Highland Opportunities and Income Fund (HFRO) Provides Details on Results of Oversubscribed Tender and Exchange Offer
Highland Opportunities and Income Fund (HFRO) has announced the results of its oversubscribed tender and exchange offer. The Fund will exchange 10 million common shares for newly issued 5.375% Series B Preferred Shares with an aggregate liquidation preference of approximately $100 million.
The exchange offer received a total of 21,673,105 common shares properly tendered. Due to oversubscription, HFRO will implement a proration factor of approximately 46.140199% for accepting common shares, with distribution occurring on a pro-rata basis. Any unaccepted common shares will be returned to the tendering shareholders.
Highland Opportunities and Income Fund (HFRO) ha annunciato i risultati della sua offerta di acquisto e scambio sovrascritta. Il Fondo scambierà 10 milioni di azioni ordinarie con azioni privilegiate di nuova emissione Serie B al 5,375% con una preferenza di liquidazione complessiva di circa 100 milioni di dollari.
L'offerta di scambio ha ricevuto un totale di 21.673.105 azioni ordinarie correttamente offerte. A causa della sovrascrittura, HFRO attuerà un fattore di ripartizione di circa il 46,140199% per l'accettazione delle azioni ordinarie, con distribuzione che avverrà su base pro-rata. Qualsiasi azione ordinaria non accettata sarà restituita agli azionisti offerenti.
Highland Opportunities and Income Fund (HFRO) ha anunciado los resultados de su oferta de compra y canje sobre suscrita. El Fondo intercambiará 10 millones de acciones comunes por acciones preferentes Serie B recién emitidas al 5,375% con una preferencia de liquidación agregada de aproximadamente 100 millones de dólares.
La oferta de canje recibió un total de 21.673.105 acciones comunes debidamente ofrecidas. Debido a la sobre suscripción, HFRO implementará un factor de prorrateo de aproximadamente el 46,140199% para la aceptación de acciones comunes, con distribución que ocurrirá de manera pro-rata. Cualquier acción común no aceptada será devuelta a los accionistas que ofrecieron.
하이랜드 기회 및 수익 기금 (HFRO)는 초과 구독된 입찰 및 교환 제안의 결과를 발표했습니다. 기금은 1천만 주의 보통주를 5.375% B 시리즈 우선주로 교환하며, 총 청산 우선권은 약 1억 달러입니다.
교환 제안은 총 21,673,105 주의 보통주가 적절히 제출되었습니다. 초과 구독으로 인해 HFRO는 보통주 수락을 위한 약 46.140199%의 비율 조정 요인을 시행할 예정이며, 배분은 비례 방식으로 이루어질 것입니다. 수락되지 않은 보통주는 입찰 주주에게 반환됩니다.
Highland Opportunities and Income Fund (HFRO) a annoncé les résultats de son offre de rachat et d'échange sursouscrite. Le Fonds échangera 10 millions d'actions ordinaires contre de nouvelles actions privilégiées de série B à 5,375% avec une préférence de liquidation totale d'environ 100 millions de dollars.
L'offre d'échange a reçu un total de 21.673.105 actions ordinaires correctement soumises. En raison de la sursouscription, HFRO mettra en œuvre un facteur de prorata d'environ 46,140199% pour l'acceptation des actions ordinaires, la distribution se faisant sur une base pro-rata. Toute action ordinaire non acceptée sera retournée aux actionnaires soumissionnaires.
Highland Opportunities and Income Fund (HFRO) hat die Ergebnisse seines überzeichneten Angebots zum Kauf und Tausch bekannt gegeben. Der Fonds wird 10 Millionen Stammaktien gegen neu ausgegebene 5,375% Serie B Vorzugsaktien mit einer gesamten Liquidationspräferenz von etwa 100 Millionen Dollar tauschen.
