N-Q 1 d737048dnq.htm WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC. Western Asset Global Partners Income Fund Inc.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-07994

Western Asset Global Partners Income Fund Inc.

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

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

Date of fiscal year end: August 31

Date of reporting period: May 31, 2014

 

 

 


 

ITEM 1. SCHEDULE OF INVESTMENTS


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

FORM N-Q

MAY 31, 2014


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited)    May 31, 2014

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  
CORPORATE BONDS & NOTES - 90.1%        
CONSUMER DISCRETIONARY - 14.0%        

Auto Components - 0.5%

       

Europcar Groupe SA, Senior Notes

    11.500     5/15/17        100,000 EUR    $ 157,844 (a)(b) 

Europcar Groupe SA, Senior Notes

    9.375     4/15/18        500,000 EUR      732,693 (a)(b) 
       

 

 

 

Total Auto Components

          890,537   
       

 

 

 

Automobiles - 0.2%

       

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

    8.250     6/15/21        260,000        297,700 (b) 

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

    9.500     12/1/19        120,000        132,600 (a)(b) 
       

 

 

 

Total Automobiles

          430,300   
       

 

 

 

Diversified Consumer Services - 0.4%

       

Co-operative Group Holdings 2011 Ltd., Senior Notes

    7.500     7/8/26        160,000 GBP      282,942   

Service Corp. International, Senior Notes

    7.500     4/1/27        290,000        316,100 (b) 

StoneMor Partners LP/Cornerstone Family Services of WV, Senior Notes

    7.875     6/1/21        210,000        221,025 (a) 
       

 

 

 

Total Diversified Consumer Services

          820,067   
       

 

 

 

Hotels, Restaurants & Leisure - 3.6%

       

24 Hour Holdings III LLC, Senior Notes

    8.000     6/1/22        150,000        150,563 (a) 

Arcos Dorados Holdings Inc., Senior Notes

    6.625     9/27/23        160,000        170,000 (a) 

Bossier Casino Venture Holdco Inc.

    11.000     2/9/18        91,861        91,999 (a)(c) 

Bossier Casino Venture Holdco Inc., Senior Secured Bonds

    14.000     2/9/18        337,294        334,268 (a)(c)(d)(e) 

Boyd Gaming Corp., Senior Notes

    9.125     12/1/18        80,000        85,400 (b) 

Burger King Capital Holdings LLC/Burger King Capital Finance Inc., Senior Notes, Step Bond

    0.000     4/15/19        90,000        83,025 (a) 

Caesars Entertainment Operating Co. Inc., Senior Secured Notes

    9.000     2/15/20        690,000        553,725   

Caesars Entertainment Resort Properties LLC, Secured Notes

    11.000     10/1/21        110,000        115,225 (a) 

Carrols Restaurant Group Inc., Senior Secured Notes

    11.250     5/15/18        320,000        368,000 (b) 

CCM Merger Inc., Senior Notes

    9.125     5/1/19        390,000        419,250 (a) 

CEC Entertainment Inc., Senior Notes

    8.000     2/15/22        160,000        163,200 (a) 

Downstream Development Quapaw, Senior Secured Notes

    10.500     7/1/19        300,000        324,750 (a)(b) 

Enterprise Inns PLC, Senior Secured Bonds

    6.500     12/6/18        494,000 GBP      899,171   

Greektown Holdings LLC/Greektown Mothership Corp., Senior Secured Notes

    8.875     3/15/19        180,000        185,400 (a) 

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

    11.250     4/1/17        370,000        392,200 (a) 

Landry’s Holdings II Inc., Senior Notes

    10.250     1/1/18        180,000        193,500 (a) 

Landry’s Inc., Senior Notes

    9.375     5/1/20        800,000        887,000 (a)(b) 

Mohegan Tribal Gaming Authority, Senior Notes

    9.750     9/1/21        360,000        390,600   

Paris Las Vegas Holding LLC/Harrah’s Las Vegas LLC/Flamingo Las Vegas Holding LLC, Senior Secured Notes

    8.000     10/1/20        370,000        384,338 (a) 

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

    9.500     6/15/19        58,000        63,365 (a)(b) 

Seven Seas Cruises S de RL LLC, Senior Secured Notes

    9.125     5/15/19        450,000        495,562 (b) 
       

 

 

 

Total Hotels, Restaurants & Leisure

          6,750,541   
       

 

 

 

Household Durables - 0.8%

       

Century Intermediate Holding Co. 2, Senior Notes

    9.750     2/15/19        410,000        439,725 (a)(d) 

Standard Pacific Corp., Senior Notes

    6.250     12/15/21        290,000        312,475   

William Lyon Homes Inc., Senior Notes

    8.500     11/15/20        350,000        392,875   

Woodside Homes Co. LLC/Woodside Homes Finance Inc., Senior Notes

    6.750     12/15/21        380,000        390,450 (a) 
       

 

 

 

Total Household Durables

          1,535,525   
       

 

 

 

 

See Notes to Schedule of Investments.

 

1


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Media - 5.5%

       

Altice SA, Senior Secured Notes

    7.750     5/15/22        530,000      $ 558,487 (a) 

Carmike Cinemas Inc., Secured Notes

    7.375     5/15/19        120,000        131,700 (b) 

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

    6.625     1/31/22        960,000        1,041,600 (b) 

CCU Escrow Corp., Senior Secured Notes

    10.000     1/15/18        240,000        230,400 (a) 

Cerved Group SpA, Senior Subordinated Notes

    8.000     1/15/21        110,000 EUR      167,190 (a) 

Cerved Group SpA, Senior Subordinated Notes

    8.000     1/15/21        100,000 EUR      151,991 (a) 

Clear Channel Worldwide Holdings Inc., Senior Notes

    6.500     11/15/22        210,000        225,750   

Clear Channel Worldwide Holdings Inc., Senior Notes

    6.500     11/15/22        110,000        117,563   

Clear Channel Worldwide Holdings Inc., Senior Subordinated Notes

    7.625     3/15/20        30,000        32,250   

CSC Holdings LLC, Senior Notes

    6.750     11/15/21        120,000        134,400   

DISH DBS Corp., Senior Notes

    6.625     10/1/14        30,000        30,525 (b) 

DISH DBS Corp., Senior Notes

    7.875     9/1/19        285,000        339,863 (b) 

DISH DBS Corp., Senior Notes

    6.750     6/1/21        390,000        442,162   

Gibson Brands Escrow Corp., Senior Secured Notes

    8.875     8/1/18        80,000        83,200 (a) 

Gibson Brands Inc., Senior Secured Notes

    8.875     8/1/18        210,000        218,400 (a) 

Myriad International Holdings BV, Senior Notes

    6.000     7/18/20        200,000        225,250 (a) 

Nara Cable Funding Ltd., Senior Secured Notes

    8.875     12/1/18        500,000 EUR      735,467 (a) 

New Cotai LLC/New Cotai Capital Corp., Senior Secured Notes

    10.625     5/1/19        278,199        322,711 (a)(d) 

Numericable Group SA, Senior Secured Bonds

    6.000     5/15/22        400,000        415,500 (a) 

Ono Finance II PLC, Senior Bonds

    10.875     7/15/19        579,000        641,966 (a)(b) 

Polish Television Holding BV, Senior Secured Bonds

    11.000     1/15/21        100,000 EUR      163,578 (a)(b)(d) 

Time Warner Cable Inc., Senior Notes

    8.750     2/14/19        385,000        497,023 (b) 

Time Warner Cable Inc., Senior Notes

    8.250     4/1/19        139,000        177,200 (b) 

TVN Finance Corp. III AB, Senior Bonds

    7.375     12/15/20        100,000 EUR      153,024 (a) 

TVN Finance Corp. III AB, Senior Notes

    7.875     11/15/18        80,000 EUR      115,595 (a) 

Univision Communications Inc., Senior Notes

    8.500     5/15/21        290,000        319,725 (a) 

Univision Communications Inc., Senior Secured Notes

    6.875     5/15/19        190,000        203,775 (a) 

Univision Communications Inc., Senior Secured Notes

    7.875     11/1/20        290,000        320,813 (a)(b) 

Univision Communications Inc., Senior Secured Notes

    6.750     9/15/22        172,000        189,200 (a) 

UPC Holding BV, Junior Secured Subordinated Notes

    6.375     9/15/22        100,000 EUR      146,956 (a) 

UPCB Finance II Ltd., Senior Notes

    6.375     7/1/20        500,000 EUR      727,943 (a) 

Virgin Media Finance PLC, Senior Notes

    6.375     4/15/23        560,000        593,600 (a) 

WMG Acquisition Corp., Senior Notes

    6.750     4/15/22        350,000        351,750 (a) 
       

 

 

 

Total Media

          10,206,557   
       

 

 

 

Multiline Retail - 0.4%

       

Neiman Marcus Group LLC, Senior Secured Notes

    7.125     6/1/28        80,000        82,000 (b) 

Neiman Marcus Group Ltd. LLC, Senior Notes

    8.750     10/15/21        550,000        609,125 (a)(d) 
       

 

 

 

Total Multiline Retail

          691,125   
       

 

 

 

Specialty Retail - 1.8%

       

AA Bond Co., Ltd., Secured Notes

    9.500     7/31/19        120,000 GBP      226,538 (a) 

American Greetings Corp., Senior Notes

    7.375     12/1/21        290,000        308,850 (b) 

Edcon Pty Ltd., Senior Secured Notes

    9.500     3/1/18        825,000 EUR      1,138,656 (a) 

Guitar Center Inc., Senior Bonds

    9.625     4/15/20        750,000        684,375 (a) 

Hot Topic Inc., Senior Secured Notes

    9.250     6/15/21        180,000        196,200 (a) 

New Academy Finance Co. LLC/New Academy Finance Corp., Senior Notes

    8.000     6/15/18        60,000        61,500 (a)(d) 

 

See Notes to Schedule of Investments.

