Credit Suisse High Yield Credit Fund Announces Transferable Rights Offering

Rhea-AI Summary

Credit Suisse High Yield Credit Fund (NYSE American: DHY) announced a transferable rights offering for holders of record on April 21, 2026. Each Common Share will receive one Right; three Rights purchase one new share. The Offer is expected to expire on May 14, 2026 and Rights to trade as DHY RT through May 13, 2026. Subscription price equals the higher of 92.5% of five-day average market price or 86.0% of NAV. Proceeds expected to fund senior loans and CLOs; offering expenses borne by the Fund.

Positive

• Record Date set for April 21, 2026
• Rights transferable and trade as DHY RT through May 13, 2026
• Subscription formula includes market- and NAV-based floor at 92.5%/86.0%
• Proceeds expected allocated to senior loans and CLOs
• Potential to lower Fund expense ratio by increasing assets

Negative

• All offering expenses will be borne by the Fund and shareholders
• New shares issued will not receive the Apr 23 or May 22, 2026 distributions
• Offer issues shares at a discount to market, causing potential dilution

News Market Reaction – DHY

-0.53%

-0.53% Session close to close

In the Apr 15 session, DHY declined 0.53%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a transferable rights offering that allows existing holders to buy additio...

Analysis

This announcement details a transferable rights offering that allows existing holders to buy additional shares at a formula-based discount tied to market price and NAV, with an expiration on May 14, 2026. Recent filings show a registered capacity of up to $215,000,000 and net assets of $221.7 million supported by a $95 million loan facility. Investors should closely review the prospectus materials, the subscription pricing mechanics, and how added leverage and assets align with the fund’s high-yield mandate and expense profile.

Key Figures

Registered offering size: $215,000,000 Shares outstanding: 103,609,624 shares Subscription discount formula: 92.5% of avg market price or 86.0% of NAV +5 more

8 metrics

Registered offering size $215,000,000 Preliminary base prospectus (Form N-2/A) filed April 1, 2026

Shares outstanding 103,609,624 shares As of March 27, 2026 per Form N-2/A

Subscription discount formula 92.5% of avg market price or 86.0% of NAV Rights offering subscription price terms

Record date April 21, 2026 Eligibility date for transferable rights

Offer expiration May 14, 2026, 5:00 PM ET Rights offering expiration date and time

NAV vs. market price NAV $1.99 vs. price $1.84 Per Form N-2/A on March 27, 2026 (7.54% discount stated)

Net assets $221.7 million As of October 31, 2025 per Form N-CSR

Loan facility $95 million Leverage facility noted in Form N-CSR

Key Terms

transferable rights, subscription price, net asset value, over-subscription privilege, +2 more

6 terms

transferable rights financial

"approved the terms of the issuance of transferable rights ("Rights") to the holders"

Transferable rights are tradable entitlements given to holders—often shareholders—that allow them to buy new shares, receive benefits, or participate in corporate actions, and can be sold or assigned to someone else. For investors they matter because they create a liquid way to capture value or avoid dilution: you can keep and use the right to maintain ownership, or sell it like a coupon to someone else, which affects potential share count, ownership percentage, and the company’s fundraising outcome.

subscription price financial

"Three Rights are required to purchase one newly issued Common Share at the Subscription Price"

Subscription price is the set amount an investor pays to buy newly issued shares, bonds or units when a company offers them directly, such as in a rights issue or subscription offering. It matters because it determines how much an investor’s ownership cost will be, affects potential gains or losses and influences dilution of existing shareholders—think of it as a pre-order price that helps decide whether joining the new issue is worthwhile.

net asset value financial

"higher of (i) 92.5% of the average market price ... or (ii) 86.0% of net asset value"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

View in glossary

over-subscription privilege financial

"at the Subscription Price ("over-subscription privilege"). Investors who are not Record Date"

An over-subscription privilege is a feature of a share offering that lets existing investors request more shares than their initial entitlement, with any extra allocation given only if other investors do not take their full allotment. It matters because it gives shareholders a chance to increase their stake and avoid losing ownership percentage, much like ordering extra slices at a party in case others pass—however, receiving the extras is not guaranteed.

collateralized loan obligations financial

"with opportunistic investments in collateralized loan obligations to enhance exposure"

A collateralized loan obligation is a financial product that pools many corporate loans and repackages them into slices sold to investors, with some slices offering steady, lower returns and others offering higher returns but more risk. Like splitting a pizza into pieces for different tastes, CLOs let investors pick their preferred risk level and help banks fund lending, so changes in CLO performance influence credit availability and can move markets.

