Company: NXDT
Filing Date: 2025-04-11
Form Type: S-4
Source: 0001437749-25-011826
Chunk: 95

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-11
Form: S-4
Chunk 95
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 For the years ended December 31, 2024 and 2023, the special purpose entity holding Cityplace Tower reimbursed $1.8 million and $1.9 million, respectively, to NexVest for these expenses.

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Freedom LHV Guarantee

Old NXDT is a guarantor and an indemnitor on a loan from The Ohio State Life Insurance Company, an entity that may be deemed an affiliate of the Adviser through common beneficial ownership, taken by Freedom LHV which owns White Rock Center, with an aggregate principal amount of $10.0 million as of December 31, 2024.

NexBank Revolving Credit Facility

On May 22, 2023, Old NXDT entered into a revolving credit facility with NexBank (the “NexBank Revolver”) in the initial principal amount of $20.0 million, with the option for Old NXDT to receive additional disbursements thereunder up to a maximum amount of $50.0 million and bears interest at the one-month secured overnight financing rate (“SOFR”) plus 3.50%. Old NXDT drew $20.0 million on May 22, 2023. On May 21, 2024, Old NXDT elected to extend the maturity by six months to November 21, 2024. On November 21, 2024, Old NXDT elected to extend the maturity by six months to May 21, 2025. During the year ended December 31, 2024, Old NXDT paid down approximately $3.5 million on the principal balance. As of December 31, 2024, the NexBank Revolver had an outstanding balance of $16.5 million.

Management of Life Settlement Contracts

Prior to September 1, 2023, Old NXDT, through one of its TRSs, owned 100% of the outstanding equity and debt of Specialty Financial Products, Ltd. (“SFP”), an Ireland domiciled private company with limited liability and a Designated Activity Company. At the proposal of NexAnnuity Asset Management, L.P. (“NexAnnuity”), an affiliate of the Adviser, SFP was formed for the purpose of entering into acquisitions of U.S. life settlement policies approved by NexAnnuity and funded by the issuance of debt securities, or a structured promissory note (the “Structured Note”) issued by SFP. SFP utilizes proceeds from maturing life