 

2


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Specialty Retail - 1.8% (continued)

       

Spencer Spirit Holdings Inc., Senior Notes

    9.000     5/1/18        460,000      $ 472,080 (a)(d) 

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

    11.000     5/1/17        270,000        286,878 (a) 
       

 

 

 

Total Specialty Retail

          3,375,077   
       

 

 

 

Textiles, Apparel & Luxury Goods - 0.8%

       

Boardriders SA, Senior Notes

    8.875     12/15/17        700,000 EUR      1,025,770 (a) 

Chinos Intermediate Holdings A Inc., Senior Notes

    7.750     5/1/19        230,000        237,475 (a)(d) 

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

    11.375     2/1/17        290,000        300,150 (a)(b) 
       

 

 

 

Total Textiles, Apparel & Luxury Goods

          1,563,395   
       

 

 

 

TOTAL CONSUMER DISCRETIONARY

          26,263,124   
       

 

 

 
CONSUMER STAPLES - 3.4%        

Beverages - 0.3%

       

Carolina Beverage Group LLC/Carolina Beverage Group Finance Inc., Secured Notes

    10.625     8/1/18        170,000        182,750 (a) 

Crestview DS Merger Subordinated II Inc., Senior Secured Notes

    10.000     9/1/21        260,000        289,900 (a) 
       

 

 

 

Total Beverages

          472,650   
       

 

 

 

Food & Staples Retailing - 0.2%

       

Beverages & More Inc., Senior Secured Notes

    10.000     11/15/18        350,000        360,063 (a) 
       

 

 

 

Food Products - 2.7%

       

Alicorp SAA, Senior Notes

    3.875     3/20/23        190,000        184,813 (a) 

Boparan Holdings Ltd., Senior Notes

    9.875     4/30/18        400,000 GBP      722,442 (a)(b) 

BRF SA, Senior Notes

    4.750     5/22/24        422,000        418,307 (a) 

Chiquita Brands International Inc./Chiquita Brands LLC, Senior Secured Notes

    7.875     2/1/21        449,000        492,777   

Dole Food Co. Inc., Senior Secured Notes

    7.250     5/1/19        340,000        344,675 (a) 

Hearthside Group Holdings LLC/Hearthside Finance Co., Senior Notes

    6.500     5/1/22        320,000        324,000 (a) 

JBS Investment GmbH, Senior Notes

    7.250     4/3/24        260,000        271,700 (a) 

Land O’Lakes Capital Trust I, Junior Subordinated Bonds

    7.450     3/15/28        230,000        231,725 (a) 

Marfrig Holding Europe BV, Senior Notes

    8.375     5/9/18        270,000        286,200 (a) 

Marfrig Holding Europe BV, Senior Notes

    11.250     9/20/21        230,000        267,375 (a) 

Marfrig Overseas Ltd., Senior Notes

    9.500     5/4/20        230,000        249,780 (a) 

Simmons Foods Inc., Senior Secured Notes

    10.500     11/1/17        630,000        683,550 (a)(b) 

Sun Merger Sub Inc., Senior Notes

    5.875     8/1/21        300,000        319,500 (a) 

Wells Enterprises Inc., Senior Secured Notes

    6.750     2/1/20        173,000        181,218 (a) 
       

 

 

 

Total Food Products

          4,978,062   
       

 

 

 

Personal Products - 0.1%

       

Hypermarcas SA, Notes

    6.500     4/20/21        260,000        285,350 (a)(b) 
       

 

 

 

Tobacco - 0.1%

       

Alliance One International Inc., Secured Notes

    9.875     7/15/21        270,000        276,750   
       

 

 

 

TOTAL CONSUMER STAPLES

          6,372,875   
       

 

 

 
ENERGY - 18.1%        

Energy Equipment & Services - 2.0%

       

Atwood Oceanics Inc., Senior Notes

    6.500     2/1/20        170,000        181,050 (b) 

CGG, Senior Notes

    7.750     5/15/17        142,000        143,775 (b) 

Exterran Partners LP/EXLP Finance Corp., Senior Notes

    6.000     10/1/22        110,000        111,650 (a) 

FTS International Inc., Senior Secured Notes

    6.250     5/1/22        240,000        246,000 (a) 

Gulfmark Offshore Inc., Senior Notes

    6.375     3/15/22        280,000        292,600   

Hercules Offshore Inc., Senior Notes

    10.250     4/1/19        210,000        234,150 (a)(b) 

Hercules Offshore Inc., Senior Notes

    8.750     7/15/21        270,000        290,250 (a) 

Hercules Offshore Inc., Senior Notes

    7.500     10/1/21        280,000        283,500 (a) 

KCA Deutag UK Finance PLC, Senior Secured Notes

    7.250     5/15/21        240,000        242,400 (a) 

 

See Notes to Schedule of Investments.

 

3


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Energy Equipment & Services - 2.0% (continued)

       

Offshore Drilling Holding SA, Senior Secured Notes

    8.375     9/20/20        270,000      $ 299,025 (a) 

Parker Drilling Co., Senior Notes

    6.750     7/15/22        280,000        291,200 (a) 

Petroleum Geo-Services ASA, Senior Notes

    7.375     12/15/18        200,000        215,000 (a)(b) 

SESI LLC, Senior Notes

    7.125     12/15/21        330,000        374,550 (b) 

Sierra Hamilton LLC/Sierra Hamilton Finance Inc., Senior Secured Notes

    12.250     12/15/18        300,000        314,625 (a) 

TMK OAO Via TMK Capital SA, Senior Notes

    6.750     4/3/20        260,000        250,250 (a) 
       

 

 

 

Total Energy Equipment & Services

          3,770,025   
       

 

 

 

Oil, Gas & Consumable Fuels - 16.1%

       

Arch Coal Inc., Senior Notes

    7.000     6/15/19        260,000        194,350   

Arch Coal Inc., Senior Notes

    9.875     6/15/19        160,000        137,600   

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

    9.625     8/1/20        180,000        209,025   

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

    6.500     4/15/21        200,000        203,500 (a) 

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

    7.625     1/15/22        200,000        212,750   

Carrizo Oil & Gas Inc., Senior Notes

    7.500     9/15/20        280,000        308,000   

Chesapeake Energy Corp., Senior Notes

    6.875     11/15/20        350,000        408,625 (b) 

Chesapeake Energy Corp., Senior Notes

    6.125     2/15/21        300,000        338,625 (b) 

Comstock Resources Inc., Senior Notes

    9.500     6/15/20        250,000        286,250 (b) 

CONSOL Energy Inc., Senior Notes

    8.250     4/1/20        480,000        524,400 (b) 

Corral Petroleum Holdings AB, Senior Notes

    15.000     12/31/17        590,693        570,775 (a)(d) 

Dolphin Energy Ltd., Senior Secured Bonds

    5.888     6/15/19        471,866        524,951 (a)(b) 

Ecopetrol SA, Senior Notes

    7.625     7/23/19        570,000        697,013 (b) 

Ecopetrol SA, Senior Notes

    5.875     9/18/23        75,000        83,906   

Ecopetrol SA, Senior Notes

    5.875     5/28/45        60,000        62,100   

EDC Finance Ltd., Senior Notes

    4.875     4/17/20        550,000        526,625 (a) 

El Paso Corp., Medium-Term Notes

    7.800     8/1/31        130,000        141,375   

Energy Transfer Equity LP, Senior Notes

    7.500     10/15/20        130,000        150,800   

Enterprise Products Operating LLC, Junior Subordinated Notes

    8.375     8/1/66        100,000        113,057 (b)(f) 

EXCO Resources Inc., Senior Notes

    8.500     4/15/22        210,000        217,350   

GeoPark Latin America Ltd. Agencia en Chile, Senior Secured Notes

    7.500     2/11/20        260,000        279,500 (a) 

Globe Luxembourg SCA, Senior Secured Notes

    9.625     5/1/18        410,000        455,100 (a) 

Halcon Resources Corp., Senior Notes

    9.750     7/15/20        210,000        231,000   

Halcon Resources Corp., Senior Notes

    8.875     5/15/21        420,000        449,400   

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

    7.250     10/1/20        130,000        142,675 (a)(b) 

Kodiak Oil & Gas Corp., Senior Notes

    8.125     12/1/19        320,000        356,800 (b) 

Lonestar Resources America Inc., Senior Notes

    8.750     4/15/19        120,000        120,600 (a) 

Magnum Hunter Resources Corp., Senior Notes

    9.750     5/15/20        520,000        577,200   

MEG Energy Corp., Senior Notes

    7.000     3/31/24        560,000        606,200 (a) 

Milagro Oil & Gas Inc., Secured Notes

    10.500     5/15/16        380,000        304,000 (g) 

Murray Energy Corp., Senior Secured Notes

    8.625     6/15/21        200,000        219,000 (a) 

Natural Resource Partners LP, Senior Notes

    9.125     10/1/18        240,000        252,000 (a) 

New Gulf Resources LLC/NGR Finance Corp., Senior Secured Notes

    11.750     5/15/19        320,000        320,000   

Oleoducto Central SA, Senior Notes

    4.000     5/7/21        200,000        200,520 (a) 

Pacific Rubiales Energy Corp., Senior Notes

    5.375     1/26/19        300,000        313,125 (a) 

Pacific Rubiales Energy Corp., Senior Notes

    7.250     12/12/21        480,000        534,000 (a)(b) 

Pacific Rubiales Energy Corp., Senior Notes

    5.125     3/28/23        550,000        544,500 (a) 

Pan American Energy LLC, Senior Notes

    7.875     5/7/21        196,000        203,840 (a) 

Pan American Energy LLC, Senior Notes

    7.875     5/7/21        120,000        124,800 (a)(b) 

Parsley Energy LLC/Parsley Finance Corp., Senior Notes

    7.500     2/15/22        320,000        340,000 (a) 

Peabody Energy Corp., Senior Notes

    7.875     11/1/26        330,000        348,150 (b) 

Petrobras International Finance Co., Senior Notes

    5.375     1/27/21        450,000        469,463 (b) 

Petrobras International Finance Co., Senior Notes

    6.875     1/20/40        870,000        922,200 (b) 

Petroleos Mexicanos, Notes

    8.000     5/3/19        3,980,000        4,929,230   

Petroleos Mexicanos, Senior Notes

    5.500     6/27/44        750,000        777,187   

 

See Notes to Schedule of Investments.

