Highland Opportunities and Income Fund (HFRO) Announces New $100 Million Share Repurchase Program

Highland Opportunities and Income Fund (NYSE: HFRO) authorized a new two-year open-market share repurchase program for up to $100 million of common shares starting June 9, 2026, succeeding a prior $100 million program.

Rhea-AI Summary

Highland Opportunities and Income Fund (NYSE: HFRO) authorized a new two-year open-market share repurchase program for up to $100 million of common shares starting June 9, 2026, succeeding a prior $100 million program.

The Fund plans an initial deployment of about $20 million as soon as practicable, aiming to help narrow its share price discount to NAV and support long-term shareholder value, with remaining repurchases at the Adviser’s discretion.

Positive

• New two-year repurchase authorization of up to $100 million
• Initial capital deployment target of approximately $20 million
• Program aims to address discount to NAV and support value
• Flexibility to deploy remaining $80 million over two years

Negative

• Fund is not obligated to repurchase any minimum dollar amount
• Repurchases subject to cash availability, covenants, and regulatory limits
• Program may be modified, suspended, or terminated at any time
• No assurance of repurchases at specific discount levels or sizes

Argus Jun 9 session

+4.65% close to close Open Argus

Details

News Market Reaction – HFRO

On Jun 9, the day this news came out, HFRO closed 4.65% above the previous close.

Data tracked by StockTitan Argus for the Jun 9 session.

Market Context

This announcement details a new $100 million share repurchase program, including an intended initial...

Analysis

This announcement details a new $100 million share repurchase program, including an intended initial deployment of $20 million, as part of HFRO’s strategy to narrow its discount to NAV. Pre-news, the stock traded at $6.67, above its $6.20 200-day MA yet below its 52-week high. Recent filings show ongoing net buying by a large holder. Investors may track actual repurchase execution, discount trends versus NAV, and future board communications on this capital allocation approach.

Key Figures

New repurchase authorization: $100 million Initial deployment: $20 million Remaining authorization: $80 million +5 more

New repurchase authorization

$100 million

Maximum common share buybacks over two-year program starting June 9, 2026

Initial deployment

$20 million

Intended near-term capital deployment under new repurchase program

Remaining authorization

$80 million

Additional buyback capacity at adviser’s discretion over program life

Program duration

Two years

Open-market repurchase period commencing June 9, 2026

Current price

$6.67

Pre-news share price vs buyback announcement

52-week range

$5.03–$6.83

HFRO trading <b>-2.34%</b> vs 52-week high, <b>32.6%</b> above low

Prior program size

$100 million

Expired repurchase program replaced by new authorization

Rule referenced

Rule 10b-18

Governs volume and timing limitations for open-market repurchases

Historical Context

5 past events · Latest: Jun 01

5 events

1. Jun 01

   Monthly distribution

   24h Move

   +1.4%

   Declared regular monthly distribution of $0.0385 per share for June.

2. May 01

   Monthly distribution

   24h Move

   -0.3%

   Announced regular $0.0385 monthly distribution payable May 29, 2026.

3. Apr 01

   Monthly distribution

   24h Move

   -1.4%

   Declared regular $0.0385 monthly distribution payable April 30, 2026.

4. Mar 11

   Investor call notice

   24h Move

   -0.7%

   Scheduled investor update call to discuss portfolio and performance.

5. Mar 02

   Monthly distribution

   24h Move

   -2.7%

   Declared regular $0.0385 monthly distribution payable March 31, 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

share repurchase program, net asset value, rule 10b-18, form n-csr, +1 more

5 terms

share repurchase program financial

"announced that its Board of Trustees ... has authorized a new share repurchase program"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

net asset value financial

"reducing the discount between the Fund's common share price and its net asset value ("NAV") per share"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

View in glossary

rule 10b-18 regulatory

"subject to ... timing limitations under Rule 10b-18 of the Securities Exchange Act of 1934"

Rule 10b-18 is a regulation that sets strict rules for how a company's executives and employees can buy back their own company's stock from the market. It helps ensure that these buybacks happen in a fair and transparent way, reducing the chance of market manipulation. This is important for investors because it offers protection against unfair practices and promotes confidence in the integrity of the stock market.

form n-csr regulatory

"reported in the Fund's annual and semi-annual reports to shareholders filed on Form N-CSR"

Form N-CSR is a regulatory filing that U.S.-registered investment funds use to deliver certified shareholder reports to regulators and the public, including audited financial statements, a snapshot of portfolio holdings, fee and performance information, and governance disclosures. For investors it acts like a fund’s report card and safety check—providing verified details needed to assess a fund’s financial health, costs, holdings and compliance so you can compare funds, monitor risks and spot red flags.

investment company act of 1940 regulatory

"regulatory asset coverage requirements under the Investment Company Act of 1940"

A U.S. federal law that sets the rulebook for pooled investment vehicles such as mutual funds, exchange-traded funds and similar money managers, requiring them to register with regulators, disclose holdings and fees, limit conflicts of interest, and follow governance standards. It matters to investors because these protections and transparency rules act like a referee and scoreboard, helping people compare funds, trust that managers follow fair practices, and spot hidden costs or risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Board Authorizes Two-Year Open-Market Program; Fund Intends to Deploy $20 Million as Soon as Practicable

DALLAS, June 9, 2026 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today announced that its Board of Trustees (the "Board") has authorized a new share repurchase program (the "Program") pursuant to which the Fund may repurchase up to $100 million of its outstanding common shares in open-market transactions over a two-year period commencing today, June 9, 2026.  

