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WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 99.0%           

Alabama - 5.6%

           

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      $     2,956,127  

Senior Lien, Warrants, Series A, Refunding, AGM

      5.500 %      10/1/53        400,000        449,692  

Subordinated Lien, Warrants, Series D, Refunding

      6.000 %      10/1/42        1,120,000        1,292,189  

Subordinated Lien, Warrants, Series D, Refunding

      6.500 %      10/1/53        3,000,000        3,500,370  

Lower Alabama Gas District, Natural Gas Revenue, Series A

      5.000 %      9/1/46        1,000,000        1,462,340  
          

 

 

  

Total Alabama

              9,660,718  
          

 

 

  

Arizona - 4.0%

           

Chandler, AZ, IDA Revenue, Intel Corp. Project

      5.000 %      6/3/24        470,000        542,159 (a)(b)(c) 

La Paz County, AZ, IDA Revenue, Charter School

           

Solutions, Harmony Public School Project

      5.000 %      2/15/36        1,000,000        1,105,690 (d) 

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

      5.000 %      7/1/49        500,000        534,435 (d)  

Navajo Nation, AZ, Revenue, Series A, Refunding

      5.500 %      12/1/30        190,000        206,669 (d)  

Phoenix, AZ, IDA Revenue:

           

Basis School Inc., Refunding

      5.000 %      7/1/35        1,000,000        1,065,220 (d) 

Great Hearts Academies, Refunding

      5.000 %      7/1/41        1,200,000        1,308,420  

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

      5.000 %      12/1/37        1,500,000        2,091,990  
          

 

 

  

Total Arizona

              6,854,583  
          

 

 

  

California - 9.5%

           

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

      5.000 %      10/1/34        500,000        586,760  

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

      5.000 %      5/1/46        2,000,000        2,211,860  

California State MFA Revenue:

           

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/43        500,000        582,030 (a)  

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/47        200,000        231,716 (a)  

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

      5.000 %      7/1/39        700,000        824,978 (d)  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - continued

           

California Statewide CDA Revenue:

           

Provident Group-Pomona Properties LLC, Series A

      5.600 %      1/15/36      $    500,000      $        511,665 (d) 

Provident Group-Pomona Properties LLC, Series A

      5.750 %      1/15/45        360,000        366,800 (d)  

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

      5.250 %      6/1/47        700,000        718,158  

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

      5.000 %      9/1/44        500,000        554,110  

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

      5.000 %      10/1/42        100,000        110,188 (d)  

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

           

Series B

      6.500 %      11/1/39        1,000,000        1,630,200  

Series C

      7.000 %      11/1/34        2,000,000        3,166,200  

Series C

      6.500 %      11/1/39        2,000,000        3,260,400  

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

      5.000 %      9/1/29        600,000        601,830  

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

      5.500 %      9/1/45        620,000        664,126  

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        242,726  
          

 

 

  

Total California

              16,263,747  
          

 

 

  

Colorado - 3.5%

           

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

      5.000 %      12/1/38        500,000        516,065  

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

      4.000 %      8/1/49        500,000        556,160  

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

      5.000 %      12/31/51        150,000        162,162  

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

      5.625 %      12/1/37        500,000        521,230  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Colorado - continued

           

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

      6.125 %      11/15/23      $   3,345,000      $   3,665,418  

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

      7.000 %      12/15/46        500,000        503,680  
          

 

 

  

Total Colorado

              5,924,715  
          

 

 

  

Connecticut - 1.2%

           

Connecticut State Special Tax Revenue:

           

Transportation Infrastructure, Series A

      5.000 %      1/1/37        500,000        618,780  

Transportation Infrastructure, Series A

      5.000 %      5/1/38        550,000        708,845  

Connecticut State, GO, Series A

      4.000 %      4/15/37        600,000        708,456  
          

 

 

  

Total Connecticut

              2,036,081  
          

 

 

  

Delaware - 1.2%

           

Delaware State EDA Revenue, Indian River Power LLC

      5.375 %      10/1/45        2,000,000        2,011,200  

District of Columbia - 1.4%

           

District of Columbia Revenue:

           

Friendship Public Charter School Inc.

