NexPoint Strategic Opportunities Fund Extends Offer to Purchase Up to All Shares of United Development Funding IV (UDFI)
NexPoint Strategic Opportunities Fund (NYSE: NHF) has extended its offer to purchase all Shares of Beneficial Interest of United Development Funding IV (UDFI) at $1.10 per share. The new expiry is March 15, 2021. This extension follows UDFI's recent bylaws changes, limiting shareholder ownership to 5%. The offer's execution depends on various conditions, including legal approvals and due diligence. As it transitions to a diversified REIT, NHF aims for tax qualification by Q1 2021, with plans to cease being an investment company.
- Extension of the tender offer allows NHF more time to gather shareholders.
- Price per share of $1.10 may attract shareholders looking for liquidity.
- UDFI's bylaws changes limit ownership, potentially frustrating the offer.
- Legal challenges against the acquisition may arise, posing risks.
DALLAS, Feb. 12, 2021 /PRNewswire/ -- NexPoint Strategic Opportunities Fund (NYSE:NHF) ("NHF") today announced the extension of the offering period for its previously announced offer to purchase any and all Shares of Beneficial Interest (the "Shares") of United Development Funding IV ("UDFI" or the "Company") at a price of
As previously announced on December 14, 2020, the Offer is conditioned upon, among other things, the satisfaction or waiver of the following conditions: (i) there shall not have been threatened, instituted, or pending any action or proceeding before any court or any governmental or administrative agency (a) challenging the acquisition of shares pursuant to the Offer or otherwise relating in any manner to the Offer, or (b) in the sole judgment of NHF, otherwise materially adversely affecting the Company; (ii) NHF shall have received all required governmental approvals, if any, for the Offer; (iii) NHF shall have had the opportunity to conduct sufficient due diligence to determine whether the offered price per share is reasonable given the current financial condition and results of operations of UDFI; (iv) the Board of Trustees of UDFI shall have waived in writing the ownership limitations set forth in Article VII of the Declaration of Trust of UDFI as such limitations would otherwise apply to the Offer; and (v) NHF shall have received satisfactory evidence that UDFI has continued to qualify as a real estate investment trust ("REIT") under federal tax laws and thereby to avoid any entity-level federal income or excise tax.
On January 8, 2021, UDFI announced that it had reduced the percentage of outstanding Shares that a shareholder may own from
Shareholders should read the Offer to Purchase and the related materials carefully because they contain important information. Shareholders may obtain a free copy of the Offer to Purchase and the Assignment Form from D.F. King & Co., Inc., the information agent for the Offer (the "Information Agent"), by calling toll-free at (800) 331-7543. THE OFFER WILL EXPIRE AT 12:00 MIDNIGHT, EASTERN STANDARD TIME, AT THE END OF THE DAY ON MARCH 15, 2021, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
About the NexPoint Strategic Opportunities Fund (NHF)
The NexPoint Strategic Opportunities Fund (NYSE:NHF) is a closed-end fund managed by NexPoint Advisors, L.P. that is in the process of converting to a diversified REIT. NHF is currently in the process of realigning its portfolio so that it is no longer an "investment company" under the Investment Company Act of 1940 (the "1940 Act"). NHF continues to expect to be able to transition its investment portfolio sufficiently to qualify as a REIT for tax purposes by the first quarter of 2021 and to apply to the Securities and Exchange Commission (the "SEC") for an order under the 1940 Act declaring that NHF has ceased to be an investment company (the "Deregistration Order") in the first quarter of 2021. For more information visit www.nexpointgroup.com/nexpoint-strategic-opportunities-fund/.
About NexPoint Advisors, L.P.
NexPoint Advisors, L.P. (the "Investment Adviser") is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit www.nexpointgroup.com.
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Risks and Disclosures
This document is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any common stock of UDFI or any other securities. The offer to purchase common stock of UDFI will only be made pursuant to the Offer to Purchase, the Assignment Form and related documents. THE TENDER OFFER MATERIALS (INCLUDING THE OFFER TO PURCHASE, THE ASSIGNMENT FORM AND CERTAIN OTHER TENDER OFFER DOCUMENTS) WILL CONTAIN IMPORTANT INFORMATION. STOCKHOLDERS OF UDFI ARE URGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT SUCH STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Investors and security holders may obtain a free copy of these statements (when available) by directing such requests to the Information Agent, by calling toll-free at (800) 331-7543.
Media Contact
mediarelations@nexpointadvisors.com
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SOURCE NexPoint Strategic Opportunities Fund
FAQ
What is the new expiry date for NHF's offer to purchase UDFI shares?
At what price is NHF offering to purchase UDFI shares?
What conditions must be met for NHF's offer to proceed?
How has UDFI reacted to NHF's offer?
What is NHF's goal regarding its investment structure?
