Herzfeld Credit Income Fund, Inc. Announces Effective Date for Reverse Stock Split
Rhea-AI Summary
Herzfeld Credit Income Fund (NASDAQ: HERZ) announced a 10-for-1 reverse stock split of its common stock. The new CUSIP 42804T205 becomes effective at 5:00pm ET on Feb 6, 2026, and shares will trade post-split at the Nasdaq opening on Feb 9, 2026 under the same symbol, HERZ.
Positive
- 10-for-1 reverse split effective Feb 6, 2026
- Post-split trading resumes on Nasdaq at market open Feb 9, 2026
- Ticker HERZ remains unchanged, preserving trading continuity
Negative
- Outstanding shares will be consolidated, reducing total share count by approximately 90%
- New CUSIP 42804T205 may require broker and record updates for shareholders
Key Figures
Market Reality Check
Peers on Argus
HERZ is down 3.16% while peers show mixed moves: CUBA -1.18%, ICMB -1.37%, RAND -1.86%, GRF flat, NXN up 0.58%, pointing to a stock-specific reaction rather than a coordinated sector move.
Previous Stock split Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 15 | Reverse split announcement | Neutral | -1.8% | Board approved 1-for-10 reverse split with new CUSIP and effective timing. |
Prior reverse split news with a neutral tone saw a modestly negative -1.77% price reaction, indicating past market caution toward this catalyst.
Over recent months, HERZ has focused on capital actions and distributions. On Nov 10, 2025 and Nov 17, 2025, the fund outlined and then corrected details of a year-end distribution of about $11M, largely paid in stock and tied to CLO and structured credit allocations. A large year-end distribution of $0.6867 per share was paid on Dec 30, 2025, followed by a December 2025 NAV update of $2.14. On Jan 15, 2026, HERZ first announced the 1-for-10 reverse stock split now being implemented, which then saw a -1.77% one-day move.
Historical Comparison
In the past six months, HERZ had one prior stock-split headline, a 1-for-10 reverse split that prompted a -1.77% move. Today’s effective-date notice tracks the same corporate action.
This announcement formalizes the previously disclosed 1-for-10 reverse stock split, confirming the effective time on Feb 6, 2026 and post-split trading start on Feb 9, 2026 with CUSIP 42804T205.
Market Pulse Summary
This announcement confirms timing and mechanics for HERZ’s previously disclosed 1-for-10 reverse stock split, including the Feb 6, 2026 effective time, new CUSIP 42804T205, and Feb 9, 2026 post-split trading. It follows months of capital actions such as tender offers and large stock-heavy distributions. Investors may watch how trading volume, discount to NAV, and future distribution policies evolve after the split is implemented.
Key Terms
reverse stock split financial
cusip financial
AI-generated analysis. Not financial advice.
MIAMI BEACH, Fla., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) (the “Fund”) confirms today that its Board of Directors has approved implementation of a reverse stock split (the “Reverse Split”) of the Fund’s common stock, par value
About Thomas J. Herzfeld Advisors, Inc.
Thomas J. Herzfeld Advisors, Inc., 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. There can be no assurance that any Share repurchases will reduce or eliminate the discount of the Fund’s market price to the Fund’s net asset value per share. 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 Thomas J. Herzfeld Advisors, Inc. (“TJHA”) 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 TJHA’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. TJHA 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 TJHA 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 factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) shares of the Fund may trade at a discount from Net Asset Value; (2) the Fund is expose to risks associated with equity and equity-linked securities to the extent that adverse equity market conditions could negatively impact the ability of the borrowers to make payment of interest and/or principal with respect to loans underlying the CLOS in which the Fund invests; (3) as a “non-diversified” investment company, the Fund’s investments involve greater risks than would be the case for a similar diversified investment company; (4) the Adviser’s judgment about the attractiveness, relative value or potential appreciation of a particular security or investment strategy may prove incorrect; (5) market disruption risks, including certain events that have had a disruptive effect on the securities markets, generally, such as pandemics, terrorist attacks, war and other geopolitical events, hurricanes, droughts, floods and other natural disasters; (6) risk of investment in CLOs and related securities generally; (7) dependence on managers of the CLOs in which the Fund invests; (8) risks associated with investing in CLOs generally. 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 TJHA’s website at www.herzfeld.com/herz and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.
Contact:
Thomas Morgan
Chief Compliance Officer
Thomas J. Herzfeld Advisors, Inc.
1-305-777-1660
FAQ
What reverse split did Herzfeld Credit Income Fund (HERZ) approve and when is it effective?
When will HERZ shares trade on a post-split basis on Nasdaq?
Will Herzfeld Credit Income Fund (HERZ) change its ticker or par value after the reverse split?
What new CUSIP applies to HERZ after the reverse split and when does it take effect?
