Form N-CSRS Western Asset Middle For: Oct 31

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December 30, 2019 11:53 AM EST

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22582

Western Asset Middle Market Income Fund Inc.

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

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

Date of fiscal year end: April 30

Date of reporting period: October 31, 2019

ITEM 1.

REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

LOGO


Semi-Annual Report		October 31, 2019

WESTERN ASSET

MIDDLE MARKET

INCOME FUND INC.

Beginning in April 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the Fund intends to no longer mail paper copies of the Fund’s shareholder reports like this one, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you invest through a financial intermediary and you already elected to receive shareholder reports electronically (“e-delivery”), you will not be affected by this change and you need not take any action. If you have not already elected e-delivery, you may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account at that financial intermediary. If you are a direct shareholder with the Fund, you can call the Fund at 1-888-888-0151, or write to the Fund by regular mail at P.O. Box 505000, Louisville, KY 40233 or by overnight delivery to Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account held directly with the fund complex.

LOGO

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE


What’s inside
Letter from the chairman			III
Performance review			IV
Fund at a glance			1
Schedule of investments			2
Statement of assets and liabilities			11
Statement of operations			12
Statements of changes in net assets			13
Statement of cash flows			14
Financial highlights			15
Notes to financial statements			17
Dividend reinvestment plan			34

Fund objectives

The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund seeks capital appreciation.

The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its managed assets (the net assets of the Fund plus the principal amount of any borrowings and any preferred stock that may be outstanding) in securities, including loans, issued by middle market companies. For investment purposes, “middle market” refers to companies with annual revenues of between $100 million and $1 billion at the time of investment by the Fund. Securities of middle market issuers are typically considered below investment grade (also commonly referred to as “junk bonds”).

It is anticipated that the Fund will terminate on or before December 30, 2022.


II		Western Asset Middle Market Income Fund Inc.

Letter from the chairman

LOGO

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset Middle Market Income Fund Inc. for the six-month reporting period ended October 31, 2019. Please read on for Fund performance information during the Fund’s reporting period.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.lmcef.com. Here you can gain immediate access to market and investment information, including:

•

Fund net asset values and performance

•

Market insights and commentaries from our portfolio managers, and

•

A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

LOGO

Jane Trust, CFA

Chairman, President and Chief Executive Officer

November 29, 2019


Western Asset Middle Market Income Fund Inc.		III

Performance review

For the six months ended October 31, 2019, Western Asset Middle Market Income Fund Inc. returned -0.91% based on its net asset value (“NAV”)ⁱ. The Fund’s unmanaged benchmark, the Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Caa Component Indexⁱⁱ, returned -3.61% for the same period. The Lipper High Yield (Leveraged) Closed-End Funds Category Averageⁱⁱⁱ returned 1.86% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

During this six-month reporting period, the Fund made distributions to shareholders totaling $30.39 per share. As of October 31, 2019, the Fund estimates that 87% of the distributions were sourced from net investment income and 13% constituted a return of capital.* The performance table shows the Fund’s six-month total return based on its NAV as of October 31, 2019. Past performance is no guarantee of future results.


Performance Snapshot as of October 31, 2019 (unaudited)
Price Per Share	6-Month Total Return**
$713.07 (NAV)		-0.91	%†

All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

** Total return is based on changes in NAV. Return reflects the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Return does not reflect the deduction of brokerage commissions or taxes that investors pay on distributions or the disposition of shares.

† Total return assumes the reinvestment of all distributions, including returns of capital, if any, at NAV.

Looking for additional information?

The Fund’s daily NAV is available on-line under the symbol “XWMFX” on most financial websites. In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV and other information.

These estimates are not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder’s investment. For more information about a distribution’s composition, please refer to the Fund’s distribution press release or, if applicable, the Section 19 notice located in the press release section our website, www.lmcef.com (click on the name of the Fund).


IV		Western Asset Middle Market Income Fund Inc.

Thank you for your investment in Western Asset Middle Market Income Fund Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.

Sincerely,

LOGO

Jane Trust, CFA

Chairman, President and Chief Executive Officer

November 18, 2019

RISKS: The Fund is a non-diversified closed-end management investment company. An investment in the Fund involves a high degree of risk. The Fund should be considered an illiquid investment. This Fund is not publicly traded and is closed to new investors. The Fund does not intend to apply for an exchange listing, and it is highly unlikely that a secondary market will exist for the purchase and sale of the Fund’s shares. Investors could lose some or all of their investment. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment for investors who are prepared to hold the Fund’s Common Stock until the expiration of its term, and is not a trading vehicle. Because the Fund is non-diversified, it may be more susceptible to economic, political or regulatory events than a diversified fund. Fixed-income securities are subject to numerous risks, including but not limited to, credit, inflation, income, prepayment and interest rates risks. As interest rates rise, the value of fixed-income securities falls. Middle market companies have additional risks due to their limited operating histories, limited financial resources, less predictable operating results, narrower product lines and other factors. Securities of middle market issuers are typically considered high-yield. High-yield fixed income securities of below-investment-grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. High-yield bonds (“junk bonds”) are subject to higher credit risk and a greater risk of default. The Fund may invest all or a portion of its managed assets in illiquid securities. The Fund may make significant investments in securities for which there are no observable market prices; the prices must be estimated by Western Asset, the Fund’s subadviser, and approved by the Legg Mason North Atlantic Fund Valuation Committee. Investments in foreign securities involve risks, including the possibility of losses due to changes in currency exchange rates and negative developments in the political, economic or regulatory structure of specific countries or regions. These risks are greater in emerging markets. Leverage may result in greater volatility of the net asset value of common shares and increases a shareholder’s risk of loss. Derivative instruments can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Distributions are not guaranteed and are subject to change.


Western Asset Middle Market Income Fund Inc.		V

Performance review (cont’d)

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

ⁱ

Net asset value (“NAV”) is calculated by subtracting total liabilities, including liabilities associated with financial leverage (if any), from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested.

ⁱⁱ	The Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Caa Component is an index of the 2% Issuer Cap component of the broader Bloomberg Barclays U.S. Corporate High Yield Index and is comprised of the Caa-rated securities included in this Index.

ⁱⁱⁱ

Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the six-month period ended October 31, 2019, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 39 funds in the Fund’s Lipper category.


VI		Western Asset Middle Market Income Fund Inc.

Fund at a glance^† (unaudited)

Investment breakdown (%) as a percent of total investments

LOGO

†

The bar graph above represents the composition of the Fund’s investments as of October 31, 2019 and April 30, 2019 and does not include derivatives such as forward foreign currency contracts. The Fund is actively managed. As a result, the composition of the Fund’s investments is subject to change at any time.

‡	Represents less than 0.1%.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		1

Schedule of investments (unaudited)

October 31, 2019

Western Asset Middle Market Income Fund Inc.



Security	Rate			Maturity Date		Face Amount†		Value
Corporate Bonds & Notes — 76.1%
Communication Services — 4.5%
Diversified Telecommunication Services — 0.8%
Cogent Communications Group Inc., Senior Secured Notes		5.375	%		3/1/22		1,200,000	$	1,254,000	^(a)
Wireless Telecommunication Services — 3.7%
CSC Holdings LLC, Senior Notes		6.625	%		10/15/25		1,000,000		1,067,500	^(a)(b)
CSC Holdings LLC, Senior Notes		10.875	%		10/15/25		747,000		844,360	^(a)(b)
Sprint Communications Inc., Senior Notes		11.500	%		11/15/21		815,000		946,419	^(b)
Sprint Corp., Senior Notes		7.875	%		9/15/23		2,520,000		2,787,750
Total Wireless Telecommunication Services									5,646,029
Total Communication Services									6,900,029
Consumer Discretionary — 20.0%
Diversified Consumer Services — 1.4%
Carriage Services Inc., Senior Notes		6.625	%		6/1/26		2,080,000		2,173,600	^(a)(b)
Hotels, Restaurants & Leisure — 17.3%
24 Hour Fitness Worldwide Inc., Senior Notes		8.000	%		6/1/22		2,500,000		1,818,750	^(a)(b)
Downstream Development Authority of the Quapaw Tribe of Oklahoma, Senior Secured Notes		10.500	%		2/15/23		3,830,000		4,050,225	^(a)(b)
Golden Entertainment Inc., Senior Notes		7.625	%		4/15/26		3,290,000		3,466,837	^(a)(b)
Golden Nugget Inc., Senior Notes		8.750	%		10/1/25		910,000		960,050	^(a)
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., Secured Notes		10.250	%		11/15/22		3,000,000		3,187,500	^(a)(b)
Jacobs Entertainment Inc., Secured Notes		7.875	%		2/1/24		3,818,000		4,066,170	^(a)(b)
Nathan’s Famous Inc., Senior Secured Notes		6.625	%		11/1/25		3,770,000		3,826,550	^(a)(b)
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp., Senior Secured Notes		5.875	%		5/15/25		3,000,000		2,977,500	^(a)(b)
Twin River Worldwide Holdings Inc., Senior Notes		6.750	%		6/1/27		1,900,000		2,005,070	^(a)
Total Hotels, Restaurants & Leisure									26,358,652
Household Durables — 1.3%
APX Group Inc., Senior Notes		8.750	%		12/1/20		2,006,000		1,978,418	^(b)
Total Consumer Discretionary									30,510,670

