Highland Opportunities and Income Fund (HFRO) Announces New $100 Million Share Repurchase Program
Board Authorizes Two-Year Open-Market Program; Fund Intends to Deploy $20 Million as Soon as Practicable
DALLAS, June 9, 2026 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE:HFRO) ("HFRO" or the "Fund") today announced that its Board of Trustees (the "Board") has authorized a new share repurchase program (the "Program") pursuant to which the Fund may repurchase up to $100 million of its outstanding common shares in open-market transactions over a two-year period commencing today, June 9, 2026.
The Program succeeds the Fund's prior $100 million repurchase program, which expired in 2025. The new Program reflects the continued commitment of the Board and NexPoint Asset Management, L.P. (the "Adviser") to reducing the discount between the Fund's common share price and its net asset value ("NAV") per share and to enhancing long-term shareholder value.
Initial Deployment of Capital
In connection with the commencement of the Program, the Fund intends to deploy approximately $20 million of the total Program authorization as soon as practicable, subject to market conditions, applicable volume, and timing limitations under Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and other legal and regulatory requirements. This initial deployment is intended to reinforce the Board's and the Adviser's firm commitment to active execution of the Program. The remaining authorization of up to $80 million will be deployed at the Adviser's discretion over the two-year program period.
Strategic Context
"This new repurchase program, and our commitment to deploy an initial $20 million as promptly as practicable, underscores our strong conviction that HFRO's common shares represent compelling value at current prices," said Scott Johnson, NexPoint managing director and Fund portfolio manager. "We view this Program as an integral component of our broader strategy to narrow the discount and create long-term value for all shareholders."
The Program is one element of the Fund's broader shareholder value enhancement strategy, which also includes ongoing portfolio optimization efforts, enhanced investor communications, and the Board's dedicated discount committee, among other initiatives.
Repurchase activity under the Program will be reported in the Fund's annual and semi-annual reports to shareholders filed on Form N-CSR, as well as through periodic updates on the Fund's website at nexpointassetmgmt.com/opportunities-income-fund.
Program Details
The total amount and timing of repurchases under the Program will be subject to the Fund's available cash, after consideration of reserves necessary for anticipated Fund expenses, the allocation of capital to portfolio investments and other Fund purposes, debt covenant compliance, regulatory asset coverage requirements under the Investment Company Act of 1940, and other contingencies, and will comply in all respects with applicable law.
Repurchases under the Program will be made on the New York Stock Exchange or such other national securities exchange on which the Fund's common shares are then listed, at prevailing market prices, subject to applicable exchange requirements and volume, timing, and other limitations under federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Program does not obligate the Fund to acquire any specific number or dollar amount of shares in any period, and may be modified, suspended, or terminated at any time at the Board's discretion without prior notice. There can be no assurance that the Fund will repurchase shares at any particular discount level or in any particular amounts.
About the Highland Opportunities and Income Fund
The Highland Opportunities and Income Fund (NYSE:HFRO) is a closed-end fund managed by NexPoint Asset Management, L.P. The Fund's investment objective is to seek growth of capital along with income. For more information, please visit nexpointassetmgmt.com/opportunities-income-fund.
About NexPoint Asset Management, L.P.
NexPoint Asset Management, L.P. is an SEC-registered investment adviser. It is the adviser to a suite of registered funds. For more information, please visit nexpointassetmgmt.com.
Disclosures
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell any securities. Shares of closed-end investment companies frequently trade at a discount to NAV. 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.
Certain statements in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance or results and involve a number of risks, uncertainties, and assumptions. Actual events or results may differ materially from those described in any forward-looking statement as a result of various factors, including those described in the Fund's filings with the Securities and Exchange Commission.
Before investing in the Fund, you should carefully consider the Fund's investment objectives, risks, charges, and expenses. For a copy of a prospectus or summary prospectus, the Fund's most recent annual report on Form N-CSR, semi-annual report, and other filings which contain this and other information, please visit our website at www.nexpointassetmgmt.com, the Securities and Exchange Commission's website at www.sec.gov, or call 1-800-357-9167. Please read these materials carefully before investing.
CONTACTS
Investor Relations
Kristen Griffith
IR@nexpoint.com
Media Relations
Comms@nexpoint.com
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SOURCE Highland Opportunities and Income Fund