NPORT-EX 2 LMF5200_WAMuniHighIncFdInc.htm HTML

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 100.1%           

Alabama - 6.4%

           

Jefferson County, AL, Sewer Revenue:

           

Convertible CAB, Subordinated Lien, Warrants, Step bond, Series F (0.000% until 10/1/23; 7.900%)

      0.000 %      10/1/50      $ 3,020,000      $ 2,948,547  

Senior Lien, Warrants, Series A, AGM

      5.500 %      10/1/53        400,000        460,096  

Subordinated Lien, Warrants, Series D

      6.000 %      10/1/42        1,120,000        1,331,915  

Subordinated Lien, Warrants, Series D

      6.500 %      10/1/53        3,000,000        3,603,540  

Lower Alabama Gas District, Natural Gas Revenue:

           

Project #2

      4.000 %      12/1/25        400,000        454,916 (a)(b) 

Series A

      5.000 %      9/1/46        1,700,000        2,462,399  
          

 

 

  

Total Alabama

              11,261,413  
          

 

 

  

Arizona - 4.6%

           

Arizona State Lottery Revenue, Refunding

      5.000 %      7/1/29        190,000        253,815  

Chandler, AZ, IDA Revenue, Intel Corp. Project

      5.000 %      6/3/24        1,170,000        1,353,468 (a)(b)(c) 

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

      5.000 %      2/15/36        1,000,000        1,135,400 (d)  

Maricopa County, AZ, IDA Revenue, Legacy Traditional Schools Project, Series 2019, Refunding

      5.000 %      7/1/49        500,000        562,010 (d)  

Navajo Nation, AZ, Revenue, Series A, Refunding

      5.500 %      12/1/30        190,000        217,609 (d)  

Phoenix, AZ, IDA Revenue:

           

Basis School Inc., Refunding

      5.000 %      7/1/35        1,000,000        1,096,520 (d)  

Great Hearts Academies, Refunding

      5.000 %      7/1/41        1,200,000        1,337,268  

Salt Verde, AZ, Financial Corp., Natural Gas Revenue, Series 2007

      5.000 %      12/1/37        1,500,000        2,080,755  
          

 

 

  

Total Arizona

              8,036,845  
          

 

 

  

California - 10.0%

           

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

      5.000 %      10/1/34        500,000        599,560  

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

      5.000 %      5/1/46        2,000,000        2,286,240  

California State MFA Revenue:

           

Senior Lien, LINXS Apartment Project, Series A

      5.000 %      12/31/43        500,000        600,995 (c)  

Senior Lien, LINXS Apartment Project, Series A

      5.000 %      12/31/47        200,000        239,086 (c)  

 

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

1

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - (continued)

           

California State PCFA Water Furnishing Revenue, San Diego County Water Authority Desalination Project

      5.000 %      7/1/39      $ 700,000      $ 852,068 (d)  

California State Public Works Board Lease Revenue, Various Capital Projects, Series A

      5.125 %      10/1/31        1,000,000        1,069,060  

California Statewide CDA Revenue:

           

Provident Group-Pomona Properties LLC, Series A

      5.600 %      1/15/36        500,000        541,690 (d)  

Provident Group-Pomona Properties LLC, Series A

      5.750 %      1/15/45        360,000        388,987 (d)  

Golden State, CA, Tobacco Securitization Corp. Revenue:

           

Tobacco Settlement Funded, Series A-1, Refunding

      5.000 %      6/1/47        300,000        314,475  

Tobacco Settlement Funded, Series A-2, Refunding

      5.000 %      6/1/47        400,000        419,300  

Inland Valley, CA, Development Agency, Successor Agency Tax Allocation Revenue, Series A, Refunding

      5.000 %      9/1/44        500,000        564,175  

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

      5.000 %      10/1/42        100,000        116,307 (d)  

M-S-R Energy Authority, CA, Natural Gas Revenue:

           

Series B

      6.500 %      11/1/39        1,000,000        1,628,330  

Series C

      7.000 %      11/1/34        2,000,000        3,158,160  

Series C

      6.500 %      11/1/39        2,000,000        3,256,660  

Redding, CA, Redevelopment Agency, Tax Allocation, Shastec Redevelopment Project

      5.000 %      9/1/29        600,000        601,770  

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

      5.500 %      9/1/45        620,000        677,424  

Stockton, CA, PFA Wastewater Revenue, Bond Anticipation Notes, Series 2019

      1.400 %      6/1/22        150,000        150,374  

Tobacco Securitization Authority of Southern California Revenue, Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A

      5.000 %      6/1/48        200,000        241,954  
          

 

 

  

Total California

              17,706,615  
          

 

 

  

 

 

See Notes to Schedule of Investments.

