NexPoint Capital, Inc. Suspends Distributions
June 4, 2020 | Luke Schmidt | Blue Vault
On May 28, 2020, the board of directors of NexPoint Capital, Inc. approved the suspension of the BDC’s monthly distribution commencing with the month ending May 31, 2020, whether in cash or pursuant to the BDC’s distribution reinvestment plan. The decision was made in order to provide additional financial flexibility to the NexPoint Capital, Inc. and to maintain a conservative distribution policy during recent volatile market conditions.
Prior to the suspension of distributions, the BDC paid a monthly distribution of $0.06 per share, equivalent to a 6.70% annualized distribution yield based on the last public offering price of $10.75.
Effective June 3, 2020, the board of directors approved the determination of NexPoint Capital Inc.’s net asset value per share at $5.69 per share. This represents an increase of 12.7% from the previously announced NAV of $5.05 as of March 31, 2020.
NexPoint Capital, Inc. operates as an externally managed nontraded BDC. As of March 31, 2020, it reported total assets of $69.2 million with total investments of $38.1 million. The BDC raised approximately $99.2 million in its public offering which commenced in August of 2014 and ended in February of 2018.
Source: SEC, Blue Vault
