Highland Opportunities and Income Fund (HFRO) Tender Offer Announced
Highland Opportunities and Income Fund (HFRO) is excited to announce its upcoming tender offer for common shares in exchange for up to $100 million in preferred shares. This offer is part of the Fund’s ongoing efforts to address the discount in share price compared to its net asset value.
The Board of Trustees authorized this tender offer, which is expected to start in January 2025. The Series B Preferred Shares to be issued will be structured similarly to the existing Series A Preferred Shares and will be listed on the New York Stock Exchange.
The goal of this tender offer is to provide shareholders with the opportunity to exchange common shares at a premium to the current market price. The exchange price is expected to be $10.00 per share, offering shareholders a significant premium compared to the latest closing price.
By participating in this offer, shareholders can potentially benefit from a fixed dividend based on the coupon of 5.375% of the Series B Preferred Shares. The Fund believes that this tender offer is in the best interest of all shareholders and has the potential to narrow the discount to net asset value.
Full details of the tender offer will be provided in the final offering documents once they are filed. The terms of the offer, including the exchange price, maximum aggregate purchase price, and coupon of the Series B Preferred Shares are subject to change and will be outlined in the formal offering documents filed with the Securities and Exchange Commission. Stay tuned for more updates as the offer progresses!