      5.000 %      6/1/42        2,000,000        2,090,760  

Ingleside Rock Creek Project, Series A

      4.125 %      7/1/27        100,000        96,752  

KIPP Charter School

      6.000 %      7/1/33        200,000        233,304 (e)  
          

 

 

  

Total District of Columbia

              2,420,816  
          

 

 

  

Florida - 3.6%

           

Broward County, FL, Port Facilities Revenue:

           

Senior Bonds, Series B

      4.000 %      9/1/44        1,250,000        1,353,100 (a) 

Senior Bonds, Series B

      4.000 %      9/1/49        500,000        537,705 (a)  

Florida State Development Finance Corp., Educational Facilities Revenue:

           

Renaissance Charter School Inc. Projects, Series A

      6.000 %      6/15/35        250,000        273,970 (d)  

Renaissance Charter School Inc. Projects, Series A

      6.125 %      6/15/46        215,000        233,643 (d)  

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

      5.000 %      10/1/28        500,000        575,285  

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

      4.200 %      12/15/25        1,500,000        1,500,870 (a)(d) 

Miami-Dade County, FL, Aviation Revenue, Series A, Refunding

      5.000 %      10/1/49        650,000        789,171 (a)  

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

      7.500 %      6/1/49        400,000        426,752  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Florida - continued

           

Reunion, FL, East Community Development District, Special Assessment Bond, Series A-2

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

Santa Rosa, FL, Bay Bridge Authority Revenue

      6.250 %      7/1/28        670,826        556,785 *(f) 
          

 

 

  

Total Florida

              6,247,284  
          

 

 

  

Georgia - 0.1%

           

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

      5.000 %      5/15/43        150,000        179,772  
          

 

 

  

Illinois - 12.3%

           

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

      5.000 %      4/1/42        500,000        548,675  

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

      5.000 %      12/1/32        250,000        292,038  

Chicago, IL, GO:

           

Series 2005D, Refunding

      5.500 %      1/1/34        1,250,000        1,361,550  

Series A

      5.000 %      1/1/44        500,000        547,185  

Series A, Refunding

      5.000 %      1/1/28        500,000        563,545  

Series A, Refunding

      6.000 %      1/1/38        300,000        348,312  

Series C, Refunding

      5.000 %      1/1/25        500,000        547,555  

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

      5.000 %      1/1/32        1,000,000        1,107,140  

Chicago, IL, O’Hare International Airport Revenue:

           

Senior Lien, Series G

      5.000 %      1/1/42        500,000        581,895 (a)  

Series A, Refunding

      5.000 %      1/1/31        1,500,000        1,713,855 (a) 

Chicago, IL, Transit Authority, Sales Tax Receipts

           

Revenue, Second Lien

      5.000 %      12/1/51        1,000,000        1,122,010  

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

      5.000 %      1/1/38        500,000        583,965  

Chicago, IL, Waterworks Revenue:

           

Second Lien, Series 2017, Refunding

      5.000 %      11/1/29        500,000        616,675  

Second Lien, Series 2017-2, Refunding, AGM

      5.000 %      11/1/32        1,260,000        1,510,664  

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

           

Series A

      5.250 %      5/15/47        130,000        147,805 (e)  

Series A

      5.250 %      5/15/47        870,000        887,722  

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

      5.000 %      6/15/30        250,000        301,530  

Illinois State Toll Highway Authority Revenue, Series C, Refunding

      5.000 %      1/1/27        550,000        685,008 (g)  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - continued

           

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

      5.000 %      4/1/28      $   100,000      $        126,030  

Illinois State, GO:

           

Series 2006

      5.500 %      1/1/30        300,000        369,501  

Series 2016, Refunding

      5.000 %      2/1/26        250,000        282,870  

Series 2016, Refunding

      5.000 %      2/1/29        300,000        341,688  

Series A, Refunding

      5.000 %      10/1/29        1,100,000        1,284,382  

Series A, Refunding

      5.000 %      10/1/30        550,000        638,935  

Series B, Refunding

      5.000 %      9/1/27        400,000        462,200  

Series D

      5.000 %      11/1/27        1,400,000        1,611,862  

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

           

