Highland Income Fund Announces Regular Monthly Distributions – Highland Income Fund (NYSE:HFRO)

Dallas, March 1, 2023 /PRNewswire/ — The Highland Income Fund HFRO (“HFRO” or the “Fund”) today announced Regular Monthly Distributions on its Common Stock $0.0770 per share. Delivery payable on March 31, 2023to shareholders of record at the close of business March 24, 2023,

The Fund is a closed-end fund that seeks to provide a high level of current income consistent with the preservation of capital in a registered fund format. The Fund pursues its investment objective by investing primarily in the following categories of securities and instruments: (i) floating-rate debt and other securities considered to be floating-rate investments; (ii) investing directly or indirectly in secured securities or other instruments, including real estate (real estate investment trusts (“REITs”), preferred equity, equity securities and securities convertible into mezzanine debt; and (iii) secured and unsecured fixed rate Debt and other instruments including corporate bonds, distressed securities, mezzanine securities, structured products (including but not limited to mortgage-backed securities, collateralized debt obligations and asset-backed securities), convertible and preferred securities, equity (public and private) , and futures and options. The Fund announces and pays distributions of investment income monthly.

About Highland Income Fund

Highland Income Fund HFRO A closed-end fund managed by NexPoint Asset Management, LP For more information visit www.nexpointassetmgmt.com/income-fund/,

About NexPoint Asset Management, LP

NexPoint Asset Management, LP is an SEC-registered investment advisor. It is the advisor to a group of registered funds including open-end mutual funds, closed-end funds and exchange-traded funds. visit for more information www.nexpointassetmgmt.com,

Investors should carefully consider the investment objectives, risks, charges and expenses of Highland Income Fund before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by visiting or calling 1-800-357-9167. www.nexpointassetmgmt.com, Please read the prospectus carefully before you invest.

Distribution may include return of capital. Please see Source of 19(a)-1 Distribution Notices on the Highland Funds website for Section 19 Notices, which provide the estimated amount and sources of distributions of funds that should not be relied upon for tax reporting purposes.

There can be no assurance that the Fund will achieve its investment objectives.

Shares of closed-end investment companies often trade at a discount to net asset value. The price of the Fund’s shares is determined by a number of factors, many of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade below or above the net asset value. Past performance does not guarantee future results.

Closed-end fund risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. There can be no assurance that a shareholder will be able to sell his shares on the NYSE when he wishes to do so, and there can be no assurance as to the price at which any such sale may be effected .

credit risk. The Fund may invest all or substantially all of its assets in senior debt or other securities that are rated below investment grade and are non-senior debt deemed by Hyland to be of comparable quality. Securities below investment grade are commonly referred to as “high yield securities” or “junk securities”. They are considered primarily speculative with respect to the issuing company’s continued ability to meet principal and interest payments. Non-payment of stipulated interest and/or principal will result in loss of income to the fund, diminution in the value of the delinquent senior debt and a possible reduction in the NAV of the fund. Investments in high yielding senior debt and other securities may result in higher NAV volatility than if the fund had not made such investments.

senior credit risk. But July 27, 2017The head of United Kingdom The Financial Conduct Authority announced that it would stop encouraging banks to provide the quotations required to maintain LIBOR. ICE Benchmark Administration Ltd., the administrator of LIBOR, stopped publishing certain LIBOR maturities, including some US LIBOR maturities. December 31, 2021and is expected to stop publishing the remaining and most liquid US LIBOR maturities June 30, 2023, It is expected that market participants will transition to the use of alternative reference or benchmark rates prior to the applicable LIBOR expiration date. Additionally, although regulators have encouraged the development and adoption of alternative rates such as the Secured Overnight Financing Rate (“SOFR”), the future use of LIBOR or any particular replacement rate remains uncertain.

Although the transition process away from LIBOR has become increasingly well defined ahead of the anticipated closing dates, the impact on some debt securities, derivatives and other financial instruments remains uncertain. It is expected that market participants will adopt alternative rates such as the SOFR or otherwise amend financial instruments referenced to LIBOR to include fallback provisions and other measures that consider setting off LIBOR or other similar market disruption events, But neither the effectiveness of the infection process nor the feasibility of such measures is known. In addition, there remains uncertainty and risk with respect to the willingness and ability of issuers and lenders to incorporate alternative rates and modification provisions into new and existing contracts or instruments. To facilitate the transition of legacy derivative contracts referenced to LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to include fallback provisions. While the transition process away from LIBOR has become increasingly well-defined prior to the expected LIBOR expiration dates, barriers to transition of some long-term securities and transactions to a new benchmark or benchmarks and the effectiveness of multiple versus an alternative reference rate remain. Are. Alternative reference rates have not been set in new or existing financial instruments and products. In addition, the risks associated with the lapse of LIBOR and the transition to replacement rates may increase if an orderly transition to alternative reference rates is not completed in a timely manner. Some proposed replacement rates for LIBOR, such as the SOFR, which is a broad measure of overnight safe US Treasury repo rates, differ materially from LIBOR, and are adjusted for changes in applicable spreads for financial instruments that move away from LIBOR. would need to be done. Difference. In addition, risks associated with the expected discontinuation of LIBOR and transition to replacement rates may increase if an orderly transition to an alternative reference rate is not completed in a timely manner. As market participants move away from LIBOR, the usefulness of LIBOR may diminish, and these effects may be experienced until the permanent abolition of the majority of US LIBOR rates in 2023. The transition process could lead to increased volatility and illiquidity in markets that are currently dependent on LIBOR. To determine interest rates. A decline in LIBOR may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate.

Changing the terms of a debt instrument or modifying the terms of other types of contracts to replace LIBOR or other interbank offered rates (“IBOR”) with a new reference rate may result in a taxable exchange and receipt of income and gains Is. / loss for US federal income tax purposes. The Internal Revenue Service (“IRS”) has issued final rules regarding the tax consequences of the transition from IBOR to a new reference rate in debt instruments and non-debt contracts. Under the final regulations, a change or amendment to the terms of a debt instrument to replace an operative rate that uses closed IBOR with an eligible rate (as defined in the final regulations) that includes the right payment that contracts is equal to the fair market value of and following such IBOR transition, to add a qualifying rate as a fallback rate to a contract whose operative rate uses a discontinued IBOR or to replace a fallback rate that uses a one-off IBOR with a qualifying rate, will not be taxable. The IRS may provide additional guidance with potential retroactive effect.

Real Estate Industry Risks: Issuers engaged primarily in the real estate industry, including real estate investment trusts, may be subject to risks similar to those associated with direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of fixed asset assets; (iii) risks related to local economic conditions, over-construction and increased competition; (iv) an increase in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and avoidable damages; (vii) variations in rental income, neighborhood values ​​or the property’s appeal to tenants; (viii) availability of funding and (ix) changes in interest rates and leverage.

illiquidity of investment risk. Investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect their value to the investment advisor or the amount originally paid by the Fund for such investments.

Ongoing surveillance risk. On behalf of multiple lenders, the agent will typically be required to administer and manage the senior loans, and with respect to collateralized senior loans, to service or monitor the collateral. Agents’ financial difficulties can pose a risk to the fund.


Investor Relations

Kristen Thomas


media relations

Prosek Partner for NexPoint


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