DALLAS, Feb. 21, 2018 /PRNewswire/ -- Highland Capital
Management Fund Advisors, L.P. and NexPoint Advisors, L.P. announce
today that the Texas Court of
Appeals confirmed an aggregate $351
million award in favor of the Highland Floating Rate
Opportunities Fund (NYSE: HFRO) ("HFRO") and the NexPoint Credit
Strategies Fund (NYSE: NHF) ("NHF", and together with HFRO, the
"Funds"). Of this aggregate award, HFRO would receive a total of
$289 million ($236.5 million in damages together with an
additional $52.5 million in
post-judgment interest) and NHF would receive a total of
$62.3 million ($51 million in damages together with an
additional $11.3 million in
post-judgment interest). Each of these amounts remains subject to
deduction for applicable attorneys' fees and other litigation
related expenses. The judgment will continue to accrue at 9% simple
interest per year until this matter is finally resolved.
"Today's ruling is a major milestone in our efforts to recover
damages for our investors," said James
Dondero, co-founder and president of Highland Capital
Management, L.P. "We are pleased the appellate court recognized the
harm caused to our investors by Credit Suisse's fraud and breaches
of contract."
The confirmation by the Texas
Court of Appeals remains subject to appeal to the Texas Supreme
Court. No assurance can be given that the Funds will be successful
if the Texas Supreme Court grants certiorari to hear the case; it
is not known when or how much, if any, of these monies the Funds
will receive. As a result, in accordance with accounting principles
generally accepted in the United
States ("GAAP"), this judgment is not currently recorded as
an asset of the Funds. We expect the judgment amounts to be
recorded as an asset of the Funds if and when the judgment no
longer is subject to any further appeal.
The original case is Claymore Holdings LLC v. Credit Suisse AG,
13-07858.
About Highland Capital Management Fund Advisors, L.P. and
NexPoint Advisors, L.P.
Highland Capital Management Fund Advisors, L.P. and NexPoint
Advisors, L.P. are retail arms of Highland Capital Management, L.P.
("Highland"), an SEC-registered investment adviser that, together
with its affiliates, has approximately $14
billion of assets under management. Founded in 1993 by
James Dondero and Mark Okada, Highland is one of the largest and
most experienced global alternative credit managers. Highland
specializes in credit strategies, including credit hedge funds,
long-only funds and separate accounts, distressed and
special-situation private equity, and collateralized loan
obligations (CLOs). Highland also offers alternative investments,
including emerging markets, long/short equities, and natural
resources. Highland's diversified client base includes public
pension plans, foundations, endowments, corporations, financial
institutions, fund of funds, governments, and high net-worth
individuals. Highland is headquartered in Dallas, Texas and maintains offices in
New York, Buenos Aires, Sao Paolo, Singapore, and Seoul. For more information visit
highlandcapital.com.
Highland Floating Rate Opportunities Fund is a closed-end
fund managed by Highland Capital Management Fund Advisors, L.P. The
Fund invests primarily in senior floating-rate interest securities.
No assurance can be given that the Fund will achieve its investment
objectives.
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 Manager 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.
Before investing, you should carefully consider each
respective Fund's investment objectives, risks, charges and
expenses. For a copy of a prospectus or summary prospectus which
contains this and other information, please visit our website at
highlandfunds.com or nexpointadvisors.com. Please read each Fund's
respective prospectus carefully before investing.
Statements in this communication may include forward-looking
information and/or may be based on various assumptions. The
forward-looking statements and other views or opinions expressed
herein are made as of the date of this publication. Actual future
results or occurrences may differ significantly from those
anticipated and there is no guarantee that any particular outcome
will come to pass. The statements made herein are subject to change
at any time. Highland disclaims any obligation to update or revise
any statements or views expressed herein.
Media Contact:
Lucy Bannon
+1 (972) 419-6272
lbannon@highlandcapital.com
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SOURCE Highland Capital Management Fund Advisors, L.P. and
NexPoint Advisors, L.P.