DALLAS - (Business Wire) Highland Credit Strategies Fund (the
“Trust
”) (NYSE:HCF), a nondiversified, closed-end investment management company, announced today that in response to questions from investors regarding the auction market for Auction Preferred Shares that the Trust does NOT currently have any Auction Preferred Shares outstanding. As such, the current imbalance in the in the auction market is not directly impacting the Trust
’s cost of leverage.
Since August 25, 2006, the Trust has been party to a $290,000,000 Revolving Credit and Security Agreement as amended, with The Bank of Nova Scotia. As provided in the Investment Company Act of 1940 and subject to certain exceptions, the Trust may issue debt with the condition that immediately after issuance the value of its total assets, less certain ordinary course liabilities, exceed 300% of the amount of the debt outstanding. Thus, the Trust may use leverage in the form of borrowings in an amount up to 33 ⅓% of the Trust’s total assets (including the proceeds of such leverage).
About Highland Credit Strategies Fund
The Trust is a non-diversified, closed-end management investment company. The Trust’s investment objectives are to provide both current income and capital appreciation. The Trust invests primarily in secured and unsecured floating and fixed rate loans, bonds and other debt obligations, debt obligations of stressed, distressed and bankrupt issuers, structured products and equities. Highland Capital Management, L.P. has served as the Trust’s investment adviser since the Trust’s inception in 2006. The Trust’s shares are listed on the NYSE under the symbol “HCF”. An investment in the Trust is not appropriate for all investors. No assurance can be given that the Trust will achieve its investment objectives.
Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of the Trust’s shares is determined by a number of factors, several of which are beyond the control of the Trust. Therefore, the Trust cannot predict whether its shares will trade at, below or above net asset value.
Highland Capital Management, L.P., the Trust’s investment adviser, is a leading alternative investment management firm specializing in credit and structured products, with approximately $39.5 billion in assets under management as of December 31, 2007. Headquartered in Dallas, Texas, Highland manages assets on behalf of investors around the world with offices in New York and London.
Past performance does not guarantee future results.
Highland Credit Strategies Fund
Shareholder Services, 877-665-1287
hfinfo@hcmlp.com
