NexPoint Diversified Real Estate Trust (NXDT)

[Enterprising Investor]

NexPoint Strategic Opportunities Fund Announces Successful Completion of Tender Offer (1/05/21)

DALLAS, Jan. 5, 2021 /PRNewswire/ -- NexPoint Strategic Opportunities Fund (NYSE: NHF) ("NHF" or the "Company") today announced the successful completion of its tender offer to purchase the Company's common shares ("Common Shares") in exchange for consideration consisting of approximately 20% cash and 80% newly-issued 5.50% Series A Cumulative Preferred Shares ("Series A Preferred Shares") (collectively, the "Exchange Offer").

Based on the preliminary results of the Exchange Offer, the Company expects to purchase 9,011,832 Common Shares at a price of $12.00 per share, for an aggregate purchase price of approximately $108 million. The price per share reflects the clearing auction price indicated by tendering shareholders under the Exchange Offer, which followed a "Modified Dutch Auction" procedure.

In exchange for the Common Shares tendered, participating shareholders will receive consideration of approximately 20% cash and 80% Series A Preferred Shares valued at their liquidation preference of $25.00 per share. Payment for tendered Common Shares will be made on or about January 7, 2021.

The Series A Preferred Shares will be issued on or about January 7, 2021 and are expected to be listed on the New York Stock Exchange ("NYSE") within the next seven days. Egan-Jones Ratings Company assigned an investment grade corporate rating of BBB- to the Series A Preferred Shares and a rating of BBB to the Company.

Dividends and distributions on the Series A Preferred Shares are cumulative from their original issue date at the annual rate of 5.50% of the $25.00 per share liquidation preference and will be payable quarterly on March 31, June 30, September 30 and December 31 of each year, beginning with the first payment on March 31, 2021.

The Exchange Offer is not expected to have any effect on the Company's conversion to a real estate investment trust (a "REIT", and the conversion, the "Conversion").

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 is in the process of realigning its portfolio so that it is no longer an "investment company" under the Investment Company Act of 1940 (the "1940 Act") and continues to expect the Company to be able to transition its investment portfolio sufficient to qualify as a REIT for tax purposes by the first quarter of 2021 and to apply to the Securities and Exchange Commission (the "SEC") for an order under the 1940 Act declaring that the Company has ceased to be an investment company (the "Deregistration Order") in the first quarter of 2021.

For more information visit www. www.nexpointgroup.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. NexPoint's platform provides differentiated access to alternatives through a range of investment solutions, including public and private real estate investment trusts, tax-advantaged real estate vehicles, closed-end funds, and other private investment solutions. NexPoint is based in Dallas, Texas and is part of a network of affiliates with expertise across the asset management and financial services spaces.

For more information visit www.nexpointgroup.com

https://www.prnewswire.com/news-releases/nexpoint-strategic-opportunities-fund-announces-successful-completion-of-tender-offer-301200923.html