NexPoint Provides Update on United Development Funding IV, Addresses UDFI’s Response to Tender Offer
Supplementary Presentation Documents NexPoint’s UDFI Investment and Recent Efforts to Improve Accountability
December 22, 2020
DALLAS, Dec. 22, 2020 /PRNewswire/ — NexPoint Advisors, L.P. (together with its affiliates “NexPoint”) issued an update today on United Development Funding IV (“UDFI” or the “Company”) following the Company’s response to an offer from the NexPoint Strategic Opportunities Fund (“NHF”) to purchase any and all shares of beneficial interest (“Shares”) of UDFI (the “Offer”).
NHF announced the Offer on December 14, 2020. Through the Offer, NHF is seeking to increase its investment in UDFI and promote value creation over the long term, while providing immediate liquidity for shareholders interested in selling their Shares. In response to the Offer, UDFI issued a press release on December 17, 2020 recommending that shareholders reject the Offer. In the release, the Company made a number of baseless assertions about NexPoint, many of which NexPoint previously corrected.
Neither the Company nor its Board of Trustees (the “UDFI Board”) has addressed recent concerns about the lack of transparency and accountability at UDFI; the Company has instead focused on making false claims. NexPoint believes this approach—especially in response to requests to uphold basic and fundamental obligations to shareholders—only augments concerns about the management and oversight of UDFI.
