 

494,674

(a)

Unitymedia GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

300,000

EUR

390,425

(a)

Unitymedia GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

180,000

EUR

234,255

(a)

Vimpel Communications, Loan Participation Notes

 

8.375%

 

4/30/13

 

520,000

 

541,471

(a)(c)

VIP Finance Ireland Ltd. for OJSC Vimpel Communications, Loan Participation Notes, Secured Notes

 

8.375%

 

4/30/13

 

248,000

 

258,240

(a)(c)

West Corp., Senior Notes

 

8.625%

 

10/1/18

 

370,000

 

387,575

(c)

West Corp., Senior Notes

 

7.875%

 

1/15/19

 

470,000

 

473,525

 

West Corp., Senior Subordinated Notes

 

11.000%

 

10/15/16

 

290,000

 

307,037

(c)

Wind Acquisition Finance SA, Senior Notes

 

11.750%

 

7/15/17

 

200,000

 

171,000

(a)(c)

Wind Acquisition Holdings Finance SpA, Senior Notes

 

12.250%

 

7/15/17

 

839,614

 

625,512

(a)(e)

Windstream Corp., Senior Notes

 

7.500%

 

4/1/23

 

270,000

 

260,550

 

Total Diversified Telecommunication Services

 

 

 

 

 

 

 

9,065,437

 

Wireless Telecommunication Services — 3.2%

 

 

 

 

 

 

 

 

 

America Movil SAB de CV, Senior Notes

 

5.625%

 

11/15/17

 

340,000

 

397,727

(c)

Indosat Palapa Co. BV, Senior Notes

 

7.375%

 

7/29/20

 

540,000

 

588,600

(a)(c)

MetroPCS Wireless Inc., Senior Notes

 

7.875%

 

9/1/18

 

10,000

 

10,150

 

MetroPCS Wireless Inc., Senior Notes

 

6.625%

 

11/15/20

 

530,000

 

514,100

 

Oi S.A., Senior Notes

 

5.750%

 

2/10/22

 

240,000

 

235,200

(a)

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

490,000

GBP

662,678

(a)

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

100,000

GBP

135,240

(a)

Sprint Capital Corp., Senior Notes

 

6.875%

 

11/15/28

 

250,000

 

186,875

 

 

See Notes to Schedule of Investments.

 

9


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Wireless Telecommunication Services — continued

 

 

 

 

 

Sprint Capital Corp., Senior Notes

 

8.750%

 

3/15/32

 

1,865,000

 

$

1,580,587

(c)

Sprint Nextel Corp., Senior Notes

 

9.000%

 

11/15/18

 

630,000

 

683,550

(a)(c)

Syniverse Holdings Inc., Senior Notes

 

9.125%

 

1/15/19

 

365,000

 

393,288

(c)

VimpelCom Holdings BV, Senior Notes

 

7.504%

 

3/1/22

 

200,000

 

181,872

(a)

Total Wireless Telecommunication Services

 

 

 

 

 

 

 

5,569,867

 

TOTAL TELECOMMUNICATION SERVICES

 

 

 

 

 

 

 

14,635,304

 

UTILITIES — 5.9%

 

 

 

 

 

 

 

 

 

Electric Utilities — 2.2%

 

 

 

 

 

 

 

 

 

AES Red Oak LLC, Secured Notes

 

9.200%

 

11/30/29

 

660,000

 

706,200

(c)

Astoria Depositor Corp., Pass-Through Certificates

 

8.144%

 

5/1/21

 

420,000

 

365,400

(a)

Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Secured Notes

 

11.750%

 

3/1/22

 

1,180,000

 

1,209,500

(a)(c)

Majapahit Holding BV, Senior Notes

 

7.750%

 

1/20/20

 

280,000

 

320,600

(a)(c)

Midwest Generation LLC, Pass-Through Certificates

 

8.560%

 

1/2/16

 

203,387

 

187,116

 

Reliant Energy Mid-Atlantic Power Holdings LLC, Senior Notes

 

9.681%

 

7/2/26

 

800,000

 

760,000

(c)

Texas Competitive Electric Holdings Co. LLC, Senior Notes

 

10.250%

 

11/1/15

 

270,000

 

66,150

 

Texas Competitive Electric Holdings Co. LLC/TCEH Finance Inc., Senior Secured Notes

 

11.500%

 

10/1/20

 

400,000

 

270,000

(a)

Total Electric Utilities

 

 

 

 

 

 

 

3,884,966

 

Gas Utilities — 0.5%

 

 

 

 

 

 

 

 

 

Southern Natural Gas Co., Senior Notes

 

8.000%

 

3/1/32

 

70,000

 

94,700

(c)

Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes

 

7.375%

 

3/15/20

 

330,000

 

348,150

(c)

Transportadora de Gas Internacional SA ESP, Senior Notes

 

5.700%

 

3/20/22

 

470,000

 

481,750

(a)

Total Gas Utilities

 

 

 

 

 

 

 

924,600

 

Independent Power Producers & Energy Traders — 3.0%

 

 

 

 

 

AES Corp., Senior Notes

 

9.750%

 

4/15/16

 

500,000

 

588,750

(c)

AES Gener SA, Notes

 

5.250%

 

8/15/21

 

250,000

 

263,687

(a)

Atlantic Power Corp., Senior Notes

 

9.000%

 

11/15/18

 

270,000

 

275,400

(a)

Calpine Corp., Senior Secured Notes

 

7.875%

 

1/15/23

 

620,000

 

658,750

(a)(c)

Colbun SA, Senior Notes

 

6.000%

 

1/21/20

 

390,000

 

416,914

(a)(c)

Dynegy Inc., Bonds

 

7.670%

 

11/8/16

 

