Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 70

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 70
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 will be made with respect thereto. |

At the Reorganization Effective Time, each Deferred Unit will be cancelled and holders of such cancelled Deferred Units will be entitled to receive $0.36 in cash per Deferred Unit at Closing.

At the Operating Partnership Merger Effective Time, each Vested NHT OP Profits Interest Unit will automatically be cancelled and converted into the right to receive Vested NXDT OP Profits Interest Units at the Operating Partnership Exchange Ratio, and each Unvested NHT OP Profits Interest Unit will automatically be converted into the right to receive Unvested NXDT OP Profits Interest Units with like vesting conditions at the Operating Partnership Exchange Ratio.

Prior to the Company Merger Effective Time, the Company and NHT OP will take all corporate, trust, or limited partnership action, as applicable, to terminate the Omnibus Plan and the Deferred Unit Plan effective as of immediately prior to the Company Merger Effective Time (and subject to the consummation of the Mergers).

At the Operating Partnership Merger Effective Time, all rights to receive NHT OP Units pursuant to the conversion of the Convertible Promissory Notes shall be converted into the right to receive membership interests of NXDT Merger Sub pursuant to the terms of amendments to such Convertible Promissory Notes to be entered into at the Operating Partnership Effective Time, with the number of membership interests in NXDT Merger Sub to be issued under a Convertible Promissory Note to be equivalent to the number of NHT OP Units subject to the conversion rights under such Convertible Promissory Note, multiplied by the Operating Partnership Exchange Ratio, subject to the conditions to the exercise of such rights contained in the Convertible Promissory Notes.

| (i) | Exchange Agent; Exchange Fund |

NXDT has designated Equiniti Trust Company, LLC as exchange agent (the “Exchange Agent”) to administer the payments involved in the Transaction. At the Closing Time, NXDT will deposit, or cause to be deposited, with the Exchange Agent, sufficient cash to pay the aggregate Merger Consideration and Operating Partnership Merger Consideration (such cash amount, the “Exchange Fund”), in each case, for the sole benefit of the holders of the New NHT Shares and NHT OP Units, as applicable.

| (ii) | Payment of Merger Consideration and Operating Partnership Merger Consideration |

As promptly as practicable following the Company Merger Effective Time, NXDT shall cause the Exchange Agent to mail to each holder of record of a Certificate or