McCormick Place Expansion Project, Series A

      5.000 %      6/15/57        350,000        382,854  

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      6/15/50        1,000,000        998,230  

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

      6.000 %      7/1/29        930,000        1,216,831  
          

 

 

  

Total Illinois

              21,182,512  
          

 

 

  

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        2,140,580 (a) 

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

      7.000 %      1/1/44        500,000        556,425 (a)  
          

 

 

  

Total Indiana

              2,697,005  
          

 

 

  

Kentucky - 1.9%

           

Kentucky State PEA, Gas Supply Revenue:

           

Series A

      4.000 %      6/1/26        1,500,000        1,726,320 (b)(c) 

Series C

      4.000 %      6/1/25        1,400,000        1,596,896 (b)(c) 
          

 

 

  

Total Kentucky

              3,323,216  
          

 

 

  

Louisiana - 0.9%

           

Louisiana State PFA, Lease Revenue:

           

Provident Group, Flagship Properties

      5.000 %      7/1/42        700,000        779,814  

Provident Group, Flagship Properties, Series A

      4.000 %      7/1/49        500,000        516,270  

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

      2.200 %      7/1/26        250,000        242,147 (b)(c) 
          

 

 

  

Total Louisiana

              1,538,231  
          

 

 

  

Maryland - 2.3%

           

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

      5.000 %      6/1/44        400,000        438,564 (a)  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Maryland - continued

           

Maryland State Health & Higher EFA Revenue:

           

Frederick Health System

      4.000 %      7/1/40      $   300,000      $        341,661  

Mercy Medical Center

      6.250 %      7/1/31        3,000,000        3,119,040  
          

 

 

  

Total Maryland

              3,899,265  
          

 

 

  

Massachusetts - 0.5%

           

Massachusetts State DFA Revenue:

           

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/36        500,000        594,810  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/44        250,000        291,120  
          

 

 

  

Total Massachusetts

              885,930  
          

 

 

  

Michigan - 1.3%

           

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

      5.000 %      7/1/43        250,000        281,210  

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

      5.000 %      7/1/35        200,000        241,604  

Michigan State Finance Authority Limited Obligation Revenue:

           

Higher Education, Thomas M Cooley Law School Project, Refunding

      6.000 %      7/1/24        210,000        217,579 (d)  

Higher Education, Thomas M Cooley Law School Project, Refunding

      6.750 %      7/1/44        230,000        236,718 (d)  

Michigan State Finance Authority Revenue:

           

Henry Ford Health System, Series A

      4.000 %      11/15/50        400,000        453,640  

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-1, Refunding

      5.000 %      7/1/44        270,000        294,727 (e)  

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-6, Refunding

      5.000 %      7/1/33        260,000        295,097  

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

      5.000 %      12/31/43        250,000        282,100 (a)  
          

 

 

  

Total Michigan

              2,302,675  
          

 

 

  

Missouri - 2.1%

           

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

      6.000 %      11/15/51        200,000        127,934 *(d)(f) 

Missouri State HEFA Revenue, Senior Living Facilities:

           

Lutheran Senior Services

      6.000 %      2/1/41        500,000        508,495  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Missouri - continued

           

Lutheran Senior Services

      5.000 %      2/1/44      $   750,000      $        784,665  

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

      5.875 %      9/1/43        2,000,000        2,115,720  
          

 

 

  

Total Missouri

              3,536,814  
          

 

 

  

Nebraska - 2.1%

           

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

      5.000 %      9/1/42        3,340,000        3,607,200  
          

 

 

  

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        308,790 (d)  

Charter School Lease Revenue, Somerset Academy, Series A

      5.125 %      12/15/45        500,000        509,470 (d)  
          

 

 

  

Total Nevada

              818,260  
          

 

 

  

New Jersey - 8.4%

           

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

      5.000 %      12/1/24        385,000        404,462 (a)  

New Jersey State EDA Revenue:

           

Private Activity-The Goethals Bridge Replacement Project

      5.375 %      1/1/43        1,500,000        1,656,570 (a) 