 

 

    

 

2

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Colorado - 3.4%

           

Aristation Metropolitan District, CO, GO, Convertible Unlimited & Special Revenue, Refunding and Improvements

      5.000 %      12/1/38      $ 500,000      $ 541,970  

Colorado State Health Facilities Authority Revenue, Commonspirit Health Project, Series A-2

      4.000 %      8/1/49        500,000        556,065  

Colorado State High Performance Transportation Enterprise Revenue, C-470 Express Lanes

      5.000 %      12/31/51        150,000        165,168  

North Range, CO, Metropolitan District #2, GO, Series A, Refunding

      5.625 %      12/1/37        500,000        530,300  

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

      6.125 %      11/15/23        3,345,000        3,715,325  

Solaris, CO, Metropolitan District #3, GO, Subordinate Limited Tax, Series B

      7.000 %      12/15/46        500,000        520,660  
          

 

 

  

Total Colorado

              6,029,488  
          

 

 

  

Connecticut - 0.7%

           

Connecticut State Special Tax Revenue, Transportation Infrastructure, Series A

      5.000 %      1/1/37        500,000        612,330  

Connecticut State, GO, Series A

      4.000 %      4/15/37        600,000        693,342  
          

 

 

  

Total Connecticut

              1,305,672  
          

 

 

  

Delaware - 1.2%

           

Delaware State EDA Revenue, Indian River Power LLC

      5.375 %      10/1/45        2,000,000        2,045,060  
          

 

 

  

District of Columbia - 1.7%

           

District of Columbia Revenue:

           

Friendship Public Charter School Inc.

      5.000 %      6/1/42        2,000,000        2,141,600  

Ingleside Rock Creek Project, Series A

      4.125 %      7/1/27        100,000        105,788  

KIPP Charter School

      6.000 %      7/1/33        200,000        234,160 (e)  

KIPP Charter School

      6.000 %      7/1/43        250,000        292,700 (e)  

Metropolitan Washington Airports Authority Revenue, Dulles Metrorail and Capital Improvement Project, Series B, Refunding

      4.000 %      10/1/49        250,000        284,093  
          

 

 

  

Total District of Columbia

              3,058,341  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

3

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Florida - 3.2%

           

Broward County, FL, Port Facilities Revenue:

           

Senior Bonds, Series B

      4.000 %      9/1/44      $ 1,250,000      $ 1,399,225 (c) 

Senior Bonds, Series B

      4.000 %      9/1/49        500,000        553,745 (c)  

Florida State Development Finance Corp., Educational Facilities Revenue:

           

Renaissance Charter School Inc. Projects, Series A

      6.000 %      6/15/35        250,000        278,760 (d) 

Renaissance Charter School Inc. Projects, Series A

      6.125 %      6/15/46        215,000        237,424 (d)  

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

      5.000 %      10/1/28        500,000        590,075  

Martin County, FL, IDA, Revenue, Indiantown Cogeneration LP Project, Refunding

      4.200 %      12/15/25        1,500,000        1,513,620 (c)(d) 

Palm Beach County, FL, Health Facilities Authority Revenue, Sinai Residences Boca Raton Project

      7.500 %      6/1/49        400,000        450,772  

Reunion, FL, East Community Development District, Special Assessment Bond:

           

Series 1

      6.600 %      5/1/33        95,000        102,605  

Series A-2

      7.375 %      5/1/33        285,000        3 *(f)  

Santa Rosa, FL, Bay Bridge Authority Revenue

      6.250 %      7/1/28        684,371        554,340 *(f) 
          

 

 

  

Total Florida

              5,680,569  
          

 

 

  