See Notes to Financial Statements.


2		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Western Asset Middle Market Income Fund Inc.


Security	Rate			Maturity Date		Face Amount†			Value
Consumer Staples — 2.0%
Tobacco — 2.0%
Pyxus International Inc., Secured Notes		9.875	%		7/15/21		4,960,000		$	3,100,000	^(b)
Energy — 21.9%
Energy Equipment & Services — 2.3%
Pride International LLC, Senior Notes		7.875	%		8/15/40		2,750,000			1,430,000	^(b)
USA Compression Partners LP/USA Compression Finance Corp., Senior Notes		6.875	%		4/1/26		2,000,000			2,030,000
Total Energy Equipment & Services										3,460,000
Oil, Gas & Consumable Fuels — 19.6%
Antero Midstream Partners LP/Antero Midstream Finance Corp., Senior Notes		5.750	%		1/15/28		1,990,000			1,512,400	^(a)
Berry Petroleum Co. LLC, Senior Notes		7.000	%		2/15/26		3,650,000			3,412,750	^(a)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		6.125	%		11/15/22		2,379,000			2,349,262	^(a)(b)
Endeavor Energy Resources LP/EER Finance Inc., Senior Notes		5.500	%		1/30/26		1,200,000			1,242,024	^(a)
MEG Energy Corp., Senior Notes		6.375	%		1/30/23		1,500,000			1,423,125	^(a)(b)
Montage Resources Corp., Senior Notes		8.875	%		7/15/23		2,530,000			1,954,425
Oasis Petroleum Inc., Senior Notes		6.500	%		11/1/21		4,088,000			3,944,920	^(b)
Oasis Petroleum Inc., Senior Notes		6.875	%		3/15/22		2,017,000			1,780,003	^(b)
Oasis Petroleum Inc., Senior Notes		6.875	%		1/15/23		800,000			696,000	^(b)
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		1,900,000			2,205,188
Shelf Drilling Holdings Ltd., Senior Notes		8.250	%		2/15/25		3,470,000			2,932,150	^(a)(b)
Teine Energy Ltd., Senior Notes		6.875	%		9/30/22		1,620,000			1,628,100	^(a)
Transportadora de Gas del Sur SA, Senior Notes		6.750	%		5/2/25		3,000,000			2,530,500	^(a)
Vesta Energy Corp., Senior Notes		8.125	%		7/24/23		3,800,000	^CAD		2,345,723	^(a)
Total Oil, Gas & Consumable Fuels										29,956,570
Total Energy										33,416,570
Financials — 0.6%
Diversified Financial Services — 0.6%
Werner FinCo LP/Werner FinCo Inc., Senior Notes		8.750	%		7/15/25		1,000,000			873,750	^(a)
Health Care — 8.4%
Health Care Equipment & Supplies — 2.4%
Immucor Inc., Senior Notes		11.125	%		2/15/22		3,700,000			3,720,350	^(a)(b)

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		3

Schedule of investments (unaudited) (cont’d)

October 31, 2019

Western Asset Middle Market Income Fund Inc.


Security	Rate			Maturity Date		Face Amount†		Value
Health Care Providers & Services — 4.4%
Air Medical Group Holdings Inc., Senior Notes		6.375	%		5/15/23		4,860,000	$	4,155,300	^(a)(b)
MPH Acquisition Holdings LLC, Senior Notes		7.125	%		6/1/24		2,000,000		1,860,100	^(a)(b)
Tenet Healthcare Corp., Senior Notes		8.125	%		4/1/22		690,000		748,685
Total Health Care Providers & Services									6,764,085
Pharmaceuticals — 1.6%
Bausch Health Cos. Inc., Senior Notes		5.875	%		5/15/23		934,000		951,513	^(a)(b)
Bausch Health Cos. Inc., Senior Notes		6.125	%		4/15/25		280,000		291,375	^(a)
Bausch Health Cos. Inc., Senior Notes		9.000	%		12/15/25		1,010,000		1,137,714	^(a)
Total Pharmaceuticals									2,380,602
Total Health Care									12,865,037
Industrials — 10.2%
Commercial Services & Supplies — 3.8%
Garda World Security Corp., Senior Notes		7.250	%		11/15/21		2,610,000		2,614,567	^(a)(b)
Waste Pro USA Inc., Senior Notes		5.500	%		2/15/26		3,090,000		3,205,875	^(a)(b)
Total Commercial Services & Supplies									5,820,442
Machinery — 0.7%
Cleaver-Brooks Inc., Senior Secured Notes		7.875	%		3/1/23		460,000		435,850	^(a)
MAI Holdings Inc., Senior Secured Notes		9.500	%		6/1/23		1,320,000		561,000
Total Machinery									996,850
Marine — 1.8%
Navios Maritime Acquisition Corp./ Navios Acquisition Finance U.S. Inc., Senior Secured Notes		8.125	%		11/15/21		3,390,000		2,779,800	^(a)(b)
Road & Rail — 2.0%
Flexi-Van Leasing Inc., Secured Notes		10.000	%		2/15/23		3,120,000		2,979,600	^(a)(b)
Trading Companies & Distributors — 1.9%
Ahern Rentals Inc., Secured Notes		7.375	%		5/15/23		980,000		798,700	^(a)(b)
Emeco Pty Ltd., Senior Secured Notes		9.250	%		3/31/22		1,978,824		2,095,575	^(b)
Total Trading Companies & Distributors									2,894,275
Total Industrials									15,470,967

See Notes to Financial Statements.


4		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Western Asset Middle Market Income Fund Inc.

Security

Rate

Maturity

Date

Face

Amount†

Value

Information Technology — 2.8%

Software — 2.8%

Fair Isaac Corp., Senior Notes

5.250

5/15/26

3,645,000

3,973,050

^(a)(b)

Interface Special Holdings Inc., Senior Notes (19.000% PIK)

19.000

11/1/23

3,310,046

248,253

^(a)(c)(d)(e)

Total Information Technology

4,221,303

Materials — 3.1%

Chemicals — 1.2%

Techniplas LLC, Senior Secured Notes

10.000

5/1/20

2,080,000

1,768,000

^(a)(b)

Metals & Mining — 0.1%

Northwest Acquisitions ULC/Dominion Finco Inc., Secured Notes

7.125

11/1/22

410,000

206,025

^(a)

Paper & Forest Products — 1.8%

Mercer International Inc., Senior Notes

6.500

2/1/24

1,000,000

1,033,750

^(b)

Mercer International Inc., Senior Notes

7.375

1/15/25

720,000

748,800

^(a)

Mercer International Inc., Senior Notes

5.500

1/15/26

1,000,000

973,080

Total Paper & Forest Products

2,755,630

Total Materials

4,729,655

Real Estate — 2.6%

Real Estate Management & Development — 2.6%

Five Point Operating Co. LP/Five Point Capital Corp., Senior Notes

7.875

11/15/25

2,030,000

1,923,770

^(a)

Kennedy-Wilson Inc., Senior Notes

5.875

4/1/24

2,000,000

2,080,000

^(b)

Total Real Estate

4,003,770

Total Corporate Bonds & Notes (Cost — $121,769,407)

116,091,751

Senior Loans — 35.5%

Communication Services — 1.0%

Diversified Telecommunication Services — 1.0%

Securus Technologies Holdings Inc., First Lien Initial Term Loan (1 mo. USD LIBOR +4.500%)

6.286

11/1/24

1,960,025

1,543,520

^(f)(g)(h)

Consumer Discretionary — 10.9%

Commercial Services & Supplies — 2.6%

Garda World Security Corp., First Lien Term Loan B

—

10/23/26

2,000,000

1,991,250

⁽ⁱ⁾

KC Culinarte Intermediate LLC, First Lien Initial Term Loan (1 mo. USD LIBOR + 3.750%)

5.560

8/25/25

1,989,900

1,972,488

^(f)(g)(h)

Total Commercial Services & Supplies

3,963,738

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		5

Schedule of investments (unaudited) (cont’d)

October 31, 2019

Western Asset Middle Market Income Fund Inc.


