NexPoint Capital BDC

* As of 9/30/2022

On June 19, 2020, the Company’s board of directors approved an updated schedule of ordinary distributions, pursuant to which the Company intends to declare dividends on a quarterly basis and pay such distributions on a quarterly basis.

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. For the current year ending December 31, 2019, 100% of distributions were paid from net investment income from operations. Prior to December 20, 2017, the distributions described herein were funded in significant part by the reimbursement of certain expenses, including through the waiver of investment advisory fees and administrative fees that may be subject to repayment to NexPoint Advisors, and the company’s future distributions may be funded from such waivers or reimbursements. Significant portions of these distributions were not 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. As of December 20, 2017, NexPoint Advisors is no longer waiving its investment advisory fees and administrative fees. 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.