280,000

 

176,400

(c)(g)

Edison Mission Energy, Senior Notes

 

7.750%

 

6/15/16

 

570,000

 

306,375

(c)

Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Senior Secured Notes

 

10.000%

 

12/1/20

 

210,000

 

227,325

(c)

First Wind Holdings Inc., Senior Secured Notes

 

10.250%

 

6/1/18

 

390,000

 

386,100

(a)

Foresight Energy LLC/Foresight Energy Corp., Senior Notes

 

9.625%

 

8/15/17

 

810,000

 

818,100

(a)(c)

Mirant Americas Generation LLC, Senior Notes

 

9.125%

 

5/1/31

 

1,430,000

 

1,215,500

(c)

Total Independent Power Producers & Energy Traders

 

 

 

5,333,301

 

Multi-Utilities — 0.2%

 

 

 

 

 

 

 

 

 

Empresas Publicas de Medellin ESP, Senior Notes

 

7.625%

 

7/29/19

 

200,000

 

239,700

(a)(c)

TOTAL UTILITIES

 

 

 

 

 

 

 

10,382,567

 

TOTAL CORPORATE BONDS & NOTES (Cost — $150,584,055)

 

 

 

149,795,058

 

COLLATERALIZED SENIOR LOANS — 2.9%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.8%

 

 

 

 

 

 

 

 

 

Diversified Consumer Services — 0.6%

 

 

 

 

 

 

 

 

 

Realogy Corp., Second Lien Term Loan

 

13.500%

 

10/15/17

 

1,000,000

 

1,021,875

(k)

Hotels, Restaurants & Leisure — 0.2%

 

 

 

 

 

 

 

 

 

El Pollo Loco Inc., First Lien Term Loan

 

9.250%

 

7/14/17

 

297,750

 

296,261

(k)

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

1,318,136

 

 

See Notes to Schedule of Investments.

 

10


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

ENERGY — 0.9%

 

 

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels — 0.9%

 

 

 

 

 

 

 

 

 

Chesapeake Energy Corp., Term Loan

 

—   

 

12/1/17

 

1,690,000

 

$

1,650,708

(k)(l)

FINANCIALS — 0.3%

 

 

 

 

 

 

 

 

 

Capital Markets — 0.3%

 

 

 

 

 

 

 

 

 

Stockbridge/SBE Holdings LLC, Term Loan B

 

—   

 

5/2/17

 

610,000

 

597,800

(k)(l)

INDUSTRIALS — 0.1%

 

 

 

 

 

 

 

 

 

Marine — 0.1%

 

 

 

 

 

 

 

 

 

Trico Shipping AS, New Term Loan A

 

10.000%

 

5/13/14

 

55,440

 

55,440

(d)(k)

Trico Shipping AS, New Term Loan B

 

—   

 

5/13/14

 

97,612

 

97,612

(d)(k)(l)

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

153,052

 

INFORMATION TECHNOLOGY — 0.1%

 

 

 

 

 

 

 

 

 

IT Services — 0.1%

 

 

 

 

 

 

 

 

 

SRA International Inc., Term Loan B

 

6.500%

 

7/20/18

 

218,571

 

214,200

(k)

MATERIALS — 0.2%

 

 

 

 

 

 

 

 

 

Chemicals — 0.2%

 

 

 

 

 

 

 

 

 

Kerling PLC, Term Loan

 

10.000%

 

6/30/16

 

300,000

EUR

333,855

(k)

TELECOMMUNICATION SERVICES — 0.4%

 

 

 

 

 

 

 

 

 

Wireless Telecommunication Services — 0.4%

 

 

 

 

 

 

 

 

 

Vodafone Americas Finance 2 Inc., PIK Term Loan

 

6.875%

 

8/11/15

 

620,646

 

633,059

(k)

UTILITIES — 0.1%

 

 

 

 

 

 

 

 

 

Electric Utilities — 0.1%

 

 

 

 

 

 

 

 

 

Texas Competitive Electric Holdings Co. LLC, Extended Term Loan

 

4.739%

 

10/10/17

 

323,528

 

189,385

(k)

TOTAL COLLATERALIZED SENIOR LOANS (Cost — $5,186,520)

 

 

 

5,090,195

 

CONVERTIBLE BONDS & NOTES — 0.6%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.4%

 

 

 

 

 

 

 

 

 

Diversified Consumer Services — 0.4%

 

 

 

 

 

 

 

 

 

Realogy Corp., Senior Subordinated Bonds

 

11.000%

 

4/15/18

 

770,000

 

631,400

(a)(c)

INDUSTRIALS — 0.2%

 

 

 

 

 

 

 

 

 

Marine — 0.2%

 

 

 

 

 

 

 

 

 

Horizon Lines Inc., Senior Secured Notes

 

6.000%

 

4/15/17

 

106,312

 

10,762

(b)(d)(e)

Horizon Lines Inc., Senior Secured Notes

 

6.000%

 

4/15/17

 

382,723

 

285,697

(b)(d)(e)

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

296,459

 

MATERIALS — 0.0%

 

 

 

 

 

 

 

 

 

Chemicals — 0.0%

 

 

 

 

 

 

 

 

 

Hercules Inc.

