N-Q 1 a13-3000_2nq.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:

November 30, 2012

 

 



 

ITEM 1.                 SCHEDULE OF INVESTMENTS.

 



 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

FORM N-Q

NOVEMBER 30, 2012

 

 


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

CORPORATE BONDS & NOTES — 82.0%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 13.7%

 

 

 

 

 

 

 

 

 

Auto Components — 0.4%

 

 

 

 

 

 

 

 

 

American Axle & Manufacturing Inc., Senior Notes

 

6.625%

 

10/15/22

 

170,000

 

$

173,400

 

Europcar Groupe SA

 

11.500%

 

5/15/17

 

100,000

EUR

129,405

(a)

Europcar Groupe SA, Senior Notes

 

9.375%

 

4/15/18

 

500,000

EUR

528,349

(a)(b)

Total Auto Components

 

 

 

 

 

 

 

831,154

 

Automobiles — 0.5%

 

 

 

 

 

 

 

 

 

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

 

8.250%

 

6/15/21

 

660,000

 

730,125

(b)

Escrow GCB General Motors

 

—    

 

 

480,000

 

0

*(c)(d)(e)

Escrow GCB General Motors

 

—    

 

 

1,105,000

 

0

*(c)(d)(e)

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

 

9.500%

 

12/1/19

 

120,000

 

135,600

(a)(b)

Total Automobiles

 

 

 

 

 

 

 

865,725

 

Diversified Consumer Services — 0.7%

 

 

 

 

 

 

 

 

 

Laureate Education Inc., Senior Notes

 

9.250%

 

9/1/19

 

230,000

 

235,750

(a)

Service Corp. International, Senior Notes

 

7.500%

 

4/1/27

 

290,000

 

310,300

(b)

ServiceMaster Co., Senior Notes

 

8.000%

 

2/15/20

 

160,000

 

163,600

(b)

ServiceMaster Co., Senior Notes

 

7.000%

 

8/15/20

 

550,000

 

541,062

(a)

Total Diversified Consumer Services

 

 

 

 

 

 

 

1,250,712

 

Hotels, Restaurants & Leisure — 4.3%

 

 

 

 

 

 

 

 

 

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

 

9.000%

 

5/15/18

 

270,000

 

282,150

(a)

Bossier Casino Venture Holdco Inc., Senior Secured Bonds

 

14.000%

 

2/9/18

 

286,636

 

256,726

(a)(c)(d)(f)

Boyd Gaming Corp., Senior Notes

 

9.125%

 

12/1/18

 

80,000

 

81,000

(b)

Boyd Gaming Corp., Senior Notes

 

9.000%

 

7/1/20

 

400,000

 

396,000

(a)

Caesars Entertainment Operating Co. Inc., Senior Notes

 

10.750%

 

2/1/16

 

1,404,000

 

1,084,590

(b)

Carrols Restaurant Group Inc., Senior Secured Notes

 

11.250%

 

5/15/18

 

320,000

 

352,800

(a)(b)

CCM Merger Inc., Senior Notes

 

9.125%

 

5/1/19

 

320,000

 

321,600

(a)

Downstream Development Quapaw, Senior Secured Notes

 

10.500%

 

7/1/19

 

300,000

 

328,500

(a)(b)

El Pollo Loco Inc., Secured Notes

 

17.000%

 

1/1/18

 

259,887

 

279,379

(a)(f)

Enterprise Inns PLC, Senior Secured Bonds

 

6.500%

 

12/6/18

 

494,000

GBP

731,470

 

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

 

11.250%

 

4/1/17

 

370,000

 

340,400

(a)

Landry’s Inc., Senior Notes

 

9.375%

 

5/1/20

 

300,000

 

319,500

(a)

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

 

12.000%

 

6/1/17

 

280,000

 

290,150

(a)

MGM Resorts International, Senior Notes

 

5.875%

 

2/27/14

 

360,000

 

376,200

 

MGM Resorts International, Senior Secured Notes

 

10.375%

 

5/15/14

 

40,000

 

44,900

(b)

MGM Resorts International, Senior Secured Notes

 

11.125%

 

11/15/17

 

95,000

 

104,737

(b)

Mohegan Tribal Gaming Authority, Senior Secured Notes

 

10.500%

 

12/15/16

 

770,000

 

735,350

(a)(b)

NCL Corp. Ltd., Senior Notes

 

9.500%

 

11/15/18

 

560,000

 

620,900

(b)

NCL Corp. Ltd., Senior Secured Notes

 

11.750%

 

11/15/16

 

480,000

 

547,200

(b)

Pinnacle Entertainment Inc., Senior Notes

 

8.625%

 

8/1/17

 

250,000

 

270,937

(b)

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

 

9.500%

 

6/15/19

 

80,000

 

86,200

(a)(b)

Seven Seas Cruises S de RL LLC, Senior Secured Notes

 

9.125%

 

5/15/19

 

450,000

 

470,250

(b)

Snoqualmie Entertainment Authority, Senior Secured Notes

 

9.125%

 

2/1/15

 

8,000

 

8,120

(a)

Total Hotels, Restaurants & Leisure

 

 

 

 

 

 

 

8,329,059

 

Household Durables — 0.1%

 

 

 

 

 

 

 

 

 

William Lyon Homes Inc., Senior Notes

 

8.500%

 

11/15/20

 

270,000

 

275,400

(a)

 

See Notes to Schedule of Investments.

 

1


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Internet & Catalog Retail — 0.2%

 

 

 

 

 

 

 

 

 

Netflix Inc., Senior Notes

 

8.500%

 

11/15/17

 

360,000

 

$

388,350

(b)

Media — 5.2%

 

 

 

 

 

 

 

 

 

Carmike Cinemas Inc., Secured Notes

 

7.375%

 

5/15/19

 

120,000

 

129,000

(b)

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

 

6.625%

 

1/31/22

 

1,700,000

 

1,857,250

(b)

Cengage Learning Acquisitions Inc., Senior Secured Notes

 

11.500%

 

4/15/20

 

460,000

 

384,100

(a)(b)

Clear Channel Worldwide Holdings Inc., Senior Notes

 

6.500%

 

11/15/22

 

230,000

 

232,300

(a)

Clear Channel Worldwide Holdings Inc., Senior Notes

 

6.500%

 

11/15/22

 

110,000

 

110,000

(a)

Clear Channel Worldwide Holdings Inc., Senior Subordinated Notes

 

7.625%

 

3/15/20

 

220,000

 

216,700

 

Clear Channel Worldwide Holdings Inc., Senior Subordinated Notes

 

7.625%

 

3/15/20

 

30,000

 

29,100

 

DISH DBS Corp., Senior Notes

 

6.625%

 

10/1/14

 

30,000

 

32,475

(b)

DISH DBS Corp., Senior Notes

 

7.875%

 

9/1/19

 

285,000

 

338,438

(b)

Good Sam Enterprises LLC, Secured Notes

 

11.500%

 

12/1/16

 

380,000

 

408,500

(b)

Grupo Televisa SA, Senior Bonds

 

6.625%

 

1/15/40

 

570,000

 

743,914

(b)

LBI Media Inc., Senior Secured Notes

 

9.250%

 

4/15/19

 

270,000

 

254,475

(a)

Nara Cable Funding Ltd., Senior Secured Notes

 

8.875%

 

12/1/18

 

500,000

EUR

634,019

(a)

NET Servicos de Comunicacao SA, Bonds

 

7.500%

 

1/27/20

 

610,000

 

706,075

(b)

Ono Finance II PLC, Senior Bonds

 

10.875%

 

7/15/19

 

579,000

 

512,415

(a)(b)

Polish Television Holding BV, Senior Secured Bonds, step bond

 

11.250%

 

5/15/17

 

300,000

EUR

418,647

(a)(b)

TVN Finance Corp. III AB, Senior Notes

 

7.875%

 

11/15/18

 

100,000

EUR

137,533

(a)

Univision Communications Inc., Senior Notes

 

8.500%

 

5/15/21

 

90,000

 

93,150

(a)

Univision Communications Inc., Senior Secured Notes

 

6.875%

 

5/15/19

 

190,000

 

196,650

(a)

Univision Communications Inc., Senior Secured Notes

 

7.875%

 

11/1/20

 

290,000

 

311,025

(a)(b)

Univision Communications Inc., Senior Secured Notes

 

6.750%

 

9/15/22

 

390,000

 

395,850

(a)

UPC Holding BV, Junior Secured Subordinated Notes

 

6.375%

 

9/15/22

 

100,000

EUR

127,454

(a)

UPC Holding BV, Senior Notes

 

9.875%

 

4/15/18

 

180,000

 

202,275

(a)(b)

UPCB Finance II Ltd., Senior Notes

 

6.375%

 

7/1/20

 

500,000

EUR

681,163

(a)

Ziggo Bond Co. BV, Senior Notes

 

8.000%

 

5/15/18

 

650,000

EUR

932,430

(a)(b)

Total Media

 

 

 

 

 

 

 

10,084,938

 

Multiline Retail — 0.3%

 

 

 

 

 

 

 

 

 

Bon-Ton Department Stores Inc., Senior Notes

 

10.250%

 

3/15/14

 

60,000

 

59,775

 

Bon-Ton Department Stores Inc., Senior Secured Notes

 

10.625%

 

7/15/17

 

180,000

 

173,700

(a)

Neiman Marcus Group Inc., Senior Secured Notes

 

7.125%

 

6/1/28

 

310,000

 

306,900

(b)

Total Multiline Retail

 

 

 

 

 

 

 

540,375

 

Specialty Retail — 1.3%

 

 

 

 

 

 

 

 

 

American Greetings Corp., Senior Notes

 

7.375%

 

12/1/21

 

290,000

 

303,413

(b)

Edcon Proprietary Ltd., Senior Secured Notes

 

9.500%

 

3/1/18

 

825,000

EUR

1,003,212

(a)

Gymboree Corp., Senior Notes

 

9.125%

 

12/1/18

 

520,000

 

479,700

 

Michaels Stores Inc., Senior Subordinated Bonds

 

11.375%

 

11/1/16

 

350,000

 

367,062

(b)

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

 

11.000%

 

5/1/17

 

270,000

 

287,550

(a)(b)

Total Specialty Retail

 

 

 

 

 

 

 

2,440,937

 

Textiles, Apparel & Luxury Goods — 0.7%

 

 

 

 

 

 

 

 

 

Boardriders SA, Senior Notes

 

8.875%

 

12/15/17

 

700,000

EUR

960,457

(a)

 

See Notes to Schedule of Investments.

