The board of NexPoint Capital Inc., a publicly registered non-traded business development company, has approved the suspension of the company’s monthly distribution beginning with the month ending May 31, 2020.
NexPoint indicated that the decision was made “to provide additional financial flexibility…and to maintain a conservative distribution policy during recent volatile market conditions.”
The suspension includes both cash distributions and those offered through the company’s distribution reinvestment plan.
“NexPoint Advisors L.P. continues to evaluate the portfolio with the board to determine the timing and amount of future dividend declarations,” the company stated in a filing with the Securities and Exchange Commission.
Effective June 3, 2020, the board also approved a net asset value per share of $5.69 for the company’s common stock. The company’s previous NAV per share was $5.25, effective April 29, 2020.
NexPoint Capital is an externally managed BDC that launched its offering in September 2014 and closed in February 2018. As of March 31, 2020, the company’s investment portfolio had a total fair value of $79 million with 57 interests in portfolio companies.