 

6.500%

 

6/30/29

 

100,000

 

81,250

 

TOTAL CONVERTIBLE BONDS & NOTES (Cost — $1,109,472)

 

 

 

1,009,109

 

SOVEREIGN BONDS — 38.0%

 

 

 

 

 

 

 

 

 

Argentina — 2.9%

 

 

 

 

 

 

 

 

 

Republic of Argentina, Discount Notes

 

8.280%

 

12/31/33

 

1,400,500

 

833,298

(i)

Republic of Argentina, GDP Linked Securities, Senior Bonds

 

4.383%

 

12/15/35

 

5,670,000

 

552,825

(f)(m)

Republic of Argentina, Senior Bonds

 

7.000%

 

9/12/13

 

3,321,000

 

2,987,545

 

Republic of Argentina, Senior Bonds

 

7.000%

 

10/3/15

 

485,000

 

363,110

 

Republic of Argentina, Senior Notes

 

8.750%

 

6/2/17

 

450,000

 

357,750

 

Total Argentina

 

 

 

 

 

 

 

5,094,528

 

Brazil — 5.0%

 

 

 

 

 

 

 

 

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/14

 

665,000

BRL

336,332

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/17

 

8,035,000

BRL

4,047,527

 

Federative Republic of Brazil

 

7.125%

 

1/20/37

 

427,550

 

592,157

 

 

See Notes to Schedule of Investments.

 

11


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Brazil — continued

 

 

 

 

 

 

 

 

 

Federative Republic of Brazil, Collective Action Securities

 

8.000%

 

1/15/18

 

2,418,667

 

$

2,841,933

(i)

Federative Republic of Brazil, Collective Action Securities

 

8.750%

 

2/4/25

 

685,000

 

1,037,775

 

Total Brazil

 

 

 

 

 

 

 

8,855,724

 

Chile — 0.9%

 

 

 

 

 

 

 

 

 

Banco del Estado de Chile, Senior Notes

 

4.125%

 

10/7/20

 

260,000

 

270,100

(a)

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.750%

 

11/4/20

 

250,000

 

261,692

(a)(c)

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.875%

 

11/3/21

 

490,000

 

516,653

(a)

Republic of Chile, Senior Notes

 

3.875%

 

8/5/20

 

412,000

 

456,290

 

Total Chile

 

 

 

 

 

 

 

1,504,735

 

Colombia — 2.0%

 

 

 

 

 

 

 

 

 

Republic of Colombia

 

7.375%

 

9/18/37

 

2,150,000

 

3,042,250

(c)(i)

Republic of Colombia, Senior Bonds

 

6.125%

 

1/18/41

 

180,000

 

223,650

 

Republic of Colombia, Senior Notes

 

7.375%

 

3/18/19

 

255,000

 

327,038

 

Total Colombia

 

 

 

 

 

 

 

3,592,938

 

India — 0.2%

 

 

 

 

 

 

 

 

 

ICICI Bank Ltd., Junior Subordinated Bonds

 

6.375%

 

4/30/22

 

186,000

 

168,795

(a)(f)

ICICI Bank Ltd., Subordinated Bonds

 

6.375%

 

4/30/22

 

130,000

 

117,975

(a)(f)

Total India

 

 

 

 

 

 

 

286,770

 

Indonesia — 3.0%

 

 

 

 

 

 

 

 

 

Republic of Indonesia, Notes

 

5.250%

 

1/17/42

 

1,080,000

 

1,073,250

(a)

Republic of Indonesia, Senior Bonds

 

6.875%

 

1/17/18

 

100,000

 

116,250

(a)

Republic of Indonesia, Senior Bonds

 

10.250%

 

7/15/22

 

7,931,000,000

IDR

1,062,304

 

Republic of Indonesia, Senior Bonds

 

11.000%

 

9/15/25

 

4,954,000,000

IDR

710,656

 

Republic of Indonesia, Senior Bonds

 

10.250%

 

7/15/27

 

5,058,000,000

IDR

693,792

 

Republic of Indonesia, Senior Bonds

 

6.625%

 

2/17/37

 

775,000

 

902,875

(a)

Republic of Indonesia, Senior Bonds

 

9.750%

 

5/15/37

 

5,998,000,000

IDR

810,356

 

Total Indonesia

 

 

 

 

 

 

 

5,369,483

 

Malaysia — 1.0%

 

 

 

 

 

 

 

 

 

Government of Malaysia, Senior Bonds

 

3.835%

 

8/12/15

 

5,360,000

MYR

1,723,861

 

Government of Malaysia, Senior Bonds

 

4.262%

 

9/15/16

 

130,000

MYR

42,692

 

Total Malaysia

 

 

 

 

 

 

 

1,766,553

 

Mexico — 2.8%

 

 

 

 

 

 

 

 

 

Mexican Bonos, Bonds

 

8.000%

 

6/11/20

 

39,289,500

MXN

3,136,857

 

Mexican Bonos, Bonds

 

8.500%

 

11/18/38

 

12,990,000

MXN

1,014,286

 

United Mexican States, Bonds

 

10.000%

 

12/5/24

 

4,800,000

MXN

442,338

 

United Mexican States, Medium-Term Notes

 

5.625%

 

1/15/17

 

160,000

 

184,000

 

United Mexican States, Senior Notes

 

5.125%

 

1/15/20

 

220,000

 

252,340

 

Total Mexico

 

 

 

 

 

 

 

5,029,821

 

Panama — 1.3%

 

 

 

 

 

 

 

 

 

Republic of Panama

 

6.700%

 

1/26/36

 

1,738,000

 

2,255,055

 

Peru — 2.3%

 

 

 

 

 

 

 

 

 

Republic of Peru

 

8.750%

 

11/21/33

 

490,000

 

776,650

 

Republic of Peru, Bonds

 

7.840%

 

8/12/20

 

3,329,000

PEN

1,436,972

 

Republic of Peru, Bonds

 

6.550%

 

3/14/37

 

151,000

 

197,055

 

Republic of Peru, Global Senior Bonds

 

7.350%

 

7/21/25

 

1,200,000

 

1,653,000

(i)

Total Peru

 

 

 

 

 

 

 

4,063,677

 

Philippines — 0.3%

 

 

 

 

 

 

 

 

 

Republic of Philippines, Senior Bonds

 

5.500%

 

3/30/26

 

400,000

 

461,000

 

 

See Notes to Schedule of Investments.

