NexPoint Nominates Highly Qualified Candidate for Director to Serve on TICC Board to Protect Interests of Stockholders

Feb 08, 2016, 09:20 ET from NexPoint Advisors, L.P.

DALLAS, Feb. 8, 2016 /PRNewswire/ -- NexPoint Advisors, L.P. ("NexPoint") today announced that it has nominated Ethan Powell, a highly qualified candidate with considerable Investment Company Act fund management and board experience, for election as a director at the Annual Meeting of TICC Capital Corp. ("TICC" or the "Company"; Nasdaq: TICC), which is expected to be scheduled by TICC for this June. NexPoint has taken this step in order to protect the stockholders and prevent the further destruction of value by the TICC Board of Directors (the "Board") and management team ("Management").

"The stockholders of TICC deserve directors who not only understand their fiduciary duties and are focused on creating value for investors, but who also understand the intricacies of managing registered Investment Company Act vehicles" stated Thomas Surgent, Partner and Deputy General Counsel at NexPoint. "Change is direly needed as TICC has continued to underperform following the Company's deeply flawed and widely criticized attempt to sell itself to an affiliate of Benefit Street Partners in a transaction that would have enriched the departing management team at the expense of stockholders."

NexPoint remains willing to implement its superior investment advisory proposal, which was designed to support and buttress TICC's stockholder distribution and offers the following benefits for stockholders:

  • stockholder savings of $85-90 million in management fees over the next 10 years (based on the Company's AUM as of September 30, 2015);
  • preservation of the Company's current investment strategy, which is the strategy elected by stockholders (although NexPoint will consider revising such strategy should stockholders so desire);
  • an industry-leading stockholder loyalty program where NexPoint will provide an additional 2% investment incentive to stockholders that invest through the program and hold the related shares for at least a year;
  • NexPoint's superior expertise in managing the Company's investment strategy; and
  • If appointed, an investment of at least $20 million in the Company's common stock in open market transactions in the first 12 months following appointment.

We remain willing to discuss any terms that the Board believes may be important to the Company and its stockholders.  We continue to be committed to advancing the interests of the Company and its stockholders and urge the Board to act accordingly. 

Mr. Powell's qualifications are discussed more fully below.

Ethan Powell's Qualifications as a Director

Mr. Powell is currently President and Founder of Impact Shares LLC, a registered investment advisor dedicated to building a platform to create better socially responsible investment solutions. Prior to joining Impact Shares LLC, Mr. Powell was Chief Product Strategist at Highland Capital Management Fund Advisors, L.P. ("HCFMA"). In his role with HCMFA he was responsible for evaluating and optimizing the registered product lineup offered by HCMFA and its affiliate, Highland Capital Management, L.P. ("Highland"). Additionally, Mr. Powell worked with portfolio managers and wholesalers on appropriate positioning of strategies in the market place. Prior to his position as Chief Product Strategist, Mr. Powell was a senior fund analyst responsible for working with portfolio management teams and service providers in the operation and marketing of the funds. Prior to joining Highland in April 2007, Mr. Powell spent most of his career with Ernst and Young providing audit and merger and acquisition services within the firm's Transaction Advisory Services Group in Houston, Texas. Mr. Powell's primary focus was acquisitions in the Energy industry. Mr. Powell received an MS in Management Information Systems and a BS in Accounting from Texas A&M University. Mr. Powell is a holder of the right to use the Chartered Financial Analyst designation and is a licensed Certified Public Accountant. He serves on the Board of Directors of NexPoint and HCMFA's affiliated registered investment funds.

About NexPoint Advisors, L.P.   

NexPoint, together with its affiliates, currently manages approximately $18.3 billion in net assets and believes that its core competences are squarely within the Company's investment strategy.  NexPoint is indirectly wholly owned by a trust that is beneficially owned and controlled by James Dondero.  Highland is ultimately controlled by Mr. Dondero and is therefore an affiliate of, and under common control with, NexPoint, which shares personnel and other resources with Highland.  Highland (together with its affiliates) is one of the world's most experienced alternative credit managers, tested by numerous credit cycles, specializing in credit strategies, such as a broad range of leveraged loans, high yield bonds, direct lending, public and private equities and CLOs.  Highland also offers alternative investment-oriented strategies, including asset allocation, long/short equities, real estate and natural resources. 

Important Additional Information and Where to Find It

NexPoint intends to file a proxy statement with the U.S. Securities and Exchange Commission (the "SEC") in connection with the solicitation of proxies from the stockholders of the Company in connection with the election of Ethan Powell as NexPoint's nominee for director (the "Nominee") at the Company's Annual Meeting of Stockholders, expected to be held in June 2016.  STOCKHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ SUCH PROXY STATEMENT AND THE ACCOMPANYING PROXY CARD AND OTHER DOCUMENTS FILED BY NEXPOINT WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION. The NexPoint proxy statement and other relevant materials (when they become available), and any other documents filed by NexPoint with the SEC, may be obtained free of charge at the SEC's website at www.sec.gov.  Free copies of the NexPoint proxy statement and other relevant materials (when they become available) can be obtained from NexPoint on its website at www.nexpointadvisors.com or by contacting NexPoint by telephone at (972) 628-4100. 

Participants in the Solicitation

NexPoint and the Nominee are deemed to be participants in NexPoint's solicitation of proxies from the Company's stockholders in connection with the election of Ethan Powell as NexPoint's nominee for director at the Company's Special Meeting of Stockholders, expected to be held in June 2016.  NexPoint is the beneficial owner of 100 shares of common stock of the Company.  Information regarding NexPoint and the Nominee, and their direct or indirect interests in the Company, by security holdings or otherwise, will be disclosed in the proxy statement to be filed with the SEC by NexPoint.

Cautionary Statement Regarding Forward-Looking Statements

These materials may contain forward-looking statements.  All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "potential," "opportunity," "estimate," "plan" and similar expressions are generally intended to identify forward-looking statements.  The projected results and statements contained in these materials that are not historical facts are based on current expectations and speak only as of the date of such materials, and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such projected results and statements.  Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of NexPoint.  Although NexPoint believes that the assumptions underlying the projected results or forward-looking statements included in these materials are reasonable as of the date of such materials, any of the assumptions could be inaccurate and therefore, there can be no assurance that the projected results or forward-looking statements included herein will prove to be accurate.  In light of the significant uncertainties inherent in the projected results and forward-looking statements included herein, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such projected results and forward-looking statements will be achieved.  NexPoint will not undertake and specifically declines any obligation to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such projected results or statements or to reflect the occurrence of anticipated or unanticipated events.

NexPoint reserves the right to change any of its opinions expressed herein at any time as it deems appropriate and disclaims any obligation to notify the market or any other party of any such changes.  NexPoint disclaims any obligation to update the information or opinions contained herein.

Media Contact 

Prosek Partners

Brian H. Schaffer 212-279-3115 ext. 229  bschaffer@prosek.com

Josh Clarkson 212-279-3115 ext. 259 jclarkson@prosek.com

SOURCE NexPoint Advisors, L.P.



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