Security	Rate			Maturity Date		Face Amount†		Value
Hotels, Restaurants & Leisure — 5.1%
Affinity Gaming LLC, Second Lien Initial Term Loan (1 mo. USD LIBOR +8.250%)		10.036	%		1/31/25		3,990,000	$	3,832,894	^(f)(g)(h)
CEC Entertainment Inc., Term Loan B (1 mo. USD LIBOR +6.500%)		8.286	%		8/17/26		2,030,000		1,951,338	^(f)(g)(h)
Station Casinos LLC, Term Loan Facility B (1 mo. USD LIBOR +2.500%)		4.290	%		6/8/23		1,989,627		1,994,827	^(f)(g)(h)
Total Hotels, Restaurants & Leisure									7,779,059
Specialty Retail — 2.2%
Isagenix International LLC, Term Loan (3 mo. USD LIBOR +5.750%)		7.850	%		6/16/25		1,874,466		1,440,214	^(f)(g)(h)
Spencer Spirit IH LLC, Initial Term Loan		5.000-7.846	%		6/12/26		1,980,000		1,940,400	^(f)(g)(h)
Total Specialty Retail									3,380,614
Textiles, Apparel & Luxury Goods — 1.0%
TOMS Shoes LLC, Initial Term Loan (3 mo. USD LIBOR +5.500%)		7.430	%		10/30/20		2,442,355		1,581,425	^(f)(g)(h)
Total Consumer Discretionary									16,704,836
Consumer Staples — 4.1%
Food Products — 4.1%
8th Avenue Food & Provisions Inc., Second Lien Term Loan (3 mo. USD LIBOR + 7.750%)		9.690	%		10/1/26		2,720,000		2,713,200	^(d)(f)(g)(h)
CSM Bakery Solutions LLC, Second Lien Term Loan (3 mo. USD LIBOR +7.750%)		9.780	%		7/5/21		4,000,000		3,580,000	^(d)(f)(g)(h)
Total Consumer Staples									6,293,200
Financials — 4.1%
Diversified Financial Services — 1.2%
GI Revelation Acquisition LLC, First Lien Term Loan (1 mo. USD LIBOR +5.000%)		6.786	%		4/16/25		1,984,875		1,858,339	^(f)(g)(h)
Insurance — 2.9%
AIS Holdco LLC, First Lien Term Loan (3 mo. USD LIBOR +5.000%)		6.927	%		8/15/25		3,256,500		3,061,110	^(d)(f)(g)(h)
AmeriLife Group LLC, First Lien Delayed Draw Term Loan		—			6/12/26		160,877		160,676	⁽ⁱ⁾
AmeriLife Group LLC, First Lien Initial Term Loan (1 mo. USD LIBOR +4.500%)		6.286	%		6/12/26		1,146,250		1,144,817	^(f)(g)(h)
Total Insurance									4,366,603
Total Financials									6,224,942

See Notes to Financial Statements.


6		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Western Asset Middle Market Income Fund Inc.



Security	Rate			Maturity Date		Face Amount†		Value
Health Care — 5.7%
Health Care Equipment & Supplies — 0.5%
Air Methods Corp., Initial Term Loan (3 mo. USD LIBOR +3.500%)		5.604	%		4/22/24		993,960	$	795,583	^(f)(g)(h)
Health Care Providers & Services — 4.3%
Medical Solutions Holdings Inc., First Lien Closing Date Term Loan (1 mo. USD LIBOR +4.500%)		6.286	%		6/14/24		2,030,000		2,022,388	^(f)(g)(h)
MPH Acquisition Holdings LLC, Initial Term Loan (3 mo. USD LIBOR +2.750%)		4.854	%		6/7/23		1,480,000		1,392,356	^(f)(g)(h)
Option Care Health Inc., First Lien Term Loan B (1 mo. USD LIBOR +4.500%)		6.286	%		8/6/26		2,000,000		1,970,000	^(d)(f)(g)(h)
Radnet Management Inc., First Lien Term Loan B1		5.510-7.500	%		6/30/23		1,185,143		1,184,031	^(f)(g)(h)
Total Health Care Providers & Services									6,568,775
Pharmaceuticals — 0.9%
Pearl Intermediate Parent LLC, Second Lien Initial Term Loan (1 mo. USD LIBOR +6.250%)		8.036	%		2/13/26		1,350,000		1,317,937	^(f)(g)(h)
Total Health Care									8,682,295
Information Technology — 6.2%
IT Services — 4.9%
Access CIG LLC, Second Lien Initial Term Loan (1 mo. USD LIBOR +7.750%)		9.536	%		2/13/26		3,470,984		3,453,629	^(f)(g)(h)
Datto Inc., Term Loan (1 mo. USD LIBOR +4.250%)		6.036	%		4/2/26		1,965,075		1,980,632	^(f)(g)(h)
Project Alpha Intermediate Holding Inc., 2019 Incremental Term Loan (3 mo. USD LIBOR +4.250%)		6.240	%		4/26/24		1,965,075		1,962,619	^(f)(g)(h)
Total IT Services									7,396,880
Software — 1.3%
DigiCert Holdings Inc., First Lien Initial Term Loan		—			10/16/26		2,030,000		1,995,322	⁽ⁱ⁾
Total Information Technology									9,392,202
Real Estate — 1.7%
Real Estate Management & Development — 1.7%
Coastal Construction Corp., Delayed Draw Term Loan		—			9/4/24		670,000		651,106	^(c)(d)(i)
Coastal Construction Products LLC, Term Loan B (3 mo. USD LIBOR +5.375%)		7.325	%		9/4/24		1,980,850		1,924,990	^{(c)(d)(f)(g)(h)}
Total Real Estate									2,576,096

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		7

Schedule of investments (unaudited) (cont’d)

October 31, 2019

Western Asset Middle Market Income Fund Inc.

Security

Rate

Maturity
Date

Face
Amount†

Value

Utilities — 1.8%

Electric Utilities — 1.8%

Panda Temple Power LLC, Second Lien Term Loan (2 mo. USD LIBOR +8.000% PIK)

10.054

2/7/23

2,673,796

2,688,836

^(e)(f)(g)(h)

Total Senior Loans (Cost — $56,664,246)

54,105,927

Investments in Underlying Funds — 2.4%

SPDR Bloomberg Barclays Short Term High Yield Bond ETF (Cost — $3,653,100)

135,000

3,616,650

Common Stocks — 2.3%

Energy — 0.9%

Oil, Gas & Consumable Fuels — 0.9%

Berry Petroleum Corp.

94,787

890,050

Downstream Development Authority of the Quapaw Tribe of Oklahoma Escrow

3,830,000

*^(b)(c)(d)(j)

Montage Resources Corp.

92,531

418,240

Total Energy

1,308,290

Health Care — 0.1%

Health Care Providers & Services — 0.1%

Option Care Health Inc.