Georgia - 0.1%

           

Main Street Natural Gas Inc., GA, Gas Project Revenue, Series A

      5.000 %      5/15/43        150,000        181,578  
          

 

 

  

Illinois - 13.2%

           

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

      5.000 %      4/1/42        500,000        583,655  

Chicago, IL, Board of Education, GO, Series C, AGM

      5.000 %      12/1/32        250,000        307,753  

Chicago, IL, GO:

           

Series 2005D, Refunding

      5.500 %      1/1/34        1,250,000        1,451,412  

Series A

      5.000 %      1/1/44        500,000        587,610  

Series A, Refunding

      5.000 %      1/1/29        500,000        615,145  

Series A, Refunding

      6.000 %      1/1/38        300,000        370,884  

Series C, Refunding

      5.000 %      1/1/25        500,000        573,635  

Chicago, IL, Motor Fuel Tax Revenue, Refunding, AGM

      5.000 %      1/1/32        1,000,000        1,109,920  

Chicago, IL, O’Hare International Airport Revenue:

           

Senior Lien, Series G

      5.000 %      1/1/42        500,000        589,980 (c)  

Series A, Refunding

      5.000 %      1/1/31        1,500,000        1,743,105 (c) 

Chicago, IL, Transit Authority, Sales Tax Receipts Revenue, Second Lien

      5.000 %      12/1/51        1,000,000        1,162,530  

 

 

See Notes to Schedule of Investments.

 

 

    

 

4

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - (continued)

           

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

      5.000 %      1/1/38      $ 500,000      $ 582,050  

Chicago, IL, Waterworks Revenue:

           

Second Lien, Series 2017, Refunding

      5.000 %      11/1/29        500,000        609,575  

Second Lien, Series 2017-2, Refunding, AGM

      5.000 %      11/1/32        1,260,000        1,529,564  

Illinois State Finance Authority, Revenue, Franciscan Communities Inc.:

           

Series A

      5.250 %      5/15/47        130,000        147,831 (e)  

Series A

      5.250 %      5/15/47        870,000        925,080  

Illinois State Sports Facilities Authority Revenue, State Tax Supported, Series 2019, Refunding, BAM

      5.000 %      6/15/30        250,000        311,025  

Illinois State Toll Highway Authority Revenue, Series 2019, Refunding

      5.000 %      1/1/27        1,400,000        1,749,384  

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

      5.000 %      4/1/28        100,000        123,201  

Illinois State, GO:

           

Series 2016, Refunding

      5.000 %      2/1/26        650,000        764,290  

Series 2016, Refunding

      5.000 %      2/1/29        300,000        356,088  

Series A, Refunding

      5.000 %      10/1/29        1,100,000        1,338,568  

Series C

      5.000 %      11/1/29        1,250,000        1,488,300  

Series D

      5.000 %      11/1/26        1,000,000        1,184,320  

Metropolitan Pier & Exposition Authority, IL, Dedicated State Revenue:

           

McCormick Place Expansion Project, Series A

      5.000 %      6/15/57        350,000        407,043  

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      6/15/50        1,200,000        1,322,028 (g) 

McCormick Place Expansion Project, Series B-2, Refunding, State Appropriations

      5.000 %      6/15/50        155,000        157,289  

Regional Transportation Authority, IL, GO, Series A, Refunding, NATL

      6.000 %      7/1/29        930,000        1,226,000  
          

 

 

  

Total Illinois

              23,317,265  
          

 

 

  

Indiana - 1.6%

           

Indiana State Finance Authority Revenue, Private Activity Ohio River Bridges East End Crossing Project, Series A

      5.000 %      7/1/48        2,000,000        2,200,500 (c) 

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

      7.000 %      1/1/44        500,000        590,015 (c)  
          

 

 

  

Total Indiana

              2,790,515  
          

 

 

  

 

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

5

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Kentucky - 1.8%

           

Kentucky State PEA, Gas Supply Revenue:

           

Series A

      4.000 %      4/1/24      $ 1,400,000      $ 1,539,608 (a)(b) 

Series B

      4.000 %      1/1/25        1,500,000        1,675,440 (a)(b) 
          

 

 

  

