NexPoint contributes $68.5M note to NexAnnuity affiliate for 8%-12% preferred stock

NEXPOINT DIVERSIFIED REAL ESTATE TRUST

NHF TRS transferred a $68.5M structured note to NexAnnuity Holdings in exchange for 68,500 Class A Preferred shares.
Preferred stock pays 8% annual dividend for first 7 years, stepping to 12% by year 14, with cumulative accrual.
NexAnnuity is an affiliate of NXDT's investment adviser; transaction approved by Audit Committee.
NexAnnuity may redeem shares at $1,000 per share plus unpaid dividends at any time.
The contribution closed September 1, 2023; the note's NAV was updated with revised life expectancies and discount rates.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

NEXPOINT DIVERSIFIED REAL ESTATE TRUST entered into Contribution Agreement with NexAnnuity Holdings, Inc. valued at net asset value of approximately $68.5 million (effective 2023-09-01).

Action: entry
Counterparty: NexAnnuity Holdings, Inc.
Value: net asset value of approximately $68.5 million
Effective: 2023-09-01

Exact text from the filing

On September 1, 2023, NexPoint Diversified Real Estate Trust (the “Company”), through its indirect subsidiary, NHF TRS, LLC (the “TRS”), entered into a contribution agreement (the “Contribution Agreement”), pursuant to which the TRS contributed a structured promissory note issued by Specialty Financial Products Designated Activity Company with a net asset value of approximately $68.5 million to NexAnnuity Holdings, Inc. (“NexAnnuity”) in exchange for 68,500 shares of Class A Preferred Stock of NexAnnuity (the “Contribution”).

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Source: SEC EDGAR

accession 0001437749-23-025071

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