59,045

209,019

Utilities — 1.3%

Electric Utilities — 1.3%

Panda Temple Power LLC

91,433

2,011,526

*^(d)

Total Common Stocks (Cost — $10,265,193)

3,528,835

Rate

Preferred Stocks — 1.3%

Financials — 1.3%

Capital Markets — 1.3%

B. Riley Financial Inc. (Cost — $1,997,500)

6.875

79,900

2,055,028

^(b)

Expiration

Date

Warrants

Warrants — 0.4%

Option Care Health Inc. (Cost — $94,113)

6/29/27

263,683

683,730

*^(c)(d)

Total Investments before Short-Term Investments (Cost — $194,443,559)

180,081,921

See Notes to Financial Statements.


8		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Western Asset Middle Market Income Fund Inc.

Security

Rate

Maturity

Date

Face

Amount†

Value

Short-Term Investments — 4.3%

Repurchase Agreements — 1.6%

Bank of America Corp. repurchase agreement dated 10/31/19; Proceeds at maturity — $2,500,120; (Fully collateralized by U.S. government obligations, 2.000% due 05/31/24; Market value — $2,573,388) (Cost — $2,500,000)

1.730

11/1/19

2,500,000

2,500,000

Money Market Funds — 2.7%

Dreyfus Government Cash Management, Institutional Shares (Cost — $4,027,603)

1.691

4,027,603

4,027,603

Total Short-Term Investments (Cost — $6,527,603)

6,527,603

Total Investments — 122.3% (Cost — $200,971,162)

186,609,524

Liabilities in Excess of Other Assets — (22.3)%

(33,993,668

)

Total Net Assets — 100.0%

152,615,856

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

*	Non-income producing security.

^(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

^(b)	All or a portion of this security is pledged as collateral pursuant to the loan agreement (Note 6).

^(c)	Security is valued in good faith in accordance with procedures approved by the Board of Directors (Note 1).

^(d)	Security is valued using significant unobservable inputs (Note 1).

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

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

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

^(h)

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.

⁽ⁱ⁾	All or a portion of this loan is unfunded as of October 31, 2019. The interest rate for fully unfunded term loans is to be determined.

^(j)	Value is less than $1.

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		9

Schedule of investments (unaudited) (cont’d)

October 31, 2019

Western Asset Middle Market Income Fund Inc.


Abbreviations used in this schedule:

CAD		— Canadian Dollar

ETF		— Exchange-Traded Fund

LIBOR		— London Interbank Offered Rate

PIK		— Payment-In-Kind

SPDR		— Standard & Poor’s Depositary Receipts

USD		— United States Dollar

At October 31, 2019, the Fund had the following open forward foreign currency contracts:

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Depreciation

USD 2,671,736

CAD 3,555,941

Barclays Bank PLC

1/17/20

(29,269

)


Abbreviations used in this table:

CAD		— Canadian Dollar

USD		— United States Dollar

See Notes to Financial Statements.


10		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Statement of assets and liabilities (unaudited)

October 31, 2019



Assets:
Investments, at value (Cost — $200,971,162)	$	186,609,524
Foreign currency, at value (Cost — $116,937)		117,208
Cash		45,601
Interest receivable		3,310,682
Prepaid expenses		2,569
*Total Assets*		*190,085,584*

Liabilities:
Loan payable (Note 6)		32,300,000
Payable for securities purchased		4,813,266
Investment management fee payable		182,662
Unrealized depreciation on forward foreign currency contracts		29,269
Interest payable		27,976
Directors’ fees payable		15,602
Accrued expenses		100,953
*Total Liabilities*		*37,469,728*
Total Net Assets	$	152,615,856

Net Assets:
Par value ($0.001 par value; 214,026 shares issued and outstanding; 100,000,000 shares authorized)	$	214
Paid-in capital in excess of par value		239,471,211
Total distributable earnings (loss)		(86,855,569)
Total Net Assets	$	152,615,856

Shares Outstanding		214,026

Net Asset Value		$713.07

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		11

Statement of operations (unaudited)

For the Six Months Ended October 31, 2019



Investment Income:
Interest	$	7,791,165
Dividends		173,296
Income from non-cash interest		503,612
*Total Investment Income*		*8,468,073*

Expenses:
Investment management fee (Note 2)		1,193,911
Interest expense (Note 6)		371,548
Transfer agent fees		62,252
Audit and tax fees		38,591
Fund accounting fees		37,099
Directors’ fees		24,802
Legal fees		19,470
Shareholder reports		12,654
Custody fees		3,161
Insurance		1,876
Miscellaneous expenses		7,448
*Total Expenses*		*1,772,812*
Less: Fee waivers and/or expense reimbursements (Note 2)		(95,513)
*Net Expenses*		*1,677,299*
Net Investment Income		6,790,774

Realized and Unrealized Gain (Loss) on Investments, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions		(892,920)
Forward foreign currency contracts		12,232
Foreign currency transactions		880
*Net Realized Loss*		*(879,808)*
Change in Net Unrealized Appreciation (Depreciation) From:
Investments		(7,311,847)
Forward foreign currency contracts		(47,194)
Foreign currencies		942
*Change in Net Unrealized Appreciation (Depreciation)*		*(7,358,099)*
Net Loss on Investments, Forward Foreign Currency Contracts and Foreign Currency Transactions		(8,237,907)
Decrease in Net Assets From Operations	$	(1,447,133)

See Notes to Financial Statements.


	12			Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Statements of changes in net assets


For the Six Months Ended October 31, 2019 (unaudited) and the Year Ended April 30, 2019	October 31		April 30

Operations:
Net investment income	$	6,790,774	$	17,096,536
Net realized loss		(879,808)		(4,222,411)
Change in net unrealized appreciation (depreciation)		(7,358,099)		1,953,843
*Increase (Decrease) in Net Assets From Operations*		*(1,447,133)*		*14,827,968*

Distributions to Shareholders From (Note 1):
Total distributable earnings		(6,880,343)		(17,432,726)
*Decrease in Net Assets From Distributions to Shareholders*		*(6,880,343)*		*(17,432,726)*

Fund Share Transactions:
Reinvestment of distributions (1,043 and 2,417 shares issued, respectively)		757,522		1,808,289
Cost of shares repurchased through tender offer (18,143 and 32,435 shares repurchased, respectively) (Note 5)		(13,144,983)		(24,195,474)
*Decrease in Net Assets From Fund Share Transactions*		*(12,387,461)*		*(22,387,185)*
*Decrease in Net Assets*		*(20,714,937)*		*(24,991,943)*

Net Assets:
Beginning of period		173,330,793		198,322,736
End of period	$	152,615,856	$	173,330,793

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		13

Statement of cash flows (unaudited)

For the Six Months Ended October 31, 2019



Increase (Decrease) in Cash:
Cash Provided (Used) by Operating Activities:
Net decrease in net assets resulting from operations	$	(1,447,133)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided (used) by operating activities:
Purchases of portfolio securities		(49,077,236)
Sales of portfolio securities		51,131,444
Net purchases, sales and maturities of short-term investments		(2,358,461)
Payment-in-kind		(503,612)
Net amortization of premium (accretion of discount)		(719,131)
Decrease in receivable for securities sold		2,932,878
Decrease in interest receivable		107,553
Increase in prepaid expenses		(1,271)
Increase in payable for securities purchased		2,148,266
Decrease in investment management fee payable		(3,401)
Increase in Directors’ fees payable		2,628
Increase in interest payable		5,293
Decrease in accrued expenses		(39,165)
Net realized loss on investments		892,920
Change in net unrealized appreciation (depreciation) of investments and forward foreign currency contracts		7,359,041
Net Cash Provided by Operating Activities*		*10,430,613*

Cash Flows From Financing Activities:
Distributions paid on common stock		(6,122,821)
Proceeds from loan facility borrowings		39,000,000
Repayment of loan facility borrowings		(30,000,000)
Payment for shares repurchased through tender offer		(13,144,983)
*Net Cash Used in Financing Activities*		*(10,267,804)*
Net Increase in Cash and Restricted Cash		162,809
Cash and restricted cash at beginning of period		—
Cash and restricted cash at end of period	$	162,809

*	Included in operating expenses is cash of $366,255 paid for interest on borrowings.

The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows.


