DALLAS, March 5,
2025 /PRNewswire/ -- The Highland Opportunities and
Income Fund (NYSE:HFRO) ("HFRO" or the "Fund") today announced the
details of its tender and exchange offer (the "Exchange Offer") to
exchange common shares (the "Common Shares") for newly issued
5.375% Series B Preferred Shares (the "Preferred Shares").
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withdrawn.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 $100
million. As the Exchange Offer was oversubscribed, the Fund
intends to exchange Common Shares from all tendering shareholders
on a pro rata basis as described in the Offer to Exchange.
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
U.S. Securities and Exchange Commission (the "SEC") and distributed
to the Fund's common shareholders. As the number of Common Shares
tendered for the Fund exceeded the maximum amount of the Exchange
Offer, the Fund will purchase Common Shares from tendering
shareholders on a pro-rata basis (disregarding fractional Common
Shares and fractional Preferred Shares).
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