 

2


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Textiles, Apparel & Luxury Goods — continued

 

 

 

 

 

 

 

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

 

11.375%

 

2/1/17

 

290,000

 

$

311,025

(a)(b)

Total Textiles, Apparel & Luxury Goods

 

 

 

 

 

 

 

1,271,482

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

26,278,132

 

CONSUMER STAPLES — 1.9%

 

 

 

 

 

 

 

 

 

Food & Staples Retailing — 0.4%

 

 

 

 

 

 

 

 

 

Post Holdings Inc., Senior Notes

 

7.375%

 

2/15/22

 

710,000

 

762,362

(a)(b)

Food Products — 0.9%

 

 

 

 

 

 

 

 

 

Boparan Holdings Ltd., Senior Notes

 

9.875%

 

4/30/18

 

400,000

GBP

714,559

(a)(b)

Foodcorp Ltd., Senior Secured Notes

 

8.750%

 

3/1/18

 

230,000

EUR

321,935

(a)

Harmony Foods Corp., Senior Secured Notes

 

10.000%

 

5/1/16

 

140,000

 

149,800

(a)(b)

Simmons Foods Inc., Senior Secured Notes

 

10.500%

 

11/1/17

 

630,000

 

552,825

(a)(b)

Total Food Products

 

 

 

 

 

 

 

1,739,119

 

Household Products — 0.1%

 

 

 

 

 

 

 

 

 

Spectrum Brands Escrow Corp., Senior Notes

 

6.375%

 

11/15/20

 

90,000

 

93,600

(a)

Spectrum Brands Escrow Corp., Senior Notes

 

6.625%

 

11/15/22

 

150,000

 

157,500

(a)

Total Household Products

 

 

 

 

 

 

 

251,100

 

Personal Products — 0.2%

 

 

 

 

 

 

 

 

 

Hypermarcas SA, Notes

 

6.500%

 

4/20/21

 

260,000

 

279,500

(a)(b)

Prestige Brands Inc., Senior Notes

 

8.125%

 

2/1/20

 

50,000

 

56,375

(b)

Total Personal Products

 

 

 

 

 

 

 

335,875

 

Tobacco — 0.3%

 

 

 

 

 

 

 

 

 

Alliance One International Inc., Senior Notes

 

10.000%

 

7/15/16

 

550,000

 

572,688

(b)

TOTAL CONSUMER STAPLES

 

 

 

 

 

 

 

3,661,144

 

ENERGY — 17.6%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 1.3%

 

 

 

 

 

 

 

 

 

Atwood Oceanics Inc., Senior Notes

 

6.500%

 

2/1/20

 

170,000

 

182,325

(b)

GulfMark Offshore Inc., Senior Notes

 

6.375%

 

3/15/22

 

280,000

 

286,300

(a)

Hercules Offshore Inc., Senior Notes

 

10.250%

 

4/1/19

 

210,000

 

222,600

(a)

Hercules Offshore Inc., Senior Secured Notes

 

10.500%

 

10/15/17

 

575,000

 

613,812

(a)(b)

Parker Drilling Co., Senior Notes

 

9.125%

 

4/1/18

 

400,000

 

428,000

(b)

Petroleum Geo-Services ASA, Senior Notes

 

7.375%

 

12/15/18

 

200,000

 

211,000

(a)(b)

SESI LLC, Senior Notes

 

7.125%

 

12/15/21

 

330,000

 

368,775

(b)

Vantage Drilling Co., Senior Secured Notes

 

11.500%

 

8/1/15

 

168,000

 

185,220

 

Total Energy Equipment & Services

 

 

 

 

 

 

 

2,498,032

 

Oil, Gas & Consumable Fuels — 16.3%

 

 

 

 

 

 

 

 

 

Arch Coal Inc., Senior Notes

 

8.750%

 

8/1/16

 

440,000

 

446,600

 

Arch Coal Inc., Senior Notes

 

9.875%

 

6/15/19

 

160,000

 

162,000

(a)

Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp., Senior Notes

 

6.625%

 

10/1/20

 

120,000

 

125,400

(a)

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

 

9.375%

 

5/1/19

 

240,000

 

259,800

(b)

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

 

9.375%

 

5/1/19

 

90,000

 

97,425

(b)

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

 

9.625%

 

8/1/20

 

160,000

 

174,400

(a)(b)

Carrizo Oil & Gas Inc., Senior Notes

 

7.500%

 

9/15/20

 

280,000

 

285,600

 

Compagnie Generale de Geophysique-Veritas, Senior Notes

 

7.750%

 

5/15/17

 

420,000

 

437,062

(b)

Comstock Resources Inc., Senior Notes

 

9.500%

 

6/15/20

 

250,000

 

266,875

(b)

CONSOL Energy Inc., Senior Notes

 

8.250%

 

4/1/20

 

480,000

 

514,800

(b)

Corral Petroleum Holdings AB, Senior Notes

 

15.000%

 

12/31/17

 

484,457

 

371,821

(a)(c)(f)

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

 

8.875%

 

2/15/18

 

250,000

 

272,500

(b)

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

 

7.125%

 

6/1/22

 

250,000

 

256,250

(a)

 

See Notes to Schedule of Investments.

 

3


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Oil, Gas & Consumable Fuels — continued

 

 

 

 

 

 

 

 

 

Denbury Resources Inc., Senior Subordinated Notes

 

8.250%

 

2/15/20

 

100,000

 

$

113,500

(b)

Dolphin Energy Ltd., Senior Secured Bonds

 

5.888%

 

6/15/19

 

568,284

 

642,161

(a)(b)

Ecopetrol SA, Senior Notes

 

7.625%

 

7/23/19

 

1,000,000

 

1,295,000

(b)

Energy Transfer Equity LP, Senior Notes

 

7.500%

 

10/15/20

 

370,000

 

421,800

(b)

Enterprise Products Operating LLP, Junior Subordinated Notes

 

8.375%

 

8/1/66

 

250,000

 

283,351

(b)(g)

Enterprise Products Operating LLP, Subordinated Notes

 

7.034%

 

1/15/68

 

260,000

 

293,468

(b)(g)

EP Energy AS, Senior Secured Notes

 

5.875%

 

11/1/19

 

310,000

EUR

428,369

(a)

EXCO Resources Inc., Senior Notes

 

7.500%

 

9/15/18

 

190,000

 

180,500

(b)

Halcon Resources Corp., Senior Notes

 

9.750%

 

7/15/20

 

360,000

 

383,400

(a)

Halcon Resources Corp., Senior Notes

 

8.875%

 

5/15/21

 

210,000

 

217,875

(a)

Hiland Partners LP/Hiland Partners Finance Corp., Senior Notes

 

7.250%

 

10/1/20

 

130,000

 

136,663

(a)

KazMunayGas Finance Sub BV, Senior Notes

 

8.375%

 

7/2/13

 

1,340,000

 

1,393,479

(a)(b)

Kodiak Oil & Gas Corp., Senior Notes

 

8.125%

 

12/1/19

 

320,000

 

350,400

 

Magnum Hunter Resources Corp., Senior Notes

 

9.750%

 

5/15/20

 

200,000

 

206,000

(a)

Milagro Oil & Gas Inc., Secured Notes

 

10.500%

 

5/15/16

 

380,000

 

286,900

 

Novatek Finance Ltd., Notes

 

6.604%

 

2/3/21

 

460,000

 

541,503

(a)(b)

Offshore Group Investment Ltd., Senior Secured Notes

 

7.500%

 

11/1/19

 

130,000

 

131,300

(a)

Overseas Shipholding Group Inc., Senior Notes

 

8.750%

 

12/1/13

 

190,000

 

75,050

(h)

Overseas Shipholding Group Inc., Senior Notes

 

8.125%

 

3/30/18

 

705,000

 

289,050

(h)

Pacific Drilling V Ltd., Senior Secured Notes

 

7.250%

 

12/1/17

 

270,000

 

275,738

(a)

Pacific Rubiales Energy Corp., Senior Notes

 

7.250%

 

12/12/21

 

480,000

 

559,824

(a)(b)

Pan American Energy LLC, Senior Notes

 

7.875%

 

5/7/21

 

320,000

 

267,200

(a)(b)

Pan American Energy LLC, Senior Notes

 

7.875%

 

5/7/21

 

196,000

 

163,660

(a)

Peabody Energy Corp., Senior Notes

 

7.875%

 

11/1/26

 

330,000

 

356,400

(b)

Petrobras International Finance Co., Senior Notes

 

5.375%

 

1/27/21

 

450,000

 

508,315

(b)

Petrobras International Finance Co., Senior Notes

 

6.875%

 

1/20/40

 

870,000

 

1,113,283

(b)

Petrobras International Finance Co., Senior Notes

 

6.750%

 

1/27/41

 

390,000

 

495,113

(b)

Petroleos Mexicanos, Notes

 

8.000%

 

5/3/19

 

4,280,000

 

5,633,550

(b)

Petroleos Mexicanos, Senior Bonds

 

5.500%

 

6/27/44

 

750,000

 

826,875

(a)

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

 

9.750%

 

8/14/19

 

390,000

 

519,675

(a)(b)

Petronas Capital Ltd.

 

5.250%

 

8/12/19

 

1,555,000

 

1,874,949

(a)(b)

Pioneer Energy Services Corp., Senior Notes

 

9.875%

 

3/15/18

 

40,000

 

43,500

(b)

Plains Exploration & Production Co., Senior Notes

 

10.000%

 

3/1/16

 

325,000

 

347,344

(b)

Plains Exploration & Production Co., Senior Notes

 

8.625%

 

10/15/19

 

330,000

 

369,600

(b)

PT Adaro Indonesia, Senior Notes

 

7.625%

 

10/22/19

 

110,000

 

122,650

(a)(b)

PT Pertamina Persero, Notes

 

5.250%

 

5/23/21

 

570,000

 

640,537

(a)(b)

Quicksilver Resources Inc., Senior Notes

 

11.750%

 

1/1/16

 

840,000

 

837,900

(b)

Range Resources Corp., Senior Subordinated Notes

 

8.000%

 

5/15/19

 

10,000

 

11,050

(b)

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

 

6.750%

 

9/30/19

 

570,000

 

718,200

(a)(b)

Reliance Holdings USA Inc., Senior Notes

 

4.500%

 

10/19/20

 

530,000

 

552,050

(a)

Samson Investment Co., Senior Notes

 

9.750%

 

2/15/20

 

710,000

 

754,375

(a)

SandRidge Energy Inc., Senior Notes

 

7.500%

 

3/15/21

 

110,000

 

115,225

 

SandRidge Energy Inc., Senior Notes

 

7.500%

 

2/15/23

 

240,000

 

250,800

 

Shelf Drilling Holdings Ltd., Senior Secured Notes

 

8.625%

 

11/1/18

 

210,000

 

212,100

(a)

Sidewinder Drilling Inc., Senior Notes

 

9.750%

 

11/15/19

 

130,000

 

130,000

(a)

Teekay Corp., Senior Notes

 

8.500%

 

1/15/20

 

455,000

 

481,162

(b)

TNK-BP Finance SA, Senior Notes

 

7.875%

 

3/13/18

 

880,000

 

1,069,306

(a)(b)

Westmoreland Coal Co./Westmoreland Partners, Senior Secured Notes

 

10.750%

 

2/1/18

 

340,000

 

341,700

 

Xinergy Ltd., Senior Secured Notes

 

9.250%

 

5/15/19

 

560,000

 

305,200

(a)

Total Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

31,237,583

 

TOTAL ENERGY

 

 

 

 

 

 

 

33,735,615

 

 

See Notes to Schedule of Investments.