Transit Transportation Project, Series A

      5.000 %      11/1/32        1,500,000        1,810,710  

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

      5.000 %      10/1/37        125,000        138,529 (a)  

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

      5.000 %      7/1/38        100,000        120,866  

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

      5.000 %      12/1/44        640,000        680,538 (a)  

New Jersey State Transportation Trust Fund

           

Authority Revenue:

           

Transportation Program, Series AA

      5.250 %      6/15/32        4,720,000        5,323,121  

Transportation Program, Series AA

      5.000 %      6/15/46        1,000,000        1,146,960  

Transportation System, Series A, Refunding

      5.000 %      12/15/28        1,000,000        1,212,660  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New Jersey - continued

           

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

      5.000 %      12/1/23      $ 1,635,000      $     1,723,519 (a) 

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

      5.250 %      6/1/46        150,000        177,858  
          

 

 

  

Total New Jersey

              14,395,793  
          

 

 

  

New Mexico - 0.4%

           

Santa Fe, NM, Retirement Facilities Revenue:

           

EL Castillo Retirement Residences Project, Series A

      5.000 %      5/15/49        250,000        253,888  

EL Castillo Retirement Residences Project, Series B

      2.625 %      5/15/25        400,000        383,340  
          

 

 

  

Total New Mexico

              637,228  
          

 

 

  

New York - 3.0%

           

MTA, NY, Transportation Revenue, Green Bond, Series A-2

      5.000 %      5/15/30        400,000        460,764 (b)(c) 

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

      5.000 %      11/15/44        1,205,000        1,283,120 (d)  

New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Subordinated, Series B

      4.000 %      1/1/50        750,000        858,248  

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

           

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

      5.000 %      1/1/33        750,000        820,905 (a)  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/41        300,000        327,804 (a)  

Port Authority of New York & New Jersey, Consolidated Bonds

      4.000 %      7/15/55        750,000        846,975 (a)  

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

      4.000 %      9/1/40        500,000        559,260  
          

 

 

  

Total New York

              5,157,076  
          

 

 

  

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        546,730  
          

 

 

  

Ohio - 1.4%

           

Buckeye, OH, Tobacco Settlement Financing Authority Revenue:

           

Senior Bonds, Series A-2, Refunding

      4.000 %      6/1/48        250,000        279,937  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Ohio - continued

           

Senior Bonds, Series B-2, Refunding

      5.000 %      6/1/55      $   800,000      $        883,000  

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

      2.500 %      10/1/29        350,000        380,289 (a)(b)(c) 

Ohio State Private Activity Revenue, Portsmouth Bypass Project

      5.000 %      6/30/53        700,000        784,203 (a)  
          

 

 

  

Total Ohio

              2,327,429  
          

 

 

  

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        533,615  
          

 

 

  

Total Oklahoma

              533,973  
          

 

 

  

Oregon - 0.7%

           

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

      5.000 %      11/15/37        500,000        535,140  

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

      5.000 %      11/15/51        725,000        744,988  
          

 

 

  

Total Oregon

              1,280,128  
          

 

 

  

Pennsylvania - 6.4%

           

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

      4.000 %      7/15/38        350,000        405,892  

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

      5.000 %      6/1/33        200,000        249,878  

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

      5.000 %      1/1/28        350,000        376,894  

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

      5.000 %      1/15/36        750,000        835,395  

Lancaster, PA, IDA Revenue, Willow Valley Communities Project

      5.000 %      12/1/49        500,000        562,185  

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

           

Acts Retirement-Life-Communities, Refunding

      5.000 %      11/15/28        1,400,000        1,518,594 (e) 

Acts Retirement-Life-Communities, Refunding

      5.000 %      11/15/29        1,350,000        1,464,358 (e) 

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Pennsylvania - continued

           

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

      2.150 %      7/1/24      $   250,000      $        260,600 (a)(b)(c) 

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

      5.000 %      6/1/39        3,170,000        3,684,808  

Philadelphia, PA, Authority for IDR:

           

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/38        500,000        592,860  