 

4


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Oil, Gas & Consumable Fuels - 16.1% (continued)

       

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

    9.750     8/14/19        390,000      $ 494,812 (a) 

Petronas Capital Ltd., Senior Notes

    5.250     8/12/19        1,555,000        1,772,750 (a)(b) 

Plains Exploration & Production Co., Senior Notes

    8.625     10/15/19        330,000        355,575 (b) 

PT Adaro Indonesia, Senior Notes

    7.625     10/22/19        110,000        116,573 (a)(b) 

PT Pertamina Persero, Notes

    5.250     5/23/21        570,000        594,225 (a) 

PT Pertamina Persero, Senior Notes

    4.300     5/20/23        380,000        364,325 (a) 

Puma International Financing SA, Senior Bonds

    6.750     2/1/21        860,000        903,344 (a) 

Quicksilver Resources Inc., Senior Notes

    11.000     7/1/21        450,000        466,875 (a) 

Range Resources Corp., Senior Subordinated Notes

    8.000     5/15/19        10,000        10,436 (b) 

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

    6.750     9/30/19        270,000        325,013 (a)(b) 

Reliance Holdings USA Inc., Senior Notes

    4.500     10/19/20        530,000        555,942 (a)(b) 

Rice Energy Inc., Senior Notes

    6.250     5/1/22        270,000        272,700 (a) 

Rosneft Finance SA, Senior Notes

    7.875     3/13/18        880,000        998,800 (a)(b) 

Sabine Pass Liquefaction LLC, Senior Secured Notes

    5.750     5/15/24        270,000        277,763 (a) 

Samson Investment Co., Senior Notes

    10.750     2/15/20        770,000        808,500 (a) 

Sanchez Energy Corp., Senior Notes

    7.750     6/15/21        420,000        451,500 (a) 

SandRidge Energy Inc., Senior Notes

    7.500     2/15/23        100,000        107,000   

Shelf Drilling Holdings Ltd., Senior Secured Notes

    8.625     11/1/18        210,000        226,800 (a) 

Sibur Securities Ltd., Senior Notes

    3.914     1/31/18        530,000        500,850 (a) 

Sidewinder Drilling Inc., Senior Notes

    9.750     11/15/19        130,000        130,650 (a) 

Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Senior Notes

    7.500     7/1/21        150,000        163,500   

Westmoreland Coal Co./Westmoreland Partners, Senior Secured Notes

    10.750     2/1/18        180,000        195,750 (a) 

Xinergy Ltd., Senior Secured Notes

    9.250     5/15/19        40,000        26,900 (a) 
       

 

 

 

Total Oil, Gas & Consumable Fuels

          30,052,150   
       

 

 

 

TOTAL ENERGY

          33,822,175   
       

 

 

 
FINANCIALS - 7.0%        

Banks - 3.8%

       

Bank of America Corp., Junior Subordinated Notes

    5.200     6/1/23        270,000        262,575 (f)(h) 

Barclays Bank PLC, Subordinated Notes

    10.179     6/12/21        470,000        649,066 (a)(b) 

Barclays Bank PLC, Subordinated Notes

    7.625     11/21/22        1,000,000        1,151,250 (b) 

Credit Agricole SA, Subordinated Notes

    8.375     10/13/19        390,000        460,200 (a)(b)(f)(h) 

Intesa Sanpaolo SpA, Senior Notes

    3.625     8/12/15        940,000        963,065 (a)(b) 

JPMorgan Chase & Co., Junior Subordinated Bonds

    6.000     8/1/23        140,000        142,275 (f)(h) 

M&T Bank Corp., Junior Subordinated Bonds

    6.875     6/15/16        330,000        334,056 (b)(h) 

Royal Bank of Scotland Group PLC, Junior Subordinated Bonds

    7.648     9/30/31        200,000        233,000 (f)(h) 

Royal Bank of Scotland Group PLC, Subordinated Notes

    5.000     10/1/14        410,000        415,536 (b) 

Royal Bank of Scotland Group PLC, Subordinated Notes

    6.100     6/10/23        370,000        401,983   

Royal Bank of Scotland Group PLC, Subordinated Notes

    5.125     5/28/24        760,000        761,924   

Royal Bank of Scotland NV, Subordinated Notes

    7.750     5/15/23        150,000        172,650   

Royal Bank of Scotland PLC, Subordinated Notes

    13.125     3/19/22        530,000 AUD      590,943 (a)(f) 

Santander Issuances SAU, Notes

    5.911     6/20/16        200,000        211,711 (a)(b) 

Wells Fargo & Co., Junior Subordinated Bonds

    5.900     6/15/24        390,000        410,962 (f)(h) 
       

 

 

 

Total Banks

          7,161,196   
       

 

 

 

Capital Markets - 0.2%

       

Goldman Sachs Group Inc., Subordinated Notes

    6.750     10/1/37        300,000        361,104 (b) 
       

 

 

 

Consumer Finance - 0.9%

       

Ally Financial Inc., Senior Notes

    8.000     3/15/20        160,000        194,400 (b) 

GMAC International Finance BV, Senior Bonds

    7.500     4/21/15        410,000 EUR      588,426 (a)(b) 

SLM Corp., Medium-Term Notes, Senior Notes

    8.450     6/15/18        250,000        294,844   

SLM Corp., Medium-Term Notes, Senior Notes

    8.000     3/25/20        240,000        277,800   

 

See Notes to Schedule of Investments.

 

5


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Consumer Finance - 0.9% (continued)

       

SLM Corp., Senior Notes

    6.125     3/25/24        40,000      $ 40,300   

Stearns Holdings Inc., Senior Secured Notes

    9.375     8/15/20        140,000        147,000 (a) 

TMX Finance LLC/TitleMax Finance Corp., Senior Secured Notes

    8.500     9/15/18        120,000        128,100 (a) 
       

 

 

 

Total Consumer Finance

          1,670,870   
       

 

 

 

Diversified Financial Services - 1.0%

       

International Lease Finance Corp., Senior Notes

    8.625     9/15/15        70,000        76,482 (b) 

International Lease Finance Corp., Senior Notes

    8.875     9/1/17        980,000        1,169,875 (b) 

International Lease Finance Corp., Senior Notes

    8.250     12/15/20        90,000        109,238 (b) 

ZFS Finance USA Trust II, Bonds

    6.450     12/15/65        500,000        542,500 (a)(b)(f) 
       

 

 

 

Total Diversified Financial Services

          1,898,095   
       

 

 

 

Insurance - 0.7%

       

American International Group Inc., Senior Notes

    8.250     8/15/18        450,000        562,826 (b) 

Fidelity & Guaranty Life Holdings Inc., Senior Notes

    6.375     4/1/21        190,000        204,725 (a) 

Liberty Mutual Group Inc., Junior Subordinated Bonds

    7.800     3/15/37        200,000        237,000 (a)(b) 

MetLife Capital Trust IV, Junior Subordinated Notes

    7.875     12/15/37        250,000        308,750 (a)(b) 
       

 

 

 

Total Insurance

          1,313,301   
       

 

 

 

Real Estate Management & Development - 0.4%

       

Country Garden Holdings Co., Ltd., Senior Notes

    11.125     2/23/18        230,000        251,574 (a) 

Howard Hughes Corp., Senior Notes

    6.875     10/1/21        460,000        496,800 (a) 
       

 

 

 

Total Real Estate Management & Development

          748,374   
       

 

 

 

TOTAL FINANCIALS

          13,152,940   
       

 

 

 
HEALTH CARE - 3.8%        

Health Care Equipment & Supplies - 1.0%

       

Alere Inc., Senior Subordinated Notes

    6.500     6/15/20        310,000        327,825   

ConvaTec Finance International SA, Senior Notes

    8.250     1/15/19        220,000        225,500 (a)(d) 

Lantheus Medical Imaging Inc., Senior Notes

    9.750     5/15/17        520,000        521,300   

Ontex IV SA, Senior Notes

    9.000     4/15/19        300,000 EUR      447,795 (a) 

Ontex IV SA, Senior Notes

    9.000     4/15/19        200,000 EUR      298,530 (a) 
       

 

 

 

Total Health Care Equipment & Supplies

          1,820,950   
       

 

 

 

Health Care Providers & Services - 2.0%

       

Acadia Healthcare Co. Inc., Senior Notes

    12.875     11/1/18        305,000        367,525 (b) 

Acadia Healthcare Co. Inc., Senior Notes

    6.125     3/15/21        50,000        52,500   

CHS/Community Health Systems Inc., Senior Notes

    8.000     11/15/19        540,000        594,000 (b) 

Crown Newco 3 PLC, Senior Subordinated Notes

    8.875     2/15/19        380,000 GBP      681,542 (a) 

DJO Finance LLC/DJO Finance Corp., Senior Notes

    9.875     4/15/18        300,000        324,750   

ExamWorks Group Inc., Senior Notes

    9.000     7/15/19        430,000        469,775   

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

    9.000     7/15/15        160,000        173,600 (a)(b) 

IASIS Healthcare LLC/IASIS Capital Corp., Senior Notes

    8.375     5/15/19        550,000        587,813   

Labco SAS, Senior Secured Notes

    8.500     1/15/18        100,000 EUR      145,516 (a) 

Tenet Healthcare Corp., Senior Notes

    8.125     4/1/22        320,000        364,800   
       

 

 

 

Total Health Care Providers & Services

          3,761,821   
       

 

 

 

Pharmaceuticals - 0.8%

       

ConvaTec Healthcare E SA, Senior Notes

    10.875     12/15/18        660,000 EUR      990,726 (a)(b) 

JLL/Delta Dutch Newco BV, Senior Notes

    7.500     2/1/22        310,000        318,913 (a) 

Salix Pharmaceuticals Ltd., Senior Notes

    6.000     1/15/21        170,000        182,750 (a) 
       

 

 

 

Total Pharmaceuticals

          1,492,389   
       

 

 

 

TOTAL HEALTH CARE

          7,075,160   
       

 

 

 
INDUSTRIALS - 13.1%        

Aerospace & Defense - 1.6%

       

CBC Ammo LLC/CBC FinCo Inc., Senior Notes

    7.250     11/15/21        470,000        484,100 (a) 

Ducommun Inc., Senior Notes

    9.750     7/15/18        230,000        258,175 (b) 

 

See Notes to Schedule of Investments.

 

6


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Aerospace & Defense - 1.6% (continued)

       

Erickson Inc., Senior Secured Notes

    8.250     5/1/20        536,000      $ 549,400 (a) 

GenCorp Inc., Secured Notes

    7.125     3/15/21        170,000        185,725   

Kratos Defense & Security Solutions Inc., Senior Secured Notes

    10.000     6/1/17        650,000        684,970   

TransDigm Inc., Senior Subordinated Notes

    6.000     7/15/22        530,000        534,638 (a) 

Triumph Group Inc., Senior Notes

    8.625     7/15/18        190,000        199,861 (b) 
       

 

 

 

Total Aerospace & Defense

          2,896,869   
       

 

 

 

Airlines - 0.8%

       

Air Canada, Pass-Through Trust, Secured Notes

    6.625     5/15/18        130,000        135,629 (a) 

American Airlines, Pass-Through Trust, Secured Notes

    7.000     1/31/18        140,240        152,160 (a) 

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

    9.750     12/17/16        85,649        98,175 (b) 

Heathrow Finance PLC, Senior Secured Notes

    7.125     3/1/17        400,000 GBP      741,847 (a)(b) 

United Airlines Inc., Pass-Through Certificates

    7.373     12/15/15        21,939        23,639   

United Airlines Inc., Pass-Through Certificates, Notes

    5.500     10/29/20        199,731        211,465   

United Airlines Inc., Pass-Through Certificates, Secured Notes

    9.250     5/10/17        2,755        3,092   

United Airlines Inc., Pass-Through Certificates, Senior Secured Notes

    6.125     4/29/18        170,000        181,050   
       

 

 

 

Total Airlines

          1,547,057   
       

 

 

 

Building Products - 0.6%

       

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

    6.875     2/15/21        230,000        232,300 (a) 