 

4


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

FINANCIALS — 5.4%

 

 

 

 

 

 

 

 

 

Capital Markets — 0.2%

 

 

 

 

 

 

 

 

 

Goldman Sachs Group Inc., Subordinated Notes

 

6.750%

 

10/1/37

 

300,000

 

$

334,878

(b)

Commercial Banks — 1.5%

 

 

 

 

 

 

 

 

 

Barclays Bank PLC, Subordinated Notes

 

10.179%

 

6/12/21

 

470,000

 

633,022

(a)(b)

BBVA US Senior SAU, Senior Notes

 

4.664%

 

10/9/15

 

200,000

 

203,705

 

Credit Agricole SA, Subordinated Notes

 

8.375%

 

10/13/19

 

290,000

 

301,963

(a)(b)(g)(i)

Intesa Sanpaolo SpA, Senior Notes

 

3.625%

 

8/12/15

 

940,000

 

936,241

(a)(b)

Royal Bank of Scotland Group PLC, Junior Subordinated Bonds

 

7.648%

 

9/30/31

 

200,000

 

201,500

(g)(i)

Royal Bank of Scotland Group PLC, Subordinated Notes

 

5.000%

 

10/1/14

 

410,000

 

423,509

(b)

Santander Issuances SAU, Notes

 

5.911%

 

6/20/16

 

200,000

 

205,475

(a)

Total Commercial Banks

 

 

 

 

 

 

 

2,905,415

 

Consumer Finance — 0.6%

 

 

 

 

 

 

 

 

 

Ally Financial Inc., Senior Bonds

 

0.000%

 

12/1/12

 

400,000

 

400,000

(b)

Ally Financial Inc., Senior Notes

 

8.000%

 

3/15/20

 

160,000

 

197,600

(b)

GMAC International Finance BV, Senior Bonds

 

7.500%

 

4/21/15

 

410,000

EUR

580,603

(b)

Total Consumer Finance

 

 

 

 

 

 

 

1,178,203

 

Diversified Financial Services — 2.5%

 

 

 

 

 

 

 

 

 

Bankrate Inc., Senior Secured Notes

 

11.750%

 

7/15/15

 

660,000

 

734,250

(b)

Boats Investments (Netherlands) BV, Secured Notes

 

7.722%

 

12/15/15

 

699,402

EUR

259,238

(f)(g)

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

 

10.250%

 

8/15/39

 

310,000

 

313,100

(b)

International Lease Finance Corp., Medium-Term Notes

 

6.375%

 

3/25/13

 

296,000

 

300,440

(b)

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

 

5.625%

 

9/20/13

 

460,000

 

474,375

 

International Lease Finance Corp., Senior Notes

 

8.625%

 

9/15/15

 

70,000

 

78,225

(b)

International Lease Finance Corp., Senior Notes

 

8.875%

 

9/1/17

 

980,000

 

1,141,700

(b)

International Lease Finance Corp., Senior Notes

 

8.250%

 

12/15/20

 

90,000

 

104,994

(b)

Nationstar Mortgage LLC/Nationstar Capital Corp., Senior Notes

 

7.875%

 

10/1/20

 

380,000

 

395,675

(a)

TransUnion Holding Co. Inc., Senior Notes

 

8.125%

 

6/15/18

 

120,000

 

121,800

(a)(f)

TransUnion Holding Co. Inc., Senior Notes

 

9.625%

 

6/15/18

 

310,000

 

328,600

 

ZFS Finance USA Trust II, Bonds

 

6.450%

 

12/15/65

 

500,000

 

535,000

(a)(b)(g)

Total Diversified Financial Services

 

 

 

 

 

 

 

4,787,397

 

Insurance — 0.6%

 

 

 

 

 

 

 

 

 

American International Group Inc., Senior Notes

 

8.250%

 

8/15/18

 

450,000

 

586,711

(b)

ING Capital Funding Trust III, Junior Subordinated Bonds

 

3.962%

 

3/31/13

 

100,000

 

95,944

(g)(i)

Liberty Mutual Group Inc., Junior Subordinated Bonds

 

7.800%

 

3/15/37

 

200,000

 

223,000

(a)(b)

MetLife Capital Trust IV, Junior Subordinated Notes

 

7.875%

 

12/15/37

 

250,000

 

307,500

(a)(b)

Total Insurance

 

 

 

 

 

 

 

1,213,155

 

TOTAL FINANCIALS

 

 

 

 

 

 

 

10,419,048

 

HEALTH CARE — 4.6%

 

 

 

 

 

 

 

 

 

Health Care Equipment & Supplies — 0.4%

 

 

 

 

 

 

 

 

 

Hologic Inc., Senior Notes

 

6.250%

 

8/1/20

 

160,000

 

170,800

(a)(b)

Ontex IV SA, Senior Notes

 

9.000%

 

4/15/19

 

300,000

EUR

400,895

(a)

Ontex IV SA, Senior Notes

 

9.000%

 

4/15/19

 

200,000

EUR

267,263

(a)

Total Health Care Equipment & Supplies

 

 

 

 

 

 

 

838,958

 

Health Care Providers & Services — 3.4%

 

 

 

 

 

 

 

 

 

Acadia Healthcare Co. Inc., Senior Notes

 

12.875%

 

11/1/18

 

470,000

 

566,350

(b)

American Renal Holdings, Senior Secured Notes

 

8.375%

 

5/15/18

 

300,000

 

318,750

(b)

AMERIGROUP Corp., Senior Notes

 

7.500%

 

11/15/19

 

220,000

 

258,500

(b)

 

See Notes to Schedule of Investments.

 

5

 

 


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Health Care Providers & Services — continued

 

 

 

 

 

 

 

CHS/Community Health Systems Inc., Senior Notes

 

8.000%

 

11/15/19

 

540,000

 

$

590,625

(b)

CRC Health Corp., Senior Subordinated Notes

 

10.750%

 

2/1/16

 

1,050,000

 

1,023,750

(b)

Crown Newco 3 PLC, Senior Subordinated Notes

 

8.875%

 

2/15/19

 

380,000

GBP

627,082

(a)

DJO Finance LLC/DJO Finance Corp., Senior Notes

 

9.875%

 

4/15/18

 

190,000

 

191,425

(a)

ExamWorks Group Inc., Senior Notes

 

9.000%

 

7/15/19

 

210,000

 

223,650

 

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

 

6.875%

 

7/15/17

 

750,000

 

853,125

(b)

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

 

9.000%

 

7/15/15

 

160,000

 

185,200

(a)(b)

HCA Inc., Senior Secured Notes

 

8.500%

 

4/15/19

 

620,000

 

699,050

(b)

INC Research LLC, Senior Notes

 

11.500%

 

7/15/19

 

120,000

 

121,800

(a)

Physiotherapy Associates Holdings Inc., Senior Notes

 

11.875%

 

5/1/19

 

90,000

 

89,550

(a)

Tenet Healthcare Corp., Senior Secured Notes

 

10.000%

 

5/1/18

 

491,000

 

562,195

(b)

US Oncology Inc. Escrow

 

—    

 

 

255,000

 

5,100

*

Vanguard Health Holdings Co., II LLC, Senior Notes

 

8.000%

 

2/1/18

 

150,000

 

156,562

(b)

Total Health Care Providers & Services

 

 

 

 

 

 

 

6,472,714

 

Pharmaceuticals — 0.8%

 

 

 

 

 

 

 

 

 

ConvaTec Healthcare E SA, Senior Notes

 

10.875%

 

12/15/18

 

660,000

EUR

961,367

(a)(b)

Rottapharm Ltd., Senior Notes

 

6.125%

 

11/15/19

 

100,000

EUR

132,657

(a)

Valeant Pharmaceuticals International, Senior Notes

 

6.375%

 

10/15/20

 

230,000

 

244,950

(a)

VPI Escrow Corp., Senior Notes

 

6.375%

 

10/15/20

 

120,000

 

128,100

(a)

Total Pharmaceuticals

 

 

 

 

 

 

 

1,467,074

 

TOTAL HEALTH CARE

 

 

 

 

 

 

 

8,778,746

 

INDUSTRIALS — 11.4%

 

 

 

 

 

 

 

 

 

Aerospace & Defense — 0.9%

 

 

 

 

 

 

 

 

 

Ducommun Inc., Senior Notes

 

9.750%

 

7/15/18

 

230,000

 

245,525

(b)

Kratos Defense & Security Solutions Inc., Senior Secured Notes

 

10.000%

 

6/1/17

 

610,000

 

667,950

(b)

Triumph Group Inc., Senior Notes

 

8.625%

 

7/15/18

 

190,000

 

212,800

(b)

Wyle Services Corp., Senior Subordinated Notes

 

10.500%

 

4/1/18

 

560,000

 

607,600

(a)(b)

Total Aerospace & Defense

 

 

 

 

 

 

 

1,733,875

 

Airlines — 1.4%

 

 

 

 

 

 

 

 

 

American Airlines Pass-Through Trust, Secured Notes

 

7.000%

 

1/31/18

 

161,054

 

165,886

(a)

Continental Airlines Inc., Pass-Through Certificates

 

7.373%

 

12/15/15

 

21,939

 

23,446

 

Continental Airlines Inc., Pass-Through Certificates

 

9.250%

 

5/10/17

 

3,626

 

3,961

 

Continental Airlines Inc., Pass-Through Certificates, Notes

 

5.500%

 

10/29/20

 

210,000

 

220,500

 

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

 

7.339%

 

4/19/14

 

39,142

 

40,707

(b)

Continental Airlines Inc., Senior Secured Notes

 

6.750%

 

9/15/15

 

220,000

 

231,825

(a)(b)

DAE Aviation Holdings Inc., Senior Notes

 

11.250%

 

8/1/15

 

950,000

 

980,875

(a)(b)

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

 

9.750%

 

12/17/16

 

96,016

 

107,539

(b)

Heathrow Finance PLC, Senior Secured Notes

 

7.125%

 

3/1/17

 

400,000

GBP

695,318

(b)

United Air Lines Inc., Senior Secured Notes

 

9.875%

 

8/1/13

 

128,000

 

130,080

(a)(b)

Total Airlines

 

 

 

 

 

 

 

2,600,137

 

Building Products — 0.5%

 

 

 

 

 

 

 

 

 

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

 

11.000%

 

6/30/15

 

284,200

 

281,358

(a)(d)

Rearden G Holdings EINS GmbH, Senior Notes

 

7.875%

 

3/30/20

 

200,000

 

218,000

(a)(b)

Spie BondCo 3 SCA, Secured Notes

 

11.000%

 

8/15/19

 

279,000

EUR

388,253

(a)

Total Building Products

 

 

 

 

 

 

 

887,611

 

 

See Notes to Schedule of Investments.