 

12


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT †

 

VALUE

 

Poland — 1.6%

 

 

 

 

 

 

 

 

 

Republic of Poland, Senior Notes

 

6.375%

 

7/15/19

 

900,000

 

$

1,035,324

(c)

Republic of Poland, Senior Notes

 

5.125%

 

4/21/21

 

500,000

 

530,650

 

Republic of Poland, Senior Notes

 

5.000%

 

3/23/22

 

1,270,000

 

1,334,770

 

Total Poland

 

 

 

 

 

 

 

2,900,744

 

Russia — 4.1%

 

 

 

 

 

 

 

 

 

RSHB Capital, Loan Participation Notes, Senior Secured Bonds

 

6.299%

 

5/15/17

 

756,000

 

795,788

(a)(c)

Russian Federation

 

5.625%

 

4/4/42

 

2,600,000

 

2,695,030

(a)

Russian Foreign Bond - Eurobond

 

12.750%

 

6/24/28

 

42,000

 

74,088

(a)

Russian Foreign Bond - Eurobond, Senior Bonds

 

7.500%

 

3/31/30

 

3,177,738

 

3,745,758

(a)(i)

Total Russia

 

 

 

 

 

 

 

7,310,664

 

Sri Lanka — 0.2%

 

 

 

 

 

 

 

 

 

Sri Lanka Government International Bond, Senior Notes

 

6.250%

 

7/27/21

 

390,000

 

383,948

(a)

Turkey — 4.6%

 

 

 

 

 

 

 

 

 

Republic of Turkey, Notes

 

6.750%

 

5/30/40

 

1,175,000

 

1,285,156

 

Republic of Turkey, Senior Bonds

 

11.875%

 

1/15/30

 

575,000

 

968,645

(i)

Republic of Turkey, Senior Notes

 

6.875%

 

3/17/36

 

5,296,000

 

5,845,460

(i)

Total Turkey

 

 

 

 

 

 

 

8,099,261

 

Venezuela — 5.8%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela

 

5.750%

 

2/26/16

 

5,296,000

 

4,554,560

(a)

Bolivarian Republic of Venezuela

 

7.650%

 

4/21/25

 

233,000

 

153,780

 

Bolivarian Republic of Venezuela, Collective Action Securities, Global Senior Bonds

 

9.375%

 

1/13/34

 

1,982,000

 

1,461,725

 

Bolivarian Republic of Venezuela, Collective Action Securities, Notes

 

10.750%

 

9/19/13

 

391,000

 

402,730

 

Bolivarian Republic of Venezuela, Global Senior Bonds

 

8.500%

 

10/8/14

 

3,733,000

 

3,677,005

 

Total Venezuela

 

 

 

 

 

 

 

10,249,800

 

TOTAL SOVEREIGN BONDS (Cost — $65,263,541)

 

 

 

67,224,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES

 

 

 

COMMON STOCKS — 1.2%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.6%

 

 

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure — 0.0%

 

 

 

 

 

 

 

 

 

Bossier Casino Venture Holdco Inc.

 

 

 

 

 

19,194

 

38,388

*(b)(d)

Media — 0.6%

 

 

 

 

 

 

 

 

 

Charter Communications Inc., Class A Shares

 

 

 

 

 

17,631

 

1,105,464

*

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

1,143,852

 

ENERGY — 0.3%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 0.3%

 

 

 

 

 

 

 

 

 

KCAD Holdings I Ltd.

 

 

 

 

 

77,972,021

 

530,366

*(b)(d)

INDUSTRIALS — 0.3%

 

 

 

 

 

 

 

 

 

Marine — 0.3%

 

 

 

 

 

 

 

 

 

DeepOcean Group Holding AS

 

 

 

 

 

26,137

 

444,329

*(b)

Horizon Lines Inc., Class A Shares

 

 

 

 

 

9,758

 

18,052

*

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

462,381

 

TOTAL COMMON STOCKS (Cost — $1,721,602)

 

 

 

2,136,599

 

 

See Notes to Schedule of Investments.

 

13


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

SECURITY

 

RATE

 

 

 

SHARES

 

VALUE

 

CONVERTIBLE PREFERRED STOCKS — 1.2%

 

 

 

 

 

 

 

 

 

FINANCIALS — 1.2%

 

 

 

 

 

 

 

 

 

Diversified Financial Services — 1.2%

 

 

 

 

 

 

 

 

 

Citigroup Inc. (Cost - $2,804,405)

 

7.500%

 

 

 

24,800

 

$

2,085,184

 

PREFERRED STOCKS — 0.6%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.5%

 

 

 

 

 

 

 

 

 

Consumer Finance — 0.5%

 

 

 

 

 

 

 

 

 

GMAC Capital Trust I

 

8.125%

 

 

 

40,749

 

933,967

(f)

Thrifts & Mortgage Finance — 0.0%

 

 

 

 

 

 

 

 

 

Federal National Mortgage Association (FNMA)

 

8.250%

 

 

 

4,925

 

7,437

*(f)

TOTAL FINANCIALS

 

 

 

 

 

 

 

941,404

 

INDUSTRIALS — 0.1%

 

 

 

 

 

 

 

 

 

Road & Rail — 0.1%

 

 

 

 

 

 

 

 

 

Jack Cooper Holdings Corp.