GTL Trade Finance Inc., Senior Notes

    7.250     4/16/44        250,000        264,625 (a) 

Rearden G Holdings EINS GmbH, Senior Notes

    7.875     3/30/20        200,000        215,000 (a)(b) 

Spie BondCo 3 SCA, Secured Notes

    11.000     8/15/19        279,000 EUR      433,008 (a)(b) 
       

 

 

 

Total Building Products

          1,144,933   
       

 

 

 

Commercial Services & Supplies - 1.3%

       

Garda World Security Corp., Senior Notes

    7.250     11/15/21        80,000        84,500 (a) 

JM Huber Corp., Senior Notes

    9.875     11/1/19        200,000        229,500 (a)(b) 

Monitronics International Inc., Senior Notes

    9.125     4/1/20        710,000        759,700   

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        396,000        436,590 (a)(b) 

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

    7.750     4/15/20        129,000        142,223 (a)(b) 

United Rentals North America Inc., Senior Notes

    7.625     4/15/22        418,000        475,997 (b) 

United Rentals North America Inc., Senior Subordinated Notes

    8.375     9/15/20        90,000        99,900   
       

 

 

 

Total Commercial Services & Supplies

          2,430,910   
       

 

 

 

Construction & Engineering - 2.5%

       

Astaldi SpA, Senior Bonds

    7.125     12/1/20        260,000 EUR      385,176 (a) 

Astaldi SpA, Senior Notes

    7.125     12/1/20        100,000 EUR      148,144 (a) 

Ausdrill Finance Pty Ltd., Senior Notes

    6.875     11/1/19        400,000        369,000 (a) 

Empresas ICA SAB de CV, Senior Notes

    8.875     5/29/24        616,000        605,453 (a) 

Michael Baker Holdings LLC/Micahel Baker Finance Corp., Senior Notes

    8.875     4/15/19        340,000        345,100 (a)(d) 

Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes

    8.250     10/15/18        400,000        427,000 (a) 

Modular Space Corp., Secured Notes

    10.250     1/31/19        330,000        344,025 (a) 

OAS Investments GmbH, Senior Notes

    8.250     10/19/19        260,000        271,050 (a) 

Odebrecht Finance Ltd., Senior Notes

    5.125     6/26/22        273,000        289,721 (a)(b) 

Odebrecht Finance Ltd., Senior Notes

    5.125     6/26/22        200,000        212,250 (a)(b) 

Odebrecht Finance Ltd., Senior Notes

    4.375     4/25/25        1,140,000        1,107,225 (a)(b) 

Odebrecht Offshore Drilling Finance Ltd., Senior Secured Notes

    6.625     10/1/22        200,000        213,845 (a)(b) 
       

 

 

 

Total Construction & Engineering

          4,717,989   
       

 

 

 

 

See Notes to Schedule of Investments.

 

7


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Electrical Equipment - 0.3%

       

International Wire Group Holdings Inc., Senior Secured Notes

    8.500     10/15/17        230,000      $ 251,850 (a) 

NES Rentals Holdings Inc., Senior Secured Notes

    7.875     5/1/18        200,000        214,000 (a) 

Trionista TopCo GmbH, Senior Subordinated Notes

    6.875     4/30/21        100,000 EUR      148,507 (a) 
       

 

 

 

Total Electrical Equipment

          614,357   
       

 

 

 

Industrial Conglomerates - 0.4%

       

Alfa SAB de CV, Senior Notes

    6.875     3/25/44        200,000        220,000 (a) 

Leucadia National Corp., Senior Notes

    8.125     9/15/15        40,000        43,460   

Sinochem Overseas Capital Co., Ltd., Senior Notes

    4.500     11/12/20        370,000        399,471 (a)(b) 
       

 

 

 

Total Industrial Conglomerates

          662,931   
       

 

 

 

Machinery - 1.8%

       

CTP Transportation Products LLC/CTP Finance Inc., Senior Secured Notes

    8.250     12/15/19        130,000        140,563 (a) 

Dematic SA/DH Services Luxembourg Sarl, Senior Notes

    7.750     12/15/20        620,000        664,950 (a) 

Gardner Denver Inc., Senior Notes

    6.875     8/15/21        120,000        125,700 (a) 

Global Brass and Copper Inc., Senior Secured Notes

    9.500     6/1/19        280,000        321,300   

KION Finance SA, Senior Secured Notes

    6.750     2/15/20        729,000 EUR      1,092,613 (a) 

KraussMaffei Group GmbH, Senior Secured Notes

    8.750     12/15/20        170,000 EUR      262,440 (a) 

KraussMaffei Group GmbH, Senior Secured Notes

    8.750     12/15/20        150,000 EUR      231,565 (a) 

SPL Logistics Escrow LLC/SPL Logistics Finance Corp., Senior Secured Notes

    8.875     8/1/20        200,000        223,500 (a)(b) 

Vander Intermediate Holding II Corp., Senior Notes

    9.750     2/1/19        130,000        138,125 (a)(d) 

Waterjet Holdings Inc., Senior Secured Notes

    7.625     2/1/20        100,000        106,250 (a) 
       

 

 

 

Total Machinery

          3,307,006   
       

 

 

 

Marine - 0.6%

       

Horizon Lines LLC, Secured Notes

    13.000     10/15/16        417,943        380,328 (d) 

Horizon Lines LLC, Senior Secured Notes

    11.000     10/15/16        215,000        216,613   

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

    8.125     11/15/21        320,000        336,800 (a) 

Ultrapetrol Bahamas Ltd., Senior Secured Notes

    8.875     6/15/21        240,000        261,600   
       

 

 

 

Total Marine

          1,195,341   
       

 

 

 

Professional Services - 0.1%

       

Ceridian LLC/Comdata Inc., Senior Notes

    8.125     11/15/17        250,000        253,125 (a) 
       

 

 

 

Road & Rail - 1.2%

       

Flexi-Van Leasing Inc., Senior Notes

    7.875     8/15/18        270,000        295,650 (a) 

Florida East Coast Holdings Corp., Senior Notes

    9.750     5/1/20        410,000        429,475 (a) 

Florida East Coast Holdings Corp., Senior Secured Notes

    6.750     5/1/19        210,000        219,188 (a) 

Gategroup Finance Luxembourg SA, Senior Notes

    6.750     3/1/19        100,000 EUR      145,175 (a) 

Jack Cooper Holdings Corp., Senior Secured Notes

    9.250     6/1/20        510,000        559,087 (a) 

Jurassic Holdings III Inc., Secured Notes

    6.875     2/15/21        180,000        184,950 (a) 

Quality Distribution LLC/QD Capital Corp., Secured Notes

    9.875     11/1/18        414,000        446,085 (b) 
       

 

 

 

Total Road & Rail

          2,279,610   
       

 

 

 

Trading Companies & Distributors - 0.4%

       

Emeco Pty Ltd., Senior Secured Notes

    9.875     3/15/19        200,000        205,500 (a) 

H&E Equipment Services Inc., Senior Notes

    7.000     9/1/22        410,000        453,050   
       

 

 

 

Total Trading Companies & Distributors

          658,550   
       

 

 

 

Transportation - 1.2%

       

CMA CGM, Senior Notes

    8.500     4/15/17        690,000        717,600 (a)(b) 

 

See Notes to Schedule of Investments.

 

8


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Transportation - 1.2% (continued)

       

Hapag-Lloyd AG, Senior Notes

    9.750     10/15/17        410,000      $ 444,338 (a)(b) 

Neovia Logistics Intermediate Holdings LLC/Logistics Intermediate Finance Corp., Senior Notes

    10.000     2/15/18        450,000        462,375 (a)(d) 

Syncreon Group BV/Syncreon Global Finance US Inc., Senior Notes

    8.625     11/1/21        370,000        377,400 (a) 

Watco Cos., LLC/Watco Finance Corp., Senior Notes

    6.375     4/1/23        290,000        297,250 (a) 
       

 

 

 

Total Transportation

          2,298,963   
       

 

 

 

Transportation Infrastructure - 0.3%

       

Global Ship Lease Inc., Senior Secured Notes

    10.000     4/1/19        200,000        213,500 (a) 

Mersin Uluslararasi Liman Isletmeciligi AS, Notes

    5.875     8/12/20        260,000        277,225 (a) 
       

 

 

 

Total Transportation Infrastructure

          490,725   
       

 

 

 

TOTAL INDUSTRIALS

          24,498,366   
       

 

 

 
INFORMATION TECHNOLOGY - 1.9%        

Electronic Equipment, Instruments & Components - 0.1%

       

Techem GmbH, Senior Secured Notes

    6.125     10/1/19        150,000 EUR      222,364 (a) 
       

 

 

 

Internet Software & Services - 0.3%

       

Ancestry.com Inc., Senior Notes

    9.625     10/15/18        10,000        10,350 (a)(d) 

Ancestry.com Inc., Senior Notes

    11.000     12/15/20        250,000        294,375   

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

    8.125     1/1/20        220,000        241,175 (b) 
       

 

 

 

Total Internet Software & Services

          545,900   
       

 

 

 

IT Services - 0.9%

       

Compiler Finance Subordinated Inc., Senior Notes

    7.000     5/1/21        300,000        300,000 (a) 

First Data Corp., Secured Notes

    8.250     1/15/21        140,000        152,600 (a) 

First Data Corp., Senior Notes

    12.625     1/15/21        610,000        735,050   

First Data Corp., Senior Subordinated Notes

    11.750     8/15/21        210,000        234,150   

Interactive Data Corp., Senior Notes

    5.875     4/15/19        180,000        182,250 (a) 
       

 

 

 

Total IT Services

          1,604,050   
       

 

 

 

Software - 0.6%

       

Audatex North America Inc., Senior Notes

    6.000     6/15/21        230,000        246,100 (a) 

Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes

    9.250     1/15/18        280,000        287,000 (a) 

Oberthur Technologies Holding SAS, Senior Secured Notes

    9.250     4/30/20        400,000 EUR      606,601 (a) 
       

 

 

 

Total Software

          1,139,701   
       

 

 

 

TOTAL INFORMATION TECHNOLOGY

          3,512,015   
       

 

 

 
MATERIALS - 14.1%        

Chemicals - 1.3%

       

Alpek SA de CV, Senior Notes

    4.500     11/20/22        235,000        238,995 (a)(b) 

HIG BBC Intermediate Holdings LLC/HIG BBC Holdings Corp., Senior Notes

    10.500     9/15/18        160,000        164,800 (a)(c)(d) 

Kerling PLC, Senior Secured Notes

    10.625     2/1/17        118,000 EUR      171,709 (a)(b) 

KP Germany Erste GmbH, Senior Secured Notes

    11.625     7/15/17        180,000 EUR      279,718 (a)(b) 

KP Germany Erste GmbH, Senior Secured Notes

    11.625     7/15/17        120,000 EUR      186,479 (a)(b) 

Mexichem SAB de CV, Senior Notes

    4.875     9/19/22        260,000        269,750 (a) 

Momentive Performance Materials Inc., Senior Secured Notes

    8.875     10/15/20        60,000        64,950   

OCP SA, Senior Notes

    5.625     4/25/24        450,000        469,139 (a) 

Styrolution GmbH, Senior Secured Notes

    7.625     5/15/16        211,000 EUR      296,972 (a) 

Styrolution Group GmbH, Senior Secured Notes

    7.625     5/15/16        120,000 EUR      168,894 (a) 
       

 

 

 

Total Chemicals

          2,311,406   
       

 

 

 

Construction Materials - 1.0%

       

Cementos Pacasmayo SAA, Senior Notes

    4.500     2/8/23        220,000        210,100 (a) 

Cemex Finance LLC, Senior Secured Notes

    9.375     10/12/22        560,000        660,800 (a)(b) 

 

See Notes to Schedule of Investments.

