Highland Distressed Opportunities, Inc. Announces Amendment of Credit Facility
November 25 2008 - 10:03PM
Business Wire
Highland Distressed Opportunities, Inc. (the �Company�) (NYSE: HCD)
announced today that the Company entered into an amendment to its
secured revolving credit facility. As amended, the credit facility
expires on May 29, 2009, and the Company may borrow up to $60
million. The credit facility, as amended, requires generally that
asset coverage be at least 350% after a borrowing. The credit
facility is secured by substantially all of the assets in the
Company�s portfolio. Generally, the interest rate charged is based
on prevailing commercial paper rates plus commitment and
utilization fees. However, if the Company is unable to borrow at
commercial paper rates, the interest rate is based on the
prevailing Eurodollar rate, Federal Funds rate or the agent�s
reference rate, in each case plus an applicable spread and
commitment and utilization fees. The Company pays a commitment fee
at the annual rate of 1.25% on the total commitment amount, and a
utilization fee at the annual rate of 0.75% on outstanding
borrowings. About Highland Distressed Opportunities, Inc. Highland
Distressed Opportunities, Inc. (the �Company,� �we,� �us� and
�our�) is a recently-organized, non-diversified closed-end company
that has elected to be regulated as a business development company
under the Investment Company Act of 1940. The Company�s investment
objective is total return generated by both capital appreciation
and current income. We intend to invest primarily in
financially-troubled or distressed companies that are either
middle-market companies or unlisted companies by investing in
senior secured debt, mezzanine debt and unsecured debt, each of
which may include an equity component, and in equity investments.
Generally, distressed companies are those that (i) are facing
financial or other difficulties and (ii) are or have been operating
under the provisions of the U.S. Bankruptcy Code or other similar
laws or, in the near future, may become subject to such provisions
or otherwise be involved in a restructuring of their capital
structure. This press release may contain forward-looking
statements describing the Company�s future plans and objectives.
These forward-looking statements, as well as future oral and
written statements by the management of the Company, are subject to
various risks and uncertainties, which could cause actual results
and conditions to differ materially from those projected, including
the uncertainties associated with the timing of transaction
closings, changes in interest rates, availability of transactions,
the future operating results of our portfolio companies, changes in
regional, national, or international economic conditions and their
impact on the industries in which we invest, or changes in the
conditions of the industries in which we invest, and other factors
enumerated in our filings with the Securities and Exchange
Commission (�SEC�). We may use words such as �anticipates,�
�believes,� �expects,� �intends,� �will,� �should,� �may,� �plans,�
�could,� �estimates,� �potential,� �continue,� �target,� or the
negative of these terms or other similar expressions to identify
forward-looking statements. Undue reliance should not be placed on
such forward-looking statements as such statements speak only as of
the date on which they are made. We do not undertake to update our
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable law.
Persons considering an investment in the Company should consider
the investment objective, risks, and charges and expenses of the
Company carefully before investing. Such information and other
information about the Company will be available in our annual
report on Form 10-K, in our quarterly reports on Form 10-Q and
current reports on Form 8-K. Such materials are filed with the SEC
and copies are available on the SEC�s website, www.sec.gov.
Prospective investors should read such materials carefully before
investing.
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