Discovery Charter School Project

      6.250 %      4/1/37        500,000        512,510  

Lease Revenue, Refunding

      5.000 %      10/1/30        250,000        317,425  

Performing Arts Charter School Project

      6.000 %      6/15/23        260,000        260,614 (d)  
          

 

 

  

Total Pennsylvania

              11,042,013  
          

 

 

  

Puerto Rico - 2.2%

           

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

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        240,000        201,334  

CAB, Restructured, Series A-1

      0.000 %      7/1/46        210,000        61,425  

CAB, Restructured, Series A-1

      0.000 %      7/1/51        1,800,000        379,656  

Restructured, Series A-1

      4.550 %      7/1/40        50,000        52,945  

Restructured, Series A-1

      5.000 %      7/1/58        1,220,000        1,321,321  

Restructured, Series A-2

      4.329 %      7/1/40        330,000        344,477  

Restructured, Series A-2A

      4.550 %      7/1/40        1,380,000        1,461,296  
          

 

 

  

Total Puerto Rico

              3,822,454  
          

 

 

  

Tennessee - 0.4%

           

Knox County, TN, Health, Educational & Housing Facility Board Revenue, University Health System Inc., Series A

      5.000 %      9/1/30        250,000        306,158  

Tennessee State Energy Acquisition Corp., Natural Gas Revenue, Series 2018

      4.000 %      11/1/25        400,000        458,836 (b)(c) 

Total Tennessee

              764,994  

Texas - 12.7%

           

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

      5.000 %      12/1/46        200,000        220,436  

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

      5.000 %      2/15/41        500,000        571,060  

Central Texas Regional Mobility Authority Revenue, Subordinated Lien, Refunding

      5.000 %      1/1/42        2,000,000        2,124,740  

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

      5.000 %      11/15/37        500,000        626,795 (a)  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - continued

           

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      $     1,753,380  

First Tier, Series C, Refunding

      4.000 %      10/1/45        750,000        890,970  

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

      4.875 %      5/1/25        1,000,000        1,011,060 (a) 

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

           

Series 2017

      5.000 %      11/1/33        20,000        23,392 (a)  

Series 2017

      5.000 %      11/1/36        20,000        23,196 (a)  

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

      5.250 %      11/1/40        5,000,000        5,029,550  

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        97,863  

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

      5.000 %      7/1/51        150,000        141,451  

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

      5.000 %      7/1/46        150,000        127,098  

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

           

MRC Crestview

      5.000 %      11/15/36        550,000        574,343  

Westminster Manor Project

      5.000 %      11/1/40        1,000,000        1,059,140  

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        1,335,591 (e) 

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

      5.000 %      11/15/37        700,000        806,239  

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        1,011,109  

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

      5.000 %      12/15/28        1,500,000        1,617,030  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - continued

           

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

      5.000 %      12/31/40      $ 1,000,000      $     1,067,440 (a) 

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

      7.500 %      11/1/25        325,000        286,907  
          

 

 

  

Total Texas

              21,718,790  
          

 

 

  

U.S. Virgin Islands - 1.3%

           

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

      6.750 %      10/1/37        2,400,000        2,312,496  

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        434,217  

Syracuse Arts Academy Project, UT CSCE

      5.000 %      4/15/42        250,000        288,675  

Utah State Infrastructure Agency, Telecommunication Revenue, Series A

      5.250 %      10/15/33        550,000        616,830  
          

 

 

  

Total Utah

              1,339,722  
          

 

 

  

Virginia - 2.5%

           

Virginia State Port Authority, Port Facilities Revenue:

           

Series B, Refunding

      5.000 %      7/1/41        250,000        300,900 (a)  

Series B, Refunding

      5.000 %      7/1/45        300,000        358,824 (a)  

Virginia State Small Business Financing Authority Revenue:

           

Bon Secours Mercy Health, Series A, Refunding

      4.000 %      12/1/49        400,000        461,188  

Senior Lien, Elizabeth River Crossing OpCo LLC Project

      5.250 %      1/1/32        1,000,000        1,055,690 (a)  

Senior Lien, Elizabeth River Crossing OpCo LLC Project

      5.500 %      1/1/42        2,000,000        2,101,060 (a)  
          