 

9


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Construction Materials - 1.0% (continued)

       

Cemex Finance LLC, Senior Secured Notes

    9.375     10/12/22        400,000      $ 472,000 (a)(b) 

Cemex SAB de CV, Senior Secured Notes

    9.000     1/11/18        500,000        542,500 (a) 
       

 

 

 

Total Construction Materials

          1,885,400   
       

 

 

 

Containers & Packaging - 2.2%

       

Ardagh Packaging Finance PLC, Senior Notes

    9.250     10/15/20        1,000,000 EUR      1,513,096 (a)(b) 

Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes

    6.250     1/31/19        200,000        207,500 (a) 

Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes

    6.750     1/31/21        320,000        334,400 (a) 

Exopack Holdings SA, Senior Notes

    7.875     11/1/19        400,000        428,000 (a) 

Pactiv LLC, Senior Bonds

    8.375     4/15/27        40,000        41,800   

Pactiv LLC, Senior Notes

    7.950     12/15/25        330,000        343,200   

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

    11.500     4/1/16        510,000        540,442   

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

    8.500     5/15/18        450,000        470,813   

Suzano Trading Ltd., Senior Notes

    5.875     1/23/21        240,000        252,000 (a) 
       

 

 

 

Total Containers & Packaging

          4,131,251   
       

 

 

 

Metals & Mining - 8.3%

       

AngloGold Ashanti Holdings PLC, Senior Notes

    8.500     7/30/20        207,000        232,740   

ArcelorMittal, Senior Notes

    5.000     2/25/17        210,000        222,863   

ArcelorMittal, Senior Notes

    6.000     3/1/21        120,000        129,600   

ArcelorMittal, Senior Notes

    6.750     2/25/22        10,000        11,225   

AuRico Gold Inc., Secured Notes

    7.750     4/1/20        210,000        207,375 (a) 

Barminco Finance Pty Ltd., Senior Notes

    9.000     6/1/18        270,000        251,775 (a) 

Cliffs Natural Resources Inc., Senior Notes

    3.950     1/15/18        50,000        50,803 (b) 

Cliffs Natural Resources Inc., Senior Notes

    5.900     3/15/20        840,000        891,211 (b) 

Coeur Mining Inc., Senior Notes

    7.875     2/1/21        670,000        654,925   

CSN Resources SA, Senior Bonds

    6.500     7/21/20        270,000        280,125 (a)(b) 

CSN Resources SA, Senior Bonds

    6.500     7/21/20        250,000        259,375 (a)(b) 

Essar Steel Minnesota LLC, Senior Secured Notes

    11.500     5/15/20        300,000        309,375 (a) 

Evraz Group SA, Notes

    8.250     11/10/15        130,000        134,875 (a)(b) 

Evraz Group SA, Notes

    6.750     4/27/18        360,000        354,150 (a)(b) 

Evraz Group SA, Senior Notes

    9.500     4/24/18        540,000        579,906 (a)(b) 

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

    8.250     11/1/19        470,000        512,887 (a)(b) 

Gerdau Trade Inc., Senior Notes

    4.750     4/15/23        270,000        266,625 (a)(b) 

Midwest Vanadium Pty Ltd., Senior Secured Notes

    11.500     2/15/18        330,000        171,600 (a)(e)(g) 

Mirabela Nickel Ltd., Notes

    3.500     6/30/14        132,500        132,500 (a)(c)(d)(e) 

Mirabela Nickel Ltd., Senior Notes

    8.750     4/15/18        320,000        83,200 (a)(g) 

Molycorp Inc., Senior Secured Notes

    10.000     6/1/20        240,000        216,900   

New World Resources NV, Senior Secured Notes

    7.875     5/1/18        100,000 EUR      87,242 (a) 

Prince Mineral Holding Corp., Senior Secured Notes

    11.750     12/15/19        170,000        192,738 (a)(b) 

Rain CII Carbon LLC/CII Carbon Corp., Senior Secured
Notes

    8.250     1/15/21        420,000        437,850 (a) 

Rio Tinto Finance USA Ltd., Senior Notes

    9.000     5/1/19        260,000        342,501 (b) 

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

    11.250     10/15/18        20,000        22,500   

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

    9.000     10/15/17        420,000        452,025   

Samarco Mineracao SA, Senior Notes

    4.125     11/1/22        410,000        390,525 (a) 

Schaeffler Holding Finance BV, Senior Secured Bonds

    6.875     8/15/18        200,000        212,250 (a)(d) 

Schaeffler Holding Finance BV, Senior Secured Notes

    6.875     8/15/18        290,000 EUR      418,538 (a)(d) 

Severstal OAO Via Steel Capital SA, Senior Notes

    4.450     3/19/18        300,000        296,625 (a) 

Southern Copper Corp., Senior Notes

    5.375     4/16/20        200,000        222,881 (b) 

Southern Copper Corp., Senior Notes

    6.750     4/16/40        730,000        800,290 (b) 

Southern Copper Corp., Senior Notes

    5.250     11/8/42        180,000        167,584 (b) 

St. Barbara Ltd., Senior Secured Notes

    8.875     4/15/18        500,000        413,750 (a) 

 

See Notes to Schedule of Investments.

 

10


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Metals & Mining - 8.3% (continued)

       

Steel Dynamics Inc., Senior Notes

    6.125     8/15/19        150,000      $ 163,875   

SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., Senior Notes

    7.375     2/1/20        140,000        149,800 (a) 

SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., Senior Notes

    7.375     2/1/20        50,000        53,500 (a) 

Thompson Creek Metals Co. Inc., Senior Notes

    12.500     5/1/19        230,000        259,325   

Thompson Creek Metals Co. Inc., Senior Secured Notes

    9.750     12/1/17        230,000        258,750 (b) 

Vale Overseas Ltd., Notes

    6.875     11/21/36        2,277,000        2,540,524 (b)(i) 

Vale Overseas Ltd., Senior Notes

    4.375     1/11/22        630,000        650,265 (b) 

Vedanta Resources PLC, Senior Notes

    6.750     6/7/16        450,000        479,835 (a) 

Vedanta Resources PLC, Senior Notes

    9.500     7/18/18        100,000        116,500 (a)(b) 

Vedanta Resources PLC, Senior Notes

    6.000     1/31/19        450,000        467,437 (a) 
       

 

 

 

Total Metals & Mining

          15,551,145   
       

 

 

 

Paper & Forest Products - 1.3%

       

Appvion Inc., Secured Notes

    9.000     6/1/20        730,000        730,912 (a) 

Celulosa Arauco y Constitucion SA, Senior Notes

    7.250     7/29/19        62,000        72,752 (b) 

Celulosa Arauco y Constitucion SA, Senior Notes

    4.750     1/11/22        160,000        164,615 (b) 

Fibria Overseas Finance Ltd., Senior Notes

    5.250     5/12/24        200,000        202,040   

Inversiones CMPC SA, Notes

    4.750     1/19/18        250,000        266,194 (a)(b) 

Inversiones CMPC SA, Notes

    4.375     5/15/23        200,000        197,251 (a) 

Inversiones CMPC SA, Senior Notes

    4.500     4/25/22        190,000        190,238 (a)(b) 

Resolute Forest Products Inc., Senior Notes

    5.875     5/15/23        400,000        388,000   

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

    11.750     1/15/19        189,000        168,683   

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

    11.750     1/15/19        60,000        64,200   
       

 

 

 

Total Paper & Forest Products

          2,444,885   
       

 

 

 

TOTAL MATERIALS

          26,324,087   
       

 

 

 
TELECOMMUNICATION SERVICES - 9.4%        

Diversified Telecommunication Services - 5.4%

       

Axtel SAB de CV, Senior Secured Notes, Step Bond

    8.000     1/31/20        1,224,000        1,254,600 (a) 

Bharti Airtel International Netherlands BV, Senior Bonds

    5.350     5/20/24        280,000        296,086 (a) 

CenturyLink Inc., Senior Notes

    6.750     12/1/23        250,000        273,750   

Cincinnati Bell Telephone Co., Senior Debentures

    6.300     12/1/28        50,000        48,375 (b) 

Cogent Communications Holdings Inc., Senior Secured Notes

    8.375     2/15/18        380,000        409,450 (a)(b) 

Empresa Nacional de Telecomunicaciones S.A., Senior Notes

    4.875     10/30/24        200,000        209,595 (a)(b) 

Inmarsat Finance PLC, Senior Notes

    7.375     12/1/17        150,000        156,323 (a) 

Intelsat Jackson Holdings SA, Senior Notes

    7.250     10/15/20        760,000        822,700 (b) 

Intelsat Jackson Holdings SA, Senior Notes

    7.500     4/1/21        150,000        164,812 (b) 

Intelsat Jackson Holdings SA, Senior Notes

    5.500     8/1/23        620,000        619,225 (a) 

Level 3 Financing Inc., Senior Notes

    8.625     7/15/20        600,000        676,500 (b) 

Level 3 Financing Inc., Senior Notes

    6.125     1/15/21        90,000        95,513 (a) 

Qtel International Finance Ltd., Senior Notes

    4.750     2/16/21        220,000        240,625 (a)(b) 

Telemar Norte Leste SA, Senior Notes

    5.500     10/23/20        380,000        384,750 (a)(b) 

TW Telecom Holdings Inc., Senior Notes

    5.375     10/1/22        90,000        92,250   

TW Telecom Holdings Inc., Senior Notes

    6.375     9/1/23        410,000        439,725   

UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes

    8.250     5/23/16        480,000        519,600 (a)(b) 

Unitymedia KabelBW GmbH, Senior Secured Notes

    9.500     3/15/21        300,000 EUR      471,820 (a)(b) 

Unitymedia KabelBW GmbH, Senior Secured Notes

    9.500     3/15/21        180,000 EUR      283,092 (a)(b) 

Verizon Communications Inc., Senior Notes

    5.150     9/15/23        390,000        439,864 (b) 

Wind Acquisition Finance SA, Senior Notes

    11.750     7/15/17        200,000        208,750 (a)(b) 

Wind Acquisition Holdings Finance SpA, Senior Notes

    12.250     7/15/17        952,675        994,950 (a) 

 

See Notes to Schedule of Investments.

