DALLAS, Aug. 19, 2015 /PRNewswire/ -- NexPoint Advisors, L.P. ("NexPoint") announced today that it has submitted a compelling management proposal to the Board of Directors (the "Board") of TICC Capital Corp. (the "Company") (NASDAQ: TICC), a closed-end investment company that is regulated as a business development company. NexPoint is excited about this opportunity to serve the Company and believes that its proposal will deliver substantial benefits for the Company and its shareholders that are notably absent from the Company's existing management arrangements. These benefits include, among others, an estimated $35 million in savings on advisory fees (based on the Company's March 31, 2015 AUM), a $10 million dollar investment in the Company's shares, together with a willingness to manage the fund according to investment objectives set by the Board. NexPoint, together with its affiliates, has been successfully managing CLO and credit investments since 1993.
The Company previously announced on August 4, 2015 that its current investment adviser, TICC Management LLC (the "Current Adviser"), agreed to be acquired by an affiliate of Benefit Street Partners LLC ("BSP") and to replace its investment committee with BSP appointees. We view the Board's support of this acquisition as an acknowledgment that replacement management is in the best interest of the Company due to its share price performance over the past year. Accordingly, on August 11, 2015, we submitted our proposal to the Board to become the next investment adviser for the Company.
NexPoint's proposal contained the following key terms:
- A 50% reduction in the Company's current base management fee for three years, representing savings to the Company worth approximately $30 million in aggregate, based on the Company's March 31, 2015 AUM. Other than this reduction in fees, NexPoint proposes to manage the Company pursuant to the same form of investment advisory agreement as is currently in place with the Current Adviser.
- An additional waiver on the first $5 million of management fees.
- An investment of up to $10 million in the Company's common stock in open market transactions, demonstrating NexPoint's strong commitment to aligning its interests with the Company's stockholders.
About NexPoint Advisors, L.P.
NexPoint, together with its affiliates, currently manages approximately $22 billion in net assets and believes that its core competences are squarely within the Company's investment strategy. NexPoint is affiliated, through common ownership, with Highland Capital Management, L.P. ("Highland"), and 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. If NexPoint is retained by the Company as its investment adviser, the Company will have access to all of Highland's capabilities and expertise.
If appointed as investment adviser to the Company, NexPoint will work diligently with the Board and the Company's current management to implement a smooth transition for the Company and its shareholders.
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SOURCE NexPoint Advisors, L.P.