HFRO Announces Successful Completion of Tender and Exchange Offer
DALLAS, March 5, 2025:
The Highland Opportunities and Income Fund (NYSE: HFRO) is thrilled to announce the successful completion of its tender and exchange offer (the “Exchange Offer”) as of March 4, 2025. This offer provided HFRO common shareholders with the opportunity to exchange their common shares for newly issued 5.375% Series B Preferred Shares.
Impact on Common Shareholders:
Approximately 10,000,000 common shares have been tendered and will be exchanged for Preferred Shares with an aggregate liquidation preference of approximately $100 million. This exchange is expected to provide several benefits to common shareholders:
- Stability: Preferred shares typically offer more stability than common shares. Dividends paid to preferred shareholders have priority over common shareholders’ dividends.
- Consistent Income: Preferred shareholders receive a fixed dividend, which provides a more predictable income stream.
- Reduced Volatility: Preferred shares usually have less price volatility than common shares, making them a more attractive option for investors seeking a lower risk investment.
Impact on the World:
The successful completion of the Exchange Offer could have several ripple effects on the financial world:
- Market Stability: The exchange of common shares for preferred shares may help to stabilize the market for HFRO shares, reducing volatility and providing a clearer picture of the Fund’s financial position.
- Investor Confidence: The Exchange Offer demonstrates HFRO’s commitment to providing value to its shareholders and could boost investor confidence in the Fund.
- Preferred Shares Market: The increased demand for preferred shares as a result of this Exchange Offer could lead to an uptick in the preferred shares market.
While the Exchange Offer represents a significant change for HFRO and its shareholders, it also underscores the dynamic nature of the financial markets and the ongoing efforts of companies to adapt to changing market conditions.
Conclusion:
With the successful completion of the Exchange Offer, HFRO common shareholders can look forward to the benefits of holding preferred shares. Meanwhile, the broader financial world may see increased market stability, investor confidence, and a growing preference for preferred shares. As always, investors are encouraged to carefully consider their investment objectives, risk tolerance, and financial situation before making any investment decisions.
Stay tuned for further updates from HFRO as we continue to navigate the ever-evolving financial landscape.