Total Kentucky

              3,215,048  
          

 

 

  

Louisiana - 0.9%

           

Louisiana State PFA, Lease Revenue:

           

Provident Group, Flagship Properties

      5.000 %      7/1/42        700,000        834,652  

Provident Group, Flagship Properties, Series A

      4.000 %      7/1/49        500,000        551,745  

Parish of St. John the Baptist, LA, State Revenue, Marathon Oil Corp. Project, Refunding

      2.200 %      7/1/26        250,000        259,330 (a)(b) 
          

 

 

  

Total Louisiana

              1,645,727  
          

 

 

  

Maryland - 2.1%

           

Maryland State EDC Revenue, Seagirt Marine Terminal Project, Series A

      5.000 %      6/1/44        400,000        487,212 (c)  

Maryland State Health & Higher EFA Revenue, Mercy Medical Center

      6.250 %      7/1/31        3,000,000        3,200,820  
          

 

 

  

Total Maryland

              3,688,032  
          

 

 

  

Massachusetts - 2.2%

           

Massachusetts State DFA Revenue:

           

Newbridge Charles Inc., Refunding

      5.000 %      10/1/47        250,000        275,595 (d)  

UMass Boston Student Housing Project

      5.000 %      10/1/41        200,000        231,944  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/36        500,000        617,890  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/44        250,000        300,725  

Massachusetts State, GO, Consolidated Loan, Series C

      5.000 %      5/1/49        2,000,000        2,507,540  
          

 

 

  

Total Massachusetts

              3,933,694  
          

 

 

  

Michigan - 1.4%

           

Detroit, MI, Downtown Development Authority Revenue, Catalyst Development, Series A, Refunding, AGM

      5.000 %      7/1/43        250,000        279,883  

Great Lakes, MI, Water Authority Water Supply System Revenue, Senior Lien, Series C, Refunding

      5.000 %      7/1/35        200,000        239,396  

Michigan State Finance Authority Limited Obligation Revenue:

           

Higher Education, Thomas M Cooley Law School Project, Refunding

      6.000 %      7/1/24        310,000        321,299 (d)  

Higher Education, Thomas M Cooley Law School Project, Refunding

      6.750 %      7/1/44        230,000        243,591 (d)  

 

 

See Notes to Schedule of Investments.

 

 

    

 

6

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Michigan - (continued)

           

Michigan State Finance Authority Revenue:

           

Henry Ford Health System, Series A

      4.000 %      11/15/50      $ 400,000      $ 446,436  

Senior Lien, Great Lakes Water Authority & Sewer, Series C-1, Refunding

      5.000 %      7/1/44        270,000        290,598  

Senior Lien, Great Lakes Water Authority & Sewer, Series C-6, Refunding

      5.000 %      7/1/33        260,000        298,503  

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

      5.000 %      12/31/43        250,000        303,218 (c)  
          

 

 

  

Total Michigan

              2,422,924  
          

 

 

  

Missouri - 2.6%

           

Kansas City, MO, IDA, Airport System Revenue, Kansas City International Airport Terminal Modernization Project, Series B

      5.000 %      3/1/46        650,000        793,559 (c)  

Kansas City, MO, IDA, Senior Living Facilities Revenue, Kingswood Project

      6.000 %      11/15/51        200,000        161,820 (d)  

Missouri State HEFA Revenue, Senior Living Facilities:

           

Lutheran Senior Services

      6.000 %      2/1/41        500,000        521,530  

Lutheran Senior Services

      5.000 %      2/1/44        750,000        820,477  

St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village of Sunset Hills, Series A

      5.875 %      9/1/43        2,000,000        2,225,800  
          

 

 

  

Total Missouri

              4,523,186  
          

 

 

  

Nebraska - 2.1%

           

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

      5.000 %      9/1/42        3,340,000        3,630,613  
          

 

 

  

Nevada - 0.5%

           

State of Nevada Department of Business & Industry Revenue:

           

Charter School Lease Revenue, Somerset Academy, Series A

      5.000 %      12/15/35        300,000        318,102 (d)  

Charter School Lease Revenue, Somerset Academy, Series A

      5.125 %      12/15/45        500,000        524,590 (d)  
          

 