 

11


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Diversified Telecommunication

Services - 5.4% (continued)

  

  

   

Windstream Corp., Senior Notes

    7.500     4/1/23        270,000      $ 288,225 (b) 

Windstream Corp., Senior Notes

    6.375     8/1/23        610,000        608,475   
       

 

 

 

Total Diversified Telecommunication Services

          9,999,055   
       

 

 

 

Wireless Telecommunication Services - 4.0%

       

America Movil SAB de CV, Senior Notes

    5.625     11/15/17        340,000        387,175 (b) 

Indosat Palapa Co. BV, Senior Notes

    7.375     7/29/20        540,000        587,925 (a)(b) 

Matterhorn Midco & Cy SCA, Senior Notes

    7.750     2/15/20        340,000 EUR      500,317 (a) 

Phones4u Finance PLC, Senior Secured Notes

    9.500     4/1/18        330,000 GBP      579,420 (a) 

Sprint Capital Corp., Senior Notes

    8.750     3/15/32        1,865,000        2,168,062 (b) 

Sprint Communications Inc., Senior Notes

    9.000     11/15/18        630,000        767,025 (a)(b) 

Sprint Corp., Senior Notes

    7.875     9/15/23        590,000        668,175 (a) 

Sprint Corp., Senior Notes

    7.125     6/15/24        1,130,000        1,220,400 (a) 

Syniverse Holdings Inc., Senior Notes

    9.125     1/15/19        315,000        340,988 (b) 

T-Mobile USA Inc., Senior Notes

    6.542     4/28/20        120,000        130,050   

VimpelCom Holdings BV, Senior Notes

    7.504     3/1/22        200,000        210,000 (a)(b) 
       

 

 

 

Total Wireless Telecommunication Services

          7,559,537   
       

 

 

 

TOTAL TELECOMMUNICATION SERVICES

          17,558,592   
       

 

 

 
UTILITIES - 5.3%        

Electric Utilities - 1.4%

       

AES Red Oak LLC, Secured Notes

    9.200     11/30/29        660,000        729,300   

Comision Federal de Electricidad, Senior Notes

    4.875     1/15/24        200,000        212,500 (a) 

FirstEnergy Corp., Notes

    7.375     11/15/31        330,000        389,451   

GenOn REMA LLC, Pass-Through Certificates

    9.237     7/2/17        78,619        81,371   

GenOn REMA LLC, Pass-Through Certificates

    9.681     7/2/26        450,000        490,500 (b) 

Majapahit Holding BV, Senior Notes

    7.750     1/20/20        280,000        329,364 (a)(b) 

Midwest Generation LLC, Pass-Through Certificates

    8.560     1/2/16        153,915        172,769 (g) 

State Grid Overseas Investment 2013 Ltd., Senior Bonds

    3.125     5/22/23        200,000        194,661 (a)(b) 
       

 

 

 

Total Electric Utilities

          2,599,916   
       

 

 

 

Gas Utilities - 0.8%

       

Gas Natural de Lima y Callao SA, Senior Notes

    4.375     4/1/23        200,000        194,000 (a) 

Southern Natural Gas Co., Senior Notes

    8.000     3/1/32        70,000        95,836 (b) 

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

    7.375     3/15/20        330,000        354,337 (b) 

Transportadora de Gas del Peru SA, Senior Notes

    4.250     4/30/28        440,000        419,100 (a) 

Transportadora de Gas Internacional SA ESP, Senior Notes

    5.700     3/20/22        470,000        512,300 (a)(b) 
       

 

 

 

Total Gas Utilities

          1,575,573   
       

 

 

 

Independent Power and Renewable Electricity Producers - 3.0%

       

AES Gener SA, Notes

    5.250     8/15/21        250,000        266,251 (a) 

Atlantic Power Corp., Senior Notes

    9.000     11/15/18        200,000        213,000 (b) 

Calpine Corp., Senior Secured Notes

    7.875     1/15/23        432,000        487,080 (a)(b) 

Colbun SA, Senior Notes

    6.000     1/21/20        390,000        435,946 (a)(b) 

Dynegy Roseton LLC/Dynegy Danskammer LLC Pass-Through Trust, Secured Bonds

    7.670     11/8/16        280,000        0 (c)(e)(j) 

Empresa Nacional de Electricidad SA, Senior Notes

    4.250     4/15/24        130,000        132,926   

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

    6.875     8/15/17        1,340,000        1,383,550 (a) 

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

    10.000     12/1/20        630,000        670,162   

First Wind Holdings Inc., Senior Secured Notes

    10.250     6/1/18        590,000        629,825 (a) 

Foresight Energy LLC/Foresight Energy Corp., Senior Notes

    7.875     8/15/21        370,000        394,975 (a) 

Mirant Mid Atlantic LLC, Pass-Through Certificates

    10.060     12/30/28        798,921        906,776   
       

 

 

 

Total Independent Power and Renewable Electricity Producers

          5,520,491   
       

 

 

 

 

See Notes to Schedule of Investments.

 

12


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Multi-Utilities - 0.1%

       

Empresas Publicas de Medellin ESP, Senior Notes

    7.625     7/29/19        200,000      $ 241,000 (a)(b) 
       

 

 

 

TOTAL UTILITIES

          9,936,980   
       

 

 

 

TOTAL CORPORATE BONDS & NOTES

(Cost - $157,013,761)

          168,516,314   
       

 

 

 
CONVERTIBLE BONDS & NOTES - 0.1%        
TELECOMMUNICATION SERVICES - 0.1%        

Diversified Telecommunication Services - 0.1%

       

Axtel SAB de CV, Senior Secured Notes, Step Bond

(Cost - $199,350)

    8.000     1/31/20        1,395,900 MXN      190,007 (a) 
       

 

 

 
SENIOR LOANS - 1.5%        
CONSUMER DISCRETIONARY - 0.4%        

Hotels, Restaurants & Leisure - 0.3%

       

Equinox Holdings Inc., Second Lien Term Loan

    9.750     7/31/20        300,000        304,500 (k)(l) 

Stockbridge SBE Holdings LLC, Term Loan B

    13.000     5/2/17        305,000        339,694 (k)(l) 
       

 

 

 

Total Hotels, Restaurants & Leisure

          644,194   
       

 

 

 

Specialty Retail - 0.1%

       

Gymboree Corp., Initial Term Loan

    5.000     2/23/18        140,000        114,216 (k)(l) 
       

 

 

 

TOTAL CONSUMER DISCRETIONARY

          758,410   
       

 

 

 
CONSUMER STAPLES - 0.1%        

Food Products - 0.1%

       

AdvancePierre Foods Inc., Second Lien Term Loan

    9.500     10/10/17        130,000        126,317 (k)(l) 
       

 

 

 
HEALTH CARE - 0.4%        

Health Care Providers & Services - 0.4%

       

CRC Health Corp., Second Lien Term Loan

    9.000     9/28/21        230,000        231,725 (k)(l) 

Physiotherapy Associates Holdings Inc., Exit Term Loan

    10.000     10/10/16        250,000        248,750 (e)(k)(l) 

Radnet Management Inc., Second Lien Term Loan

    8.000     3/5/21        290,000        292,175 (k)(l) 
       

 

 

 

TOTAL HEALTH CARE

          772,650   
       

 

 

 
INDUSTRIALS - 0.3%        

Machinery - 0.3%

       

Intelligrated Inc., Second Lien Term Loan

    10.500     1/30/20        500,000        509,375 (k)(l) 
       

 

 

 
MATERIALS - 0.3%        

Chemicals - 0.3%

       

Kerling PLC, EUR Term Loan

    10.000     6/30/16        300,000 EUR      427,859 (k)(l) 

Kronos Inc., Second Lien Term Loan

    9.750     4/30/20        230,000        238,625 (k)(l) 
       

 

 

 

TOTAL MATERIALS

          666,484   
       

 

 

 

TOTAL SENIOR LOANS

(Cost - $2,756,835)

          2,833,236   
       

 

 

 
SOVEREIGN BONDS - 29.8%        

Argentina - 0.1%

       

Republic of Argentina, Senior Bonds

    7.000     10/3/15        140,000        134,894   
       

 

 

 

Brazil - 3.8%

       

Banco Nacional de Desenvolvimento Economico e Social, Senior Notes

    5.750     9/26/23        220,000        236,302 (a) 

Federative Republic of Brazil, Notes

    10.000     1/1/17        10,492,000 BRL      4,516,430   

Federative Republic of Brazil, Senior Notes

    8.000     1/15/18        1,612,445        1,804,326 (i) 

Federative Republic of Brazil, Senior Notes

    4.875     1/22/21        420,000        464,100 (b) 
       

 

 

 

Total Brazil

          7,021,158   
       

 

 

 

Chile - 0.9%

       

Corporacion Nacional del Cobre de Chile, Senior Notes

    3.750     11/4/20        250,000        262,007 (a)(b) 

 

See Notes to Schedule of Investments.

