DALLAS--(BUSINESS WIRE)--NexPoint Advisors, L.P. (together with its affiliates, “NexPoint”) today released data detailing NexPoint’s superior past investment performance that clearly demonstrates its outperformance within the asset classes primarily underlying the investment portfolio of TICC Capital Corp. (NASDAQ: TICC) (“TICC” or the “Company”). This track record further substantiates why NexPoint is best positioned to serve TICC’s stockholders, and why TICC stockholders should protect their interests and investment by voting on the BLUE proxy card ahead of the October 27 special meeting of stockholders (the "Special Meeting").
NexPoint has developed a presentation detailing these returns, a complete copy of which is attached. This presentation, along with other important materials for TICC stockholders, can also be found on NexPoint’s website at www.timetochangeticc.com.
The presentation highlights the following:
- NexPoint’s deep experience and expertise across the credit spectrum, with a focus on CLOs and leveraged loans, which are the assets primarily composing TICC’s portfolio (see slide 2).
- The track record of the NexPoint Credit Strategies Fund (NYSE:NHF), which has outperformed the Credit Suisse Hedge Fund Index by 80.5 and 91.6 percentage points over three and five year periods, respectively (see slides 5 and 6).
- NexPoint’s track record of investing in CLO debt and equity, where it has outperformed the Credit Suisse Leveraged Loan Index by 39.5 and 149 percentage points over three and five year periods, respectively (see slides 3 and 6).
- NexPoint’s track record investing in leveraged loans, where the firm has beat the Credit Suisse Leveraged Loan Index by 3.4 and 11 percentage points over three and five year periods, respectively (see slides 4 and 6).
NexPoint’s strong performance figures stand in stark contrast to TICC’s history of underperformance. Glass Lewis & Co., an independent proxy advisor, has recommended that TICC shareholders vote on NexPoint’s BLUE Proxy Card due in part to the fact that TICC “has largely failed to generate compelling value for investors relative to comparable investment opportunities.1”
Additionally, NexPoint’s leading investment expertise in CLO and leveraged loan strategies is being made available to TICC stockholders for a lower management fee than either what is contemplated by the BSP transaction or what TSLX offered in their non-binding proposal. ISS, another independent proxy advisor, found that NexPoint would be able to “consistently provide a lower fee payout to the advisor.2”
In stark contrast to NexPoint’s proposal, the BSP Investment Advisory Agreement only serves to enrich the departing management team at stockholders’ expense in the amount of $60 million, which NexPoint believes was as much as $132 million prior to NexPoint’s involvement.3 Notably, neither TICC nor BSP has ever refuted these numbers to the best of NexPoint’s knowledge.
NexPoint remains fully committed to defending the interests of, and maximizing value for, TICC's stockholders, and urges stockholders to protect their interests and the value of their shares by voting on NexPoint’s BLUE proxy card:
-- "AGAINST" the new investment advisory agreement between the Company and TICC Management, LLC;
-- "FOR" each of NexPoint's six director nominees; and
-- "AGAINST" the Company's proposal to adjourn the Special Meeting in the event that a quorum is present and the Company's proposals do not receive sufficient votes.
Please visit NexPoint's website at www.timetochangeticc.com for further information regarding our proposals, including press releases, board nominees, questions and answers, SEC filings, proxy materials and instructions for TICC shareholders on how to vote.
To see the full presentation, including important additional information, please go to the SEC's website at: http://www.sec.gov/Archives/edgar/data/1259429/000095010315008249/dp60582_dfan14a.htm.
About NexPoint Advisors, L.P.
NexPoint, together with its affiliates, currently manages approximately $20 billion in net assets and believes that its core competences are squarely within the Company's investment strategy. NexPoint is indirectly wholly owned by a trust that is beneficially owned and controlled by James Dondero. Highland Capital Management, L.P. ("Highland") is ultimately controlled by James Dondero and is therefore an affiliate of, and under common control with, NexPoint, which shares personnel and other resources with Highland. Highland (together with its affiliates) is one of the world's most experienced alternative credit managers, tested by numerous credit cycles, specializing in credit strategies, such as a broad range of leveraged loans, high yield bonds, direct lending, public and private equities and CLOs. Highland also offers alternative investment-oriented strategies, including asset allocation, long/short equities, real estate and natural resources. If NexPoint is retained by the Company as its investment adviser, the Company will have access to all of Highland's capabilities and expertise.
