James D. Dondero and Affiliates Increase Stake in Highland Opportunities & Income Fund to 8.5%

This Amendment No. 3 to Schedule 13D is filed by James D. Dondero and a group of affiliated reporting persons, including Highland Global Allocation Fund (GAF), Drugcrafters, L.P., NexPoint Asset Management, L.P., and Nancy Marie Dondero. The filing reports increased beneficial ownership in Highland Opportunities & Income Fund (HFRO). Specifically, since the previous filing, GAF purchased 548,460 common shares through open market transactions using working capital, totaling approximately $3,340,622. As of the event date on March 30, 2026, James D. Dondero is deemed to beneficially own 4,703,007.06 shares, representing 8.5% of the outstanding common shares. This total includes shares held directly and indirectly through various entities and trusts controlled by or associated with the reporting persons. The transactions were primarily open market purchases conducted between January and March 2026 at prices ranging from $5.54 to $6.43 per share. Mr. Dondero disclaims beneficial ownership of certain shares except to the extent of his pecuniary interest.