NexPoint Strategic Opportunities Fund Extends Offer to Purchase Up to All Shares of United Development Funding IV (UDFI)
30 October 2021 - 9:30AM
NexPoint Strategic Opportunities Fund (NYSE:NHF) (“NHF”) today
announced the extension of the offering period for its previously
announced offer to purchase any and all Shares of Beneficial
Interest (the “Shares”) of United Development Funding IV (“UDFI” or
the “Company”) at a price of $1.10 per Share upon the terms
and subject to the conditions set forth in the Offer to Purchase
and in the related Assignment Form for the offer (which together
constitute the “Offer” and the “Tender Offer Documents”). The Offer
is now scheduled to expire at 12:00 midnight, Eastern Time, at the
end of the day on November 29, 2021, unless the Offer is extended
or earlier terminated. The Tender Offer Documents are available at
www.UDFITenderOffer.com, or from the information agent for the
Offer, as discussed below.
As previously announced on December 14, 2020, the Offer is
conditioned upon, among other things, the satisfaction or waiver of
the following conditions: (i) there shall not have been threatened,
instituted, or pending any action or proceeding before any court or
any governmental or administrative agency (a) challenging the
acquisition of shares pursuant to the Offer or otherwise relating
in any manner to the Offer, or (b) in the sole judgment of NHF,
otherwise materially adversely affecting the Company; (ii) NHF
shall have received all required governmental approvals, if any,
for the Offer; (iii) NHF shall have had the opportunity to conduct
sufficient due diligence to determine whether the offered price per
share is reasonable given the current financial condition and
results of operations of UDFI; (iv) the Board of Trustees of UDFI
shall have waived in writing the ownership limitations set forth in
Article VII of the Declaration of Trust of UDFI as such limitations
would otherwise apply to the Offer; and (v) NHF shall have received
satisfactory evidence that UDFI has continued to qualify as a real
estate investment trust (“REIT”) under federal tax laws and thereby
to avoid any entity-level federal income or excise tax.
On January 8, 2021, UDFI announced that it had reduced the
percentage of outstanding Shares that a shareholder may own from
9.8% to 5.0%. The Company took such action in an effort to
frustrate the Offer. It also announced it amended the Company’s
bylaws to require that certain legal actions could be brought on
behalf of or against UDFI only in certain courts in Maryland. NHF
and its advisors are reviewing these actions and their legality
under applicable law.
Shareholders should read the Offer to Purchase and the related
materials carefully because they contain important information.
Shareholders may obtain a free copy of the Offer to Purchase and
the Assignment Form from D.F. King & Co., Inc., the information
agent for the Offer (the “Information Agent”), by calling toll-free
at (800) 331-7543. THE OFFER WILL EXPIRE AT 12:00 MIDNIGHT,
EASTERN TIME, AT THE END OF THE DAY ON NOVEMBER 29, 2021, UNLESS
THE OFFER IS EXTENDED OR EARLIER TERMINATED.
About the NexPoint Strategic Opportunities Fund (NHF)
The NexPoint Strategic Opportunities Fund (NYSE:NHF) is a
closed-end fund 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 since realigned its portfolio so that it is no
longer an “investment company” under the Investment Company Act of
1940 (the “1940 Act”). On March 31, 2021, the Company filed an
application with the Securities and Exchange Commission (the “SEC”)
for an order under the 1940 Act declaring that the Company no
longer operate as an investment company (the “Deregistration
Order”). During the SEC’s review process, the Company will
continue to be structured as a closed-end investment fund. The
Company has also completed the 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.
For more information visit
www.nexpoint.com/nexpoint-strategic-opportunities-fund
About NexPoint Advisors, L.P.
NexPoint Advisors, L.P. (the “Investment Adviser”) is an
SEC-registered adviser on the NexPoint alternative investment
platform. It serves as the adviser to a suite of funds and
investment vehicles, including a closed-end fund, interval fund,
business development company, and various real estate vehicles. For
more information visit www.nexpoint.com
—
Risks and Disclosures
This document is for informational purposes only and is neither
an offer to purchase nor a solicitation of an offer to sell any
common stock of UDFI or any other securities. The offer to purchase
common stock of UDFI will only be made pursuant to the Offer to
Purchase, the Assignment Form and related documents. THE TENDER
OFFER MATERIALS (INCLUDING THE OFFER TO PURCHASE, THE ASSIGNMENT
FORM AND CERTAIN OTHER TENDER OFFER DOCUMENTS) WILL CONTAIN
IMPORTANT INFORMATION. STOCKHOLDERS OF UDFI ARE URGED TO READ THESE
DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION THAT SUCH STOCKHOLDERS SHOULD
CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR
SHARES. Investors and security holders may obtain a free copy of
these statements (when available) by directing such requests to the
Information Agent, by calling toll-free at (800) 331-7543.
###
Media Contact
Lucy Bannon
lbannon@nexpoint.com
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