Herzfeld Credit Income Fund, Inc. Announces Board Approval of Change in Dividend Reinvestment Policy
Herzfeld Credit Income Fund (NASDAQ: HERZ) announced Board-approved changes to its Dividend Reinvestment Plan, effective 30 days after shareholder notification. The key modification allows the Fund to issue new shares to Plan participants regardless of whether the stock trades at a premium or discount to NAV, eliminating the previous requirement to purchase shares on the open market when trading below NAV.
The amended Plan will price reinvested distributions at 95% of the market price at close of trading on the NASDAQ Capital Market, or if no sales occur, using the average of closing bid and ask quotations.
Herzfeld Credit Income Fund (NASDAQ: HERZ) ha annunciato modifiche approvate dal Consiglio al suo Piano di Reinvestimento dei Dividendi, che entreranno in vigore 30 giorni dopo la comunicazione agli azionisti. La modifica principale consente al Fondo di emettere nuove azioni ai partecipanti al Piano indipendentemente dal fatto che il titolo venga scambiato a un premio o a uno sconto rispetto al NAV, eliminando il precedente requisito di acquistare azioni sul mercato aperto quando il prezzo era inferiore al NAV.
Il Piano modificato valorizzerà le distribuzioni reinvestite al 95% del prezzo di mercato alla chiusura delle contrattazioni sul NASDAQ Capital Market, o in assenza di vendite, utilizzando la media delle quotazioni di chiusura bid e ask.
Herzfeld Credit Income Fund (NASDAQ: HERZ) anunció cambios aprobados por la Junta en su Plan de Reinversión de Dividendos, que entrarán en vigor 30 días después de la notificación a los accionistas. La modificación clave permite que el Fondo emita nuevas acciones a los participantes del Plan sin importar si la acción se negocia con una prima o un descuento respecto al NAV, eliminando el requisito previo de comprar acciones en el mercado abierto cuando el precio estaba por debajo del NAV.
El Plan enmendado valorará las distribuciones reinvertidas al 95% del precio de mercado al cierre de las operaciones en el NASDAQ Capital Market, o si no hay ventas, utilizando el promedio de las cotizaciones de cierre de oferta y demanda.
Herzfeld Credit Income Fund (NASDAQ: HERZ)는 주주 통지 후 30일이 경과한 시점부터 발효되는 배당금 재투자 계획에 대한 이사회 승인 변경 사항을 발표했습니다. 주요 변경 사항은 펀드가 주식이 순자산가치(NAV) 대비 프리미엄 또는 디스카운트로 거래되는지 여부와 관계없이 계획 참가자에게 신주를 발행할 수 있도록 하여, 이전에 NAV 이하 거래 시 공개 시장에서 주식을 구매해야 했던 요구사항을 없앴다는 점입니다.
수정된 계획은 NASDAQ Capital Market 거래 마감 시점의 시장 가격의 95%로 재투자된 배당금을 가격 책정하며, 거래가 없을 경우에는 마감 시점의 매도호가와 매수호가 평균을 사용합니다.
Herzfeld Credit Income Fund (NASDAQ : HERZ) a annoncé des modifications approuvées par le conseil d'administration à son plan de réinvestissement des dividendes, qui entreront en vigueur 30 jours après la notification aux actionnaires. La modification principale permet au Fonds d’émettre de nouvelles actions aux participants du Plan, que le titre soit négocié à une prime ou à un escompte par rapport à la valeur liquidative (NAV), supprimant ainsi l’exigence précédente d’acheter des actions sur le marché ouvert lorsque le titre se négociait en dessous de la NAV.
Le Plan modifié valorisera les distributions réinvesties à 95 % du prix du marché à la clôture des échanges sur le NASDAQ Capital Market, ou en l’absence de transactions, en utilisant la moyenne des cotations d’achat et de vente à la clôture.
Herzfeld Credit Income Fund (NASDAQ: HERZ) hat vom Vorstand genehmigte Änderungen an seinem Dividenden-Reinvestitionsplan bekannt gegeben, die 30 Tage nach der Benachrichtigung der Aktionäre wirksam werden. Die wichtigste Änderung ermöglicht es dem Fonds, neuen Plan-Teilnehmern Aktien auszugeben, unabhängig davon, ob die Aktie mit einem Aufpreis oder Abschlag auf den NAV gehandelt wird, wodurch die bisherige Verpflichtung entfällt, Aktien am offenen Markt zu kaufen, wenn der Kurs unter dem NAV liegt.
Der geänderte Plan bewertet die reinvestierten Ausschüttungen zu 95 % des Marktpreises zum Handelsschluss am NASDAQ Capital Market oder, falls kein Handel stattfindet, unter Verwendung des Durchschnitts der Schlussgebote und -nachfragen.
- None.
- Potential share dilution when new shares are issued below NAV
- Elimination of open market purchases requirement when trading below NAV could impact market price support
MIAMI BEACH, Fla., July 16, 2025 (GLOBE NEWSWIRE) -- Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) (the “Fund”) today announced that the Fund’s Board of Directors (“Board”) approved amendments to the Fund’s Dividend Reinvestment Plan (the “Plan”), on May 8, 2025. The changes to the Plan will become effective thirty (30) days from the date that notice is mailed to shareholders of the Fund.
The amendments make a number of changes to the Plan to align the terms with more recently adopted dividend reinvestment plans of similar funds in our industry. Such changes include a modification that allows the Fund to issue new shares to Plan participants regardless of whether the Fund’s common stock is trading at a premium or discount to the Fund’s NAV. The prior plan required the Fund to purchase shares on the open marketing in cases where the market price of the common stock is trading at a price below NAV.
In addition, the Plan, as amended, determines the number of shares to be received when distributions are reinvested by dividing the amount of the distribution by
The Fund encourages its shareholders to carefully review the Plan to determine whether they would like to remain or become a Plan participant.
About Thomas J. Herzfeld Advisors, Inc.
Thomas J. Herzfeld Advisors, Inc. (the “Advisor”), founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds.
More information about the advisor can be found at www.herzfeld.com.
Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.
Forward-Looking Statements
This press release, and other statements that the Advisor or the Fund may make, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or the Advisor’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions. The Advisor and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and the Advisor and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following risk factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) portfolio fair value risk; (2) potential conflicts of interest risk; (3) collateralized loan obligation risk; (4) covenant-lite loans risk; (5) subordinated securities risk; (6) high yield investment risk; (7) default risk; (8) non-diversification risk; (9) leverage risk; (10) reliance on senior management personnel of the Adviser risk; (11) liquidity risk; (12) risks related to the Adviser’s incentive fee; (13) market risks; (14) inflation risk; (15) interest rate risk; (16) regulatory risk; (17) credit spread risk; (18) prepayment risk; (19) volatility risk; (20) equity risk; (21) foreign exchange rate risk; and (22) cybersecurity risk. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on the Advisor’s website at www.herzfeld.com/herz, and may discuss these or other factors that affect the Fund. The information contained on the Advisor’s website is not a part of this press release.
Contact:
Thomas Morgan
Chief Compliance Officer
Herzfeld Credit Income Fund, Inc.
1-305-777-1660
FAQ
What changes did HERZ make to its Dividend Reinvestment Plan in 2025?
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