Insider filing report for Changes in Beneficial Ownership
- Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
- Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 21)*
NexPoint Strategic Opportunities Fund
(Name of Issuer)
Common Stock
(Title of Class of Securities)
65340G106
(CUSIP NUMBER)
Jason Post, Chief Compliance Officer
NexPoint Advisors, L.P.
300 Crescent Court, Suite 700
Dallas, Texas 75201
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
March 31, 2020
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g) check the following box o.
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
| * | The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Act”), or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act.
| CUSIP No. 65340G106 | 13D |
| 1 | NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
James D. Dondero | |||||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) o (b) x
| |||||
| 3 | SEC USE ONLY
| |||||
| 4 | SOURCE OF FUNDS*
WC/AF | |||||
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
o | |||||
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION
United States | |||||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
64,807.543 | ||||
| 8 | SHARED VOTING POWER
3,896,605.8554 | |||||
| 9 | SOLE DISPOSITIVE POWER
64,807.543 | |||||
| 10 | SHARED DISPOSITIVE POWER
3,896,605.8554 | |||||
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,961,413.40 | ||||||
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
o | ||||||
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.6% | ||||||
| 14 | TYPE OF REPORTING PERSON*
HC, IN | ||||||
| * | SEE INSTRUCTIONS BEFORE FILLING OUT | ||||||
| CUSIP No. 65340G106 | 13D |
| 1 | NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Nancy Marie Dondero | |||||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) o (b) x
| |||||
| 3 | SEC USE ONLY
| |||||
| 4 | SOURCE OF FUNDS*
AF | |||||
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
o | |||||
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION
United States | |||||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7 | SOLE VOTING POWER
17,770.22 | ||||
| 8 | SHARED VOTING POWER
2,071,228.855 | |||||
| 9 | SOLE DISPOSITIVE POWER
17,770.22 | |||||
| 10 | SHARED DISPOSITIVE POWER
2,071,228.855 | |||||
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,088,999.1 | ||||||
| 12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
o | ||||||
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6% | ||||||
| 14 | TYPE OF REPORTING PERSON*
IN | ||||||
| * | SEE INSTRUCTIONS BEFORE FILLING OUT | ||||||
SCHEDULE 13D/A
This Amendment No. 21 (this “Amendment”) is being filed on behalf of James D. Dondero, and Nancy Marie Dondero (collectively, the “Reporting Persons”), and amends the Schedule 13D filed with the United States Securities and Exchange Commission on September 24, 2014, as subsequently amended on October 24, 2014, as subsequently amended on October 31, 2014, as subsequently amended on February 27, 2015, as subsequently amended on March 12, 2015, as subsequently amended on April 29, 2015, as subsequently amended on August 5, 2015, as subsequently amended on August 11, 2015, as subsequently amended on September 1, 2015, as subsequently amended on October 16, 2015, as subsequently amended on January 22, 2016, as subsequently amended on April 22, 2016, as subsequently amended on August 25, 2016, as subsequently amended on October 25, 2016, as subsequently amended on February 22, 2017, as subsequently amended on June 23, 2017, as subsequently amended on May 8, 2018, as subsequently amended on June 13, 2018, as subsequently amended on October 25, 2018, as subsequently amended on June 19, 2019, and as subsequently amended on January 17, 2020, relating to the Common Stock (the “Common Stock”), of NexPoint Strategic Opportunities Fund (f/k/a NexPoint Credit Strategies Fund), a Delaware statutory trust (the “Issuer”), held by the Reporting Persons and certain related or other entities.
The information set forth in response to each separate Item below shall be deemed to be a response to all Items where such information is relevant. The Schedule 13D is supplementally amended as follows.
| Item 3. | Source and Amount of Funds |
The responses to Items 4, 5 and 6 of the Schedule 13D are incorporated herein by reference.
As of April 6, 2020, the Reporting Persons had invested approximately $110,202,987.39 (inclusive of brokerage commissions) in the securities of the Issuer. The source of these funds was the working capital of the Reporting Persons.
