Western Asset Corporate Loan Fund Inc. Announces Ability to Invest in Collateralized Loan Obligations

Western Asset Corporate Loan Fund Inc. TLI announced that, effective today, the Fund may invest up to 5% of its total assets in collateralized loan obligations ("CLOs"), both in debt and equity tranches. The Fund's investment objective and investment strategy, investing under normal market conditions at least 80% of its total assets in collateralized senior loans, have not changed.

Western Asset Management Company, LLC, the Fund's investment sub-adviser, believes the opportunity to invest in CLO debt and equity tranches may provide compelling investment opportunities. A CLO is a trust or other special purpose entity ("SPE") that is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. For CLOs, the cashflows from the SPE are split into two or more portions, called tranches, varying in risk and yield.

In addition to the normal risks associated with fixed income securities (e.g., interest rate risk and credit risk), CLOs carry additional risks including, but not limited to: the possibility that distributions from collateral securities will not be adequate to make interest or other payments; the collateral may decline in value or default or its credit rating may be downgraded, if rated by a nationally recognized statistical rating organization; the Fund may invest in tranches of CLOs that are subordinate to other tranches; the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; and the CLO's manager may perform poorly. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which the Fund invests. Although certain CLOs may receive credit enhancement in the form of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be present, and may fail to protect the Fund against the risk of loss on default of the collateral. Despite the protection from the equity tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as investor aversion to CLO securities as a class. Interest on certain tranches of a CLO may be paid in kind (paid in the form of obligations of the same type rather than cash), which involves continued exposure to default risk with respect to such payments. Normally, CLOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CLOs may be characterized by the Fund as illiquid securities. However, an active dealer market may exist for CLOs, allowing a CLO to qualify for Rule 144A transactions.

Western Asset Corporate Loan Fund Inc., a non-diversified, closed-end management investment company, is managed by Legg Mason Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, LLC, an affiliate of the investment manager. Hard copies of the Fund's complete audited financial statements are available free of charge upon request.

An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. 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.

For more information, please call Investor Relations: 888-777-0102, or consult the Fund's web site at www.lmcef.com. Hard copies of the Fund's complete audited financial statements are available free of charge upon request.

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