 

  

Total Nevada

              842,692  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

7

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New Jersey - 8.5%

           

Gloucester County, NJ, PCFA Revenue, Keystone Urban Renewal, Logan Generating, Series A, Refunding

      5.000 %      12/1/24      $ 420,000      $ 458,640 (c)  

New Jersey State EDA Revenue:

           

Private Activity-The Goethals Bridge Replacement Project

      5.375 %      1/1/43        1,500,000        1,700,880 (c) 

Transit Transportation Project

      5.000 %      11/1/32        1,500,000        1,863,060  

New Jersey State EDA, Special Facility Revenue, Port Newark Container Terminal LLC Project, Refunding

      5.000 %      10/1/37        125,000        147,576 (c)  

New Jersey State Health Care Facilities Financing Authority Revenue, Hackensack Meridian Health, Series A, Refunding

      5.000 %      7/1/38        100,000        121,899  

New Jersey State Higher Education State, Student Assistance Authority Revenue, Subordinated, Series 1B

      5.000 %      12/1/44        640,000        696,045 (c)  

New Jersey State Transportation Trust Fund Authority Revenue:

           

Transportation Program, Series AA

      5.250 %      6/15/32        4,720,000        5,476,427  

Transportation Program, Series AA

      5.000 %      6/15/46        1,000,000        1,182,230  

Transportation System, Series A, Refunding

      5.000 %      12/15/28        1,000,000        1,244,120  

Salem County, NJ, PCFA Revenue, Chambers Project, Series A

      5.000 %      12/1/23        1,820,000        1,963,525 (c) 

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

      5.000 %      6/1/46        150,000        174,833  
          

 

 

  

Total New Jersey

              15,029,235  
          

 

 

  

New Mexico - 0.4%

           

Santa Fe, NM, Retirement Facilities Revenue:

           

EL Castillo Retirement Residences Project, Series A

      5.000 %      5/15/49        250,000        277,750  

EL Castillo Retirement Residences Project, Series B

      2.625 %      5/15/25        400,000        401,760  
          

 

 

  

Total New Mexico

              679,510  
          

 

 

  

New York - 2.2%

           

New York State Liberty Development Corp., Liberty Revenue, 3 World Trade Center Project, Class 1, Refunding

      5.000 %      11/15/44        1,205,000        1,341,057 (d)  

New York State Liberty Development Corp., Second Priority Liberty Revenue, Bank of America Tower at One Bryant Park Project, Class 3, Refunding

      2.800 %      9/15/69        750,000        779,880  

New York State Transportation Development Corp., Special Facilities Revenue:

           

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

      5.000 %      1/1/36        750,000        912,127 (c)  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/46        300,000        340,677 (c) 

Troy Capital Resource Corp., NY, Revenue, Rensselaer Polytechnic Institute Project, Series A, Refunding

      4.000 %      9/1/40        500,000        569,280 (g)  
          

 

 

  

Total New York

              3,943,021  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

    

 

8

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

North Carolina - 0.3%

           

North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue, Series A, Refunding, State Appropriations

      5.000 %      7/1/47      $ 500,000      $ 576,695  
          

 

 

  

Ohio - 0.7%

           

Ohio State Air Quality Development Authority Revenue, American Electric Company Project, Series B, Refunding

      2.500 %      10/1/29        350,000        363,923 (a)(b)(c) 

Ohio State Private Activity Revenue, Portsmouth Bypass Project

      5.000 %      6/30/53        700,000        788,368 (c)  
          

 

 

  

Total Ohio

              1,152,291  
          

 

 

  

Oklahoma - 0.3%

           

Payne County, OK, EDA Revenue, Epworth Living at The Ranch, Series A

      6.250 %      11/1/31        143,075        358 *(f)  

Tulsa County, OK, Industrial Authority, Senior Living Community Revenue, Montereau Inc. Project, Refunding

      5.250 %      11/15/37        500,000        576,650  
          

 

 

  

Total Oklahoma

              577,008  
          

 

 

  

Oregon - 0.8%

           

Clackamas County, OR, Hospital Facility Authority Revenue, Senior Living, Willamette View Project, Refunding