 

13


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Chile - 0.9% (continued)

       

Corporacion Nacional del Cobre de Chile, Senior Notes

    3.875     11/3/21        490,000      $ 507,994 (a)(b) 

Corporacion Nacional del Cobre de Chile, Senior Notes

    3.000     7/17/22        500,000        485,800 (a)(b) 

Republic of Chile, Senior Notes

    3.875     8/5/20        412,000        446,505 (b) 
       

 

 

 

Total Chile

          1,702,306   
       

 

 

 

Colombia - 1.9%

       

Republic of Colombia, Senior Bonds

    7.375     9/18/37        2,150,000        2,945,500 (i) 

Republic of Colombia, Senior Bonds

    6.125     1/18/41        180,000        216,450   

Republic of Colombia, Senior Notes

    7.375     3/18/19        255,000        313,650   
       

 

 

 

Total Colombia

          3,475,600   
       

 

 

 

Costa Rica - 0.2%

       

Republic of Costa Rica, Notes

    7.000     4/4/44        360,000        380,700 (a) 
       

 

 

 

Croatia - 0.6%

       

Republic of Croatia, Notes

    5.500     4/4/23        550,000        576,125 (a) 

Republic of Croatia, Senior Notes

    6.625     7/14/20        260,000        292,500 (a) 

Republic of Croatia, Senior Notes

    5.500     4/4/23        210,000        219,975 (a) 
       

 

 

 

Total Croatia

          1,088,600   
       

 

 

 

Gabon - 0.1%

       

Gabonese Republic, Bonds

    6.375     12/12/24        250,000        275,625 (a) 
       

 

 

 

Hungary - 0.5%

       

Hungary Government Bond, Senior Notes

    5.750     11/22/23        928,000        1,018,480   
       

 

 

 

Indonesia - 2.3%

       

Republic of Indonesia, Notes

    3.750     4/25/22        720,000        710,100 (a) 

Republic of Indonesia, Notes

    5.250     1/17/42        1,790,000        1,765,387 (a) 

Republic of Indonesia, Senior Bonds

    6.875     1/17/18        100,000        115,375 (a) 

Republic of Indonesia, Senior Bonds

    6.625     2/17/37        775,000        893,188 (a) 

Republic of Indonesia, Senior Notes

    5.875     1/15/24        727,000        817,875 (a) 
       

 

 

 

Total Indonesia

          4,301,925   
       

 

 

 

Lithuania - 0.5%

       

Republic of Lithuania, Senior Notes

    6.125     3/9/21        860,000        1,013,854 (a) 
       

 

 

 

Mexico - 3.2%

       

United Mexican States, Bonds

    8.000     6/11/20        23,008,500 MXN      2,050,753 (b) 

United Mexican States, Bonds

    6.500     6/9/22        6,570,200 MXN      540,675 (b) 

United Mexican States, Bonds

    10.000     12/5/24        4,800,000 MXN      494,944   

United Mexican States, Bonds

    8.500     11/18/38        12,990,000 MXN      1,217,380 (b) 

United Mexican States, Senior Notes

    5.125     1/15/20        220,000        248,600 (b) 

United Mexican States, Senior Notes

    3.625     3/15/22        1,030,000        1,070,170 (b) 

United Mexican States, Senior Notes

    4.000     10/2/23        160,000        168,600   

United Mexican States, Senior Notes

    4.750     3/8/44        210,000        215,250 (b) 
       

 

 

 

Total Mexico

          6,006,372   
       

 

 

 

Panama - 0.3%

       

Republic of Panama, Senior Bonds

    6.700     1/26/36        459,000        573,750   
       

 

 

 

Peru - 1.6%

       

Republic of Peru, Bonds

    6.550     3/14/37        321,000        409,756   

Republic of Peru, Global Senior Bonds

    7.350     7/21/25        1,200,000        1,600,500 (i) 

Republic of Peru, Senior Bonds

    8.750     11/21/33        490,000        757,050   

Republic of Peru, Senior Bonds

    5.625     11/18/50        209,000        238,574   
       

 

 

 

Total Peru

          3,005,880   
       

 

 

 

 

 

See Notes to Schedule of Investments.

 

14


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

  RATE     MATURITY
DATE
    FACE
AMOUNT†
    VALUE  

Philippines - 0.4%

       

Republic of the Philippines, Senior Bonds

    5.500     3/30/26        660,000      $ 773,025   
       

 

 

 

Poland - 1.6%

       

Republic of Poland, Senior Notes

    6.375     7/15/19        900,000        1,072,125   

Republic of Poland, Senior Notes

    5.125     4/21/21        500,000        567,282   

Republic of Poland, Senior Notes

    5.000     3/23/22        1,270,000        1,427,162   
       

 

 

 

Total Poland

          3,066,569   
       

 

 

 

Russia - 3.4%

       

Russian Foreign Bond - Eurobond, Senior Bonds

    4.875     9/16/23        400,000        413,600 (a) 

Russian Foreign Bond - Eurobond, Senior Bonds

    12.750     6/24/28        42,000        72,702 (a)(b) 

Russian Foreign Bond - Eurobond, Senior Bonds

    7.500     3/31/30        2,704,038        3,144,796 (a)(i) 

Russian Foreign Bond - Eurobond, Senior Notes

    5.625     4/4/42        2,600,000        2,717,000 (a)(b) 
       

 

 

 

Total Russia

          6,348,098   
       

 

 

 

South Africa - 0.2%

       

Republic of South Africa, Senior Notes

    5.875     9/16/25        260,000        293,280   
       

 

 

 

Sri Lanka - 0.2%

       

Republic of Sri Lanka, Senior Bonds

    5.125     4/11/19        400,000        411,000 (a) 
       

 

 

 

Turkey - 4.1%

       

Republic of Turkey, Notes

    6.750     5/30/40        25,000        29,396   

Republic of Turkey, Senior Bonds

    5.750     3/22/24        260,000        285,350   

Republic of Turkey, Senior Bonds

    11.875     1/15/30        575,000        990,150   

Republic of Turkey, Senior Notes

    6.875     3/17/36        5,296,000        6,308,860 (i) 
       

 

 

 

Total Turkey

          7,613,756   
       

 

 

 

Ukraine - 0.1%

       

Republic of Ukraine, Senior Notes

    6.750     11/14/17        113,000        106,932 (a) 
       

 

 

 

Venezuela - 3.8%

       

Bolivarian Republic of Venezuela, Global Senior Bonds

    8.500     10/8/14        3,733,000        3,747,932   

Bolivarian Republic of Venezuela, Senior Bonds

    5.750     2/26/16        2,426,000        2,273,162 (a)(b) 

Bolivarian Republic of Venezuela, Senior Bonds

    9.375     1/13/34        1,200,000        954,000 (i) 

Bolivarian Republic of Venezuela, Senior Notes

    7.650     4/21/25        233,000        170,672   
       

 

 

 

Total Venezuela

          7,145,766   
       

 

 

 

TOTAL SOVEREIGN BONDS

(Cost - $52,751,741)

          55,757,570   
       

 

 

 
                SHARES        
COMMON STOCKS - 2.5%        
CONSUMER DISCRETIONARY - 0.1%        

Automobiles - 0.1%

       

Ford Motor Co.

        12,540        206,157   
       

 

 

 

Hotels, Restaurants & Leisure - 0.0%

       

Bossier Casino Venture Holdco Inc.

        19,194        38,388 *(c)(e) 
       

 

 

 

TOTAL CONSUMER DISCRETIONARY

          244,545   
       

 

 

 
ENERGY - 0.3%        

Energy Equipment & Services - 0.3%

       

KCAD Holdings I Ltd.

        77,972,021        580,190 *(c)(e) 
       

 

 

 
FINANCIALS - 1.5%        

Banks - 1.4%

       

Citigroup Inc.

        50,751        2,414,225   

JPMorgan Chase & Co.

        5,293        294,132   
       

 

 

 

Total Banks

          2,708,357   
       

 

 

 

 

See Notes to Schedule of Investments.

 

15


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

 

SECURITY

              SHARES     VALUE  

Real Estate Management & Development - 0.1%

       

Realogy Holdings Corp.

        2,940      $ 109,309
       

 

 

 

TOTAL FINANCIALS

          2,817,666   
       

 

 

 
HEALTH CARE - 0.1%        

Health Care Providers & Services - 0.1%

       

Physiotherapy Associates Holdings Inc.

        3,500        168,000 *(c)(e) 
       

 

 

 
INDUSTRIALS - 0.5%        

Marine - 0.5%

       

DeepOcean Group Holding AS

        26,137        872,192 *(c)(e) 

Horizon Lines Inc., Class A Shares

        170,006        61,202
       

 

 

 

TOTAL INDUSTRIALS

          933,394   
       

 

 

 

TOTAL COMMON STOCKS

(Cost - $4,821,024)

          4,743,795   
       

 

 

 
    RATE                    
CONVERTIBLE PREFERRED STOCKS - 0.0%        
MATERIALS - 0.0%        

Metals & Mining - 0.0%

       

ArcelorMittal (Cost - $60,000)

    6.000       2,400        55,752   
       

 

 

 
PREFERRED STOCKS - 0.7%        
FINANCIALS - 0.7%        

Consumer Finance - 0.7%

       

GMAC Capital Trust I (Cost - $1,085,701)

    8.125       43,913        1,190,921 (f) 
       

 

 

 
          EXPIRATION
DATE
    WARRANTS        
WARRANTS - 0.2%        

Bolivarian Republic of Venezuela, Oil-linked payment obligations

      4/15/20        9,125        213,297   

Jack Cooper Holdings Corp.

      12/15/17        496        76,880 *(a) 

Jack Cooper Holdings Corp.

      5/6/18        228        35,340 *(a) 
       

 

 

 

TOTAL WARRANTS

(Cost - $12,465)

          325,517   
       

 

 

 

TOTAL INVESTMENTS - 124.9%

(Cost - $218,700,877#)

          233,613,112   

Liabilities in Excess of Other Assets - (24.9)%

          (46,556,848
       

 

 

 

TOTAL NET ASSETS - 100.0%

        $ 187,056,264   
       

 

 

 

 

* Non-income producing security.

 

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

 

(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) Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

 

(e) Illiquid security.

 

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

 

(g) The coupon payment on these securities is currently in default as of May 31, 2014.

 

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

 

(i) All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.
(j) Value is less than $1.

 

(k) Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

 

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

 

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

Abbreviations used in this schedule:

AUD    — Australian Dollar
BRL    — Brazilian Real
EUR    — Euro
GBP    — British Pound
MXN    — Mexican Peso
OJSC    — Open Joint Stock Company

 

See Notes to Schedule of Investments.

 

16


WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    May 31, 2014

 

Summary of Investments by Country**

 

United States

     38.9

Brazil

     7.9   

Mexico

     7.8   

United Kingdom

     4.9   

Russia

     4.6   

Turkey

     3.4   

Venezuela

     3.2   

Colombia

     2.9   

Indonesia

     2.7   

Luxembourg

     2.3   

Germany

     2.1   

Peru

     1.7   

Chile

     1.7   

Poland

     1.5   

France

     1.5   

Italy

     1.3   

Australia

     0.9   

Ireland

     0.9   

India

     0.8   

South Africa

     0.8   

Malaysia

     0.8   

Spain

     0.7   

Croatia

     0.5   

Norway

     0.5   

Netherlands

     0.5   

Canada

     0.4   

Hungary

     0.4   

Lithuania

     0.4   

Singapore

     0.4   

China

     0.4   

Philippines

     0.3   

United Arab Emirates

     0.3   

Belgium

     0.3   

Switzerland

     0.3   

Argentina

     0.3   

Panama

     0.2   

Sweden

     0.2   

Qatar

     0.2   

Trinidad and Tobago

     0.2   

Morocco

     0.2   

Sri Lanka

     0.2   

Costa Rica

     0.2   

Hong Kong

     0.1   

Gabon

     0.1   

Bahamas

     0.1   

Ukraine

     0.0 † 

Czech Republic

     0.0 † 

 

 
     100.0

 

 

 

** As a percentage of total investments. Please note that the Fund holdings are as of May 31, 2014 and are subject to change.

 

Represents less than 0.1%.

