Highland Opportunities and Income Fund's Successful Tender Exchange

Highland Opportunities and Income Fund Reports Tender Offer Success

The Highland Opportunities and Income Fund (HFRO) has announced significant outcomes from its recent tender and exchange offer to swap common shares for newly issued 5.375% Series B Preferred Shares. This initiative attracted considerable interest and resulted in an oversubscription, highlighting the strong demand for preferred shares.

Details of the Exchange Offer

According to the Equiniti Trust Company, the depositary for the Exchange Offer, 21,673,105 shares of HFRO Common Shares were properly tendered and not withdrawn. This overwhelming response means that the Fund plans to exchange up to 10,000,000 Common Shares for the Preferred Shares, with the total liquidation preference estimated around $100 million.

Pro Rata Allocation for Shareholders

In responding to the oversubscription, HFRO will conduct the exchange of Common Shares on a pro-rata basis. The proration factor has been determined to be 46.14096 percent, ensuring a fair distribution among shareholders who tendered their shares. Those not accepted for tender will have their shares returned to them promptly.

Understanding the Highland Opportunities and Income Fund

HFRO operates as a closed-end fund, strategically managed by NexPoint Asset Management, L.P. This management approach is designed to optimize shareholder value through various investment strategies that target compelling opportunities within the market. The effective management of the fund has given it a solid reputation among investors.

Engagement with Shareholders

In light of the recent announcement, HFRO emphasizes the importance of transparent communication with its shareholders. Detailed information regarding the exchange offer and associated conditions has been made available in the fund's offering materials, which comply with SEC regulations.

Importance of the Exchange Offer

This exchange offer represents a key strategic move for HFRO in catering to its stakeholders' interests while enhancing the fund's capital structure. By opting for preferred shares, the fund diversifies its financial instruments, allowing it to attract different types of investors looking for stable income.

Investor Considerations

Investors are encouraged to analyze the risks and benefits associated with investing in the Highland Opportunities and Income Fund. Careful consideration of investment objectives, risks, and potential returns is essential before making investment decisions. The Fund produces an annual report containing critical information that can guide investors in their decision-making process.

This report is accessible by contacting the Fund directly or visiting their website for more comprehensive insights on performance metrics and distribution sources.

CONTACTS

Investor Relations
Kirsten Griffith
IR@nexpoint.com

Media Relations
Comms@nexpoint.com

Frequently Asked Questions

What was the main purpose of the exchange offer by HFRO?

The exchange offer aimed to provide shareholders an opportunity to convert their Common Shares into 5.375% Series B Preferred Shares, enhancing capital liquidity and shareholder options.

How many Common Shares were tendered in the exchange offer?

A total of 21,673,105 Common Shares were tendered successfully, reflecting significant investor interest.

What will happen to shares not accepted for the exchange?

Shares that are not accepted for the exchange will be promptly returned to the respective shareholders.

Who manages the Highland Opportunities and Income Fund?

The fund is managed by NexPoint Asset Management, L.P., which focuses on maximizing returns for its investors.

How can investors access more information about the Fund?

Investors can obtain more information through the Fund's annual report, available via direct contact or their official website.

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