|Record Date2||Payment Date||Declared Distribution per Share**|
NexPoint Capital, Inc. Historical And Anticipated1 Distribution Calendar*
*Note: The Record Dates and Payment Dates in the Distribution Calendar above for NexPoint Capital, Inc. (the “Company”) are prospective dates only. The Distribution Calendar will be updated with final record dates, payment dates, and declared distribution amounts when distributions are declared. Distributions in the chart above represent the monthly distribution rate from January 2015 through April 2016 and the weekly distribution rate thereafter. Distributions are declared weekly and paid monthly effective May 1, 2016. We may fund our cash distributions to stockholders from any sources of funds available to us, including an unlimited amount of offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets and expense reimbursements from NexPoint Advisors, the Company’s investment adviser. We have not established limits on the amount of funds we may use from available sources to make distributions. For more information, please see the “Use of Proceeds” section in the Prospectus located here.
**Distributions are not guaranteed and may be suspended, modified or terminated at the discretion of the board of directors. Distributions may include a return of principal or borrowed funds, which may lower overall returns to the investor and may not be sustainable.
**The annualized distribution rate is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the regular weekly cash distribution per share as of the date indicated above without compounding), divided by the price quote per share as of the date indicated above. The annualized distribution rate shown may be rounded. As of the quarter ending June 30, 2016, 100% of distributions were paid from net investment income from operations. The distributions described herein were funded in significant part by the reimbursement of certain expenses, including through the waiver of investment advisory fees that may be subject to repayment to NexPoint Advisors, and the funds’ future distributions may be funded from such waivers or reimbursements. Significant portions of these distributions were not be based on our investment performance and such waivers and reimbursements by NexPoint Advisors may not continue in the future. If NexPoint Advisors does not agree to reimburse certain of our expenses, including through the waiver of certain of its advisory fees, significant portions of these distributions may come from offering proceeds or borrowings. The repayment of any amounts owed to NexPoint Advisors will reduce the future distributions to which you would otherwise be entitled. The determination of the tax attributes of NexPoint Capital’s distributions is made annually as of the end of NexPoint Capital’s fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. The actual tax characteristics of distributions to shareholders will be reported to shareholders annually on a Form 1099-DIV. Distributions are not guaranteed and may be suspended, modified or terminated at the discretion of the board of directors. Distributions may include a return of principal or borrowed funds, which may lower overall returns to the investor and may not be sustainable.
1Prospective dates are based on current expectations and assumptions regarding the Company’s portfolio and performance, performance of the economy and other future conditions and forecasts for future events, circumstances and results. As with any projection or forecast, the prospective dates and distribution amounts are inherently susceptible to uncertainty and changes in circumstances. The figures above are not intended to be an earnings and profits estimate for purposes of determining the taxability of distributions.
2On April 20, 2016, the Company’s board of directors approved an updated schedule of ordinary distributions. Effective May 1, 2016, the Company intends to declare dividends on a weekly, rather than monthly, basis but will continue to pay such distributions on a monthly basis.