      5.000 %      11/15/37        500,000        585,585  

Yamhill County, OR, Hospital Authority Revenue, Friendsview Retirement Community, Refunding

      5.000 %      11/15/51        725,000        804,076  
          

 

 

  

Total Oregon

              1,389,661  
          

 

 

  

Pennsylvania - 6.4%

           

Allegheny County, PA, HDA Revenue, University Pittsburgh Medical Center, Series A, Refunding

      4.000 %      7/15/38        350,000        404,530  

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue, Series 2018

      5.000 %      6/1/33        200,000        248,882  

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

      5.000 %      1/1/28        350,000        396,427  

 

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

9

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Pennsylvania - (continued)

           

Erie County, PA, Convention Center Authority Guaranteed Hotel Revenue, County Guaranty, Refunding

      5.000 %      1/15/36      $ 750,000      $ 874,740  

Lancaster, PA, IDA Revenue, Willow Valley Communities Project

      5.000 %      12/1/49        500,000        587,770  

Montgomery County, PA, Industrial Development Authority, Retirement Community Revenue:

           

Acts Retirement-Life-Communities, Refunding

      5.000 %      11/15/28        1,400,000        1,509,144  

Acts Retirement-Life-Communities, Refunding

      5.000 %      11/15/29        1,350,000        1,454,544  

Pennsylvania State Economic Development Financing Authority, Solid Waste Disposal Revenue, Waste Management Inc. Project

      2.150 %      7/1/24        250,000        258,408 (a)(b)(c) 

Pennsylvania State Turnpike Commission Revenue, Subordinated, Series B, Refunding

      5.000 %      6/1/39        3,170,000        3,753,502  

Philadelphia, PA, Authority for IDR:

           

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/38        500,000        615,990  

Discovery Charter School Project

      6.250 %      4/1/37        500,000        516,005  

Lease Revenue, Refunding

      5.000 %      10/1/30        250,000        332,318  

Performing Arts Charter School Project

      6.000 %      6/15/23        360,000        364,093 (d)  
          

 

 

  

Total Pennsylvania

              11,316,353  
          

 

 

  

Puerto Rico - 1.7%

           

Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue:

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        240,000        202,303  

CAB, Restructured, Series A-1

      0.000 %      7/1/46        3,300,000        968,286  

Restructured, Series A-1

      4.750 %      7/1/53        200,000        221,784  

Restructured, Series A-1

      5.000 %      7/1/58        1,450,000        1,634,005  
          

 

 

  

Total Puerto Rico

              3,026,378  
          

 

 

  

Texas - 12.4%

           

Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift Education, Series A

      5.000 %      12/1/46        200,000        225,750  

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

      5.000 %      2/15/41        500,000        571,240  

Central Texas Regional Mobility Authority Revenue, Subordinated Lien, Refunding

      5.000 %      1/1/42        2,000,000        2,184,120  

City of Austin, TX, Airport System Revenue, Series B

      5.000 %      11/15/37        500,000        631,610 (c)  

Grand Parkway Transportation Corp., TX, System Toll Revenue, Convertible CAB, Series B, Step bond (0.000% until 10/1/28; 5.500%)

      0.000 %      10/1/35        1,500,000        1,680,870  

 

 

See Notes to Schedule of Investments.

 

 

    

 

10

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - (continued)

           

Gulf Coast, TX, IDA, Solid Waste Disposal Revenue, Citgo Petroleum Corp. Project

      4.875 %      5/1/25      $ 1,000,000      $ 1,023,840 (c) 

Love Field, TX, Airport Modernization Corp., General Airport Revenue:

           

Series 2017

      5.000 %      11/1/33        20,000        24,055 (c)  

Series 2017

      5.000 %      11/1/36        20,000        23,908 (c)  

Love Field, TX, Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project

      5.250 %      11/1/40        5,000,000        5,146,800  

New Hope Cultural Education Facilities Finance Corp., TX, Senior Living Revenue:

           

Cardinal Bay Inc., Village on the Park Carriage Inn Project, Series A

      5.000 %      7/1/46        100,000        109,382  

Cardinal Bay Inc., Village on the Park Carriage Inn Project, Series A

      5.000 %      7/1/51        150,000        163,170  

Cardinal Bay Inc., Village on the Park Carriage Inn Project, Series B

      5.000 %      7/1/46        150,000        159,185  

New Hope, Cultural Education Facilities Finance Corp., TX, Retirement Facility Revenue:

