Herzfeld Credit Income Fund, Inc. Announces Preliminary Tender Offer Results

Rhea-AI Summary

Herzfeld Credit Income Fund (NASDAQ: HERZ) announced preliminary results of a cash tender offer to buy up to 5% (845,433 shares) of outstanding common shares at 97.5% of NAV ($2.5935) as of the close of trading on October 15, 2025.

Shareholders properly tendered 11,603,885 shares, creating an oversubscription that will require a pro‑rata purchase (disregarding fractional shares). Results are preliminary, based on depositary data, and the Fund expects to announce final results on or about October 20, 2025. For questions, shareholders may call EQ Fund Solutions at (877) 536-1555.

Positive

• Tender set at 97.5% of NAV ($2.5935)
• Offer targets repurchase of 5% of shares (845,433 shares)
• Fund plans to announce final results on Oct 20, 2025

Negative

• Tender was oversubscribed ~13.7x (11,603,885 tendered vs 845,433 offered)
• Preliminary results are subject to adjustment and not final

Insights

Corporate Actions Analyst

Tender offer heavily oversubscribed; Fund will repurchase a pro‑rata slice at 97.5% of NAV.

The Fund announced a cash tender to buy up to 5% of outstanding shares (up to 845,433 shares) at a purchase price equal to $2.5935, or 97.5% of NAV as of the close on October 15, 2025. Shareholders properly tendered 11,603,885 shares, so the Fund expects to buy on a pro‑rata basis.

This action reduces outstanding float modestly and returns cash to participating holders while preserving parity with a NAV‑based price. The main dependency is the final reconciliation from the depositary; the Fund expects final results on or about October 20, 2025. Watch the announced final purchased share count and any adjustments to the purchase price on that date.

Fund Liquidity and NAV Impact Analyst

Oversubscription signals demand for liquidity; repurchase at a NAV discount moderately neutral for holders.

Buying up to 5% of shares at $2.5935 (97.5% of NAV) provides a limited, immediate liquidity option for tendering shareholders and uses the Fund’s cash or liquidity resources to repurchase shares. Because acceptance will be pro‑rata, most tendering shareholders will not fully exit, and the Fund’s assets will decrease by the aggregate purchase amount once final.

Key risks include final tender reconciliation and the exact number of shares ultimately repurchased, expected to be disclosed on or about October 20, 2025. Monitor the final purchased shares, any adjustments to NAV or fees, and post‑tender NAV per share to gauge the short‑term dilution or capital return effect.

MIAMI BEACH, Fla., Oct. 16, 2025 (GLOBE NEWSWIRE) -- Thomas J. Herzfeld Advisors, Inc., an SEC-registered investment adviser, and Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) (the “Fund”) today announced the preliminary results of the Fund’s cash tender offer to purchase up to 5% of its outstanding common shares at 97.5% of the Fund’s net asset value (“NAV”) as of the close of ordinary trading on the NASDAQ Capital Market (the “NASDAQ”) on October 15, 2025, the expiration date (the “Tender Offer”).

The table below shows the preliminary results for the Fund:

Tender Offer Amount	Shares Properly Tendered	Purchase Price of Properly Tendered Shares*
Up to 5% or 845,433 shares	11,603,885	$2.5935

* Equal to 97.5% of the Fund’s NAV per share as of the close of ordinary trading on the NASDAQ on October 15, 2025 (the date the Tender Offer expired).

Under the terms and conditions of the Fund’s Tender Offer, if the number of common shares properly tendered exceeds the number of common shares offered to purchase, the Fund will purchase common shares properly tendered on a pro-rata basis (disregarding fractional shares). Based on the preliminary results shown above, the Fund expects to purchase a pro-rata allocation of the common shares properly tendered.

The above-indicated results are based on preliminary information provided by Equiniti Trust Company, LLC, the depositary for the Tender Offer, are subject to adjustment and should not be regarded as final. The Fund currently expects to announce the final results of its Tender Offer on or about October 20, 2025. 

EQ Fund Solutions, LLC is the information agent for the Offer. Shareholders with questions may call EQ Fund Solutions, LLC at (877) 536-1555.

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 (5) the Adviser’s judgment about the attractiveness, relative value or potential appreciation of a particular security or investment strategy may prove incorrect; (7) 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; (8) risk of investment in CLOs and related securities generally (9) dependence on managers of the CLOs in which the Fund invests (10) 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:
Tom Morgan
Chief Compliance Officer
Thomas J. Herzfeld Advisors, Inc.
1-305-777-1660

FAQ

What did Herzfeld Credit Income Fund (HERZ) announce on October 16, 2025 about its tender offer?

The Fund reported preliminary results of a cash tender to buy up to 5% of shares at 97.5% of NAV ($2.5935), with 11,603,885 shares properly tendered.

Will all shareholders who tendered HERZ shares be purchased in the October 2025 offer?

No; because the offer was oversubscribed, the Fund expects to purchase a pro‑rata allocation of properly tendered shares.

How many HERZ shares were requested in the October 15, 2025 tender offer?

Shareholders properly tendered 11,603,885 shares against an offer of 845,433 shares (up to 5% of shares).

What price did HERZ set for the tender offer and how was it determined?

The purchase price was $2.5935, equal to 97.5% of the Fund’s NAV per share as of the close of trading on October 15, 2025.

When will Herzfeld Credit Income Fund announce the final tender offer results for HERZ?

The Fund currently expects to announce final results on or about October 20, 2025.

Who can HERZ shareholders contact with questions about the October 2025 tender offer?

Shareholders may call the information agent, EQ Fund Solutions, at (877) 536-1555.