	October 31, 2019
Cash	$	162,809
Restricted cash		—
Total cash and restricted cash shown in the Statement of Cash Flows	$	162,809
Non-Cash Financing Activities:
Proceeds from reinvestment of distributions	$	757,522

See Notes to Financial Statements.


14		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Financial highlights


For a share of capital stock outstanding throughout each year ended April 30, unless otherwise noted:
	2019^1,2			2019¹			2018¹			2017¹			2016¹			2015^1,3

Net asset value, beginning of period		$749.94			$759.44			$799.71			$708.75			$915.01			$998.00	⁴

Income (loss) from operations:
Net investment income		30.36			68.47			76.58			87.83			86.64			50.82
Net realized and unrealized gain (loss)		(36.84)			(8.83)			(38.51)			93.13			(202.90)			(92.81)
*Total income (loss) from operations*		*(6.48)*			*59.64*			*38.07*			*180.96*			*(116.26)*			*(41.99)*

Less distributions from:
Net investment income		(30.39)	⁵		(69.14)			(78.34)			(90.00)			(90.00)			(41.00)
*Total distributions*		*(30.39)*			*(69.14)*			*(78.34)*			*(90.00)*			*(90.00)*			*(41.00)*

Net asset value, end of period		$713.07			$749.94			$759.44			$799.71			$708.75			$915.01
*Total return, based on NAV⁶*		*(0.91)*	%		*8.20*	%		*5.04*	%		*26.72*	%		*(12.74)*	%		*(4.11)*	%

Net assets, end of period (millions)		$153			$173			$198			$229			$222			$291

Ratios to average net assets:
Gross expenses		2.14	%⁷		2.29	%		2.36	%		2.45	%		1.83	%		1.55	%⁷
Net expenses		2.03	^7,8		2.17	⁸		2.23	⁸		2.40	⁸		1.83			1.55	⁷
Net investment income		8.20	⁷		8.98			9.81			11.37			11.20			7.99	⁷

Portfolio turnover rate		26	%		28	%		32	%		51	%		39	%		29	%

Supplemental data:
Loan Outstanding, End of Period (000s)		$32,300			$23,300			$47,400			$94,000			$53,000			$53,000
Asset Coverage Ratio for Loan Outstanding⁹		572	%		844	%		518	%		343	%		518	%		649	%
Asset Coverage, per $1,000 Principal Amount of Loan Outstanding⁹		$5,725			$8,439			$5,184			$3,431			$5,181			$6,486
Weighted Average Loan (000s)		$25,335			$36,567			$58,175			$88,175			$53,000			$40,118	¹⁰
Weighted Average Interest Rate on Loan		2.92	%		3.00	%		2.08	%		1.37	%		1.00	%		0.89	%¹⁰

See Notes to Financial Statements.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		15

Financial highlights (cont’d)

¹	Per share amounts have been calculated using the average shares method.

²	For the six months ended October 31, 2019 (unaudited).

³	For the period August 26, 2014 (commencement of operations) to April 30, 2015.

⁴	Initial public offering price of $1,000.00 per share, exclusive of sales load, less offering costs of $2.00 per share.

⁵	The actual source of the Fund’s current fiscal year distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year.

⁶

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁷	Annualized.

⁸	Reflects fee waivers and/or expense reimbursements.

⁹	Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the end of the period.

¹⁰	Weighted average based on the number of days that the Fund had a loan outstanding.

See Notes to Financial Statements.


16		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Western Asset Middle Market Income Fund Inc. (the “Fund”) was incorporated in Maryland on June 29, 2011 and is registered as a non-diversified, limited-term closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund commenced operations on August 26, 2014. The Fund’s primary investment objective is to provide high income. As a secondary objective, the Fund seeks capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its managed assets (the net assets of the Fund plus the principal amount of any borrowings and any preferred stock that may be outstanding) in securities, including loans, issued by middle market companies. For investment purposes, “middle market” refers to companies with annual revenues of between $100 million and $1 billion at the time of investment by the Fund. Securities of middle market issuers are typically considered below investment grade (also commonly referred to as “junk bonds”). It is anticipated that the Fund will terminate on or before December 30, 2022. Upon its termination, it is anticipated that the Fund will have distributed substantially all of its net assets to stockholders, although securities for which no market exists or securities trading at depressed prices, if any, may be placed in a liquidating trust.

On October 31, 2019, the Board of Directors of the Fund approved amendments to the Fund’s bylaws. The amended and restated bylaws were subsequently filed on Form 8-K and are available on the SEC’s website at www.sec.gov.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(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. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		17

Notes to financial statements (unaudited) (cont’d)

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.

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


18		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:


ASSETS
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Long-Term Investments†:
Corporate Bonds & Notes:
Information Technology		—	$	3,973,050	$	248,253		$	4,221,303
Other Corporate Bonds & Notes		—		111,870,448		—			111,870,448
Senior Loans:
Consumer Staples		—		—		6,293,200			6,293,200
Financials		—		3,163,832		3,061,110			6,224,942
Health Care		—		6,712,295		1,970,000			8,682,295
Real Estate		—		—		2,576,096			2,576,096
Other Senior Loans		—		30,329,394		—			30,329,394
Investments in Underlying Funds	$	3,616,650		—		—			3,616,650
Common Stocks:
Energy		1,308,290		—		0	*		1,308,290
Health Care		209,019		—		—			209,019
Utilities		—		—		2,011,526			2,011,526
Preferred Stocks		2,055,028		—		—			2,055,028
Warrants		—		—		683,730			683,730
Total Long-Term Investments		7,188,987		156,049,019		16,843,915			180,081,921
Short-Term Investments!:
Repurchase Agreements		—		2,500,000		—			2,500,000
Money Market Funds		4,027,603		—		—			4,027,603
Total Short-Term Investments		4,027,603		2,500,000		—			6,527,603
Total Investments	$	11,216,590	$	158,549,019	$	16,843,915		$	186,609,524


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		19

Notes to financial statements (unaudited) (cont’d)


LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Other Financial Instruments:
Forward Foreign Currency Contracts		—	$	29,269		—	$	29,269

†	See Schedule of Investments for additional detailed categorizations.

*	Amount represents less than $1.

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


Investments in Securities	Balance as of April 30, 2019			Accrued premiums/ discounts		Realized gain (loss)¹			Change in unrealized appreciation (depreciation)²		Purchases
Corporate Bonds & Notes:
Energy	$	0	*		—	$	0	*		—		—
Health Care		4,246,529		$	5,894		650,219		$	(456,830)	$	183,577
Information
Technology		—			—		—			—		—
Senior Loans:
Consumer Discretionary		1,902,735			97,049		315			(405,887)		—
Consumer Staples		4,342,650			4,456		(1,154)			40,898		—
Financials		5,211,484			1,464		229			(241,928)		—
Health Care		—			—		—			(30,000)		2,000,000
Real Estate		2,619,936			2,233		214			(21,275)		—
Common Stocks:
Energy		—			—		—			—		0	*
Utilities		1,965,810			—		—			45,716		—
Warrants		282,624			—		0	*		432,478		94,113
Total	$	20,571,768		$	111,096	$	649,823		$	(636,828)	$	2,277,690


20		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report


Investments in Securities (cont’d)	Sales			Transfers into Level 3³		Transfers out of Level 3⁴		Balance as of October 31, 2019			Net change in unrealized appreciation (depreciation) for investments in securities still held at October 31, 2019²
Corporate Bonds & Notes:
Energy	$	(0)	*		—		—		—			—
Health Care		(4,629,389)			—		—		—			—
Information Technology		—		$	248,253		—	$	248,253			—
Senior Loans:
Consumer
Discretionary		(12,787)			—	$	(1,581,425)		—			—
Consumer Staples		(4,386,850)			6,293,200		—		6,293,200			—
Financials		(51,800)			—		(1,858,339)		3,061,110		$	(122,224)
Health Care		—			—		—		1,970,000			(30,000)
Real Estate		(25,012)			—		—		2,576,096			(21,275)
Common Stocks:
Energy		—			—		—		0	*		—
Utilities		—			—		—		2,011,526			45,716
Warrants		(125,485)			—		—		683,730			589,617
Total	$	(9,231,323)		$	6,541,453	$	(3,439,764)	$	16,843,915		$	461,834

*	Amount represents less than $1.

