Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 96

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 96
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nuity”), 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 settlement contracts to repay the Structured Note and to further invest in life settlement contracts. On September 1, 2023, Old NXDT, through one of its TRSs, entered into a contribution agreement to transfer the Structured Note and all its rights, title and interests to a related party NexAnnuity Holdings, Inc. (“NHI”) and its wholly owned subsidiaries. Old NXDT also transferred all of its ordinary shares in SFP to a separate share trustee. In exchange, Old NXDT was issued 68,500 shares of Class A Preferred Stock in NHI. As a result, Old NXDT now holds none of the outstanding equity and debt of SFP. Old NXDT will have no continuing involvement with SFP. On September 28, 2023, Old NXDT redeemed 2,000 shares of Class A Preferred Stock of NHI for $2.0 million. On September 30, 2023, Old NXDT elected to receive the quarterly distribution of approximately $0.5 million in Class A Preferred Stock instead of cash. On October 24, 2023, Old NXDT redeemed 1,000 shares of Class A Preferred Stock of NHI for $1.0 million. On November 10, 2023, Old NXDT redeemed 1,000 shares of Class A Preferred Stock of NHI for $1.0 million. On December 31, 2023, Old NXDT elected to capitalize the quarterly distribution of approximately $1.3 million.

Guaranties of NexPoint Storage Partners, Inc. Debt

On July 2, 2021, Old NXDT, together with Highland Opportunities and Income Fund (“HFRO”) and Highland Global Allocation Fund (“GAF”) (collectively, the “Co-Guarantors”) as limited guarantors, entered into a Guaranty of Recourse Obligations (“SAFStor Recourse Guaranty I”) in favor of ACORE Capital Mortgage, LP (“ACORE”) in its capacity as Administrative Agent for and on behalf of the Lenders under a Loan Agreement (“SAFStor Loan Agreement I”), in an aggregate