 

20.000%

 

 

 

101,700

 

102,208

(a)(b)

TOTAL PREFERRED STOCKS (Cost — $1,213,025)

 

 

 

1,043,612

 

 

 

 

 

 

EXPIRATION
DATE

 

CONTRACTS/
NOTIONAL
AMOUNT

 

 

 

PURCHASED OPTIONS — 0.2%

 

 

 

 

 

 

 

 

 

Credit default swaption with Banc of America Securities LLC to buy protection on Markit CDX.NA.HY.18 Index, Put @ $92.00

 

 

 

9/19/12

 

8,730,000

 

278,176

 

Credit default swaption with BNP Paribas to buy protection on Markit CDX.NA.HY.18 Index, Put @ $93.00

 

 

 

7/18/12

 

3,710,000

 

81,515

 

TOTAL PURCHASED OPTIONS (Cost — $373,420)

 

 

 

 

 

359,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WARRANTS

 

 

 

WARRANTS — 0.2%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela, Oil-linked payment obligations

 

 

 

4/15/20

 

9,125

 

252,078

 

Buffets Restaurant Holdings

 

 

 

4/28/14

 

498

 

5

*(b)(d)

Charter Communications Inc.

 

 

 

11/30/14

 

641

 

10,897

*(b)

Jack Cooper Holdings Corp.

 

 

 

12/15/17

 

496

 

39,680

*(b)

Jack Cooper Holdings Corp.

 

 

 

5/6/28

 

228

 

18,240

*(b)

Nortek Inc.

 

 

 

12/7/14

 

1,175

 

5,875

*(b)(d)

SemGroup Corp.

 

 

 

11/30/14

 

2,968

 

23,269

*(b)(d)

TOTAL WARRANTS (Cost — $28,729)

 

 

 

 

 

 

 

350,044

 

TOTAL INVESTMENTS — 129.5% (Cost — $228,284,769#)

 

 

 

229,094,193

 

Liabilities in Excess of Other Assets — (29.5)%

 

 

 

 

 

 

 

(52,172,736

)

TOTAL NET ASSETS — 100.0%

 

 

 

 

 

 

 

$

176,921,457

 

 

Face amount denominated in U.S. dollars, unless otherwise noted.

*

Non-income producing security.

(a)

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, unless otherwise noted.

(b)

Security is valued in good faith in accordance with procedures approved by the Board of Directors (See Note 1).

(c)

All or a portion of this security is pledged as collateral pursuant to the loan agreement.

(d)

Illiquid security.

(e)

Payment-in-kind security for which part of the income earned may be paid as additional principal.

(f)

Variable rate security. Interest rate disclosed is as of the most recent information available.

(g)

The coupon payment on these securities is currently in default as of May 31, 2012.

(h)

Value is less than $1.

(i)

All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.

(j)

Security has no maturity date. The date shown represents the next call date.

(k)

Interest rates disclosed represent the effective rates on collateralized senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

 

See Notes to Schedule of Investments.

 

14


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

(l)

All or a portion of this loan is unfunded as of May 31, 2012. The interest rate for fully unfunded term loans is to be determined.

(m)

The security’s interest income payments are contingent upon the performance of Argentina’s GDP. There are no principal payments over the life of the security or upon the expiration of the security.

#

Aggregate cost for federal income tax purposes is substantially the same.

 

 

 

Abbreviations used in this schedule:

 

BRL

- Brazilian Real

 

EUR

- Euro

 

GBP

- British Pound

 

GDP

- Gross Domestic Product

 

IDR

- Indonesian Rupiah

 

MXN

- Mexican Peso

 

MYR

- Malaysian Ringgit

 

OJSC

- Open Joint Stock Company

 

PEN

- Peruvian Nuevo Sol

 

SCHEDULE OF WRITTEN OPTIONS

 

SECURITY

 

EXPIRATION
DATE

 

STRIKE
PRICE

 

NOTIONAL
AMOUNT

 

VALUE

 

Credit default swaption with Banc of America Securities LLC to sell protection on Markit CDX.NA.HY.18 Index, Put

 

9/19/12

 

$

87.00

 

8,730,000

 

$

141,448

 

Credit default swaption with BNP Paribas to sell protection on Markit CDX.NA.HY.18 Index, Put

 

6/20/12

 

94.00

 

2,550,000

 

48,707

 

Credit default swaption with BNP Paribas to sell protection on Markit CDX.NA.HY.18 Index, Put

 

7/18/12

 

88.00

 

3,710,000

 

23,648

 

TOTAL WRITTEN OPTIONS
(Premiums received — $198,183)

 

 

 

$

213,803

 

 

See Notes to Schedule of Investments.

 

15


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

May 31, 2012

 

Summary of Investments by Country **

United States

 

39.1

%

Brazil

 

7.9

 

Mexico

 

6.5

 

Russia

 

5.2

 

Venezuela

 

4.6

 

Turkey

 

3.5

 

Indonesia

 

3.2

 

United Kingdom

 

2.9

 

Colombia

 

2.6

 

Argentina

 

2.5

 

Luxembourg

 

1.9

 

Peru

 

1.8

 

Malaysia

 

1.6

 

Netherlands

 

1.5

 

Panama

 

1.3

 

Poland

 

1.3

 

Chile

 

1.3

 

Ireland

 

1.0

 

India

 

0.8

 

Germany

 

0.8

 

Cayman Islands

 

0.8

 

France

 

0.8

 

Bermuda

 

0.7

 

Australia

 

0.7

 

Canada

 

0.6

 

Italy

 

0.6

 

Kazakhstan

 

0.6

 

South Africa

 

0.5

 

Qatar

 

0.4

 

Norway

 

0.4

 

Sweden

 

0.3

 

United Arab Emirates

 

0.3

 

Mongolia

 

0.3

 

Marshall Islands

 

0.3

 

Belgium

 

0.2

 

Spain

 

0.2

 

Trinidad and Tobago

 

0.2

 

Philippines

 

0.2

 

Sri Lanka

 

0.2

 

China

 

0.2

 

Singapore

 

0.1

 

Austria

 

0.1

 

 

 

100.0

%

 

**As a percentage of total investments. Please note that Fund holdings are as of May 31, 2012 and are subject to change.

 

See Notes to Schedule of Investments.