 

6


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Commercial Services & Supplies — 1.7%

 

 

 

 

 

 

 

 

 

Altegrity Inc., Senior Subordinated Notes

 

10.500%

 

11/1/15

 

50,000

 

$

44,500

(a)

Altegrity Inc., Senior Subordinated Notes

 

11.750%

 

5/1/16

 

780,000

 

596,700

(a)(b)

American Reprographics Co., Senior Notes

 

10.500%

 

12/15/16

 

490,000

 

487,550

(b)

Geo Group Inc., Senior Notes

 

7.750%

 

10/15/17

 

455,000

 

493,675

(b)

JM Huber Corp., Senior Notes

 

9.875%

 

11/1/19

 

200,000

 

224,000

(a)(b)

Monitronics International Inc., Senior Notes

 

9.125%

 

4/1/20

 

600,000

 

618,000

 

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

 

8.250%

 

2/1/21

 

180,000

 

202,500

(b)

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

 

7.750%

 

4/15/20

 

370,000

 

390,350

(a)(b)

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

 

7.750%

 

4/15/20

 

90,000

 

94,950

(a)(b)

Total Commercial Services & Supplies

 

 

 

 

 

 

 

3,152,225

 

Construction & Engineering — 0.8%

 

 

 

 

 

 

 

 

 

Abengoa Finance SAU, Senior Notes

 

8.875%

 

11/1/17

 

350,000

 

313,250

(a)

Odebrecht Finance Ltd.

 

6.000%

 

4/5/23

 

500,000

 

577,500

(a)

Odebrecht Finance Ltd., Senior Notes

 

5.125%

 

6/26/22

 

200,000

 

215,500

(a)(b)

Odebrecht Finance Ltd., Senior Notes

 

6.000%

 

4/5/23

 

220,000

 

254,100

(a)(b)

PH Holding LLC, Secured Notes

 

9.750%

 

12/31/17

 

230,000

 

227,453

(c)(d)

Total Construction & Engineering

 

 

 

 

 

 

 

1,587,803

 

Electrical Equipment — 0.9%

 

 

 

 

 

 

 

 

 

313 Group Inc., Senior Secured Notes

 

6.375%

 

12/1/19

 

290,000

 

287,100

(a)

International Wire Group Holdings Inc., Senior Secured Notes

 

8.500%

 

10/15/17

 

230,000

 

231,725

(a)

NES Rentals Holdings Inc., Senior Secured Notes

 

12.250%

 

4/15/15

 

400,000

 

411,000

(a)(b)

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

 

6.625%

 

2/15/21

 

500,000

EUR

687,991

(a)

Total Electrical Equipment

 

 

 

 

 

 

 

1,617,816

 

Industrial Conglomerates — 0.2%

 

 

 

 

 

 

 

 

 

Leucadia National Corp., Senior Notes

 

8.125%

 

9/15/15

 

40,000

 

45,400

(b)

Sinochem Overseas Capital Co., Ltd., Senior Notes

 

4.500%

 

11/12/20

 

370,000

 

400,052

(a)(b)

Total Industrial Conglomerates

 

 

 

 

 

 

 

445,452

 

Machinery — 1.2%

 

 

 

 

 

 

 

 

 

Dematic SA, Senior Secured Notes

 

8.750%

 

5/1/16

 

510,000

 

545,700

(a)(b)

Global Brass and Copper Inc., Senior Secured Notes

 

9.500%

 

6/1/19

 

280,000

 

303,100

(a)(b)

Mirror PIK SA, Senior Notes

 

9.000%

 

11/1/16

 

1,250,000

 

1,268,750

(a)(f)

SPL Logistics Escrow LLC, Senior Secured Notes

 

8.875%

 

8/1/20

 

200,000

 

215,000

(a)(b)

Total Machinery

 

 

 

 

 

 

 

2,332,550

 

Marine — 0.6%

 

 

 

 

 

 

 

 

 

Horizon Lines LLC, Secured Notes

 

13.000%

 

10/15/16

 

336,429

 

338,111

 

Horizon Lines LLC, Senior Secured Notes

 

11.000%

 

10/15/16

 

218,000

 

215,820

 

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

 

8.625%

 

11/1/17

 

670,000

 

633,150

(b)

Total Marine

 

 

 

 

 

 

 

1,187,081

 

Professional Services — 0.2%

 

 

 

 

 

 

 

 

 

ISS Financing PLC, Senior Secured Bonds

 

11.000%

 

6/15/14

 

300,000

EUR

403,821

(a)(b)

Road & Rail — 1.4%

 

 

 

 

 

 

 

 

 

Florida East Coast Holdings Corp., Senior Notes

 

10.500%

 

8/1/17

 

673,350

 

671,667

(f)

Gategroup Finance Luxembourg SA, Senior Notes

 

6.750%

 

3/1/19

 

100,000

EUR

136,558

(a)

Jack Cooper Holdings Corp., Senior Secured Notes

 

13.750%

 

12/15/15

 

546,000

 

582,855

(a)(b)

Kansas City Southern de Mexico, Senior Notes

 

12.500%

 

4/1/16

 

740,000

 

818,625

(b)

Quality Distribution LLC/QD Capital Corp., Secured Notes

 

9.875%

 

11/1/18

 

460,000

 

499,100

(b)

Total Road & Rail

 

 

 

 

 

 

 

2,708,805

 

 

See Notes to Schedule of Investments.

 

7


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Trading Companies & Distributors — 0.4%

 

 

 

 

 

 

 

 

 

H&E Equipment Services Inc., Senior Notes

 

7.000%

 

9/1/22

 

320,000

 

$

339,200

(a)

UR Financing Escrow Corp., Secured Notes

 

5.750%

 

7/15/18

 

2,000

 

2,163

(a)

UR Financing Escrow Corp., Senior Notes

 

7.625%

 

4/15/22

 

418,000

 

464,502

(a)(b)

Total Trading Companies & Distributors

 

 

 

 

 

 

 

805,865

 

Transportation — 1.1%

 

 

 

 

 

 

 

 

 

CMA CGM, Senior Notes

 

8.500%

 

4/15/17

 

390,000

 

308,100

(a)(b)

CMA CGM, Senior Notes

 

8.875%

 

4/15/19

 

700,000

EUR

714,653

(a)

Hapag-Lloyd AG, Senior Notes

 

9.750%

 

10/15/17

 

410,000

 

405,900

(a)(b)

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

 

9.500%

 

5/1/18

 

690,000

 

714,150

(a)(b)

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

 

9.500%

 

5/1/18

 

40,000

 

41,400

(a)

Total Transportation

 

 

 

 

 

 

 

2,184,203

 

Transportation Infrastructure — 0.1%

 

 

 

 

 

 

 

 

 

Aguila 3 SA, Senior Secured Notes

 

7.875%

 

1/31/18

 

180,000

 

191,700

(a)

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

21,838,944

 

INFORMATION TECHNOLOGY — 1.9%

 

 

 

 

 

 

 

 

 

Communications Equipment — 0.1%

 

 

 

 

 

 

 

 

 

CyrusOne LP/CyrusOne Finance Corp., Senior Notes

 

6.375%

 

11/15/22

 

260,000

 

270,400

(a)

Electronic Equipment, Instruments & Components — 0.6%

 

 

 

 

 

NXP BV/NXP Funding LLC, Senior Secured Notes

 

9.750%

 

8/1/18

 

850,000

 

988,125

(a)

Techem GmbH, Senior Secured Notes

 

6.125%

 

10/1/19

 

150,000

EUR

207,275

(a)

Total Electronic Equipment, Instruments & Components

 

 

 

1,195,400

 

Internet Software & Services — 0.1%

 

 

 

 

 

 

 

 

 

Zayo Group LLC/Zayo Capital Inc., Senior Secured Notes

 

8.125%

 

1/1/20

 

220,000

 

241,450

(b)

IT Services — 0.7%

 

 

 

 

 

 

 

 

 

First Data Corp., Secured Notes

 

8.250%

 

1/15/21

 

40,000

 

40,100

(a)

First Data Corp., Senior Notes

 

9.875%

 

9/24/15

 

940,000

 

965,850

(b)

First Data Corp., Senior Notes

 

10.550%

 

9/24/15

 

330,000

 

340,725

 

Total IT Services

 

 

 

 

 

 

 

1,346,675

 

Semiconductors & Semiconductor Equipment— 0.3%

 

 

 

 

 

Advanced Micro Devices Inc., Senior Notes

 

7.500%

 

8/15/22

 

80,000

 

67,400

(a)

Freescale Semiconductor Inc., Senior Subordinated Notes

 

10.125%

 

12/15/16

 

214,000

 

221,223

(b)

STATS ChipPAC Ltd., Senior Notes

 

7.500%

 

8/12/15

 

244,000

 

261,080

(a)(b)

Total Semiconductors & Semiconductor Equipment

 

 

 

549,703

 

Software — 0.1%

 

 

 

 

 

 

 

 

 

Legend Acquisition Sub Inc., Senior Notes

 

10.750%

 

8/15/20

 

130,000

 

124,150

(a)

TOTAL INFORMATION TECHNOLOGY

 

 

 

 

 

 

 

3,727,778

 

MATERIALS — 12.5%

 

 

 

 

 

 

 

 

 

Chemicals — 1.5%

 

 

 

 

 

 

 

 

 

Braskem Finance Ltd., Senior Notes

 

7.000%

 

5/7/20

 

540,000

 

611,550

(a)(b)

Georgia Gulf Corp., Senior Secured Notes

 

9.000%

 

1/15/17

 

45,000

 

50,400

(a)(b)

Ineos Finance PLC, Senior Secured Notes

 

9.000%

 

5/15/15

 

310,000

 

332,072

(a)(b)

Kerling PLC, Senior Secured Notes

 

10.625%

 

2/1/17

 

268,000

EUR

333,299

(a)(b)

Kloeckner Pentaplast GmbH & Co. KG, Senior Secured Notes

 

11.625%

 

7/15/17

 

180,000

EUR

252,827

(a)

Kloeckner Pentaplast GmbH & Co. KG, Senior Secured Notes

 

11.625%

 

7/15/17

 

120,000

EUR

168,551

(a)

Mexichem SAB de CV, Senior Notes

 

4.875%

 

9/19/22

 

260,000

 

275,600

(a)

Styrolution GmbH, Senior Secured Notes

 

7.625%

 

5/15/16

 

500,000

EUR

653,527

(a)

 

See Notes to Schedule of Investments.