¹	This amount is included in net realized gain (loss) from investment transactions in the accompanying Statement of Operations.

This amount is included in the change in net unrealized appreciation (depreciation) in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

³	Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

⁴	Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs.

The following table summarizes the valuation techniques used and unobservable inputs approved by the Valuation Committee to determine the fair value of certain, material Level 3 investments. The table does not include Level 3 investments with values derived utilizing


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		21

Notes to financial statements (unaudited) (cont’d)

prices from prior transactions or third party pricing information without adjustment (e.g., broker quotes, pricing services, net asset values).

Fair Value
at 10/31/19
(000’s)

Valuation

Technique(s)

Unobservable Input(s)

Range/Average

impact to Valuation
from an Increase in

Input*

Senior Loans

2,576

Market Approach

Yield to

Maturity

2.596%-8.148%

range

4.414% average

Decrease

Transaction
Spread

3.239%

Decrease

This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in isolation could result in significantly higher or lower fair value measurements.

(b) Purchased options. When the Fund purchases an option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities, the value of which is marked-to-market to reflect the current market value of the option purchased. If the purchased option expires, the Fund realizes a loss equal to the amount of premium paid. When an instrument is purchased or sold through the exercise of an option, the related premium paid is added to the basis of the instrument acquired or deducted from the proceeds of the instrument sold. The risk associated with purchasing put and call options is limited to the premium paid.

(c) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(d) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may


22		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

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

(e) Unfunded loan commitments. The Fund may enter into certain credit agreements where all or a portion of which may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion. The commitments are disclosed in the accompanying Schedule of Investments. At October 31, 2019, the Fund had sufficient cash and/or securities to cover these commitments.

(f) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment manager has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(g) Cash flow information. The Fund invests in securities and distributes dividends from net investment income and net realized gains, which are paid in cash and may be rein vested at the discretion of shareholders. These activities are reported in the Statement of Changes in Net Assets and additional information on cash receipts and cash payments are presented in the Statement of Cash Flows.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		23

Notes to financial statements (unaudited) (cont’d)

(h) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(i) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

(j) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign


24		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(k) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		25

Notes to financial statements (unaudited) (cont’d)

financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of October 31, 2019, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $29,269. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

(l) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(m) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared and paid on a quarterly basis. The actual source of the Fund’s current fiscal year distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(n) Compensating balance arrangements. The Fund has an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.

(o) Federal and other taxes. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended,


26		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of April 30, 2019, no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

(p) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

2. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager. Western Asset Management Company, LLC (“Western Asset”) is the Fund’s subadviser. Western Asset Management Company Limited (“Western Asset Limited”), Western Asset Management Company Pte. Ltd. (“Western Asset Singapore”) and Western Asset Management Company Ltd (“Western Asset Japan”) serve as additional subadvisers to the Fund, pursuant to separate subadvisory agreements with Western Asset. LMPFA, Western Asset, Western Asset Limited, Western Asset Singapore and Western Asset Japan are wholly-owned subsidiaries of Legg Mason, Inc. (“Legg Mason”).

LMPFA provides administrative and certain oversight services to the Fund. The Fund pays LMPFA an investment management fee, calculated daily and paid monthly, at an annual rate of 1.25% of the Fund’s average daily managed assets, which are net assets of the Fund plus the principal amount of any borrowings and any preferred stock that may be outstanding. Effective December 1, 2016, LMPFA implemented a voluntary investment management fee waiver of 0.10% that will continue until November 30, 2020.

LMPFA delegates to Western Asset the day-to-day portfolio management of the Fund. Western Asset Limited, Western Asset Singapore and Western Asset Japan provide certain subadvisory services to the Fund relating to currency transactions and investments in non-U.S. dollar denominated debt securities. For its services, LMPFA pays Western Asset monthly 90% of the net management fee it receives from the Fund. In turn, Western Asset pays Western Asset Limited, Western Asset Singapore and Western Asset Japan a fee for their services at no additional expense to the Fund. Western Asset pays each of Western Asset Limited, Western Asset Singapore and Western Asset Japan a monthly subadvisory fee in an amount equal to 100% of the management fee paid to Western Asset on the assets that Western Asset allocates to each such non-U.S. subadviser to manage.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		27

Notes to financial statements (unaudited) (cont’d)

During periods in which the Fund utilizes financial leverage, the fees paid to LMPFA will be higher than if the Fund did not utilize leverage because the fees are calculated as a percentage of the Fund’s assets, including those investments purchased with leverage.

During the six months ended October 31, 2019, fees waived and/or expenses reimbursed

amounted to $95,513.

All officers and one Director of the Fund are employees of Legg Mason or its affiliates and do not receive compensation from the Fund.

3. Investments

During the six months ended October 31, 2019, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:


Purchases	$	49,077,236
Sales		51,131,444

At October 31, 2019, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:


	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Depreciation
Securities	$	200,971,162	$	6,098,315	$	(20,459,953)	$	(14,361,638)
Forward foreign currency contracts		—		—		(29,269)		(29,269)

4. Derivative instruments and hedging activities

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at October 31, 2019.


LIABILITY DERIVATIVES¹
	Foreign Exchange Risk
Forward foreign currency contracts	$	29,269

¹	Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation (depreciation) and for liability derivatives is payables/net unrealized appreciation (depreciation).


28		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the six months ended October 31, 2019. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.


AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Foreign Exchange Risk		Equity Risk		Total
Purchased options¹		—	$	101,976	$	101,976
Forward foreign currency contracts	$	12,232		—		12,232
Total	$	12,232	$	101,976	$	114,208

¹	Net realized gain (loss) from purchased options is reported in net realized gain (loss) from investment transactions in the Statement of Operations.


CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Foreign Exchange Risk		Equity Risk		Total
Purchased options¹		—	$	108,046	$	108,046
Forward foreign currency contracts	$	(47,194)		—		(47,194)
Total	$	(47,194)	$	108,046	$	60,852

¹	The change in unrealized appreciation (depreciation) from purchased options is reported in the change in net unrealized appreciation (depreciation) from investments in the Statement of Operations.

During the six months ended October 31, 2019, the volume of derivative activity for the Fund was as follows:


	Average Market Value
Purchased options†	$	51,279
Forward foreign currency contracts (to sell)		2,680,963

†	At October 31, 2019, there were no open positions held in this derivative.

The following table presents the Fund’s OTC derivative assets and liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of October 31, 2019.

Counterparty

Gross Assets
Subject to
Master
Agreements

Gross
Liabilities
Subject to
Master
Agreements¹

Net Assets
(Liabilities)

Subject to

Master

Agreements

Collateral

Pledged

(Received)

Net

Amount²

Barclays Bank PLC

—

(29,269)

—

(29,269)


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		29

Notes to financial statements (unaudited) (cont’d)

¹	Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

²	Represents the net amount receivable (payable) from (to) the counterparty in the event of default.

5. Tender offers

During the prior fiscal year, on May 11, 2018, the Fund announced that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s outstanding shares of common stock (“Shares”) or 6,521 Shares of the Fund. The tender offer was conducted at a price equal to the Fund’s net asset value per Share of the Fund’s Shares on the day on which the tender offer expired. The tender offer commenced on June 4, 2018 and expired on July 3, 2018. On July 9, 2018, the Fund announced the final results of the tender offer. A total of 21,826 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeded 6,521 Shares, the tender offer was oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund purchased Shares from all tendering stockholders on a pro rata basis, disregarding fractions. Accordingly, on a pro rata basis, approximately 30% of Shares for each stockholder who properly tendered Shares were accepted for payment. The Fund transmitted payment to purchase the duly tendered and accepted Shares on July 9, 2018. The purchase price of properly tendered Shares was $762.48 per Share, equal to the Fund’s per Share net asset value as of the close of the regular trading session of the New York Stock Exchange on July 3, 2018. Shares repurchased and the corresponding dollar amount are included on the Statements of Changes in Net Assets. Shares that were tendered but not accepted for payment and Shares that were not tendered will remain outstanding.

