GRAPEVINE, Texas, Dec. 23, 2021 (GLOBE NEWSWIRE) — United Development Funding IV (“UDF IV” or the “Trust”) announced that it recommends Trust shareholders reject the eleventh extended unsolicited tender offer made by hedge fund NexPoint Strategic Opportunities Fund (“NexPoint”) to purchase all Trust common shares (the “Shares”) for $1.10 per share (the “Tender Offer”). The Trust’s Board of Trustees (the “Board”) believes that NexPoint’s extended tender offer price of $1.10 per share represents a substantial discount to the Trust’s current value, and that other factors also lead to the conclusion that shareholders should reject the Tender Offer. As of December 31, 2020, the Trust’s book value was $13 per share, as reflected in the unaudited balance sheet as of that date included in the Trust’s August 2021 letter to Trust shareholders.
Shareholders should be aware that they are not required to tender any Shares to NexPoint. To reject the Tender Offer, a shareholder should simply ignore it. A shareholder that has already agreed to tender its Shares pursuant to the Tender Offer may withdraw any tender of shares up until December 27, 2021 (as described in the Tender Offer materials). A copy of this press release will be posted to the Trust’s website at www.udfiv.com. The Trust requests that a copy of this press release also be included with all distributions of materials relating to the Tender Offer.
The Board has reviewed the terms and conditions of the eleventh extended Tender Offer, considered other information relating to the Trust’s portfolio of assets, current financial condition and future opportunities and evaluated various other factors it deemed relevant, such as its knowledge of NexPoint and its affiliates, including NexPoint Advisors, L.P., Highland Capital Management, L.P. and NexPoint’s portfolio manager, James Dondero. As indicated above, the Board believes that the Tender Offer price of $1.10 per share represents a substantial discount to the Trust’s current value.
The Board’s additional reasons for recommending that shareholders reject the Tender Offer are described further in the Trust’s prior press releases recommending shareholders reject the Tender Offer, which are available at www.udfiv.com.
About United Development Funding IV
United Development Funding IV is a Maryland real estate investment trust. UDF IV was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. Additional information about UDF IV can be found on its website at www.udfiv.com. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.