 

 

  

Total Virginia

              4,277,662  
          

 

 

  

Washington - 0.4%

           

Washington State Health Care Facilities Authority Revenue:

           

Commonspirit Health, Series B, Refunding

      5.000 %      8/1/26        250,000        297,973 (b)(c) 

Seattle Cancer Care Alliance

      5.000 %      9/1/50        250,000        312,857  
          

 

 

  

Total Washington

              610,830  
          

 

 

  

 

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)    July 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Wisconsin - 2.2%

           

Public Finance Authority, WI, Limited Obligation Pilot Revenue:

           

American Dream @ Meadowlands Project, Series 2017

      5.000 %      12/1/27      $ 250,000      $ 220,780 (d)  

American Dream @ Meadowlands Project, Series 2017

      7.000 %      12/1/50        250,000        218,815 (d)  

Public Finance Authority, WI, Revenue:

           

Celanese Project, Series B, Refunding

      5.000 %      12/1/25        550,000        628,754 (a)  

Church Home of Hartford Inc. Project, Refunding

      5.000 %      9/1/38        250,000        256,658 (d)  

Fellowship Senior Living Project, Series A, Refunding

      5.000 %      1/1/46        600,000        646,638  

Public Finance Authority, WI, Student Housing Revenue:

           

Appalachian State University Project, Series A, AGM

      4.000 %      7/1/45        600,000        661,074  

CHF Wilmington LLC, University of North Carolina at Wilmington Project, AGM

      5.000 %      7/1/53        1,000,000        1,171,970  
          

 

 

  

Total Wisconsin

              3,804,689  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $156,555,507)

 

      169,962,031  
          

 

 

  
SHORT-TERM INVESTMENTS - 0.4%           
MUNICIPAL BONDS - 0.4%           

New York - 0.4%

           

Triborough Bridge & Tunnel Authority, NY, Revenue, Series F, Refunding, LOC - Citibank N.A.
(Cost - $600,000)

      0.130 %      11/1/32        600,000        600,000 (h)(i)  
          

 

 

  
                  SHARES         
MONEY MARKET FUNDS - 0.0%††           

Dreyfus Government Cash Management, Institutional Shares
(Cost - $57,488)

      0.061 %         57,488        57,488  
          

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost - $657,488)

              657,488  
          

 

 

  

TOTAL INVESTMENTS - 99.4%
(Cost - $157,212,995)

              170,619,519  

Other Assets in Excess of Liabilities - 0.6%

              1,004,674  
          

 

 

  

TOTAL NET ASSETS - 100.0%

            $ 171,624,193  
          

 

 

  

 

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)    July 31, 2020

 

††

Represents less than 0.1%.

 

*

Non-income producing security.

 

(a)

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

 

(b)

Maturity date shown represents the mandatory tender date.

 

(c)

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.

 

(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 July 31, 2020.

 

(g)

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

 

(h)

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.

 

(i)

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)    July 31, 2020

 

Abbreviation(s) 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
IDA    — Industrial Development Authority
IDR    — Industrial Development Revenue
LOC    — Letter of Credit
MFA    — Municipal Finance Authority
MTA    — Metropolitan Transportation Authority
NATL    — National Public Finance Guarantee Corporation - Insured Bonds
PCFA    — Pollution Control Financing Authority
PEA    — Public Energy Authority
PFA    — Public Facilities Authority

At July 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

      2        9/20      $ 434,434      $ 455,375      $ (20,941 ) 

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

    

  

 

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) (cont’d)

 

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†

      —        $ 169,962,031        —        $ 169,962,031  

Short-Term Investments†:

            

Municipal Bonds

      —          600,000        —          600,000  

Money Market Funds

    $ 57,488        —        —          57,488  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      57,488        600,000        —          657,488  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 57,488      $ 170,562,031        —        $ 170,619,519  
  

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES

  

DESCRIPTION

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

Other Financial Instruments:

            

Futures Contracts

    $ 20,941        —          —        $ 20,941  

 

†

See Schedule of Investments for additional detailed categorizations.

 

 

    

 

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