NexPoint Submits Competing Proposal for UDF IV with Improved Shareholder Economics, Awaits Engagement from UDF IV Board of Trustees

Core Viewpoint - NexPoint Advisors has submitted a competing proposal to UDF IV's Board ahead of the Special Meeting scheduled for March 4, 2025, to vote on the merger with Ready Capital, urging the Board to postpone the meeting for a month to evaluate their proposal [1][3]. Proposal Details - NexPoint's proposal offers superior economic terms compared to the Ready Merger, including enhanced balance sheet distributions and full entitlement to Contingent Value Rights (CVR) loan proceeds [2]. - The proposal includes a higher pre-closing dividend for shareholders and 100% recovery of net principal and interest on CVR loans, contrasting with the Ready Merger's terms which allow Ready Capital to recover $13.3 million net before shareholders receive 60% of additional recoveries [2]. - NexPoint plans to cease indemnification payments for the imprisoned management team and recover improperly advanced legal fees, distributing 100% of net recoveries to shareholders [2]. Governance and Engagement - NexPoint criticizes UDF IV's Board for a lack of engagement and urges them to consider their proposal in line with fiduciary duties, highlighting governance failures at UDF IV [3]. - Shareholders are encouraged to refrain from voting until the Board has fully assessed NexPoint's proposal and engaged in discussions [3]. Additional Information - NexPoint has established a website for shareholders to receive updates regarding UDF IV, the Ready Merger, and competing proposals [4].