Herzfeld Caribbean Basin Stock Price, News & Analysis

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a distribution of $0.2325 per share, payable on June 30, 2025. The distribution will be paid through a combination of cash (20%) and common stock (80%). Stockholders can elect their preferred form of payment, with elections due by June 16, 2025. The stock portion will be valued based on the volume weighted average price during June 12-16, 2025.

Notably, the Fund is planning a significant strategic shift, with a special stockholder meeting scheduled for June 17, 2025, to vote on converting from its current investment strategy to a CLO Equity Strategy. This change would redirect the Fund's focus to investing in collateralized loan obligations, with a new primary objective of total return and secondary objective of high current income.

The distribution includes 91.25% from long-term capital gains and 8.75% return of capital. The Fund maintains a 15% annual distribution rate policy based on NAV, with the Board recently modifying the policy to allow for flexible distribution timing.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a significant strategic shift, with its Board of Directors approving a change from Caribbean Basin investments to a CLO Equity Strategy. The Fund will modify its primary objective to focus on total returns and high current income through investments in equity and junior debt tranches of collateralized loan obligations (CLOs).

The change comes after 30 years of Caribbean-focused investment, with management citing opportunities in Cuba relations. The Fund will be renamed to Herzfeld Credit Income Fund and implement a new fee structure: 1.25% management fee and 10% incentive fee with a 9% hurdle rate, replacing the previous 1.45% flat management fee.

The changes require shareholder approval at an upcoming special meeting. While pivoting away from Caribbean investments, the Fund maintains rights to the CUBA ticker symbol for potential future opportunities. Thomas J. Herzfeld Advisors currently manages approximately $950 million in assets and has maintained a Morningstar 5-star performance rating for 40 consecutive quarters.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a distribution of $0.2325 per share paid on January 13, 2025, under its Managed Distribution Policy. The distribution represents a 15% annual rate based on the Fund's June 30, 2024 net asset value.

The Board recently modified the Policy to maintain the 15% annual distribution rate but with flexible distribution periods (quarterly, semi-annual, or annual) to accommodate year-end regulatory capital gains distributions. The current distribution consists entirely of return of capital. The Fund reports a -4.50% average annual return over the past 5 years, with a current annualized distribution rate of 15.15% of NAV. The Fund's cumulative total return for the fiscal year through December 31, 2024, stands at 6.53%.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a cash distribution of $0.2325 per share, to be paid on January 13, 2025, to stockholders of record as of December 31, 2024. This distribution reflects 9.69% of the Fund's market price and 7.22% of its net asset value as of December 19, 2024.

The distribution is part of the Fund's managed distribution policy, which aims to maintain an annual rate of 15% of the Fund's net asset value. The Board recently modified the policy to allow for quarterly, semi-annual, or annual distribution periods. The current distribution is expected to consist entirely of return of capital, which may affect the Fund's total assets and expense ratio.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) announced significant leadership changes effective December 31, 2024. Thomas J. Herzfeld, the Fund's Chairman since its 1994 launch, will retire from the Board of Directors and his position as Portfolio Manager, becoming Chairman Emeritus with non-voting participation in board meetings.

Cecilia Gondor, a board member since 2014 and former Executive VP of Thomas J. Herzfeld Advisors, will succeed as Chairperson. Additionally, Brigitta Herzfeld, current member of the investment manager's executive committee, will join the Board. She brings experience from Goldman Sachs and Lehman Brothers Japan, along with advanced degrees from prestigious institutions.

The Herzfeld Caribbean Basin Fund (Nasdaq: CUBA) has announced the final results of its cash tender offer. The Fund offered to purchase up to 5% (827,416 shares) of its outstanding common shares at 97.5% of its NAV. The purchase price was set at $3.2273 per share. Due to oversubscription with 11,685,770 shares tendered, the Fund will purchase shares on a pro-rata basis with a factor of 7.08052%. After the tender offer completion, the Fund will have 15,720,897 outstanding common shares.

The Herzfeld Caribbean Basin Fund announced preliminary results of its cash tender offer to purchase up to 5% (827,416 shares) of outstanding common shares at 97.5% of NAV. According to preliminary data, 11,696,106 shares were properly tendered at a purchase price of $3.2273 per share. Due to oversubscription, the Fund will purchase shares on a pro-rata basis. The tender offer expired on November 15, 2024, with final results expected around November 21, 2024.

Thomas J. Herzfeld Advisors, Inc. has announced the commencement of a Tender Offer by The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA). The Fund is offering to purchase up to 5% of its outstanding common shares at 97.5% of NAV per share. The NAV will be determined as of the close of ordinary trading on the NASDAQ Capital Market on November 15, 2024.

The Tender Offer was initially announced on October 3, 2024, and the official Offer to Purchase is dated October 15, 2024. Shareholders are advised to read the Offer to Purchase, Letter of Transmittal, and related exhibits for important information. These documents are available on the SEC website and the Fund's website. For additional information, shareholders can contact EQ Fund Solutions, , the Information Agent for the Tender Offer.