Important Additional Information and Where to Find It
NexPoint has filed a definitive proxy statement and accompanying proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies from the stockholders of the Company in connection with the matters to be considered at the Company’s Special Meeting of Stockholders to be held on October 27, 2015, including the election of NexPoint’s nominees for director: Dr. Bob Froehlich, John Honis, Timothy K. Hui, Ethan Powell, William M. Swenson and Bryan A. Ward (collectively, the “Nominees”). STOCKHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT AND THE ACCOMPANYING PROXY CARD AND OTHER DOCUMENTS FILED BY NEXPOINT WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY AS THEY CONTAIN IMPORTANT INFORMATION. The proxy statement and proxy card have been distributed to stockholders. The proxy statement and other relevant materials, and any other documents filed by NexPoint with the SEC, may also be obtained free of charge at the SEC’s website at www.sec.gov. This is not the Company’s or TSLX’s proxy statement.
If you have any questions, need free copies of the proxy statement or other relevant materials, or need assistance voting your Shares, please call:
D.F. King & Co., Inc.
48 Wall Street
New York, NY 10005
Stockholders Call Toll−Free at: 866-416-0556
Banks and Brokers Call Collect at: 212-269-5550
You may also contact NexPoint via email at TICCProxy@NexPointAdvisors.com.
Participants in the Solicitation
NexPoint and the Nominees are deemed to be participants in NexPoint’s solicitation of proxies from the Company’s stockholders in connection with the matters to be considered at the Company’s Special Meeting of Stockholders to be held on October 27, 2015. NexPoint is the beneficial owner of 100 shares of common stock4 of the Company and also proposes to become the Company’s investment adviser, for which it would receive advisory fees. Information regarding NexPoint and the Nominees, and their direct or indirect interests in the Company, by security holdings or otherwise, are set forth in the proxy statement filed with the SEC by NexPoint.
Third Party Information
These materials may contain or refer to news, commentary and other information sourced from persons or companies that are not affiliated with NexPoint. The author and source of any third party information and the date of its publication are clearly and prominently identified. NexPoint has neither sought nor obtained permission to use or quote such third party information. NexPoint cannot guarantee the accuracy, timeliness, completeness or availability of such third party information, and does not explicitly or implicitly endorse or approve such third party information. NexPoint, the Nominees and their affiliates shall not be responsible or have any liability for any misinformation or inaccuracy in such third party information.
Cautionary Statement Regarding Forward-Looking Statements
These materials may contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words “anticipate,” “believe,” “expect,” “potential,” “opportunity,” “estimate,” “plan” and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained in these materials that are not historical facts are based on current expectations and speak only as of the date of such materials, and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of NexPoint. Although NexPoint believes that the assumptions underlying the projected results or forward-looking statements included in these materials are reasonable as of the date of such materials, any of the assumptions could be inaccurate and therefore, there can be no assurance that the projected results or forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the projected results and forward-looking statements included herein, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such projected results and forward-looking statements will be achieved. NexPoint will not undertake and specifically declines any obligation to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such projected results or statements or to reflect the occurrence of anticipated or unanticipated events.
NexPoint reserves the right to change any of its opinions expressed herein at any time as it deems appropriate and disclaims any obligation to notify the market or any other party of any such changes. NexPoint disclaims any obligation to update the information or opinions contained herein.
These materials are provided for information purposes only, and are not intended to be, nor should they be construed as, an offer to sell or the solicitation of an offer to buy any security. These materials do not recommend the purchase or sale of any security.
Past performance does not guarantee future results. Performance during the time period shown is limited and may not reflect the performance in different economic and market cycles. There can be no assurance that similar performance will be experienced.
1 Glass Lewis & Co. report issued on October 14, 2015
2 ISS report issued on October 16, 2015
3 At least one industry analyst has estimated that departing management stands to gain $60 million if the BSP transaction goes through.
4 If appointed as investment adviser of the Company, NexPoint intends to make an investment of at least $20 million in the Company’s common stock in open market transactions in the first 12 months following appointment. This represents about 2.88 million shares, or approximately 4.8% of all outstanding shares at closing on September 18, 2015.