 

8


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Chemicals — continued

 

 

 

 

 

 

 

 

 

Styrolution Group GmbH, Senior Secured Notes

 

7.625%

 

5/15/16

 

120,000

EUR

$

156,846

(a)

Total Chemicals

 

 

 

 

 

 

 

2,834,672

 

Construction Materials — 0.6%

 

 

 

 

 

 

 

 

 

Cemex Finance LLC, Senior Secured Notes

 

9.375%

 

10/12/22

 

560,000

 

606,200

(a)

Cemex SAB de CV, Senior Secured Notes

 

9.000%

 

1/11/18

 

500,000

 

531,250

(a)

Total Construction Materials

 

 

 

 

 

 

 

1,137,450

 

Containers & Packaging — 2.3%

 

 

 

 

 

 

 

 

 

Ardagh Packaging Finance PLC, Senior Notes

 

9.250%

 

10/15/20

 

1,000,000

EUR

1,394,841

(a)

Beverage Packaging Holdings Luxembourg II SA, Senior Secured Notes

 

9.500%

 

6/15/17

 

560,000

EUR

742,874

(a)

Longview Fibre Paper & Packaging Inc., Senior Secured Notes

 

8.000%

 

6/1/16

 

280,000

 

294,700

(a)

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

 

11.500%

 

4/1/16

 

510,000

 

529,125

 

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA, Senior Notes

 

8.500%

 

5/15/18

 

290,000

 

296,525

 

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA, Senior Notes

 

9.000%

 

4/15/19

 

310,000

 

320,850

 

Suzano Trading Ltd., Senior Notes

 

5.875%

 

1/23/21

 

240,000

 

245,040

(a)

Viskase Cos. Inc., Senior Secured Notes

 

9.875%

 

1/15/18

 

610,000

 

631,350

(a)(b)

Total Containers & Packaging

 

 

 

 

 

 

 

4,455,305

 

Metals & Mining — 7.1%

 

 

 

 

 

 

 

 

 

ArcelorMittal, Senior Notes

 

5.000%

 

2/25/17

 

210,000

 

211,589

 

ArcelorMittal, Senior Notes

 

6.000%

 

3/1/21

 

320,000

 

319,944

 

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

270,000

 

300,645

(a)(b)

CSN Resources SA, Senior Bonds

 

6.500%

 

7/21/20

 

250,000

 

278,375

(a)(b)

Evraz Group SA, Notes

 

8.250%

 

11/10/15

 

130,000

 

143,568

(a)(b)

Evraz Group SA, Notes

 

6.750%

 

4/27/18

 

1,110,000

 

1,112,686

(a)(b)

Evraz Group SA, Senior Notes

 

9.500%

 

4/24/18

 

540,000

 

605,351

(a)(b)

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

 

7.000%

 

11/1/15

 

350,000

 

358,750

(a)

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

 

6.375%

 

2/1/16

 

190,000

 

192,375

(a)

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

 

8.250%

 

11/1/19

 

470,000

 

482,925

(a)(b)

JW Aluminum Co., Senior Secured Notes

 

11.500%

 

11/15/17

 

440,000

 

432,300

(a)

Midwest Vanadium Pty Ltd., Senior Secured Notes

 

11.500%

 

2/15/18

 

840,000

 

529,200

(a)(b)(d)

Mirabela Nickel Ltd., Senior Notes

 

8.750%

 

4/15/18

 

200,000

 

169,000

(a)

Molycorp Inc., Senior Secured Notes

 

10.000%

 

6/1/20

 

290,000

 

262,450

(a)

Novelis Inc., Senior Notes

 

8.750%

 

12/15/20

 

40,000

 

45,000

(b)

Optima Specialty Steel Inc., Senior Secured Notes

 

12.500%

 

12/15/16

 

260,000

 

273,000

(a)(b)

Rio Tinto Finance USA Ltd., Senior Notes

 

9.000%

 

5/1/19

 

260,000

 

357,944

(b)

Ryerson Inc./Joseph T Ryerson & Son Inc., Senior Notes

 

11.250%

 

10/15/18

 

120,000

 

114,450

(a)

Ryerson Inc./Joseph T Ryerson & Son Inc., Senior Secured Notes

 

9.000%

 

10/15/17

 

420,000

 

417,375

(a)

Samarco Mineracao SA, Senior Notes

 

4.125%

 

11/1/22

 

410,000

 

411,025

(a)

Southern Copper Corp., Senior Notes

 

5.375%

 

4/16/20

 

200,000

 

231,654

(b)

Southern Copper Corp., Senior Notes

 

6.750%

 

4/16/40

 

730,000

 

866,714

(b)

Southern Copper Corp., Senior Notes

 

5.250%

 

11/8/42

 

460,000

 

452,764

 

Steel Dynamics Inc., Senior Notes

 

6.125%

 

8/15/19

 

150,000

 

157,500

(a)

Tempel Steel Co., Senior Secured Notes

 

12.000%

 

8/15/16

 

210,000

 

192,150

(a)(b)

Thompson Creek Metals Co. Inc., Senior Notes

 

12.500%

 

5/1/19

 

390,000

 

352,950

 

Thompson Creek Metals Co. Inc., Senoir Secured Notes

 

9.750%

 

12/1/17

 

310,000

 

323,950

 

Vale Overseas Ltd., Notes

 

8.250%

 

1/17/34

 

460,000

 

631,406

(b)

Vale Overseas Ltd., Notes

 

6.875%

 

11/21/36

 

1,757,000

 

2,183,016

(b)(j)

Vedanta Resources PLC, Senior Notes

 

8.750%

 

1/15/14

 

627,000

 

663,366

(a)(b)

Vedanta Resources PLC, Senior Notes

 

6.750%

 

6/7/16

 

450,000

 

471,825

(a)

 

See Notes to Schedule of Investments.

 

9


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Metals & Mining — continued

 

 

 

 

 

 

 

 

 

Vedanta Resources PLC, Senior Notes

 

9.500%

 

7/18/18

 

100,000

 

$

114,250

(a)

Total Metals & Mining

 

 

 

 

 

 

 

13,659,497

 

Paper & Forest Products — 1.0%

 

 

 

 

 

 

 

 

 

Ainsworth Lumber Co. Ltd., Senior Secured Notes

 

7.500%

 

12/15/17

 

90,000

 

93,038

(a)

Appleton Papers Inc., Senior Secured Notes

 

10.500%

 

6/15/15

 

420,000

 

448,350

(a)(b)

Appleton Papers Inc., Senior Secured Notes

 

11.250%

 

12/15/15

 

407,000

 

435,490

(b)

Celulosa Arauco y Constitucion SA, Senior Notes

 

7.250%

 

7/29/19

 

62,000

 

74,747

(b)

Celulosa Arauco y Constitucion SA, Senior Notes

 

4.750%

 

1/11/22

 

160,000

 

171,558

 

Inversiones CMPC SA, Notes

 

4.750%

 

1/19/18

 

250,000

 

268,768

(a)(b)

Inversiones CMPC SA, Senior Notes

 

4.500%

 

4/25/22

 

190,000

 

197,032

(a)

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

 

11.750%

 

1/15/19

 

189,000

 

121,905

(a)

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

 

11.750%

 

1/15/19

 

60,000

 

62,100

(a)

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

 

11.375%

 

8/1/16

 

234,000

 

76,050

 

Total Paper & Forest Products

 

 

 

 

 

 

 

1,949,038

 

TOTAL MATERIALS

 

 

 

 

 

 

 

24,035,962

 

TELECOMMUNICATION SERVICES — 7.8%

 

 

 

 

 

 

 

 

 

Diversified Telecommunication Services — 4.3%

 

 

 

 

 

 

 

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

1,363,000

 

592,905

(a)(b)

Axtel SAB de CV, Senior Notes

 

7.625%

 

2/1/17

 

730,000

 

317,550

(a)(b)

Axtel SAB de CV, Senior Notes

 

9.000%

 

9/22/19

 

356,000

 

154,860

(a)

Cincinnati Bell Telephone Co., Senior Debentures

 

6.300%

 

12/1/28

 

50,000

 

48,000

(b)

Cogent Communications Group Inc., Senior Secured Notes

 

8.375%

 

2/15/18

 

380,000

 

414,200

(a)(b)

Inmarsat Finance PLC, Senior Notes

 

7.375%

 

12/1/17

 

150,000

 

160,500

(a)(b)

Intelsat Jackson Holdings SA, Senior Notes

 

7.250%

 

10/15/20

 

450,000

 

482,062

(b)

Intelsat Jackson Holdings SA, Senior Notes

 

7.500%

 

4/1/21

 

150,000

 

161,250

(b)

Intelsat Luxembourg SA, Senior Notes

 

11.250%

 

2/4/17

 

200,000

 

212,750

(b)

Level 3 Financing Inc., Senior Notes

 

8.625%

 

7/15/20

 

600,000

 

654,750

(b)

Qtel International Finance Ltd., Senior Notes

 

4.750%

 

2/16/21

 

220,000

 

246,950

(a)(b)

Telemar Norte Leste SA, Senior Notes

 

5.500%

 

10/23/20

 

380,000

 

395,200

(a)

TW Telecom Holdings Inc., Senior Notes

 

8.000%

 

3/1/18

 

380,000

 

419,900

(b)

TW Telecom Holdings Inc., Senior Notes

 

5.375%

 

10/1/22

 

90,000

 

93,488

(a)

UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes

 

8.250%

 

5/23/16

 

480,000

 

534,451

(a)

Unitymedia GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

300,000

EUR

448,729

(a)

Unitymedia GmbH, Senior Secured Notes

 

9.500%

 

3/15/21

 

180,000

EUR

269,237

(a)

Vimpel Communications, Loan Participation Notes

 

8.375%

 

4/30/13

 

520,000

 

535,054

(a)(b)

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

 

8.375%

 

4/30/13

 

248,000

 

255,180

(a)(b)

West Corp., Senior Notes

 

8.625%

 

10/1/18

 

180,000

 

186,750

(b)

West Corp., Senior Subordinated Notes

 

11.000%

 

10/15/16

 

290,000

 

303,775

(b)

Wind Acquisition Finance SA, Senior Notes

 

11.750%

 

7/15/17

 

200,000

 

205,500

(a)(b)

Wind Acquisition Holdings Finance SpA, Senior Notes

 

12.250%

 

7/15/17

 

891,040

 

884,357

(a)(f)

Windstream Corp., Senior Notes

 

7.500%

 

4/1/23

 

270,000

 

280,125

 

Total Diversified Telecommunication Services

 

 

 

 

 

 

 

8,257,523

 

Wireless Telecommunication Services — 3.5%

 

 

 

 

 

 

 

 

 

America Movil SAB de CV, Senior Notes

 

5.625%

 

11/15/17

 

340,000

 

414,631

(b)

Indosat Palapa Co. BV, Senior Notes

 

7.375%

 

7/29/20

 

540,000

 

612,900

(a)(b)

Matterhorn Midco & Cy SCA, Senior Notes

 

7.750%

 

2/15/20

 

340,000

EUR

445,504

(a)

MetroPCS Wireless Inc., Senior Notes

 

6.625%

 

11/15/20

 

460,000

 

488,175

 

Oi S.A., Senior Notes

 

5.750%

 

2/10/22

 

240,000

 

249,000

(a)

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

490,000

GBP

812,531

(a)

Phones4u Finance PLC, Senior Secured Notes

 

9.500%

 

4/1/18

 

100,000

GBP

165,823

(a)

Sprint Capital Corp., Senior Notes

 

8.750%

 

3/15/32

 

1,865,000

 

2,224,012

(b)

Sprint Nextel Corp., Senior Notes

 

9.000%

 

11/15/18

 

630,000

 

778,050

(a)(b)

 

See Notes to Schedule of Investments.