 

See Notes to Schedule of Investments.

 

17


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. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

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

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

 

18


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

 

DESCRIPTION

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

Long-term investments†:

          

Corporate bonds & notes:

          

Consumer discretionary

     —         $ 25,836,857       $ 426,267      $ 26,263,124   

Materials

     —           26,191,587         132,500        26,324,087   

Utilities

     —           9,936,980         0     9,936,980   

Other corporate bonds & notes

     —           105,992,123         —          105,992,123   

Convertible bonds & notes

     —           190,007         —          190,007   

Senior loans

     —           2,833,236         —          2,833,236   

Sovereign bonds

     —           55,757,570         —          55,757,570   

Common stocks:

          

Consumer discretionary

   $ 206,157         —           38,388        244,545   

Energy

     —           —           580,190        580,190   

Financials

     2,817,666         —           —          2,817,666   

Health care

     —           —           168,000        168,000   

Industrials

     61,202         —           872,192        933,394   

Convertible preferred stocks

     55,752         —           —          55,752   

Preferred stocks

     1,190,921         —           —          1,190,921   

Warrants

     —           325,517         —          325,517   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total investments

   $ 4,331,698       $ 227,063,877       $ 2,217,537      $ 233,613,112   
  

 

 

    

 

 

    

 

 

   

 

 

 

Other financial instruments:

          

Forward foreign currency contracts

     —         $ 368,178         —        $ 368,178   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 4,331,698       $ 227,432,055       $ 2,217,537      $ 233,981,290   
  

 

 

    

 

 

    

 

 

   

 

 

 

LIABILITIES

 

DESCRIPTION

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

Other financial instruments:

          

Futures contracts

   $ 65,094         —           —        $ 65,094   

Forward foreign currency contracts

     —         $ 30,415         —          30,415   

Centrally cleared credit default swaps on credit indices - buy protection

     —           67,273         —          67,273   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 65,094       $ 97,688         —        $ 162,782   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

See Schedule of Investments for additional detailed categorizations.

 

* Value is less than $1.

 

19


Notes to Schedule of Investments (unaudited) (continued)

 

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

 

    CORPORATE
BONDS & NOTES
       

INVESTMENTS IN SECURITIES

  CONSUMER
DISCRETIONARY
    ENERGY     MATERIALS     UTILITIES     TOTAL        

Balance as of August 31, 2013

  $ 293,377      $ 553,255        —        $ 4,900      $ 851,532     

Accrued premiums/discounts

    3,841        1,960      $ 27,464        6,003        39,268     

Realized gain (loss)(1)

    —          —          —          —          —       

Change in unrealized appreciation (depreciation)(2)

    7,222        (20,491     5,035        148,410        140,176     

Purchases

    121,827        36,051        100,001        —          257,879     

Sales

    —          —          —          (159,313     (159,313  

Transfers into Level 3

    —          —          —          —          —       

Transfers out of Level 3(3)

    —          (570,775     —          —          (570,775  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Balance as of May 31, 2014

  $ 426,267        —        $ 132,500        0   $ 558,767     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Net change in unrealized appreciation (depreciation) for investments in securities still held at May 31, 2014(2)

  $ 7,222        —        $ 5,035        148,410        160,667     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
    COMMON STOCKS              

INVESTMENTS IN SECURITIES

  CONSUMER
DISCRETIONARY
    ENERGY     HEALTH
CARE
    INDUSTRIALS     WARRANTS     TOTAL  

Balance as of August 31, 2013

  $ 38,388      $ 656,057        —        $ 733,927      $ 88,417      $ 1,516,789   

Accrued premiums/discounts

    —          —          —          —          —          —     

Realized gain (loss)(1)

    —          —          —          —          89,345        89,345   

Change in unrealized appreciation (depreciation)(2)

    —          (75,867   $ (115,597     138,265        (88,417     (141,616

Purchases

    —          —          283,597        —          —          283,597   

Sales

    —          —          —          —          (89,345     (89,345

Transfers into Level 3

    —          —          —          —          —          —     

Transfers out of Level 3(3)

    —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of May 31, 2014

  $ 38,388      $ 580,190      $ 168,000      $ 872,192      $ —        $ 1,658,770   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) for investments in securities still held at May 31, 2014(2)

    —        $ (75,867   $ (115,597   $ 138,265      $ —        $ (53,199
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

* Value is less than $1.

 

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

 

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

 

(3) Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability 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) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

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

 

20


Notes to Schedule of Investments (unaudited) (continued)

 

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

(e) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

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

(f) Swap agreements. The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated with other portfolio transactions. Swap agreements are privately negotiated in the over-the-counter market (“OTC Swaps”) or may be executed on a registered exchange (“Centrally Cleared Swaps”). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of Centrally Cleared Swaps, if any, is recorded as a receivable or payable for variation margin. 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.

The Fund’s maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the notional amount. As of May 31, 2014, the Fund did not hold any credit default swaps to sell protection.

For average notional amounts of swaps held during the period ended May 31, 2014, 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.

 

21


Notes to Schedule of Investments (unaudited) (continued)

 

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) 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.

(h) 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.

(i) 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.

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

(k) 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.

 

22


Notes to Schedule of Investments (unaudited) (continued)

 

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Securities pledged as collateral, if any, to cover the obligations of the Fund under derivative contracts, are noted in the Schedule of Investments.

As of May 31, 2014, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $30,415. 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.

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

2. Investments

At May 31, 2014, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

   $ 18,732,103   

Gross unrealized depreciation

     (3,819,868
  

 

 

 

Net unrealized appreciation

   $ 14,912,235   
  

 

 

 

Transactions in reverse repurchase agreements for the Fund during the period ended May 31, 2014 were as follows:

 

Average

Daily

Balance*

      

Weighted

Average

Interest Rate*

       

Maximum

Amount

Outstanding

    

$    15,046,794

     0.74%       $    24,234,368   

 

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

Interest rates on reverse repurchase agreements ranged from 0.20% to 1.00% during the period ended May 31, 2014. Interest expense incurred on reverse repurchase agreements totaled $82,612.

At May 31, 2014, the Fund had the following open reverse repurchase agreements:

 

Counterparty

   Rate     Effective Date      Maturity Date     Face Amount of
Reverse Repurchase
Agreements
 

Credit Suisse

     0.75     05/13/2014         TBD   $ 9,252,369   

Credit Suisse

     0.85     05/13/2014         TBD     3,649,440   

JPMorgan Chase & Co.

     0.75     03/24/2014         TBD     904,000   

JPMorgan Chase & Co.

     0.85     03/24/2014         TBD     732,000   
         

 

 

 
          $ 14,537,809   
         

 

 

 

 

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

On May 31, 2014, 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 $17,305,492.

At May 31, 2014, the Fund had the following open futures contracts:

 

     Number of
Contracts
     Expiration
Date
     Basis
Value
     Market
Value
     Unrealized
Depreciation
 
Contracts to Sell:               

U.S. Treasury 10-Year Notes

     162         9/14       $ 20,273,747         20,333,531       $ (59,784

U.S. Treasury 5-Year Notes

     64         9/14         7,659,190         7,664,500         (5,310
              

 

 

 

Net unrealized depreciation on open futures contracts

               $ (65,094
              

 

 

 

 

23


Notes to Schedule of Investments (unaudited) (continued)

 

At May 31, 2014, the Fund had the following open forward foreign currency contracts:

 

Foreign Currency

  

Counterparty

   Local
Currency
     Market
Value
     Settlement
Date
     Unrealized
Appreciation
(Depreciation)
 
Contracts to Buy:               

Brazilian Real

  

Citibank N.A.

     5,230,700       $ 2,307,564         7/15/14       $ 242   
              

 

 

 
Contracts to Sell:               

Brazilian Real

  

Citibank N.A.

     10,461,400         4,615,128         7/15/14         (30,415

British Pound

  

Citibank N.A.

     1,063,613         1,781,838         8/14/14         21,774   

British Pound

  

UBS AG

     551,367         923,687         8/14/14         11,844   

Euro

  

BNP Paribas SA

     1,427,030         1,945,223         8/14/14         41,617   

Euro

  

Citibank N.A.

     3,684,358         5,022,247         8/14/14         109,714   

Euro

  

UBS AG

     6,358,049         8,666,825         8/14/14         182,987   
              

 

 

 
                 337,521   
              

 

 

 

Net unrealized appreciation on open forward foreign currency contracts

            $ 337,763   
              

 

 

 

At May 31, 2014, the Fund held the following open swap contracts:

 

CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION1

 

SWAP COUNTERPARTY

(REFERENCE ENTITY)

  NOTIONAL
AMOUNT2
    TERMINATION
DATE
    PERIODIC
PAYMENTS
MADE BY
THE FUND
  MARKET
VALUE3
    UPFRONT
PREMIUMS PAID
(RECEIVED)
    UNREALIZED
DEPRECIATION
 
Credit Suisse First Boston Inc. (Markit CDX.NA.HY.22 Index)   $ 6,781,500        6/20/19      5.000% quarterly   $ (565,500   $ (498,227   $ (67,273

 

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 May 31, 2014.

 

     Futures
Contracts
    Forward Foreign Currency
Contracts
    Centrally Cleared
Swap Contracts
       

Primary Underlying Risk

   Unrealized
Depreciation
    Unrealized
Appreciation
     Unrealized
Depreciation
    Unrealized
Depreciation
    Total  

Interest Rate Risk

   $ (65,094     —           —          —        $ (65,094

Foreign Exchange Risk

     —        $ 368,178       $ (30,415     —          337,763   

Credit Risk

     —          —           —        $ (67,273     (67,273
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
Total    $ (65,094   $ 368,178       $ (30,415   $ (67,273   $ 205,396   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

24


Notes to Schedule of Investments (unaudited) (continued)

 

During the period ended May 31, 2014, the volume of derivative activity for the Fund was as follows:

 

     Average Market Value  

Futures contracts (to buy)†

   $ 529,244   

Futures contracts (to sell)

     9,040,219   

Forward foreign currency contracts (to buy)

     1,633,855   

Forward foreign currency contracts (to sell)

     24,084,149   
     Average Notional Balance  

Credit default swap contracts (to buy protection)

   $ 5,018,150   

 

At May 31, 2014, there were no open positions held in this derivative.

 

25


ITEM 2. CONTROLS AND PROCEDURES.

 

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

 

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

 

ITEM 3. EXHIBITS.

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


SIGNATURES

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

Western Asset Global Partners Income Fund Inc.

 

By   /s/    KENNETH D. FULLER        
  Kenneth D. Fuller
  Chief Executive Officer

Date:

 

July 25, 2014

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/    KENNETH D. FULLER        
  Kenneth D. Fuller
  Chief Executive Officer

Date:

 

July 25, 2014

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

Date:

 

July 25, 2014