DALLAS, April 19, 2017 /PRNewswire/ -- NexPoint
Credit Strategies Fund (NYSE: NHF) (the "Fund") today announced the
commencement of a non-transferable rights offering to purchase
additional shares of common stock of the Fund (the "Offering") as
the Fund's registration statement has been declared effective by
the Securities and Exchange Commission.
The Fund is issuing non-transferable rights ("Rights") to its
common shareholders of record as of May 5,
2017 (the "Record Date" and such shareholders, "Record Date
Shareholders"). Record Date Shareholders will receive one Right for
each common share held on the Record Date. The Rights will entitle
the Record Date Shareholders to purchase one new share of common
stock for every three Rights held (1 for 3). The Rights will be
mailed to Record Date Shareholders approximately two business days
after the Record Date.
Record Date Shareholders who fully exercise their Rights will be
entitled to subscribe for additional common shares of the Fund that
remain unsubscribed as a result of any unexercised Rights by Record
Date Shareholders. In addition, the Fund in its sole discretion may
elect to issue additional common shares in an amount up to 25% of
the common shares issued in the primary subscription.
The subscription price per common share will be determined based
upon a formula equal to the lesser of (1) 95% of the reported net
asset value on May 24, 2017 (the
"Expiration Date"), or (2) 95% of the average of the last reported
sales price of the Fund's common shares on the New York Stock
Exchange ("NYSE") on the Expiration Date and on each of the four
trading days preceding the Expiration Date.
Important Upcoming Dates:
Record
Date:
|
May 5,
2017
|
Subscription
Period:
|
May 8, 2017 - May 24,
2017
|
Expiration
Date
|
May 24, 2017 at 5:00
P.M. EST
|
In connection with the Offering, the Board of Trustees of the
Fund has approved the extension of the Fund's open-market share
repurchase program pursuant to which the Fund may purchase and
retire up to $10 million of its stock
in open-market transactions (the "Repurchase Program"). The
Repurchase Program has been extended for a period of one year from
the closing of the Offering. No repurchases will be made during
the Offering.
The amount and timing of the repurchases will be at the
discretion of the Fund's investment adviser, subject to market
conditions and investment considerations. There is no assurance
that the Fund will purchase shares at any particular discount
levels or in any particular amounts. Any repurchases made under the
Repurchase Program would be made on a national securities exchange
at the prevailing market price, subject to exchange requirements
regarding volume, timing and other limitations under federal
securities laws. The share repurchase program seeks to enhance
shareholder value by purchasing shares trading at a discount from
their net asset value per share.
You should read the prospectus for the Offering, which
contains important information about the Fund, before deciding
whether to invest, and retain for future reference. The statement
of additional information for the Offering has been filed with the
U.S. Securities and Exchange Commission. You may request a
free copy of the statement of additional information, request the
Fund's most recent annual and semiannual reports or make
shareholder inquiries by calling 1-877-665-1287 or by writing to
the Fund at 200 Crescent Court, Suite 700, Dallas, Texas 75201. You may also write
AST Fund Solutions, NHF's information agent for the rights
offering, at 55 Challenger Road, Suite 201, Ridgefield Park, NJ 07660 or call (877)
283-0323.
Exercising your Rights and investing in the Fund's common
shares involves a high degree of risk and may be considered
speculative. Before exercising your Rights and investing in the
Fund's common shares, you should read the discussion of the
material risks of investing in the Fund in the prospectus for the
Offering, including the risks of leverage and of investing in below
investment grade/high yield securities, in "Principal Risks of the
Trust." Certain of these risks are summarized in "Prospectus
Summary—Principal Risks of the Trust." Investors should
consider the investment objectives, risks, charges and expenses of
the Fund carefully before investing. Please read
the prospectus, located at www.nexpointadvisors.com, carefully
before you invest.
About NexPoint Credit Strategies Fund
NexPoint Credit
Strategies Fund is a closed-end fund managed by NexPoint Advisors,
L.P. The Fund's investment objectives are to provide both current
income and capital appreciation. The Fund is invested primarily in
below investment grade debt and equity securities and has the
ability to hedge risk. The Fund's investment adviser attempts to
deliver consistent returns in excess of the Dow Jones Credit Suisse
Hedge Fund and the HFRX Global Hedge Fund indices in a transparent,
registered fund format consistent with monthly dividends. No
assurance can be given that the Fund will achieve its investment
objectives.
Shares of closed-end investment companies frequently trade at a
discount to net asset value. The price of the Fund's shares is
determined by a number of factors, several of which are beyond the
control of the Fund. Therefore, the Fund cannot predict whether its
shares will trade at, below or above net asset value. Past
performance does not guarantee future results.
MEDIA CONTACT:
Lucy Bannon
lbannon@highlandcapital.com
+1 972-419-6272
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SOURCE NexPoint Credit Strategies Fund