           

MRC Crestview

      5.000 %      11/15/36        550,000        606,606  

Westminster Manor Project

      5.000 %      11/1/40        1,000,000        1,122,770  

New Hope, Cultural Education Facilities Finance Corp., TX, Student Housing Revenue, Collegiate Housing Stephenville II LLC, Tartleton State University Project

      5.000 %      4/1/39        1,165,000        1,261,485  

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Retirement Services Inc. Project, Refunding

      5.000 %      11/15/37        700,000        829,521  

Texas Midwest Public Facility Corp., Revenue, Secure Treatment Facility Project

      9.000 %      10/1/30        2,000,000        1,320,000 *(f) 

Texas State Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Senior Lien, Series D

      6.250 %      12/15/26        850,000        1,010,131  

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

      5.000 %      12/15/28        1,500,000        1,652,250  

Texas State Private Activity Bond Surface Transportation Corp. Revenue, Senior Lien, Blueridge Transportation Group LLC

      5.000 %      12/31/40        1,000,000        1,151,750 (c) 

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

      5.000 %      10/15/43        500,000        622,610 (h)  

Willacy County, TX, Jail, Public Facilities Corp. Project Revenue

      7.500 %      11/1/25        325,000        307,879  
          

 

 

  

Total Texas

              21,828,932  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

11

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

U.S. Virgin Islands - 1.4%

           

Virgin Islands Public Finance Authority Revenue, Subordinated, Matching Fund Loan, Diageo Project, Series A

      6.750 %      10/1/37      $ 2,400,000      $ 2,404,608  
          

 

 

  

Utah - 0.8%

           

Utah State Charter School Finance Authority, Charter School Revenue:

           

Summit Academy Inc., Series A, Refunding, UT CSCE

      5.000 %      4/15/39        350,000        435,036  

Syracuse Arts Academy Project, UT CSCE

      5.000 %      4/15/42        250,000        291,308  

Utah State Infrastructure Agency, Telecommunication Revenue, Series A

      5.250 %      10/15/33        550,000        654,769  
          

 

 

  

Total Utah

              1,381,113  
          

 

 

  

Virginia - 2.2%

           

Virginia State Port Authority, Port Facilities Revenue:

           

Series B, Refunding

      5.000 %      7/1/41        250,000        296,197 (c)  

Series B, Refunding

      5.000 %      7/1/45        300,000        353,001 (c)  

Virginia State Small Business Financing Authority Revenue:

           

Senior Lien, Elizabeth River Crossing OpCo LLC Project

      5.250 %      1/1/32        1,000,000        1,086,620 (c) 

Senior Lien, Elizabeth River Crossing OpCo LLC Project

      5.500 %      1/1/42        2,000,000        2,172,120 (c) 
          

 

 

  

Total Virginia

              3,907,938  
          

 

 

  

Washington - 0.2%

           

Washington State Health Care Facilities Authority Revenue, Commonspirit Health, Series B, Refunding

      5.000 %      8/1/26        250,000        299,238 (a)(b) 
          

 

 

  

West Virginia - 0.2%

           

West Virginia University Revenue, West Virginia Projects, Series B, Refunding

      5.000 %      10/1/29        250,000        325,733 (a)(b) 
          

 

 

  

 

 

See Notes to Schedule of Investments.

 

 

    

 

12

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Wisconsin - 1.9%

           

Public Finance Authority, WI, Limited Obligation Pilot Revenue:

           

American Dream @ Meadowlands Project, Series 2017

      5.000 %      12/1/27      $ 250,000      $ 284,818 (d)  

American Dream @ Meadowlands Project, Series 2017

      7.000 %      12/1/50        250,000        302,003 (d)  

Public Finance Authority, WI, Revenue:

           

Celanese Project, Series B, Refunding

      5.000 %      12/1/25        550,000        635,376 (c)  

Church Home of Hartford Inc. Project, Refunding

      5.000 %      9/1/38        250,000        270,110 (d)  

