HFRO Stock Recent News

We take a look at the action in preferreds and baby bonds through the second week of March and highlight some of the key themes we are watching. Preferred stocks saw a slight gain over the week, driven by stable spreads and a Treasury rally, though most sectors are still down for the month. Highland Opportunities and Income Fund's new preferred HFRO.PR.B has similar economics to HFRO.PR.A but lower asset coverage, raising concerns about future preferred issuances.

Highland Opportunities and Income Fund's tender offer was a bit harsh on the common and the preferreds. Moody's downgraded HFRO's preferred shares due to high illiquid asset exposure and deteriorating fixed-charge coverage, with another downgrade likely imminent. We assess the merits of the common and preferred shares post the new issuance.

HFRO's common shares trade at a massive -55% discount to NAV, reflecting market skepticism about the fund's illiquid holdings and management practices. HFRO launched a tender offer to exchange common shares for Series B preferred shares, which was oversubscribed 2x, indicating high demand for less volatile investments. Series B preferred shares offer a 5.375% coupon and lower volatility, but common shares remain pressured due to illiquid investments and potential recession risks.

DALLAS , March 12, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE:HFRO) ("HFRO" or the "Fund") today announced the final results of its tender and exchange offer (the "Exchange Offer") to exchange common shares (the "Common Shares") for newly issued 5.375% Series B Preferred Shares (the "Preferred Shares"). Based on the final count by Equiniti Trust Company, LLC, the depositary for the Exchange Offer, a total of 21,673,105 shares of HFRO Common Shares were properly tendered and not properly withdrawn.

DALLAS , March 5, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE:HFRO) ("HFRO" or the "Fund") today announced the details of its tender and exchange offer (the "Exchange Offer") to exchange common shares (the "Common Shares") for newly issued 5.375% Series B Preferred Shares (the "Preferred Shares"). Based on the final count by Equiniti Trust Company, LLC, the depositary for the Exchange Offer, a total of 21,673,105 shares of HFRO Common Shares were properly tendered and not properly withdrawn.

DALLAS , March 5, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today announced the successful completion of its tender and exchange offer (the "Exchange Offer") to exchange common shares (the "Common Shares") for newly issued 5.375% Series B Preferred Shares (the "Preferred Shares"). Based on the preliminary results of the Exchange Offer, the Fund expects to exchange 10,000,000 Common Shares for Preferred Shares with an aggregate liquidation preference of approximately $100 million.

DALLAS , March 3, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today announced its regular monthly distribution on its common stock of  $0.0385 per share. The distribution will be payable on March 31, 2025, to shareholders of record at the close of business March 24, 2025.

DALLAS , Feb. 27, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE:HFRO) ("HFRO" or the "Fund") announced today that the Fund is scheduled to host a conference call on Wednesday, March 26, 2025, at 4:00 p.m. ET, to discuss portfolio updates and recent performance.

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DALLAS , Feb. 3, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today announced its regular monthly distribution on its common stock of  $0.0385 per share. The distribution will be payable on February 28, 2025, to shareholders of record at the close of business February 21, 2025.