The Program succeeds the Fund's prior $100 million repurchase program, which expired in 2025. The new Program reflects the continued commitment of the Board and NexPoint Asset Management, L.P. (the "Adviser") to reducing the discount between the Fund's common share price and its net asset value ("NAV") per share and to enhancing long-term shareholder value.

Initial Deployment of Capital

In connection with the commencement of the Program, the Fund intends to deploy approximately $20 million of the total Program authorization as soon as practicable, subject to market conditions, applicable volume, and timing limitations under Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and other legal and regulatory requirements. This initial deployment is intended to reinforce the Board's and the Adviser's firm commitment to active execution of the Program. The remaining authorization of up to $80 million will be deployed at the Adviser's discretion over the two-year program period.

Strategic Context

"This new repurchase program, and our commitment to deploy an initial $20 million as promptly as practicable, underscores our strong conviction that HFRO's common shares represent compelling value at current prices," said Scott Johnson, NexPoint managing director and Fund portfolio manager. "We view this Program as an integral component of our broader strategy to narrow the discount and create long-term value for all shareholders."

The Program is one element of the Fund's broader shareholder value enhancement strategy, which also includes ongoing portfolio optimization efforts, enhanced investor communications, and the Board's dedicated discount committee, among other initiatives.

Repurchase activity under the Program will be reported in the Fund's annual and semi-annual reports to shareholders filed on Form N-CSR, as well as through periodic updates on the Fund's website at nexpointassetmgmt.com/opportunities-income-fund.

Program Details

The total amount and timing of repurchases under the Program will be subject to the Fund's available cash, after consideration of reserves necessary for anticipated Fund expenses, the allocation of capital to portfolio investments and other Fund purposes, debt covenant compliance, regulatory asset coverage requirements under the Investment Company Act of 1940, and other contingencies, and will comply in all respects with applicable law.

Repurchases under the Program will be made on the New York Stock Exchange or such other national securities exchange on which the Fund's common shares are then listed, at prevailing market prices, subject to applicable exchange requirements and volume, timing, and other limitations under federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Program does not obligate the Fund to acquire any specific number or dollar amount of shares in any period, and may be modified, suspended, or terminated at any time at the Board's discretion without prior notice. There can be no assurance that the Fund will repurchase shares at any particular discount level or in any particular amounts.

About the Highland Opportunities and Income Fund

The Highland Opportunities and Income Fund (NYSE: HFRO) is a closed-end fund managed by NexPoint Asset Management, L.P. The Fund's investment objective is to seek growth of capital along with income. For more information, please visit nexpointassetmgmt.com/opportunities-income-fund.

About NexPoint Asset Management, L.P.

NexPoint Asset Management, L.P. is an SEC-registered investment adviser. It is the adviser to a suite of registered funds. For more information, please visit nexpointassetmgmt.com.

Disclosures

This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell any securities. Shares of closed-end investment companies frequently trade at a discount to NAV. The price of the Fund's shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results.

Certain statements in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance or results and involve a number of risks, uncertainties, and assumptions. Actual events or results may differ materially from those described in any forward-looking statement as a result of various factors, including those described in the Fund's filings with the Securities and Exchange Commission.

Before investing in the Fund, you should carefully consider the Fund's investment objectives, risks, charges, and expenses. For a copy of a prospectus or summary prospectus, the Fund's most recent annual report on Form N-CSR, semi-annual report, and other filings which contain this and other information, please visit our website at www.nexpointassetmgmt.com, the Securities and Exchange Commission's website at www.sec.gov, or call 1-800-357-9167. Please read these materials carefully before investing.

CONTACTS

Investor Relations
Kristen Griffith
IR@nexpoint.com

Media Relations
Comms@nexpoint.com

View original content:https://www.prnewswire.com/news-releases/highland-opportunities-and-income-fund-hfro-announces-new-100-million-share-repurchase-program-302795225.html

SOURCE Highland Opportunities and Income Fund

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is included in the new HFRO $100 million share repurchase program announced June 9, 2026?

HFRO’s Board authorized a two-year open-market program to repurchase up to $100 million of common shares. According to the Fund, buybacks will occur on listed exchanges at prevailing prices, subject to legal, regulatory, and liquidity constraints.

How much capital will HFRO initially deploy under the June 2026 buyback program (NYSE: HFRO)?

HFRO intends to initially deploy about $20 million of the $100 million authorization as soon as practicable. According to the Fund, this initial tranche is meant to demonstrate active execution, with the remaining authorization used at the Adviser’s discretion.

Over what period will Highland Opportunities and Income Fund (HFRO) conduct its new share repurchases?

The repurchase program runs for two years beginning June 9, 2026. According to the Fund, timing and amount of repurchases will depend on available cash, investment needs, regulatory coverage requirements, and market conditions.

How does the June 2026 HFRO buyback program relate to its prior repurchase authorization?

The new HFRO program succeeds a prior $100 million repurchase initiative that expired in 2025. According to the Fund, the renewed authorization continues its capital management approach focused on narrowing the share price discount to net asset value.

What is the strategic goal of HFRO’s 2026 share repurchase program for shareholders?

HFRO describes the program as part of a broader strategy to help narrow its share price discount to NAV and support long-term shareholder value. According to the Fund, it complements portfolio optimization, enhanced communications, and a dedicated discount committee.

Are HFRO’s June 2026 share repurchases guaranteed at specific discount levels or amounts?

Repurchases are not guaranteed at any particular discount or size. According to the Fund, the program imposes no obligation to buy a set amount and may be modified, suspended, or terminated by the Board at its discretion.