During the prior fiscal year, on August 17, 2018, the Fund announced that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s out standing Shares or 6,378 Shares of the Fund. The tender offer was conducted at a price equal to the Fund’s net asset value per Share of the Fund’s Shares on the day on which the tender offer expired. The tender offer commenced on September 4, 2018 and expired on October 3, 2018. On October 8, 2018, the Fund announced the final results of the tender offer. A total of 22,984 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeded 6,378 Shares, the tender offer was oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund purchased Shares from all tendering stockholders on a pro rata basis, disregarding fractions. Accordingly, on a pro rata basis, approximately 28% of Shares for each stockholder who properly tendered Shares were accepted for payment. The Fund transmitted payment to purchase the duly tendered and accepted Shares on October 9, 2018. The purchase price of properly tendered Shares was $783.70 per Share, equal to the Fund’s per Share net asset value as of the close of the regular trading session of the New York Stock Exchange on October 3, 2018. Shares repurchased and the corresponding dollar amount are included on the Statements of Changes in Net Assets. Shares that were tendered but not accepted for payment and Shares that were not tendered will remain outstanding.


30		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

During the prior fiscal year, on November 9, 2018, the Fund announced that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s out-standing Shares. The Fund also reserved the right to purchase up to an additional 2% of the Fund’s outstanding shares without amending or extending the offer (“Additional Shares”). The tender offer was conducted at a price equal to the Fund’s net asset value per Share of the Fund’s Shares on the day on which the tender offer expired. The tender offer commenced on November 30, 2018 and expired on January 2, 2019. On January 7, 2019, the Fund announced the final results of the tender offer. A total of 18,841 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeded 8,728 Shares, including Additional Shares accepted for purchase by the Fund, the tender offer was oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund purchased Shares from all tendering stockholders on a pro rata basis, excluding any odd lot transactions and disregarding fractions. Accordingly, on a pro rata basis, approximately 42% of Shares for each stockholder who properly tendered Shares were accepted for payment. The Fund transmitted payment to purchase the duly tendered and accepted Shares on January 7, 2019. The purchase price of properly tendered Shares was $710.70 per Share, equal to the Fund’s per Share net asset value as of the close of the regular trading session of the New York Stock Exchange on January 2, 2019. Shares repurchased and the corresponding dollar amount are included on the Statements of Changes in Net Assets. Shares that were tendered but not accepted for payment and Shares that were not tendered will remain outstanding.

During the prior fiscal year, on February 15, 2019, the Fund announced that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s out-standing Shares. The Fund also reserved the right to purchase up to an additional 2% of the Fund’s outstanding Shares without amending or extending the offer. The tender offer was conducted at a price equal to the Fund’s net asset value per Share of the Fund’s Shares on the day on which the tender offer expired. The tender offer commenced on March 6, 2019 and expired on April 4, 2019. On April 8, 2019, the Fund announced the final results of the tender offer. A total of 21,839 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeded 10,808 Shares, including Additional Shares accepted for purchase by the Fund, the tender offer was oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund purchased Shares from all tendering stockholders on a pro rata basis, excluding any odd lot transactions and disregarding fractions. Accordingly, on a pro rata basis, approximately 47% of Shares for each stockholder who properly tendered Shares were accepted for payment. The Fund transmitted payment to purchase the duly tendered and accepted Shares on April 8, 2019. The purchase price of properly tendered Shares was $742.22 per Share, equal to the Fund’s per Share net asset value as of the close of the regular trading session of the New York Stock Exchange on April 4, 2019. Shares repurchased and the corresponding dollar amount are


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		31

Notes to financial statements (unaudited) (cont’d)

included on the Statements of Changes in Net Assets. Shares that were tendered but not accepted for payment and Shares that were not tendered will remain outstanding.

On May 20, 2019, the Fund announced that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s outstanding Shares. The Fund also reserved the right to purchase up to an additional 2% of the Fund’s outstanding Shares without amending or extending the offer. The tender offer was conducted at a price equal to the Fund’s net asset value per Share of the Fund’s Shares on the day on which the tender offer expired. The tender offer commenced on June 3, 2019 and expired on July 2, 2019. On July 8, 2019, the Fund announced the final results of the tender offer. A total of 21,409 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeded 10,400 Shares, including Additional Shares accepted for purchase by the Fund, the tender offer was oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund purchased Shares from all tendering stockholders on a pro rata basis, excluding any odd lot transactions and disregarding fractions. Accordingly, on a pro rata basis, approximately 45% of Shares for each stockholder who properly tendered Shares were accepted for payment. The purchase price of properly tendered Shares was $734.93 per Share, equal to the Fund’s per Share net asset value as of the close of the regular trading session of the New York Stock Exchange on July 2, 2019. Shares repurchased and the corresponding dollar amount are included on the Statement of Changes. Shares that were tendered but not accepted for payment and Shares that were not tendered will remain outstanding.

On August 16, 2019, the Fund announced that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s outstanding Shares. The Fund also reserved the right to purchase up to an additional 2% of the Fund’s outstanding shares without amending or extending the offer. The tender offer was conducted at a price equal to the Fund’s net asset value per Share of the Fund’s Shares on the day on which the tender offer expired. The tender offer commenced on September 4, 2019 and expired on October 3, 2019. On October 7, 2019, the Fund announced the final results of the tender offer. A total of 18,625 Shares were duly tendered and not withdrawn. Because the number of Shares tendered exceeded 7,743 Shares, including Additional Shares accepted for purchase by the Fund, the tender offer was oversubscribed. Therefore, in accordance with the terms and conditions specified in the tender offer, the Fund purchased Shares from all tendering stockholders on a pro rata basis, excluding any odd lot transactions and disregarding fractions. Accordingly, on a pro rata basis, approximately 42% of Shares for each stockholder who properly tendered Shares were accepted for payment. The purchase price of properly tendered Shares was $710.54 per Share, equal to the Fund’s per Share net asset value as of the close of the regular trading session of the New York Stock Exchange on October 3, 2019. Shares repurchased and the corresponding dollar amount are included on the Statement of Changes. Shares that were tendered but not accepted for payment and Shares that were not tendered will remain outstanding.


32		Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report

6. Loan

The Fund has a revolving credit agreement with Pershing LLC that allows the Fund to borrow up to an aggregate amount of $136,000,000, subject to approval by Pershing LLC, and renews daily for a 180-day term unless notice to the contrary is given to the Fund. The interest on the loan is calculated at a variable rate based on the one-month LIBOR plus any applicable margin. To the extent of the borrowing outstanding, the Fund is required to maintain collateral in a special custody account at the Fund’s custodian on behalf of Pershing LLC. The Fund’s credit agreement contains customary covenants that, among other things, may limit the Fund’s ability to pay distributions in certain circumstances, incur additional debt, change its fundamental investment policies and engage in certain transactions, including mergers and consolidations, and require asset coverage ratios in addition to those required by the 1940 Act. In addition, the credit agreement may be subject to early termination under certain conditions and may contain other provisions that could limit the Fund’s ability to utilize borrowing under the agreement. Interest expense related to the loan for the six months ended October 31, 2019 was $371,548. For the six months ended October 31, 2019, the Fund had an average daily loan balance outstanding of $25,335,326 and the weighted average interest rate was 2.92%. At October 31, 2019, the Fund had $32,300,000 of borrowings outstanding.

7. Distributions subsequent to October 31, 2019

The following distribution has been declared by the Fund’s Board of Directors and is payable subsequent to the period end of this report:


Record Date	Payable Date		Amount
12/20/2019		12/31/2019	$	15.3300

8. Deferred capital losses

As of April 30, 2019, the Fund had deferred capital losses of $71,598,651, which have no expiration date, that will be available to offset future taxable capital gains.

9. Subsequent event

The Fund announced on November 15, 2019 that the Fund’s Board of Directors had approved a tender offer to purchase for cash up to 2.5% of the Fund’s outstanding shares of common stock, subject to the right to purchase up to an additional 2% of the Fund’s outstanding shares without amending or extending the offer. The tender offer will be conducted at a price equal to the Fund’s net asset value per share of common stock on the day on which the tender offer expires. The Fund commenced its tender offer on December 5, 2019 and the expiration of the tender offer is currently expected to be January 6, 2020.