Purchases of securities are typically effected through margin accounts maintained with brokers, which may extend margin credit as and when required to open or carry positions in the margin accounts, subject to applicable federal margin regulations, stock exchange rules and the brokers’ credit policies. In such instances, the positions held in the margin accounts are pledged as collateral security for the repayment of debit balances in the accounts.
| Item 5. | Interest in Securities of the Issuer |
(a) As of April 6, 2020, (i) James D. Dondero may be deemed to beneficially own 3,961,413.3984 shares of Common Stock, which represents approximately 8.6% of the outstanding Common Stock; and (ii) Nancy Marie Dondero, held in a joint account and in her capacity of trustee of a trust, may be deemed to beneficially own 2,088,999.1 shares of Common Stock, which represents approximately 4.6% of the outstanding Common Stock. James D. Dondero has the right to acquire beneficial ownership of the 2,088,999.1 shares of Common Stock owned by the trust.
(b)
| Name of Reporting Person |
Sole Voting Power |
Shared Voting Power |
Sole Dispositive Power |
Shared Dispositive Power |
||||||||||||
| James D. Dondero1 | 64,807.5430 | 3,896,605.8554 | 64,807.5430 | 3,896,605.8554 | ||||||||||||
| Nancy Marie Dondero2 | 17,770.22 | 2,071,228.855 | 17,770.22 | 2,071,228.855 | ||||||||||||
(c) Appendix A attached hereto lists all transactions in the Common Stock during the past sixty (60 ) days by the Reporting Persons. Except as otherwise noted, the transactions in the Common Stock were effected in the open market.
(d) No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Common Stock.
(e) As a result of the change of control Highland Capital Management, L.P. (“HCMLP”) as January 2020, Mr. Dondero no longer serves as the President or sole director f Strand Advisors, Inc., HCMLP’s general partner, and consequently, no longer has direct or indirect voting or investment control with respect to such shares. Effective March 30, 2020, Mr. Dondero will no longer report beneficial ownership of shares held by HCMLP or its advised accounts.
| 1 | Includes shares held by Mr. Dondero directly and indirectly through certain managed accounts ultimately advised by Mr. Dondero, an employee benefit plan and a trust. Also includes shares that Mr. Dondero has the right to acquire beneficial ownership of that are held by the trust referred to in Item 5(a), for which he does not serve as trustee. Mr. Dondero disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. |
| 2 | Includes shares held by Ms. Dondero directly, in a joint account, and indirectly through a trust that Ms. Dondero may be deemed to beneficially own as the trustee of the trust. Ms. Dondero is the sister of Mr. Dondero. Ms. Dondero and Mr. Dondero disclaim beneficial ownership of such shares. |
| Item 7. | Materials to be Filed as Exhibits |
| Exhibit 99.1 | Joint Filing Agreement among the Reporting Persons. |
Dated: April 6, 2020
| /s/ James D. Dondero | |
| James D. Dondero | |
|
| |
| /s/ Nancy Marie Dondero | |
| Nancy Marie Dondero |
APPENDIX A
TRANSACTIONS
The following table sets forth all transactions with respect to the Common Stock effected in the last sixty (60) days by the Reporting Persons or on behalf of the Reporting Persons in respect of the shares of Common Stock. All transactions were acquisitions through the exercise of subscription rights.
| 1. Date |
2. Effected By | 3. Quantity | 4. Price Per Share | ||||||
| 3/17/2020 | James D. Dondero (1) | 83,900 | $ | 11.99 | |||||
| 3/18/2020 | James D. Dondero (1) | 83,900 | $ | 8.69 | |||||
| 3/20/2020 | James D. Dondero (1) | (60,633) | $ | 8.36 | |||||
| 3/20/2020 | Nancy Marie Dondero (2) | (50,000) | $ | 8.64 | |||||
| 3/25/2020 | James Dondero (1) | (60,000) | $ | 7.88 | |||||
| (1) | The transactions reported herein were effected by certain managed accounts ultimately advised by Mr. Dondero. |
| (2) | The transactions reported herein were effected by the trust referred to in Item 5(a), for which Ms. Dondero serves as trustee. |