Das Tauschangebot erhielt insgesamt 21.673.105 Stammaktien, die ordnungsgemäß angeboten wurden. Aufgrund der Überzeichnung wird HFRO einen Verteilungsschlüssel von etwa 46,140199% für die Annahme der Stammaktien umsetzen, wobei die Verteilung auf pro-rata-Basis erfolgt. Alle nicht akzeptierten Stammaktien werden an die anbietenden Aktionäre zurückgegeben.
- Strong shareholder interest with 2.16x oversubscription
- Successful $100M preferred shares issuance
- 5.375% dividend rate on new preferred shares
- Only 46.14% of tendered shares accepted due to oversubscription
- Potential dilution from preferred shares issuance
Based on the final count by Equiniti Trust Company, LLC, the depositary for the Exchange Offer, a total of 21,673,105 shares of HFRO Common Shares were properly tendered and not properly withdrawn. In accordance with the terms and conditions of the Exchange Offer the Fund currently expects to exchange 10,000,000 Common Shares for Preferred Shares with an aggregate liquidation preference of approximately
The proration factor for the Common Shares that HFRO will accept pursuant to the Exchange Offer is approximately 46.140199 percent, and they will be allotted on pro-rata basis, as described in the Offer to Exchange. Any Common Shares that are not accepted for tender will be returned to the common shareholders that tendered them.
The number of Common Shares expected to be exchanged in the Exchange Offer and proration factor are subject to change.
About the Highland Opportunities and Income Fund
The Highland Opportunities and Income Fund (NYSE: HFRO) is a closed-end fund managed by NexPoint Asset Management, L.P. For more information visit nexpointassetmgmt.com/opportunities-income-fund.
About NexPoint Asset Management, L.P.
NexPoint Asset Management, L.P. is an SEC-registered investment adviser. It is the adviser to a suite of registered funds, including open-end mutual funds and closed-end funds. For more information nexpointassetmgmt.com.
Risks and Disclosures
Additional terms and conditions of the Exchange Offer were set forth in the Fund's offering materials, which were filed with the
The Fund has concluded the exchange offer described in this press release. This press release is not a recommendation, an offer to purchase or a solicitation of an offer to sell any securities of HFRO and the above statements are not intended to constitute an offer to participate in any tender or exchange offer. The solicitation and the offer to exchange Common Shares of HFRO was made pursuant to an offer to exchange and related materials that HFRO filed with the SEC and distributed to Fund Shareholders. Investors could obtain free copies of the Exchange Offer Statement and other documents filed with the SEC at the SEC's web site at sec.gov or on the Fund's website at nexpointassetmgmt.com/opportunities-income-fund.
The Fund is relying on Section 3(a)(9) of the Securities Act of 1933 (the "Securities Act") to exempt the Exchange Offer from the registration requirements of the Securities Act. Section 3(a)(9) provides that the registration requirements of the Securities Act will not apply to "any security exchanged by the issuer with its existing security holders exclusively where no commission or other remuneration is paid or given directly or indirectly for soliciting such exchange." The Fund has no contract, arrangement or understanding relating to, and will not, directly or indirectly, pay any commission or other remuneration to any broker, dealer, salesperson, agent or any other person for soliciting tenders in the Exchange Offer.
Investors should consider the investment objectives, risks, charges, and expenses of the Highland Opportunities and Income Fund carefully before investing. This and other information can be found in the Fund's annual report, which may be obtained by calling (800) 357-9167 or on the website at nexpointassetmgmt.com. Please read the annual report carefully before you invest. Any distribution paid by the Fund may include a return of capital. Please refer to the 19(a)-1 Source of Distribution Notice on the NexPoint Asset Management website for Section 19 notices that provide estimated amounts and sources of the Fund's distributions, which should not be relied upon for tax reporting purposes.
CONTACTS
Investor Relations
Kristen Griffith
IR@nexpoint.com
Media Relations
Comms@nexpoint.com
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SOURCE Highland Opportunities and Income Fund
FAQ
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