Western Asset Middle Market Income Fund Inc. 2019 Semi-Annual Report		33

Dividend reinvestment plan (unaudited)

Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain dividends and return of capital distributions, on your Common Stock will be automatically reinvested in additional shares of Common Stock at the net asset value determined on the reinvestment date. You may elect not to participate in the Fund’s Dividend Reinvestment Plan (the “Plan”) by contacting the Computershare Inc. (“the Plan Agent”). If you do not participate, you will receive all cash distributions paid by check mailed directly to you by Computershare Inc., as dividend paying agent.

Common Stock in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all shares of Common Stock you have received under the Plan.

You may withdraw from the Plan (i.e., opt-out) by notifying the Plan Agent in writing at 462 South 4th Street, Suite 1600, Louisville, KY 40202 or by calling the Plan Agent at 1-888-888-0151. Such withdrawal will be effective immediately if notice is received by the Plan Agent more than three business days prior to any dividend or distribution payment date for that dividend to be paid out in cash. If the notice is received less than three business days prior to any dividend or distribution payment date, then that dividend will be reinvested and all subsequent dividends or distributions will be paid out in cash. The Plan may be terminated, amended or supplemented by the Fund upon notice in writing mailed to stockholders at least 30 days prior to the record date for the payment of any dividend or distribution by the Fund for which the termination or amendment is to be effective.

Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Investors will be subject to income tax on amounts reinvested under the Plan.

The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board of Directors, the change is warranted. The Plan Agent’s service fee for handling distributions will be paid by the Fund. For participants holding shares directly with the Plan Agent, the Plan Agent will charge each participant a fee of $15.00 plus commissions upon any sale of shares accepted for tender by the Fund. Additional information about the Plan and your account may be obtained from the Plan Agent at Computershare Inc., 462 South 4th Street, Suite 1600, Louisville, KY 40202 or by telephone at 1-888-888-0151.


34		Western Asset Middle Market Income Fund Inc.

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Western Asset

Middle Market Income Fund Inc.

Directors

Robert D. Agdern

Carol L. Colman

Daniel P. Cronin

Paolo M. Cucchi

William R. Hutchinson

Eileen A. Kamerick

Nisha Kumar

Jane Trust

Chairman

Officers

Jane Trust

President

and Chief Executive Officer

Christopher Berarducci

Treasurer and Principal Financial Officer*

Todd F. Kuehl

Chief Compliance Officer

Jenna Bailey

Identity Theft Prevention Officer

Robert I. Frenkel

Secretary and Chief Legal Officer

Thomas C. Mandia

Assistant Secretary

Jeanne M. Kelly

Senior Vice President

*	Effective September 27, 2019, Mr.Berarducci became Treasurer and Principal Financial Officer.

Western Asset Middle

Market Income Fund Inc.

620 Eighth Avenue

49th Floor

New York,NY 10018

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadvisers

Western Asset Management Company, LLC

Western Asset Management Company Limited

Western Asset Management Company Ltd

Western Asset Management Company Pte. Ltd.

Custodian

The Bank of New York Mellon

Transfer agent

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville, KY 40202

Independent registered public accounting firm

PricewaterhouseCoopers LLP

Baltimore, MD

Legal counsel

Simpson Thacher &Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Legg Mason Funds Privacy and Security Notice

Your Privacy and the Security of Your Personal Information is Very Important to the Legg Mason Funds

This Privacy and Security Notice (the “Privacy Notice”) addresses the Legg Mason Funds’ privacy and data protection practices with respect to nonpublic personal information the Funds receive. The Legg Mason Funds include any funds sold by the Funds’ distributor, Legg Mason Investor Services, LLC, as well as Legg Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.

The Type of Nonpublic Personal Information the Funds Collect About You

The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited to:

•

Personal information included on applications or other forms;

•

Account balances, transactions, and mutual fund holdings and positions;

•

Bank account information, legal documents, and identity verification documentation;

•

Online account access user IDs, passwords, security challenge question responses; and

•

Information received from consumer reporting agencies regarding credit history and creditworthiness (such as the amount of an individual’s total debt, payment history, etc.).

How the Funds Use Nonpublic Personal Information About You

The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, or with other financial institutions or affiliates for joint marketing purposes, unless you have authorized the Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law. The Funds may disclose information about you to:

•

Employees, agents, and affiliates on a “need to know” basis to enable the Funds to conduct ordinary business or to comply with obligations to government regulators;

•

Service providers, including the Funds’ affiliates, who assist the Funds as part of the ordinary course of business (such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds’ behalf, including companies that may perform statistical analysis, market research and marketing services solely for the Funds;

•

Permit access to transfer, whether in the United States or countries outside of the United States to such Funds’ employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

•

The Funds’ representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

•

Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.

NOT PART OF THE SEMI-ANNUAL REPORT

Legg Mason Funds Privacy and Security Notice (cont’d)

Except as otherwise permitted by applicable law, companies acting on the Funds’ behalf, including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to perform.

The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to disclose your nonpublic personal information to third parties. While it is the Funds’ practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain unchanged.

Keeping You Informed of the Funds’ Privacy and Security Practices

The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time they will notify you promptly if this privacy policy changes.

The Funds’ Security Practices

The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds’ internal data security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.

Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them, and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary so you can take appropriate protective steps. If you have consented to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them. In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is incomplete, not accurate or not current, if you have questions about the Funds’ privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by clicking on the Contact Us section of the Funds’ website at www.leggmason.com, or contact the Funds at 1-888-777-0102.

Revised April 2018

NOT PART OF THE SEMI-ANNUAL REPORT

Western Asset Middle Market Income Fund Inc.

Western Asset Middle Market Income Fund Inc.

620 Eighth Avenue

49th Floor

New York, NY 10018

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase shares of its stock.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Forms N-PORT shareholders can call the Fund at 1-888-777-0102.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) at www.lmcef.com and (3) on the SEC’s website at www.sec.gov.

This report is transmitted to the shareholders of Western Asset Middle Market Income Fund Inc. for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville,KY 40202

WASX107256 12/19 SR19-3749

ITEM 2.

CODE OF ETHICS.

Not applicable.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6.

SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8.

INVESTMENT PROFESSIONALS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11.

CONTROLS AND PROCEDURES.

(a)

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

(b)

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

ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13.

EXHIBITS.

(a) (1) Not applicable.

Exhibit 99.CODE ETH

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

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


Western Asset Middle Market Income Fund Inc.

By:		/s/ Jane Trust
		Jane Trust
		Chief Executive Officer

Date: December 30, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Jane Trust
		Jane Trust
		Chief Executive Officer

Date: December 30, 2019


By:		/s/ Christopher Berarducci
		Christopher Berarducci
		Principal Financial Officer

Date: December 30, 2019

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

CERTIFICATIONS

I, Jane Trust, certify that:

1.	I have reviewed this report on Form N-CSR of Western Asset Middle Market Income Fund Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 30, 2019

/s/ Jane Trust

Jane Trust

Chief Executive Officer

CERTIFICATIONS

I, Christopher Berarducci, certify that:

1.	I have reviewed this report on Form N-CSR of Western Asset Middle Market Income Fund Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial information included in this report, and the financial statements on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 30, 2019

/s/ Christopher Berarducci

Christopher Berarducci

Principal Financial Officer

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

CERTIFICATION

Jane Trust, Chief Executive Officer, and Christopher Berarducci, Principal Financial Officer of Western Asset Middle Market Income Fund Inc. (the “Registrant”), each certify to the best of their knowledge that:

1. The Registrant’s periodic report on Form N-CSR for the period ended October 31, 2019 (the “Form N-CSR”) fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.


Chief Executive Officer Western Asset Middle Market Income Fund Inc.				Principal Financial Officer Western Asset Middle Market Income Fund Inc.

/s/ Jane Trust				/s/ Christopher Berarducci
Jane Trust				Christopher Berarducci
Date: December 30, 2019				Date: December 30, 2019

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.

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Form N-CSRS Western Asset Middle For: Oct 31

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