 

10

 

 

 


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Wireless Telecommunication Services— continued

 

 

 

 

 

 

 

Syniverse Holdings Inc., Senior Notes

 

9.125%

 

1/15/19

 

365,000

 

$

391,462

(b)

VimpelCom Holdings BV, Senior Notes

 

7.504%

 

3/1/22

 

200,000

 

218,822

(a)

Total Wireless Telecommunication Services

 

 

 

 

 

 

 

6,800,910

 

TOTAL TELECOMMUNICATION SERVICES

 

 

 

 

 

 

 

15,058,433

 

UTILITIES — 5.2%

 

 

 

 

 

 

 

 

 

Electric Utilities — 1.1%

 

 

 

 

 

 

 

 

 

AES Red Oak LLC, Secured Notes

 

9.200%

 

11/30/29

 

660,000

 

721,050

(b)

GenOn REMA LLC, Pass-Through Certificates

 

9.681%

 

7/2/26

 

800,000

 

856,000

(b)

Majapahit Holding BV, Senior Notes

 

7.750%

 

1/20/20

 

280,000

 

352,800

(a)(b)

Midwest Generation LLC, Pass-Through Certificates

 

8.560%

 

1/2/16

 

173,964

 

163,526

 

Total Electric Utilities

 

 

 

 

 

 

 

2,093,376

 

Gas Utilities — 0.5%

 

 

 

 

 

 

 

 

 

Southern Natural Gas Co., Senior Notes

 

8.000%

 

3/1/32

 

70,000

 

103,650

(b)

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

 

7.375%

 

3/15/20

 

330,000

 

354,750

(b)

Transportadora de Gas Internacional SA ESP, Senior Notes

 

5.700%

 

3/20/22

 

470,000

 

521,700

(a)(b)

Total Gas Utilities

 

 

 

 

 

 

 

980,100

 

Independent Power Producers & Energy Traders — 3.5%

 

 

 

 

 

 

 

AES Corp., Senior Notes

 

9.750%

 

4/15/16

 

500,000

 

597,500

(b)

AES Gener SA, Notes

 

5.250%

 

8/15/21

 

250,000

 

279,115

(a)(b)

Atlantic Power Corp., Senior Notes

 

9.000%

 

11/15/18

 

270,000

 

284,850

(b)

Calpine Corp., Senior Secured Notes

 

7.875%

 

1/15/23

 

486,000

 

544,320

(a)(b)

Colbun SA, Senior Notes

 

6.000%

 

1/21/20

 

390,000

 

439,991

(a)(b)

Dynegy Inc., Bonds

 

7.670%

 

11/8/16

 

280,000

 

12,600

(b)(c)(h)

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

 

11.750%

 

3/1/22

 

180,000

 

184,050

(a)(b)

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

 

6.875%

 

8/15/17

 

1,340,000

 

1,380,200

(a)

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

 

10.000%

 

12/1/20

 

210,000

 

235,200

(b)

First Wind Holdings Inc., Senior Secured Notes

 

10.250%

 

6/1/18

 

390,000

 

399,750

(a)

Foresight Energy LLC/Foresight Energy Corp., Senior Notes

 

9.625%

 

8/15/17

 

810,000

 

846,450

(a)(b)

Mirant Americas Generation LLC, Senior Notes

 

9.125%

 

5/1/31

 

1,430,000

 

1,515,800

(b)

Total Independent Power Producers & Energy Traders

 

 

 

 

 

6,719,826

 

Multi-Utilities — 0.1%

 

 

 

 

 

 

 

 

 

Empresas Publicas de Medellin ESP, Senior Notes

 

7.625%

 

7/29/19

 

200,000

 

253,400

(a)(b)

TOTAL UTILITIES

 

 

 

 

 

 

 

10,046,702

 

TOTAL CORPORATE BONDS & NOTES (Cost — $149,336,923)

 

 

 

157,580,504

 

COLLATERALIZED SENIOR LOANS — 1.8%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.6%

 

 

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure — 0.6%

 

 

 

 

 

 

 

 

 

El Pollo Loco Inc., First Lien Term Loan

 

9.250%

 

7/14/17

 

296,250

 

308,841

(k)

Equinox Fitness Clubs, 2nd Lien Term Loan

 

 

5/16/20

 

300,000

 

300,750

(l)

Stockbridge/SBE Holdings LLC, Term Loan B

 

13.000%

 

5/2/17

 

610,000

 

605,425

(k)

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

1,215,016

 

CONSUMER STAPLES — 0.1%

 

 

 

 

 

 

 

 

 

Food Products — 0.1%

 

 

 

 

 

 

 

 

 

AdvancePierre Foods Inc., 2nd Lien Term Loan

 

9.500%

 

10/10/17

 

130,000

 

133,006

(k)

ENERGY — 0.1%

 

 

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels — 0.1%

 

 

 

 

 

 

 

 

 

Chesapeake Energy Corp., New Term Loan

 

5.750%

 

12/1/17

 

230,000

 

226,570

(k)

 

See Notes to Schedule of Investments.

 

11


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

INDUSTRIALS — 0.3%

 

 

 

 

 

 

 

 

 

Machinery — 0.2%

 

 

 

 

 

 

 

 

 

Intelligrated Inc., Second Lien Term Loan

 

10.500%

 

12/31/19

 

500,000

 

$

506,250

(k)

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)(l)

Total Marine

 

 

 

 

 

 

 

153,052

 

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

659,302

 

INFORMATION TECHNOLOGY — 0.2%

 

 

 

 

 

 

 

 

 

IT Services — 0.2%

 

 

 

 

 

 

 

 

 

CompuCom Systems Inc., 2nd Lien Term Loan

 

10.250%

 

10/2/19

 

290,000

 

287,100

(k)

MATERIALS — 0.3%

 

 

 

 

 

 

 

 

 

Chemicals — 0.3%

 

 

 

 

 

 

 

 

 

Kerling PLC, Term Loan

 

10.000%

 

6/30/16

 

300,000

EUR

366,755

(k)

Kronos Inc., 2nd Lien New Term Loan

 

9.750%

 

4/24/20

 

230,000

 

230,575

(k)

TOTAL MATERIALS

 

 

 

 

 

 

 

597,330

 

TELECOMMUNICATION SERVICES — 0.2%

 

 

 

 

 

 

 

 

 

Wireless Telecommunication Services — 0.2%

 

 

 

 

 

 

 

 

 

Vodafone Americas Finance 2 Inc., PIK Term Loan

 

6.875%

 

8/11/15

 

280,646

 

287,662

(k)

TOTAL COLLATERALIZED SENIOR LOANS (Cost — $3,374,564)

 

 

 

3,405,986

 

CONVERTIBLE BONDS & NOTES — 0.0%

 

 

 

 

 

 

 

 

 

MATERIALS — 0.0%

 

 

 

 

 

 

 

 

 

Chemicals — 0.0%

 

 

 

 

 

 

 

 

 

Hercules Inc. (Cost - $86,034)

 

6.500%

 

6/30/29

 

100,000

 

82,625

 

SOVEREIGN BONDS — 37.5%

 

 

 

 

 

 

 

 

 

Argentina — 1.6%

 

 

 

 

 

 

 

 

 

Republic of Argentina, Senior Bonds

 

7.000%

 

9/12/13

 

3,321,000

 

3,168,712

 

Brazil — 4.9%

 

 

 

 

 

 

 

 

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/14

 

665,000

BRL

319,844

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/17

 

8,035,000

BRL

3,942,979

 

Brazil Nota do Tesouro Nacional, Notes

 

10.000%

 

1/1/21

 

413,000

BRL

202,131

 

Federative Republic of Brazil

 

7.125%

 

1/20/37

 

427,550

 

664,840

 

Federative Republic of Brazil, Collective Action Securities

 

8.000%

 

1/15/18

 

2,217,111

 

2,594,020

(j)

Federative Republic of Brazil, Collective Action Securities

 

8.750%

 

2/4/25

 

685,000

 

1,126,140

 

Federative Republic of Brazil, Senior Notes

 

4.875%

 

1/22/21

 

420,000

 

510,510

 

Total Brazil

 

 

 

 

 

 

 

9,360,464

 

Chile — 0.8%

 

 

 

 

 

 

 

 

 

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.750%

 

11/4/20

 

250,000

 

270,837

(a)(b)

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.875%

 

11/3/21

 

490,000

 

535,502

(a)(b)

Corporacion Nacional del Cobre de Chile, Senior Notes

 

3.000%

 

7/17/22

 

200,000

 

202,903

(a)

Republic of Chile, Senior Notes

 

3.875%

 

8/5/20

 

412,000

 

468,650

 

Total Chile

 

 

 

 

 

 

 

1,477,892

 

Colombia — 2.1%

 

 

 

 

 

 

 

 

 

Republic of Colombia

 

7.375%

 

9/18/37

 

2,150,000

 

3,365,825

(b)(j)

Republic of Colombia, Senior Bonds

 

6.125%

 

1/18/41

 

180,000

 

249,300

 

 

See Notes to Schedule of Investments.

 

12


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Colombia — continued

 

 

 

 

 

 

 

 

 

Republic of Colombia, Senior Notes

 

7.375%

 

3/18/19

 

255,000

 

$

337,493

 

Total Colombia

 

 

 

 

 

 

 

3,952,618

 

India — 0.1%

 

 

 

 

 

 

 

 

 

ICICI Bank Ltd., Junior Subordinated Bonds

 

6.375%

 

4/30/22

 

186,000

 

186,930

(a)(g)

Indonesia — 3.4%

 

 

 

 

 

 

 

 

 

Republic of Indonesia, Notes

 

3.750%

 

4/25/22

 

1,070,000

 

1,152,925

(a)

Republic of Indonesia, Notes

 

5.250%

 

1/17/42

 

2,190,000

 

2,581,462

(a)

Republic of Indonesia, Senior Bonds

 

6.875%

 

1/17/18

 

100,000

 

122,625

(a)

Republic of Indonesia, Senior Bonds

 

10.250%

 

7/15/22

 

5,461,000,000

IDR

768,972

 

Republic of Indonesia, Senior Bonds

 

11.000%

 

9/15/25

 

3,254,000,000

IDR

498,270

 

Republic of Indonesia, Senior Bonds

 

6.625%

 

2/17/37

 

775,000

 

1,055,937

(a)

Republic of Indonesia, Senior Bonds

 

9.750%

 

5/15/37

 

1,968,000,000

IDR

289,032

 

Total Indonesia

 

 

 

 

 

 

 

6,469,223

 

Malaysia — 0.9%

 

 

 

 

 

 

 

 

 

Government of Malaysia, Senior Bonds

 

3.835%

 

8/12/15

 

4,780,000

MYR

1,601,658

 

Government of Malaysia, Senior Bonds

 

4.262%

 

9/15/16

 

130,000

MYR

44,404

 

Total Malaysia

 

 

 

 

 

 

 

1,646,062

 

Mexico — 3.1%

 

 

 

 

 

 

 

 

 

Mexican Bonos, Bonds

 

8.000%

 

6/11/20

 

25,098,500

MXN

2,274,183

 

Mexican Bonos, Bonds

 

6.500%

 

6/9/22

 

2,024,200

MXN

168,879

 

Mexican Bonos, Bonds

 