 

16


 

Notes to schedule of investments (unaudited)

 

1. Organization and significant accounting policies

 

Western Asset Global Partners Income Fund Inc. (the “Fund”) was incorporated in Maryland on September 3, 1993 and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maintain a high level of current income. As a secondary objective, the Fund seeks capital appreciation.

 

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’ internal models 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.  Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). 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 American 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 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 Trustees 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.

 

17


 

Notes to schedule of investments (unaudited) (continued)

 

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.

 

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

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

QUOTED
PRICES

 

OTHER
SIGNIFICANT
OBSERVABLE
INPUTS

 

SIGNIFICANT
UNOBSERVABLE
INPUTS

 

 

 

DESCRIPTION

 

(LEVEL 1)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Long-term investments†:

 

 

 

 

 

 

 

 

 

Corporate bonds & notes

 

 

$

149,558,353

 

$

236,705

 

$

149,795,058

 

Collateralized senior loans

 

 

5,090,195

 

 

5,090,195

 

Convertible bonds & notes

 

 

1,009,109

 

 

1,009,109

 

Sovereign bonds

 

 

67,224,701

 

 

67,224,701

 

Common stocks:

 

 

 

 

 

Consumer discretionary

 

$

1,105,464

 

 

38,388

 

1,143,852

 

Energy

 

 

 

530,366

 

530,366

 

Industrials

 

18,052

 

444,329

 

 

462,381

 

Convertible preferred stocks

 

2,085,184

 

 

 

2,085,184

 

Preferred stocks

 

941,404

 

102,208

 

 

1,043,612

 

Purchased options

 

 

359,691

 

 

 

359,691

 

Warrants

 

 

344,164

 

5,880

 

350,044

 

Total investments

 

$

4,150,104

 

$

224,132,750

 

$

811,339

 

$

229,094,193

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

 

$

1,175,263

 

 

$

1,175,263

 

Credit default swaps on credit indices - buy protection‡

 

 

321,517

 

 

321,517

 

Total other financial instruments

 

 

$

1,496,780

 

 

$

1,496,780

 

Total

 

$

4,150,104

 

$

225,629,530

 

$

811,339

 

$

230,590,973

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

QUOTED
PRICES

 

OTHER
SIGNIFICANT
OBSERVABLE
INPUTS

 

SIGNIFICANT
UNOBSERVABLE
INPUTS

 

 

 

DESCRIPTION

 

(LEVEL 1)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Written options

 

 

$

213,803

 

 

$

213,803

 

Forward foreign currency contracts

 

 

12,903

 

 

12,903

 

Total

 

 

$

226,706

 

 

$

226,706

 

 

†See Schedule of Investments for additional detailed categorizations.

 

18


 

Notes to schedule of investments (unaudited) (continued)

 

‡Values include any premiums paid or received with respect to swap contracts.

 

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON STOCKS

 

 

 

 

 

 

 

CORPORATE

 

 

 

 

 

 

 

 

 

 

 

 

 

BONDS &

 

CONSUMER

 

 

 

 

 

 

 

 

 

INVESTMENTS IN SECURITIES

 

NOTES

 

DISCRETIONARY

 

ENERGY

 

INDUSTRIALS

 

WARRANTS

 

TOTAL

 

Balance as of August 31, 2011

 

$

1,186,662

 

 

$

660,825

 

$

34,830

 

$

2,355

 

$

1,884,672

 

Accrued premiums/discounts

 

2,589

 

 

 

 

 

2,589

 

Realized gain (loss)(1)

 

(4,194

)

 

 

44,999

 

 

40,805

 

Change in unrealized appreciation (depreciation)(2)

 

26,714

 

 

(190,973

)

(34,830

)

3,525

 

(195,564

)

Purchases

 

256,603

 

$

38,388

 

60,514

 

 

 

355,505

 

Sales

 

(1,231,669

)

 

 

(44,999

)

 

(1,276,668

)

Transfers into Level 3

 

 

 

 

 

 

 

Transfers out of Level 3

 

 

 

 

 

 

 

Balance as of May 31, 2012

 

$

236,705

 

$

38,388

 

$

530,366

 

 

$

5,880

 

$

811,339

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at May 31, 2012(2)

 

$

357

 

 

$

(190,973

)

 

$

3,525

 

$

(187,091

)

 

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period.

 

(1) This amount is included in net realized gain (loss) from investment transactions.

(2) Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

 

(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

 

(c) Reverse repurchase agreements. The Fund may enter into reverse repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed-upon time and price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will maintain cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to reverse repurchase agreements or will take other actions permitted by law to cover its obligations.

 

(d) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes.  A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

 

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded.

 

Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

 

19


 

Notes to schedule of investments (unaudited) (continued)

 

(e) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. 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 related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

 

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

 

(f) Swap agreements. The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated with other portfolio transactions.

 

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund’s custodian in compliance with the terms of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments.

 

For average notional amounts of swaps held during the period ended May 31, 2012, see Note 3.

 

Credit default swaps

 

The Fund enters into credit default swap (“CDS”) contracts for investment purposes, to manage its credit risk or to add leverage.  CDS agreements involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has exposure to an issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the term of the swap provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

 

Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. Credit spreads utilized in determining the period end market value of credit default swap agreements on corporate or sovereign issues are disclosed in the Notes to the Schedule of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for credit derivatives. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk.