Fellowship Senior Living Project, Series P, Refunding

      5.000 %      1/1/46        600,000        700,968  

Public Finance Authority, WI, Student Housing Revenue, CHF Wilmington LLC, University of North Carolina at Wilmington Project, AGM

      5.000 %      7/1/53        1,000,000        1,179,450  
          

 

 

  

Total Wisconsin

              3,372,725  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $160,540,026)

 

      176,525,716  
          

 

 

  
SHORT-TERM INVESTMENTS - 0.3%           
MUNICIPAL BONDS - 0.3%           

New York - 0.3%

           

New York State HFA Revenue, Series B LOC - Landesbank Hessen - Thueringen
(Cost - $500,000)

      1.180 %      5/1/42        500,000        500,000 (i)(j)  
          

 

 

  
                  SHARES         
MONEY MARKET FUNDS - 0.0%           

Dreyfus Government Cash Management, Institutional Shares
(Cost - $90,023)

      1.519 %         90,023        90,023  
          

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost - $590,023)

              590,023  
          

 

 

  

TOTAL INVESTMENTS - 100.4%
(Cost - $161,130,049)

 

           177,115,739  

Liabilities in Excess of Other Assets - (0.4)%

              (765,328 ) 
          

 

 

  

TOTAL NET ASSETS - 100.0%

            $ 176,350,411  
          

 

 

  

 

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

13

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

*

Non-income producing security.

 

(a)

Maturity date shown represents the mandatory tender date.

 

(b)

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

 

(c)

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

 

(d)

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.

 

(e)

Pre-Refunded bonds are generally escrowed with U.S. government obligations and/or U.S. government agency securities.

 

(f)

The coupon payment on these securities is currently in default as of January 31, 2020.

 

(g)

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

 

(h)

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

 

(i)

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

 

(j)

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

 

See Notes to Schedule of Investments.

 

 

    

 

14

       Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2020

 

Abbreviations used in this schedule:

 

AGM    — Assured Guaranty Municipal Corporation - Insured Bonds
BAM    — Build America Mutual - Insured Bonds
CAB    — Capital Appreciation Bonds
CDA    — Communities Development Authority
CSCE    — Charter School Credit Enhancement
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EDC    — Economic Development Corporation
EFA    — Educational Facilities Authority
GO    — General Obligation
HDA    — Housing Development Authority
HEFA    — Health & Educational Facilities Authority
HFA    — Housing Finance Agency
IDA    — Industrial Development Authority
IDR    — Industrial Development Revenue
LOC    — Letter of Credit
MFA    — Municipal Finance Authority
NATL    — National Public Finance Guarantee Corporation - Insured Bonds
PCFA    — Pollution Control Financing Authority
PEA    — Public Energy Authority
PFA    — Public Facilities Authority

At January 31, 2020, the Fund had the following open futures contracts:

 

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

U.S. Treasury Ultra Long-Term Bonds

      27        3/20      $ 5,139,581      $ 5,229,562      $ (89,981 ) 

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

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Municipal High Income Fund Inc. 2020 Quarterly Report      

 

15

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Municipal High Income Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks high current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in intermediate and long-term municipal debt securities issued by state and local governments. However, the Fund may invest in municipal obligations of any maturity.

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

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

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

 

 

    

 

16

    

Notes to Schedule of Investments (unaudited) (continued)

 

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

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

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

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

 

  •  

Level 1 – quoted prices in active markets for identical investments

 

  •  

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

 

  •  

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

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

 

    

 

    

 

17

Notes to Schedule of Investments (unaudited) (continued)

 

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  

Municipal Bonds†

      —        $ 176,525,716        —        $ 176,525,716  

Short-Term Investments†:

            

Municipal Bonds

      —          500,000        —          500,000  

Money Market Funds

    $ 90,023        —          —          90,023  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      90,023        500,000        —          590,023  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 90,023      $ 177,025,716        —        $ 177,115,739  
  

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES

  

DESCRIPTION

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

Other Financial Instruments:

            

Futures Contracts

    $ 89,981        —          —        $ 89,981  
     

 

†

See Schedule of Investments for additional detailed categorizations.

 

 

    

 

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