Western Asset Variable Rate Strategic Fund Inc. Announces Preliminary Results of Tender Offer

Published in Business and Finance on Tuesday, May 25th 2010 at 5:10 GMT by Market Wire
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NEW YORK--([ BUSINESS WIRE ])--Western Asset Variable Rate Strategic Fund Inc. (NYSE: GFY) (the aFunda) announced today that the Funda�s tender offer for up to 1,664,686 of its issued and outstanding shares of common stock, representing approximately 20% of the Funda�s outstanding shares, expired on May 24, 2010, at 5:00 p.m., New York City time.

Based upon current information, approximately 4,718,364 shares were duly tendered, including shares tendered pursuant to notices of guaranteed delivery. This number is subject to adjustment and should not be considered as final. Because the number of shares tendered exceeds 1,664,686 shares, the tender offer has been oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund will purchase shares from all tendering stockholders on a pro rata basis, disregarding fractions. Payment for such shares will be made on or about June 1, 2010. The purchase price of properly tendered shares is $15.87 per share, equal to 98% of the per share net asset value of $16.19 as of the close of the regular trading session of the New York Stock Exchange on May 24, 2010.

The Fund is a non-diversified closed-end management investment company traded on the New York Stock Exchange under the symbol "GFY." It is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, Western Asset Management Company Limited and Western Asset Management Company Pte. Ltd. in Singapore, affiliates of the adviser.

Periodically updated information on the Fund can be obtained by calling the Funda�s Investor Relations group. Information provided includes a recorded update of the Funda�s net asset value, market price and other information. You may contact the Fund at 1-888-777-0102 for additional information, or consult the Funda�s web site at [ www.leggmason.com/cef ].

All data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.

THIS PRESS RELEASE MAY CONTAIN STATEMENTS REGARDING PLANS AND EXPECTATIONS FOR THE FUTURE THAT CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT ARE FORWARD-LOOKING AND CAN BE IDENTIFIED BY THE USE OF WORDS SUCH AS aMAY,a aWILL,a aEXPECT,a aANTICIPATE,a aESTIMATE,a aBELIEVE,a aCONTINUEa OR OTHER SIMILAR WORDS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON THE FUNDa�S CURRENT PLANS AND EXPECTATIONS, AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS. ADDITIONAL INFORMATION CONCERNING SUCH RISKS AND UNCERTAINTIES ARE CONTAINED IN THE FUNDa�S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.

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Western Asset Variable Rate Strategic Fund Inc. Announces Preliminary Results of Tender Offer