Highland Income Fund (HFRO)

[Enterprising Investor]

Highland Income Fund (HFRO) Provides Update on MGM Investment (3/18/22)

DALLAS, March 18, 2022 /PRNewswire/ -- The Highland Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today provided an update on its investment in Metro Goldwyn Mayer, Inc. ("MGM"). On March 17, 2022, Amazon.com Inc. ("Amazon") announced it had closed its previously announced acquisition of MGM. As a result of the deal closing, HFRO received $73,284,758 in cash, reflecting the Fund's direct ownership of MGM shares. The Fund also has indirect investments in MGM through which it is expected to receive approximately $45 million. In total, HFRO is expected to receive more than $118 million in cash from the transaction. Only proceeds from the Fund's direct investment have been received at this time.

"The MGM position has been a material contributor to value creation in HFRO over recent years," said Joe Sowin, HFRO co-portfolio manager. "It was a pleasure to work with MGM management over the lifecycle of the investment and we wish them the best of luck as the newest division at Amazon."

HFRO's initial investment was in MGM's debt, which converted to equity when the company emerged from bankruptcy in 2010. The Fund's average cost was $24.59/share. The position generated a return of nearly 6x the original investment.

About the Highland Income Fund
The Highland Income Fund (NYSE:HFRO) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. For more information visit www.highlandfunds.com/income-fund/

About Highland Capital Management Fund Advisors, L.P.
Highland Capital Management Fund Advisors, L.P. is an SEC-registered investment adviser. It is the adviser to a suite of registered funds, including open-end mutual funds, closed-end funds, and an exchange-traded fund. For more information visit www.highlandfunds.com.

https://www.prnewswire.com/news-releases/highland-income-fund-hfro-provides-update-on-mgm-investment-301506079.html