 

The Fund’s maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty). As the protection seller, the Fund’s maximum risk is the notional amount of the contract. Credit default swaps are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the occurrence of a defined credit event.

 

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the

 

20


 

Notes to schedule of investments (unaudited) (continued)

 

agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

 

Interest rate swaps

 

The Fund enters into interest rate swap contracts to manage its exposure to interest rate risk.  Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional principal amount.  Interest rate swaps are marked-to-market daily based upon quotations from market makers.

 

The risks of interest rate swaps include changes in market conditions that will affect the value of the contract or changes in the present value of the future cash flow streams and the possible inability of the counterparty to fulfill its obligations under the agreement. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that that amount is positive. This risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.

 

(g) Written Options. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Fund’s basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Fund from the exercise of the written put option to form the Fund’s basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in a realized gain or loss to the Fund.

 

The risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

 

(h) Swaptions. The Fund purchases and writes swaption contracts to manage exposure to an underlying instrument. The Fund may also purchase or write options to manage exposure to fluctuations in interest rates or to enhance yield. Swaption contracts written by the Fund represent an option that gives the purchaser the right, but not the obligation, to enter into a previously agreed upon swap contract at a future date. Swaption contracts purchased by the Fund represent an option that gives the Fund the right, but not the obligation, to enter into a previously agreed upon swap contract at a future date.

 

When the Fund writes a swaption, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the swaption written. If the swaption expires, the Fund realizes a gain equal to the amount of the premium received.

 

When the Fund purchases a swaption, an amount equal to the premium paid by the Fund is recorded as an investment on the statement of assets and liabilities, the value of which is marked-to-market daily to reflect the current market value of the swaption purchased. If the swaption expires, the Fund realizes a loss equal to the amount of the premium paid.

 

Swaptions are marked-to-market daily based upon quotations from market makers.

 

(i) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction.  A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

 

21


 

Notes to schedule of investments (unaudited) (continued)

 

When entering into a forward foreign currency contract, the Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

 

(j) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation.  Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

 

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

 

(k) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investment in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investment in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

 

(l) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

 

(m) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s investment manager attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the investment manager. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

 

The Fund has entered into master agreements with certain of its derivative counterparties that provide for general obligations, representations, agreements, collateral, events of default or termination and credit related contingent features.  The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time.  If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

 

As of May 31, 2012, the Fund held written options and forward foreign currency contracts with credit related contingent features which had a liability position of $226,706. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

 

(n) Security transactions.  Security transactions are accounted for on a trade date basis.

 

2.  Investments

 

At May 31, 2012, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$

14,871,162

 

Gross unrealized depreciation

 

(14,061,738

)

Net unrealized appreciation

 

$

809,424

 

 

22


 

Notes to schedule of investments (unaudited) (continued)

 

During the period ended May 31, 2012, written option transactions for the Fund were as follows:

 

 

 

Number of Contracts

 

Premiums

 

Written options, outstanding as of August 31, 2011

 

66,660,000

 

$

1,006,530

 

Options written

 

66,966,400

 

1,014,806

 

Options closed

 

(30,478,000

)

(609,560

)

Options exercised

 

 

 

Options expired

 

(88,158,400

)

(1,213,593

)

Written options, outstanding as of May 31, 2012

 

14,990,000

 

$

198,183

 

 

Transactions in reverse repurchase agreements for the Fund during the period ended May 31, 2012 were as follows:

 

Average

 

Weighted

 

Maximum

Daily

 

Average

 

Amount

Balance*

 

Interest Rate*

 

Outstanding

$

18,258,937

 

0.76%

 

$

35,353,756

 

* Averages based on the number of days that Fund had reverse repurchase agreements outstanding.

 

Interest rates on reverse repurchase agreements ranged from 0.10% to 1.00% during the period ended May 31, 2012. Interest expense incurred on reverse repurchase agreements totaled $104,510.

 

At May 31, 2012, the Fund had the following open reverse repurchase agreements:

 

Counterparty

 

Rate

 

Effective Date

 

Maturity Date

 

Face Amount of
Reverse
Repurchase
Agreements

 

JPMorgan Chase Bank

 

0.75

%

5/16/2012

 

TBD*

 

$

1,004,159

 

JPMorgan Chase Bank

 

1.00

%

5/16/2012

 

TBD*

 

968,000

 

Credit Suisse

 

0.65

%

5/18/2012

 

TBD*

 

1,484,584

 

Credit Suisse

 

0.75

%

5/18/2012

 

TBD*

 

10,919,335

 

Credit Suisse

 

0.85

%

5/18/2012

 

TBD*

 

4,672,023

 

 

 

 

 

 

 

 

 

$

19,048,101

 

 

* TBD — To Be Determined; These reverse repurchase agreements have no maturity dates because they are renewed daily and can be terminated by either the Fund or the counterparty in accordance with the terms of the agreements.

 

On May 31, 2012, the total market value of underlying collateral (refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements) for open reverse repurchase agreements was $22,184,247.

 

At May 31, 2012, the Fund had the following open forward foreign currency contracts:

 

FOREIGN CURRENCY

 

COUNTERPARTY

 

LOCAL
CURRENCY

 

MARKET
VALUE

 

SETTLEMENT
DATE

 

UNREALIZED
GAIN (LOSS)

 

Contracts to Buy:

 

 

 

 

 

 

 

 

 

 

 

Brazilian Real

 

JPMorgan Chase Bank

 

3,164,360

 

$

1,565,231

 

6/15/12

 

$

(7,201

)

Euro

 

BNP Paribas SA

 

100,000

 

123,718

 

8/16/12

 

(5,702

)

 

 

 

 

 

 

 

 

 

 

(12,903

)

Contracts to Sell:

 

 

 

 

 

 

 

 

 

 

 

Brazilian Real

 

JPMorgan Chase Bank

 

3,164,360

 

1,565,230

 

6/15/12

 

37,383

 

British Pound

 

Citibank N.A.