10.000%

 

12/5/24

 

4,800,000

MXN

516,136

 

Mexican Bonos, Bonds

 

8.500%

 

11/18/38

 

12,990,000

MXN

1,247,821

 

United Mexican States, Medium-Term Notes

 

5.625%

 

1/15/17

 

160,000

 

187,200

 

United Mexican States, Senior Notes

 

5.125%

 

1/15/20

 

220,000

 

264,440

 

United Mexican States, Senior Notes

 

3.625%

 

3/15/22

 

1,030,000

 

1,136,863

 

United Mexican States, Senior Notes

 

4.750%

 

3/8/44

 

210,000

 

240,660

 

Total Mexico

 

 

 

 

 

 

 

6,036,182

 

Panama — 0.7%

 

 

 

 

 

 

 

 

 

Republic of Panama

 

6.700%

 

1/26/36

 

956,000

 

1,368,036

 

Peru — 2.3%

 

 

 

 

 

 

 

 

 

Republic of Peru

 

8.750%

 

11/21/33

 

490,000

 

862,155

 

Republic of Peru, Bonds

 

7.840%

 

8/12/20

 

2,273,000

PEN

1,096,839

 

Republic of Peru, Bonds

 

6.550%

 

3/14/37

 

321,000

 

471,067

 

Republic of Peru, Global Senior Bonds

 

7.350%

 

7/21/25

 

1,200,000

 

1,758,000

(j)

Republic of Peru, Senior Bonds

 

5.625%

 

11/18/50

 

209,000

 

274,731

 

Total Peru

 

 

 

 

 

 

 

4,462,792

 

Philippines — 0.6%

 

 

 

 

 

 

 

 

 

Republic of the Philippines, Senior Bonds

 

5.500%

 

3/30/26

 

910,000

 

1,160,250

 

Poland — 1.7%

 

 

 

 

 

 

 

 

 

Republic of Poland, Senior Notes

 

6.375%

 

7/15/19

 

900,000

 

1,128,375

(b)

Republic of Poland, Senior Notes

 

5.125%

 

4/21/21

 

500,000

 

594,230

 

Republic of Poland, Senior Notes

 

5.000%

 

3/23/22

 

1,270,000

 

1,503,807

 

Total Poland

 

 

 

 

 

 

 

3,226,412

 

Russia — 4.2%

 

 

 

 

 

 

 

 

 

RSHB Capital, Loan Participation Notes, Senior Secured Bonds

 

6.299%

 

5/15/17

 

756,000

 

830,693

(a)(b)

Russian Federation

 

5.625%

 

4/4/42

 

2,600,000

 

3,237,000

(a)

Russian Foreign Bond - Eurobond

 

12.750%

 

6/24/28

 

42,000

 

84,319

(a)

Russian Foreign Bond - Eurobond, Senior Bonds

 

7.500%

 

3/31/30

 

3,059,313

 

3,894,811

(a)(j)

Total Russia

 

 

 

 

 

 

 

8,046,823

 

 

See Notes to Schedule of Investments.

 

13


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

MATURITY
DATE

 

FACE
AMOUNT

 

VALUE

 

Turkey — 5.2%

 

 

 

 

 

 

 

 

 

Republic of Turkey, Notes

 

6.750%

 

5/30/40

 

1,175,000

 

$

1,625,906

 

Republic of Turkey, Senior Bonds

 

11.875%

 

1/15/30

 

575,000

 

1,147,987

 

Republic of Turkey, Senior Notes

 

6.875%

 

3/17/36

 

5,296,000

 

7,312,982

(j)

Total Turkey

 

 

 

 

 

 

 

10,086,875

 

Venezuela — 5.9%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela

 

5.750%

 

2/26/16

 

5,296,000

 

5,017,960

(a)

Bolivarian Republic of Venezuela

 

7.650%

 

4/21/25

 

233,000

 

192,808

 

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

 

9.375%

 

1/13/34

 

1,982,000

 

1,838,305

 

Bolivarian Republic of Venezuela, Collective Action Securities, Notes

 

10.750%

 

9/19/13

 

391,000

 

406,640

 

Bolivarian Republic of Venezuela, Global Senior Bonds

 

8.500%

 

10/8/14

 

3,733,000

 

3,854,322

 

Total Venezuela

 

 

 

 

 

 

 

11,310,035

 

TOTAL SOVEREIGN BONDS (Cost — $62,957,930)

 

 

 

 

71,959,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES

 

 

 

COMMON STOCKS — 1.8%

 

 

 

 

 

 

 

 

 

CONSUMER DISCRETIONARY — 0.3%

 

 

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure — 0.0%

 

 

 

 

 

 

 

 

 

Bossier Casino Venture Holdco Inc.

 

 

 

 

 

19,194

 

38,388

*(c)(d)

Media — 0.3%

 

 

 

 

 

 

 

 

 

Charter Communications Inc., Class A Shares

 

 

 

 

 

8,055

 

570,697

*

TOTAL CONSUMER DISCRETIONARY

 

 

 

 

 

 

 

609,085

 

ENERGY — 0.5%

 

 

 

 

 

 

 

 

 

Energy Equipment & Services — 0.5%

 

 

 

 

 

 

 

 

 

KCAD Holdings I Ltd.

 

 

 

 

 

77,972,021

 

857,536

*(c)(d)

FINANCIALS — 0.6%

 

 

 

 

 

 

 

 

 

Real Estate Management & Development — 0.6%

 

 

 

 

 

 

 

Realogy Holdings Corp.

 

 

 

 

 

33,806

 

1,186,215

(c)(d)

INDUSTRIALS — 0.4%

 

 

 

 

 

 

 

 

 

Marine — 0.4%

 

 

 

 

 

 

 

 

 

DeepOcean Group Holding AS

 

 

 

 

 

26,137

 

496,793

*(c)(d)

Horizon Lines Inc., Class A Shares

 

 

 

 

 

170,006

 

229,508

*

TOTAL INDUSTRIALS

 

 

 

 

 

 

 

726,301

 

UTILITIES — 0.0%

 

 

 

 

 

 

 

 

 

Independent Power Producers & Energy Traders — 0.0%

 

 

 

 

 

 

 

Dynegy Inc.

 

 

 

 

 

4,801

 

88,819

*

TOTAL COMMON STOCKS (Cost — $3,116,554)

 

 

 

 

 

3,467,956

 

CONVERTIBLE PREFERRED STOCKS — 1.3%

 

 

 

 

 

 

 

 

 

FINANCIALS — 1.3%

 

 

 

 

 

 

 

 

 

Diversified Financial Services — 1.3%

 

 

 

 

 

 

 

 

 

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

 

7.500%

 

 

 

24,800

 

2,488,680

 

PREFERRED STOCKS — 0.7%

 

 

 

 

 

 

 

 

 

FINANCIALS — 0.6%

 

 

 

 

 

 

 

 

 

Capital Markets — 0.1%

 

 

 

 

 

 

 

 

 

Goldman Sachs Group Inc.

 

5.950%

 

 

 

8,756

 

216,623

*

 

See Notes to Schedule of Investments.

 

14


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

SECURITY

 

RATE

 

 

 

SHARES

 

VALUE

 

Consumer Finance — 0.5%

 

 

 

 

 

 

 

 

 

GMAC Capital Trust I

 

8.125%

 

 

 

40,749

 

$

1,061,512

(g)

Thrifts & Mortgage Finance — 0.0%

 

 

 

 

 

 

 

 

 

Federal National Mortgage Association (FNMA)

 

8.250%

 

 

 

4,925

 

7,880

*(d)(g)

TOTAL FINANCIALS

 

 

 

 

 

 

 

1,286,015

 

INDUSTRIALS — 0.1%

 

 

 

 

 

 

 

 

 

Road & Rail — 0.1%

 

 

 

 

 

 

 

 

 

Jack Cooper Holdings Corp.

 

20.000%

 

 

 

1,017

 

105,259

(a)(c)

TOTAL PREFERRED STOCKS (Cost — $1,431,925)

 

 

 

 

 

1,391,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPIRATION
DATE

 

WARRANTS

 

 

 

WARRANTS — 0.2%

 

 

 

 

 

 

 

 

 

Bolivarian Republic of Venezuela, Oil-linked payment obligations

 

 

 

4/15/20

 

9,125

 

279,453

 

Charter Communications Inc.

 

 

 

11/30/14

 

641

 

14,583

*

Jack Cooper Holdings Corp.

 

 

 

12/15/17

 

496

 

53,568

*

Jack Cooper Holdings Corp.

 

 

 

5/6/28

 

228

 

24,624

*

Nortek Inc.

 

 

 

12/7/14

 

1,175

 

5,875

*(c)(d)

SemGroup Corp.

 

 

 

11/30/14

 

2,968

 

41,403

*(d)

TOTAL WARRANTS (Cost — $28,729)

 

 

 

 

 

 

 

419,506

 

TOTAL INVESTMENTS — 125.3 % (Cost — $223,137,064#)

 

240,795,837

 

Liabilities in Excess of Other Assets — (25.3)%

 

 

 

 

 

 

 

(48,692,204

)

TOTAL NET ASSETS — 100.0%

 

 

 

 

 

 

 

$

192,103,633

 

 

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)

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

(c)

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

(d)

Illiquid security.

(e)

Value is less than $1.

(f)

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

(g)

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

(h)

The coupon payment on these securities is currently in default as of November 30, 2012.

(i)

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

(j)

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

(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.

(l)

All or a portion of this loan is unfunded as of November 30, 2012. The interest rate for fully unfunded term loans is to be determined.

#

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

 

See Notes to Schedule of Investments.

 

15


 

WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)

November 30, 2012

 

Summary of Investments by Country **

 

 

 

United States

 

36.5

%

Brazil

 

7.9

 

Mexico

 

7.2

 

Russia

 

5.4

 

Venezuela

 

4.8

 

Turkey

 

4.2

 

Indonesia

 

3.4

 

Luxembourg

 

3.4

 

United Kingdom

 

3.1

 

Colombia

 

2.7

 

Peru

 

1.8

 

Argentina

 

1.5

 

Malaysia

 

1.5

 

Netherlands

 

1.4

 

Poland

 

1.3

 

Chile

 

1.2

 

Ireland

 

1.1

 

Germany

 

1.1

 

France

 

1.0

 

Australia

 

0.9

 

India

 

0.8

 

Panama

 

0.8

 

Italy

 

0.8

 

Canada

 

0.6

 

Kazakhstan

 

0.6

 

South Africa

 

0.5

 

Bermuda

 

0.5

 

Philippines

 

0.5

 

Cayman Islands

 

0.4

 

Qatar

 

0.4

 

Norway

 

0.4

 

United Arab Emirates

 

0.3

 

Spain

 

0.3

 

Belgium

 

0.3

 

Marshall Islands

 

0.3

 

Trinidad and Tobago

 

0.2

 

Sweden

 

0.2

 

Mongolia

 

0.2

 

Czech Republic

 

0.2

 

China

 

0.2

 

Singapore

 

0.1

 

Total Investments

 

100.0

%

 

**As a percentage of total investments. Please note that Fund holdings are as of November 30, 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 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. 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 Directors quarterly.