subscription rights financial

"offer, from time to time, common shares and subscription rights to buy additional shares"

Subscription rights are short-term privileges given to existing shareholders to buy additional new shares before the general public, typically at a set price and in proportion to their current holdings. Think of it as getting a coupon for first dibs on extra slices of a pizza so your share of the pie doesn’t shrink; exercising them can be a cheaper way to maintain your ownership and voting power, while ignoring them can reduce your stake and potential future earnings.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, April 14, 2026 /PRNewswire/ -- Credit Suisse High Yield Credit Fund (NYSE American: DHY) (the "Fund") announced today that its Board of Trustees has approved the terms of the issuance of transferable rights ("Rights") to the holders of the Fund's common shares of beneficial interest, par value $0.001 per share, (the "Common Shares") as of the record date, April 21, 2026 (the "Record Date"). Holders of these Rights will be entitled to subscribe for additional Common Shares (the "Offer") at a discount to market price. The Offer to acquire additional Common Shares will be made only by means of a prospectus supplement and accompanying prospectus, and this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any of the Fund's securities.

UBS Asset Management (Americas) ("UBS AM (Americas)" or the "Adviser") believes that this is an attractive time to raise additional assets for the Fund because current high yield market conditions reflect stable issuer fundamentals and markets that remain conducive to deploying capital efficiently, providing an attractive opportunity to raise incremental capital. The proceeds of the Offer are anticipated to be invested in attractive opportunities in high yield credit markets, consistent with the Fund's investment objective to seek high current income, with capital appreciation as a secondary objective. A substantial portion of the proceeds of the Offer is expected to be allocated to senior loans, with opportunistic investments in collateralized loan obligations to enhance exposure to higher-yielding securities.

The Adviser believes that the current macroeconomic environment presents a compelling opportunity in the high yield credit markets. In the Adviser's assessment, large and well-functioning loan markets, ongoing issuance activity, and disciplined leverage levels at issuance, create an environment conducive to deploying capital efficiently and selectively in credit opportunities. Among other benefits, an increase in the Fund's assets may also lower the Fund's expense ratio, as fixed operating costs would be spread across a larger asset base. Additionally, the Offer creates potential for increased liquidity and trading volume of the Fund's Common Shares.

Certain key terms of the Offer are as follows:

• Common shareholders on the Record Date ("Record Date Shareholders") will receive one transferable Right for each Common Share owned.
• Three Rights are required to purchase one newly issued Common Share at the Subscription Price (defined below). The Fund will not issue fractional shares, so Record Date Shareholders holding fewer than three Rights will be entitled to subscribe for one full Common Share.
• The Subscription Price will be determined by the Fund upon the Expiration Date (as defined below) of the Offer, which is currently expected to be May 14, 2026, unless the Fund extends the Offer. The Subscription Price will be based upon a formula equal to the higher of (i) 92.5% of the average market price on the Expiration Date and the four preceding trading days on the NYSE American or (ii) 86.0% of net asset value on the Expiration Date.
• Record Date Shareholders who fully exercise all Rights initially issued to them will be permitted to subscribe for additional Common Shares that were not subscribed for by other Record Date Shareholders at the Subscription Price ("over-subscription privilege"). Investors who are not Record Date Shareholders, but who otherwise acquire Rights, are not entitled to subscribe for any additional Common Shares. Over-subscription shares may only be acquired if there are unexercised Rights. If sufficient Common Shares are not available to honor all over-subscription requests, unsubscribed Common Shares will be allocated pro rata among those Record Date Shareholders who over-subscribe based on the number of Common Shares they owned on the Record Date.
• The Rights are transferable and are expected to be admitted for trading on the NYSE American under the symbol "DHY RT" during the course of the Offer. The Rights are expected to cease trading on May 13, 2026, one trading day prior to the Expiration Date (as defined below). During this time, Record Date Shareholders may also choose to sell their Rights.
• The Offer is expected to expire at 5:00 PM Eastern Time on May 14, 2026, unless extended (the "Expiration Date").
• The definitive terms of the Offer will be made through a prospectus supplement and accompanying prospectus. The final terms of the Offer may be different from those set out above.
• All offering expenses, including the sales load, will be borne by the Fund and ultimately by the Fund's shareholders.

The Fund expects to maintain its current distribution level following the Offer. The Fund has declared a monthly distribution payable on April 23, 2026, with a record date of April 16, 2026, and a monthly distribution payable on May 22, 2026, with a record date of May 4, 2026. Any Common Shares issued as a result of the Offer will not be record date shares for the Fund's monthly distribution to be paid on April 23, 2026 or May 22, 2026, and will not be entitled to receive such distribution.

