DALLAS, March 18,
2022 /PRNewswire/ -- The Highland Income Fund (NYSE:
HFRO) ("HFRO" or the "Fund") today provided an update on its
investment in Metro Goldwyn Mayer, Inc. ("MGM"). On March 17, 2022, Amazon.com Inc. ("Amazon")
announced it had closed its previously announced acquisition of
MGM. As a result of the deal closing, HFRO received $73,284,758 in cash, reflecting the Fund's direct
ownership of MGM shares. The Fund also has indirect investments in
MGM through which it is expected to receive approximately
$45 million. In total, HFRO is
expected to receive more than $118
million in cash from the transaction. Only proceeds from the
Fund's direct investment have been received at this time.
"The MGM position has been a material contributor to value
creation in HFRO over recent years," said Joe Sowin, HFRO co-portfolio manager. "It was a
pleasure to work with MGM management over the lifecycle of the
investment and we wish them the best of luck as the newest division
at Amazon."
HFRO's initial investment was in MGM's debt, which converted to
equity when the company emerged from bankruptcy in 2010. The Fund's
average cost was $24.59/share. The
position generated a return of nearly 6x the original
investment.
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.
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.
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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SOURCE Highland Income Fund