The board of NexPoint Capital Inc., a publicly registered non-traded business development company sponsored by an affiliate of Highland Capital Management, approved the closing of the company’s public offering to new investors when its current registration statement expires on February 14, 2018.
The company also amended its distribution reinvestment plan to participating stockholders, which will take effect following the close of the offering.
Under the current plan, cash distributions are reinvested in additional shares of common stock at a price equal to 92 percent of the public offering price per share in effect as of the date of issuance. The company recently increased its public offering price from $10.42 per share to $10.47 per share.
Under the amended plan, cash distributions will be reinvested at a price determined by the board. The price will not be less than the net asset value per share immediately prior to the payment of the distribution, and no more than 2.5 percent greater than the NAV per share. The company’s current net asset value per share, as of November 27, 2017, is $9.63.
NexPoint Capital, Inc., a healthcare-focused BDC, has raised $86 million in investor equity, as of the third quarter of 2017, and oversees a $64 million portfolio consisting of investments in 40 companies, according to Summit Investment Research. The company’s $1.5 billion offering was declared effective by the SEC in August 2014.