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NexPoint to issue preferreds, cash in stock purchase offer
By Taylor Fox
New York, Oct. 15 – NexPoint Strategic Opportunities Fund plans to conduct an issuer tender offer for up to 15 million of its common shares at a maximum purchase price of $150 million in exchange for consideration consisting of 80% preferred shares and 20% cash, according to a news release.
The offer is expected to commence the week of Oct. 19.
The offer will be conducted through a modified Dutch auction procedure, allowing shareholders to select a price, within a set price range, at which they are willing to sell their shares.
The proposed price range for the offer is $10 to $12 per share.
After all tendering shareholders indicate their respective sale prices, the fund will pay the lowest price indicated that will permit the fund to purchase as many shares as possible, up to the maximum purchase price of $150 million.
NexPoint will purchase all shares at the same purchase price.
The exchange offer is conditioned on, among other things, shareholders validly tendering shares representing an aggregate purchase price of at least $75 million, regardless of the purchase price per share, prior to the offering's expiration date.
In addition to the exchange offer, NexPoint announced its regular monthly distribution on its common stock of $0.05 per share, payable on Oct. 31, to shareholders of record at the close of business Oct. 26.
The new monthly distribution of $0.05 per share represents an indicated distribution rate of 3.5% based on the current NAV and an indicated distribution rate of 7.2% based on the market price.
AST Fund Solutions, LLC (800 829-6554) is the information agent.
The real estate investment trust is affiliated with Highland Capital, a Dallas-based investment management firm.
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