 

959,613

 

1,478,459

 

8/16/12

 

68,860

 

British Pound

 

UBS AG

 

760,367

 

1,171,484

 

8/16/12

 

57,041

 

Euro

 

BNP Paribas SA

 

1,607,030

 

1,988,189

 

8/16/12

 

125,375

 

Euro

 

Citibank N.A.

 

266,373

 

329,552

 

8/16/12

 

15,964

 

Euro

 

Citibank N.A.

 

2,355,654

 

2,914,374

 

8/16/12

 

148,966

 

Euro

 

UBS AG

 

9,433,049

 

11,670,399

 

8/16/12

 

721,674

 

 

 

 

 

 

 

 

 

 

 

1,175,263

 

Net unrealized gain on open forward foreign currency contracts

 

 

 

 

 

$

1,162,360

 

 

23


 

Notes to schedule of investments (unaudited) (continued)

 

At May 31, 2012, the Fund held the following swap contracts:

 

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION(1)

SWAP COUNTERPARTY
(REFERENCE ENTITY)

 

NOTIONAL
AMOUNT
(2)

 

TERMINATION
DATE

 

PERIODIC
PAYMENTS
MADE BY THE
FUND

 

MARKET
VALUE
(3)

 

UPFRONT
PREMIUMS
PAID

 

UNREALIZED
APPRECIATION

 

BNP Paribas (MARKIT CDX.NA.HY.17 Index)

 

$

1,746,000

 

12/20/16

 

5.000% quarterly

 

$

100,552

 

$

47,163

 

$

53,389

 

BNP Paribas (MARKIT CDX.NA.HY.17 Index)

 

679,000

 

12/20/16

 

5.000% quarterly

 

39,104

 

19,139

 

19,965

 

BNP Paribas (MARKIT CDX.NA.HY.17 Index)

 

48,500

 

12/20/16

 

5.000% quarterly

 

2,793

 

1,396

 

1,397

 

BNP Paribas (MARKIT CDX.NA.HY.18 Index)

 

2,550,000

 

6/20/17

 

5.000% quarterly

 

179,068

 

116,685

 

62,383

 

Total

 

$

5,023,500

 

 

 

 

 

$

321,517

 

$

184,383

 

$

137,134

 

 

(1) If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or the underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or the underlying securities comprising the referenced index.

(2) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

(3) The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection) when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

†  Percentage shown is an annual percentage rate.

At May 31, 2012, the Fund held collateral received from BNP Paribas in the amount of $410,238 on credit default swap contracts valued at $321,517.  Net exposure to the counterparty was $(88,721).  Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default.

 

3. Derivative instruments and hedging activities

 

Financial Accounting Standards Board Codification Topic 815 requires enhanced disclosure about an entity’s derivative and hedging activities.

 

The following is a summary of the Fund’s derivative instruments categorized by risk exposure at May 31, 2012.

 

 

 

 

 

 

 

Forward Foreign Currency
Contracts

 

 

 

 

 

 

 

Purchased

 

Written 

 

 

 

Swap 

 

 

 

Primary Underlying

 

Options, at 

 

Options, at

 

Unrealized

 

Unrealized

 

Contracts,

 

 

 

Risk Disclosure

 

value

 

value

 

Appreciation

 

Depreciation

 

at value

 

Total

 

Foreign Exchange Risk

 

 

 

$

1,175,263

 

$

(12,903

)

 

$

1,162,360

 

Credit Risk

 

$

359,691

 

$

(213,803

)

 

 

$

321,517

 

467,405

 

Total

 

$

359,691

 

$

(213,803

)

$

1,175,263

 

$

(12,903

)

$

321,517

 

$

1,629,765

 

 

During the period ended May 31, 2012, the volume of derivative activity for the Fund was as follows:

 

24


 

Notes to schedule of investments (unaudited) (continued)

 

 

 

Average Market
Value

 

Purchased options

 

$

199,734

 

Written options

 

182,052

 

Futures contracts (to sell)†

 

2,316,136

 

Forward foreign currency contracts (to buy)

 

1,164,309

 

Forward foreign currency contracts (to sell)

 

23,322,327

 

 

 

 

 

 

 

 

Average Notional
Balance

 

Interest rate swap contracts†

 

$

456,199

 

Credit default swap contracts (to buy protection)

 

2,194,100

 

 

†At May 31, 2012, there were no open positions held in this derivative.

 

4. Recent accounting pronouncement

 

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU No. 2011-04”).  ASU No. 2011-04 establishes common requirements for measuring fair value and for disclosing information about fair value measurements. ASU No. 2011-04 is effective during interim and annual periods beginning after December 15, 2011. Management has evaluated ASU No. 2011-04 and concluded that it does not materially impact the financial statement amounts; however, as required, additional disclosure has been included about fair value measurement.

 

25


 

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 Global Partners Income Fund Inc.

 

 

By

/s/ R. Jay Gerken

 

 

R. Jay Gerken

 

 

Chief Executive Officer

 

 

Date: July 26, 2012

 

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/ R. Jay Gerken

 

 

R. Jay Gerken

 

 

Chief Executive Officer

 

 

Date: July 26, 2012

 

By

/s/ Richard F. Sennett

 

 

Richard F. Sennett

 

 

Principal Financial Officer

 

 

Date: July 26, 2012