QUANTUMONLINE.COM SECURITY DESCRIPTION: Highland Opportunities and Income Fund 5.375% Series B Cumulative Preferred Shares,liquidation preference $25 per share, redeemable at the issuer's option at any time at $25 per share plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 5.375% per annum (1.34375 per annum or $0.3359375 per quarter) will be paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date fixed by the board, on the 5th day proceeding the payment date (NOTE: the ex-dividend date the record date).
Dividends paid by preferreds issued by closed-end funds can be 0% to 100% eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and can also be 0% to 100% eligible for the dividends received deduction for corporate holders (see page of the prospectus for further information).
This security was rated as A2 by Moody’s at the time of its IPO. In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
