DALLAS, Oct. 28, 2021 /PRNewswire/ -- The NexPoint
Strategic Opportunities Fund (NYSE:NHF) ("NHF" or the "Company")
today announced that it will change its name to "NexPoint
Diversified Real Estate Trust" effective November 8, 2021 at 12:01
a.m. Eastern Time. In addition to the name change, NHF will
change its ticker to "NXDT." Its common shares will continue
trading on the New York Stock Exchange under the new ticker.
The name change is part of the Company's ongoing conversion from
a registered investment company to a diversified real estate
investment trust ("REIT").
On August 28, 2020, shareholders
approved the Company's proposal to convert NHF to a diversified
REIT. Following shareholder approval, the Company began
transitioning its business and investments to those of a
diversified REIT. The Company has since completed the initial
repositioning of its investment portfolio sufficient to achieve
REIT tax status and is operating during its 2021 taxable year so
that it may qualify for taxation as a REIT.
Additionally, management has repositioned NHF's portfolio such
that it believes NHF is no longer an "investment company" under the
Investment Company Act of 1940 (the "1940 Act"). This enabled the
Company to file an amended application for an order from the
Securities and Exchange Commission ("SEC") declaring that the
Company has ceased to be an investment company (the
"Deregistration Order") on September 13,
2021 that reflected NHF's repositioned portfolio.
Following review of the amended application, the SEC may grant
the Deregistration Order, which would represent the final step in
NHF's business plan to convert to a diversified REIT.
Additional information can be found on the Company's website:
https://www.nexpoint.com/nexpoint/funds/nexpoint-strategic-opportunities-fund/.
About the NexPoint Strategic Opportunities Fund
(NHF)
The NexPoint Strategic Opportunities Fund (NYSE:NHF)
is a closed-end investment company managed by NexPoint Advisors,
L.P. that is in the process of converting to a diversified REIT.
On August 28, 2020, shareholders approved the conversion
proposal and amended the Company's fundamental investment policies
and restrictions to permit the Company to pursue its new
business. The Company has repositioned its investment portfolio
sufficient to achieve REIT tax status and is operating during its
2021 taxable year so that it may qualify for taxation as a REIT.
The Company has also repositioned its portfolio such that it
believes it is no longer an "investment company" under the 1940 Act
and has filed an application with the SEC for a Deregistration
Order. While awaiting the Deregistration Order, the Company will
continue to be structured as a registered closed-end investment
company.
About NexPoint Advisors, L.P.
NexPoint Advisors, L.P.
is an SEC-registered investment adviser on the NexPoint alternative
investment platform. The NexPoint platform is comprised of a group
of investment advisers and sponsors, a broker-dealer, and a suite
of related investment vehicles, including public and private real
estate investment trusts, tax advantaged real estate vehicles, and
closed-end funds.. For more information, visit
www.nexpoint.com.
Risks and Disclosures
Investors should consider
the investment objectives, risks, charges, and expenses carefully
before investing. This and other information can be found in the
Company's prospectus, which may be obtained by calling
1-866-351-4440 or
visiting www.nexpoint.com/nexpoint-strategic-opportunities-fund.
Please read the prospectus carefully before you invest.
Shares of closed-end investment companies frequently trade at
a discount to net asset value. The price of the Company's shares is
determined by a number of factors, several of which are beyond the
control of the Company. Therefore, the Company cannot predict
whether its shares will trade at, below or above net asset value.
Past performance does not guarantee future
results.
The distribution may include a return of capital. Please
refer to the Source of Distribution on the NexPoint
Advisors website for Section 19 notices that provide
estimated amounts and sources of the Company's distributions, which
should not be relied upon for tax reporting purposes.
While NexPoint is committed to the REIT conversion, it is
still contingent upon regulatory approval. There can be no
assurance that conversion of NHF to REIT status will improve its
performance or reduce the discount to NAV. Further, the SEC may
determine not to grant the Company's request for the Deregistration
Order, which would materially change the Company's plans for its
business and investments.
In addition, these actions may adversely affect the Company's
financial condition, yield on investment, results of operations,
cash flow, per share trading price of its common shares, and
ability to satisfy debt service obligations, if any, and to make
cash distributions to shareholders. Whether or not the Company
remains a registered investment company, its common shares, like an
investment in any other public company, are subject to investment
risk, including the possible loss of investment. For a discussion
of certain other risks relating to the proposed conversion to a
REIT, see "Implementation of the Business Change Proposal and
Related Risks" in the proxy statement.
No assurance can be given that the Company will achieve its
investment objectives.
Please see additional risks and disclosures at
www.nexpoint.com/nexpoint/disclosures/closed-end-fund-disclosures/
CONTACTS
Shareholder Services
(866) 351-4440
Financial Professionals
(833) 697-7253
Investor Relations
Jackie
Graham
JGraham@nexpoint.com
Media Relations
Lucy Bannon
(214) 550-4572
lbannon@skyviewgroup.com
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SOURCE NexPoint Strategic Opportunities Fund