The Fund expects to mail subscription certificates evidencing the Rights and a copy of the prospectus supplement and accompanying prospectus for the Offer to Record Date Shareholders within the United States shortly following the Record Date. Inquiries regarding the Offer should be directed to the Information Agent, EQ Fund Solutions, LLC at 800-859-8509.

Record Date Shareholders who hold Common Shares through a broker, custodian or trust company can most likely act electronically and should contact such entity to understand their procedure to exercise or sell their Rights as each firm may have different procedures. Please review the offering materials carefully and ensure any decisions are made within the subscription period, and according to your broker's, custodian, or trust company's specific closing date, which may be earlier than expiration date.

Record Date Shareholders who do not hold Common Shares through a broker, custodian, or trust company should forward their instructions to either exercise or sell their Rights by completing the subscription certificate and delivering it to the subscription agent for the Offer, together with their payment, at one of the locations indicated on the subscription certificate or in the prospectus supplement.

The information in this press release is not complete and is subject to change. This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. Investors should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. The Fund's prospectus supplement and accompanying prospectus will contain this and additional information about the Fund and additional information about the Offer and should be read carefully before investing. For further information regarding the Offer, or to obtain a prospectus supplement and the accompanying prospectus, when available, please contact the Fund's information agent:

EQ Fund Solutions
28 Liberty Street, 53^rd Floor 
New York, NY 10005
(800)  293-8509

About Credit Suisse High Yield Credit Fund. The Fund is a diversified closed-end management investment company registered under the Investment Company act of 1940, as amended. The Fund's primary investment objective is to seek high current income, with capital appreciation as a secondary objective to the extent consistent with the principal investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in investments rated below investment grade quality.

About UBS Asset Management (Americas) LLC. UBS Asset Management (Americas) LLC, the Fund's investment adviser, is part of the Asset Management business of UBS Group AG, a leading global financial services organization headquartered in Zurich.

Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Forward-Looking Statements
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the Fund and the Adviser believe the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Fund's reports that are filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the Fund and the Adviser do not assume a duty to update any forward-looking statement.

Risks of Investing in Closed-End Funds
Shares of many closed-end funds frequently trade at a discount from their asset value. Funds are subject to stock market risk, which is the risk that stock prices overall will decline over short or long periods, adversely affecting the value of an investment in a fund. The Offer may result in an immediate dilution of the net asset value per Common Share for all existing Common Shareholders, including those who fully exercise their Rights.

Credit Suisse High Yield Credit Fund
1285 Avenue of the Americas
New York, NY 10019
https://us-fund.ubs.com/DHY

Contact:
Shareholder Services
(800) 293-1232

View original content:https://www.prnewswire.com/news-releases/credit-suisse-high-yield-credit-fund-announces-transferable-rights-offering-302742256.html

SOURCE UBS Asset Management (Americas) LLC

FAQ

What is the DHY record date for the transferable rights offering?

The record date is April 21, 2026, when one Right is issued per Common Share. According to Credit Suisse High Yield Credit Fund, holders of record on that date will receive Rights enabling subscription for additional Common Shares.

How many DHY Rights are needed to buy one new Common Share?

Three Rights are required to purchase one newly issued Common Share at the Subscription Price. According to Credit Suisse High Yield Credit Fund, fractional shares will not be issued; holders with fewer than three Rights can subscribe for one full share.

How is the DHY subscription price determined and when is it set?

Subscription Price equals the higher of 92.5% of five-day average market price or 86.0% of NAV. According to Credit Suisse High Yield Credit Fund, the price will be determined upon the Offer's expected Expiration Date of May 14, 2026.

When will DHY Rights trade and when do they stop trading?

Rights are expected to trade under DHY RT on NYSE American and cease trading on May 13, 2026. According to Credit Suisse High Yield Credit Fund, trading ends one day before the Offer's expected expiration.

Will new DHY shares receive the Fund's upcoming monthly distributions?

No. Shares issued from the Offer will not be record date shares for the April 23 or May 22, 2026 distributions. According to Credit Suisse High Yield Credit Fund, those newly issued shares are not entitled to those payments.

What will Credit Suisse High Yield Credit Fund do with proceeds from the DHY offering?

Proceeds are expected to be invested primarily in senior loans and opportunistic CLO investments. According to Credit Suisse High Yield Credit Fund, the allocation aims to seek high current income consistent with the Fund's investment objective.