Highland Income Fund (HFRO) Provides Update on Proposal to Convert the Fund to a Diversified Holding Company
13 Octubre 2021 - 5:01PM
The Highland Income Fund (NYSE: HFRO) (“HFRO” or the “Fund”), a
closed-end fund managed by Highland Capital Management Fund
Advisors, L.P. (the “Adviser”), today announced that it has decided
to withdraw the proposals to convert the Fund from a registered
investment company to a diversified holding company (the “Holding
Company”) and to amend certain fundamental investment restrictions.
As a result, the Fund has decided to cancel the adjourned special
meeting of shareholders (the “Special Meeting”) scheduled for
October 15, 2021.
Both the Adviser and the Fund’s Board of Trustees continue to
believe that the transition to a diversified holding company
provided the best path to increase shareholder value for all
shareholders. The Adviser has demonstrated its ability to
effectively pursue the Fund’s investment strategy within the
existing structure and plans to continue to do so, seeking to
deliver outsized total returns and create value for shareholders.
Going forward, while disappointed to withdraw the proposals, the
Adviser remains committed to continuing to optimize the Fund by
pursuing opportunities that draw on its particular expertise and
resources and operating in the best interest of the Fund and its
shareholders.
Other immediate plans include commencing a $40 million common
share buyback over the next six months (up to $7 million per
month), bolstering efforts to reduce the discount between the
Fund’s market price and net asset value (“NAV”), and increasing
shareholder communications to improve the understanding of the
Fund’s strategy and current portfolio. The Adviser intends to post
a progress report on the buyback to the Fund’s website, which will
be updated monthly.
Additionally, the Adviser plans to continue to review the
feedback that it received from various shareholders and market
participants around the proposals. The Fund will evaluate this
feedback and consider implementing recommendations relevant to the
current structure as a closed-end fund.
The Adviser appreciates the engagement and support from
shareholders throughout the process.
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About the Highland Income Fund
The Highland Income Fund (NYSE:HFRO) is a closed-end fund
managed by Highland Capital Management Fund Advisors, L.P. For more
information visit www.highlandfunds.com/income-fund/
About Highland Capital Management Fund Advisors, L.P.
Highland Capital Management Fund Advisors, L.P. is an
SEC-registered investment adviser. It is the adviser to a suite of
registered funds, including open-end mutual funds, closed-end
funds, and an exchange-traded fund. For more information visit
www.highlandfunds.com.
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Disclosures
Investors should consider the investment objectives, risks,
charges, and expenses of the Highland Income Fund carefully before
investing. This and other information can be found in the Fund's
prospectus, which may be obtained by calling 1-800-357-9167 or
visiting www.highlandfunds.com. Please read the
prospectus carefully before you invest.
No assurance can be given that the Fund will achieve its
investment objectives.
This press release contains forward-looking statements. These
statements reflect the current views of management with respect to
future events and financial performance. Forward-looking statements
can be identified by words such as “anticipate”, “expect”, “could,”
“may”, “potential”, “will”, “ability,” “targets,” “believe,”
“likely,” “assumes,” “ensuring,” “available,” “optionality,”
“viability,” “maintain,” “consistent,” “pace,” “should,”
“emerging,” “driving,” “looking to,” and similar statements of a
future or forward-looking nature. Forward-looking statements
address matters that involve risks and uncertainties. Past
performance does not guarantee future results. Performance during
time periods shown is limited and may not reflect the performance
in difference economic and market cycles. There can be no assurance
that similar performance will be experienced.
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CONTACTS Investor Contacts Shareholders: (800) 357-9167
Financial Professionals: (833) 697-7253 Email Media Contact
Lucy Bannon (214) 550-4572 Email
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