DALLAS, March 25, 2022 /PRNewswire/ -- NexPoint
Advisors, L.P., investment adviser to the NexPoint Diversified Real
Estate Trust ("NXDT" and together with affiliated entities
"NexPoint"), today announced the extension of the offering period
for its previously announced offer to purchase any and all Shares
of Beneficial Interest (the "Shares") of United Development Funding
IV ("UDFI" or the "Company") at a price of $1.10 per Share upon the terms and subject
to the conditions set forth in the Offer to Purchase and in the
related Assignment Form for the offer (which together constitute
the "Offer" and the "Tender Offer Documents"). The Offer is now
scheduled to expire at 12:00 midnight, Eastern Time, at the end of
the day on April 25, 2022, unless the
Offer is extended or earlier terminated. The Tender Offer Documents
are available at www.UDFITenderOffer.com, or from the information
agent for the Offer, as discussed below.
As previously announced on December 14,
2020, the Offer is conditioned upon, among other things, the
satisfaction or waiver of the following conditions: (i) there shall
not have been threatened, instituted, or pending any action or
proceeding before any court or any governmental or administrative
agency (a) challenging the acquisition of shares pursuant to the
Offer or otherwise relating in any manner to the Offer, or (b) in
the sole judgment of NexPoint, otherwise materially adversely
affecting the Company; (ii) NexPoint shall have received all
required governmental approvals, if any, for the Offer; (iii)
NexPoint shall have had the opportunity to conduct sufficient due
diligence to determine whether the offered price per share is
reasonable given the current financial condition and results of
operations of UDFI; (iv) the Board of Trustees of UDFI shall have
waived in writing the ownership limitations set forth in Article
VII of the Declaration of Trust of UDFI as such limitations would
otherwise apply to the Offer; and (v) NexPoint shall have received
satisfactory evidence that UDFI has continued to qualify as a real
estate investment trust ("REIT") under federal tax laws and thereby
to avoid any entity-level federal income or excise tax.
NXDT is in the process of converting from an investment company
registered under the Investment Company Act of 1940 into a real
estate investment trust ("REIT"). In connection with that
conversion, NXDT dropped down certain of its investments to a
single-member, wholly owned limited liability company subsidiary,
NexPoint Real Estate Opportunities ("NREO"), which is reflected as
a portfolio company of NXDT. NexPoint Advisors, L.P.,
external adviser to NXDT and NREO, continues to have investment and
voting power over the UDF IV Common Shares. Accordingly,
NexPoint continues to beneficially own the UDF IV Common Shares it
had previously reported to the SEC on its last Schedule 13D.
On January 8, 2021, UDFI announced
that it had reduced the percentage of outstanding Shares that a
shareholder may own from 9.8% to 5.0%. The Company took such action
in an effort to frustrate the Offer. It also announced it amended
the Company's bylaws to require that certain legal actions could be
brought on behalf of or against UDFI only in certain courts in
Maryland. NexPoint is reviewing
these actions and their legality under applicable law.
Shareholders should read the Offer to Purchase and the related
materials carefully because they contain important information.
Shareholders may obtain a free copy of the Offer to Purchase and
the Assignment Form from D.F. King & Co., Inc., the information
agent for the Offer (the "Information Agent"), by calling toll-free
at (800) 331-7543. THE OFFER WILL EXPIRE AT 12:00 MIDNIGHT,
EASTERN TIME, AT THE END OF THE DAY ON APRIL
25, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER
TERMINATED.
About the NexPoint Diversified Real Estate Trust
(NXDT)
The NexPoint Diversified Real Estate Trust (NYSE:
NXDT), formerly 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. The
name change became effective on November 8,
2021. On August 28, 2020, shareholders approved the
conversion proposal and amended NXDT's fundamental investment
policies and restrictions to permit NXDT to pursue its new
business. NXDT has completed the repositioning of its investment
portfolio sufficient to achieve REIT tax status and is operating
during its 2021 taxable year so that it may qualify for taxation as
a REIT.NXDT has also realigned its portfolio so that it is no
longer an "investment company" under the Investment Company Act of
1940 (the "1940 Act"). On March 31,
2021, NXDT filed an application with the Securities and
Exchange Commission (the "SEC") for an order under the 1940 Act
declaring that NXDT no longer operates as an investment
company (the "Deregistration Order"). During the SEC's review
process, NXDT will continue to be structured as a closed-end
investment fund.
For more information visit
www.nexpoint.com/nexpoint-strategic-opportunities-fund
About NexPoint Advisors, L.P.
NexPoint Advisors, L.P.
is an SEC-registered adviser on the NexPoint alternative investment
platform. It serves as the adviser to a suite of funds and
investment vehicles, including a closed-end fund, interval fund,
business development company, and various real estate vehicles. For
more information visit www.nexpoint.com
Risks and Disclosures
This document is for
informational purposes only and is neither an offer to purchase nor
a solicitation of an offer to sell any common stock of UDFI or any
other securities. The offer to purchase common stock of UDFI will
only be made pursuant to the Offer to Purchase, the Assignment Form
and related documents. THE TENDER OFFER MATERIALS (INCLUDING THE
OFFER TO PURCHASE, THE ASSIGNMENT FORM AND CERTAIN OTHER TENDER
OFFER DOCUMENTS) WILL CONTAIN IMPORTANT INFORMATION. STOCKHOLDERS
OF UDFI ARE URGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
THAT SUCH STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION
REGARDING TENDERING THEIR SHARES. Investors and security holders
may obtain a free copy of these statements (when available) by
directing such requests to the Information Agent, by calling
toll-free at (800) 331-7543.
Media Contact
Lucy
Bannon
lbannon@nexpoint.com
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SOURCE NexPoint Advisors, L.P.