NexPoint Advisers, an affiliate of Dallas investment firm Highland Capital Management, completed a rights offering for shares in a booming fund that focuses on below investment grade debt and equities.
The firm totaled $269 million from the offer to existing rights holders to subscribe for more than 5.3 million of the fund’s common shares. The total amount surpassed the primary offering by 233 percent, the firm said.
The $400 million closed-end fund known as NexPoint Credit Strategies generated returns of 20.69 percent over the last year and 18.79 percent over the last five years.
“We are pleased with the material over subscription and investor support consistent with top decile performance we have delivered over the past five years,” said James Dondero, the portfolio manager of the fund and co-founder and president of Highland Capital Management.
The fund’s top holdings are in mobile communications company TerreStar Corp. and Weight Watchers.
Closed-end funds can raise money from investors by offering more shares to existing holders at a lower price. NexPoint offered its shares at 95 percent the average reported sales price for fund’s common shares — $20.93 per share.
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