 

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

 

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

 

 

 

 

 

OTHER

 

 

 

 

 

 

 

 

 

SIGNIFICANT

 

SIGNIFICANT

 

 

 

 

 

 

 

OBSERVABLE

 

UNOBSERVABLE

 

 

 

 

 

QUOTED PRICES

 

INPUTS

 

INPUTS

 

 

 

DESCRIPTION

 

(LEVEL 1)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Long-term investments†:

 

 

 

 

 

 

 

 

 

Corporate bonds & notes

 

 

$

156,711,904

 

$

868,600

 

$

157,580,504

 

Collateralized senior loans

 

 

3,405,986

 

 

3,405,986

 

Convertible bonds & notes

 

 

82,625

 

 

82,625

 

Sovereign bonds

 

 

71,959,306

 

 

71,959,306

 

Common stocks:

 

 

 

 

 

 

 

 

 

Consumer discretionary

 

$

570,697

 

 

38,388

 

609,085

 

Energy

 

 

 

857,536

 

857,536

 

Financials

 

 

 

1,186,215

 

1,186,215

 

Industrials

 

229,508

 

 

496,793

 

726,301

 

Utilities

 

88,819

 

 

 

88,819

 

Convertible preferred stocks

 

2,488,680

 

 

 

2,488,680

 

Preferred stocks

 

1,286,015

 

105,259

 

 

1,391,274

 

Warrants

 

 

413,631

 

5,875

 

419,506

 

Total investments

 

$

4,663,719

 

$

232,678,711

 

$

3,453,407

 

$

 240,795,837

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

 

$

867

 

 

$

867

 

Total

 

$

4,663,719

 

$

232,679,578

 

$

3,453,407

 

$

240,796,704

 

 

LIABILITIES

 

 

 

 

 

OTHER

 

 

 

 

 

 

 

 

 

SIGNIFICANT

 

SIGNIFICANT

 

 

 

 

 

 

 

OBSERVABLE

 

UNOBSERVABLE

 

 

 

 

 

QUOTED PRICES

 

INPUTS

 

INPUTS

 

 

 

DESCRIPTION

 

(LEVEL I)

 

(LEVEL 2)

 

(LEVEL 3)

 

TOTAL

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

Forward foreign currency contracts

 

 

$

287,877

 

 

$

287,877

 

Credit default swaps on credit indices-buy protection‡

 

 

229,562

 

 

229,562

 

Total

 

 

$

517,439

 

 

$

517,439

 

 

†See Schedule of Investments for additional detailed categorizations.

‡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:

 

18


 

Notes to schedule of investments (unaudited) (continued)

 

 

 

 

 

COMMON STOCKS

 

 

 

 

 

 

 

CORPORATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BONDS &

 

CONSUMER

 

 

 

 

 

 

 

 

 

 

 

INVESTMENTS IN SECURITIES

 

NOTES

 

DISCRETIONARY

 

ENERGY

 

FINANCIALS

 

INDUSTRIALS

 

WARRANTS

 

TOTAL

 

Balance as of August 31, 2012

 

$

861,097

 

$

38,388

 

$

818,239

 

 

$

463,278

 

$

5,875

 

$

2,186,877

 

Accrued premiums/discounts

 

1,919

 

 

 

 

 

 

1,919

 

Realized gain (loss)

 

(606,135

)

 

 

 

 

 

(606,135

)

Change in unrealized appreciation (depreciation)(1)

 

638,623

 

 

39,297

 

$

273,453

 

33,515

 

 

984,888

 

Purchases

 

232,054

 

 

 

912,762

 

 

 

1,144,816

 

Sales

 

(271,558

)

 

 

 

 

 

(271,558

)

Transfers into Level 3(2)

 

12,600

 

 

 

 

 

 

12,600

 

Transfers out of Level 3

 

 

 

 

 

 

 

 

Balance as of November 30, 2012

 

$

868,600

 

$

38,388

 

$

857,536

 

1,186,215

 

496,793

 

$

5,875

 

$

3,453,407

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at November 30, 2012(2)

 

$

111,502

 

 

$

39,297

 

273,453

 

33,515

 

$

 

$

457,767

 

 

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

 

(1) 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.

(2) Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

 

(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) 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.

 

(e) Unfunded loan commitments. The Fund may enter into certain credit agreements all or a portion of which may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion. The commitments are disclosed in the accompanying Schedule of Investments. At November 30, 2012, the Fund had sufficient cash and/or securities to cover these commitments.

 

19

 


 

Notes to schedule of investments (unaudited) (continued)

 

(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 November 30, 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 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.

 

(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

 

20


 

Notes to schedule of investments (unaudited) (continued)

 

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.

 

A 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 a 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, 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.

 

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 investments 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 investments 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

 

21


 

Notes to schedule of investments (unaudited) (continued)

 

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 November 30, 2012, the Fund held forward foreign currency contracts and credit default swaps with credit related contingent features which had a liability position of $517,439. 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. As of November 30, 2012, the Fund had posted with its counterparties cash and/or securities as collateral to cover the net liability of these derivatives amounting to $40,000, which could be used to reduce the required payment.

 

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

 

2.  Investments

 

At November 30, 2012, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$

25,353,725

 

Gross unrealized depreciation

 

(7,694,952

)

Net unrealized appreciation

 

$

17,658,773

 

 

During the period ended November 30, 2012, written option transactions for the Fund were as follows:

 

 

 

Number of Contracts

 

Premiums

 

Written options, outstanding as of August 31, 2012

 

45,642,600

 

$

281,230

 

Options written

 

2,376,000

 

9,623

 

Options closed

 

(3,663,000

)

(25,641

)

Options exercised

 

 

 

Options expired

 

(44,355,600

)

(265,212

)

Written options, outstanding as of November 30, 2012

 

0

 

$

0

 

 

Transactions in reverse repurchase agreements for the Fund during the period ended November 30, 2012 were as follows:

 

Average

 

Weighted

 

Maximum

 

Daily

 

Average

 

Amount

 

Balance*

 

Interest Rate*

 

Outstanding

 

$

15,295,445

 

0.82

%

$

15,295,445

 

 

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

 

22


 

Notes to schedule of investments (unaudited) (continued)

 

Interest rates on reverse repurchase agreements ranged from 0.75% to 1.00% during the period ended November 30, 2012. Interest expense incurred on reverse repurchase agreements totaled $31,261.

 

At November 30, 2012, the Fund had the following open reverse repurchase agreements:

 

Counterparty

 

Rate

 

Effective Date

 

Maturity Date

 

Face Amount of
Reverse Repurchase
Agreements

 

JP Morgan Chase & Co.

 

1.00

%

5/16/2012

 

TBD*

 

$

968,000

 

Credit Suisse

 

0.75

%

5/18/2012

 

TBD*

 

10,452,085

 

Credit Suisse

 

0.85

%

5/18/2012

 

TBD*

 

3,875,360

 

 

 

 

 

 

 

 

 

$

15,295,445

 

 

* 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 November 30,2012, 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 $19,930,814.

 

At November 30, 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 Sell:

 

 

 

 

 

 

 

 

 

 

 

Euro

 

Citibank N.A.

 

266,373

 

$

346,617

 

1/25/13

 

$

867

 

British Pound

 

Citibank N.A.

 

943,613

 

1,511,527

 

2/15/13

 

(7,101

)

British Pound

 

UBS AG

 

701,367

 

1,123,484

 

2/15/13

 

(933

)

Euro

 

BNP Paribas SA

 

1,427,030

 

1,857,303

 

2/15/13

 

(34,484

)

Euro

 

Citibank N.A.

 

50,000

 

65,076

 

2/15/13

 

(754

)

Euro

 

Citibank N.A.

 

3,383,554

 

4,403,751

 

2/15/13

 

(90,531

)

Euro

 

UBS AG

 

100,000

 

130,152

 

2/15/13

 

(2,952

)

Euro

 

UBS AG

 

9,348,049

 

12,166,636

 

2/15/13

 

(151,122

)

Net unrealized loss on open forward foreign currency contracts

 

 

 

 

 

$

(287,010

)

 

At November 30, 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
(RECEIVED)

 

UNREALIZED
DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank of America Securities LLC (MARKIT CDX.NA.HY.18 Index)

 

$

5,346,000

 

6/20/17

 

5.000% quarterly

 

$

(64,405

)

$

23,463

 

$

(87,868

)

Bank of America Securities LLC (MARKIT CDX.NA.HY.18 Index)

 

1,603,800

 

6/20/17

 

5.000% quarterly

 

(19,321

)

7,040

 

(26,361

)

Barclays Capital Inc. (MARKIT CDX.NA.HY.18 Index)

 

1,188,000

 

6/20/17

 

5.000% quarterly

 

(14,312

)

6,026

 

(20,338

)

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

 

672,000

 

12/20/16

 

5.000% quarterly

 

(15,642

)

16,834

 

(32,476

)

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

 

48,000

 

12/20/16

 

5.000% quarterly

 

(1,117

)

1,227

 

(2,344

)

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

 

1,728,000

 

12/20/16

 

5.000% quarterly

 

(40,222

)

41,484

 

(81,706

)

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

 

2,524,500

 

6/20/17

 

5.000% quarterly

 

(30,414

)

103,935

 

(134,349

)

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

 

3,663,000

 

6/20/17

 

5.000% quarterly

 

(44,129

)

45,692

 

(89,821

)

Total

 

$

16,773,300

 

 

 

 

 

$

(229,562

)

$

245,701

 

$

(475,263

)

 

23


 

Notes to schedule of investments (unaudited) (continued)

 

(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.

 

3. Derivative instruments and hedging activities

 

GAAP 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 November 30, 2012.

 

 

 

Forward Foreign Currency
Contracts

 

 

 

 

 

Primary Underlying
Risk Disclosure

 

Unrealized
Appreciation

 

Unrealized
Depreciation

 

Swap
Contracts, at
value

 

Total

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Risk

 

$

867

 

$

(287,877

)

 

$

(287,010

)

 

 

 

 

 

 

 

 

 

 

Credit Risk

 

 

 

$

(229,562

)

(229,562

)

Total

 

$

867

 

$

(287,877

)

$

(229,562

)

$

(516,572

)

 

During the period ended November 30, 2012, the volume of derivative activity for the Fund was as follows:

 

 

 

Average market
value

 

Purchased options†

 

$

26,908

 

Written options†

 

61,904

 

Forward foreign currency contracts (to buy)†

 

355,215

 

Forward foreign currency contracts (to sell)

 

21,323,152

 

 

 

 

 

 

 

Average notional
balance

 

Credit default swap contracts (to buy protection)

 

$

11,788,650

 

 

†At November 30, 2012, there were no open positions held in this derivative.

 

24


 

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:  January 25, 2013

 

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: January 25, 2013

 

 

 

 

 

 

 

By

/s/ Richard F. Sennett

 

 

Richard F. Sennett

 

 

Principal Financial Officer

 

 

 

 

Date: January 25, 2013