Herzfeld Credit Income Fund, Inc. Announces Reverse Stock Split
Rhea-AI Summary
Herzfeld Credit Income Fund (NASDAQ: HERZ) announced a 1-for-10 reverse stock split of its common stock, effective Feb 6, 2026 at 5:00pm ET. Trading will continue on Nasdaq under HERZ and the new CUSIP will be 42804T205. No fractional shares will be issued; shareholders entitled to fractions will receive one whole share in lieu of fractions. Authorized shares remain at 100,000,000. Book-entry holders need take no action; certificate holders will receive instructions from Equiniti Trust Company. The Board approved the Reverse Split on the Investment Manager's recommendation to improve the Fund's price point, broaden institutional appeal, and lower trading costs.
Positive
- Reverse split ratio set at 1-for-10, effective Feb 6, 2026
- Trading to continue under existing ticker HERZ after split
- New CUSIP 42804T205 assigned effective Feb 6, 2026
- Investment Manager cites aim to improve price point and attract institutions
Negative
- Fund cites prior NAV reductions following required distributions
- Fund previously experienced dilution from 2023 rights offering
- Shareholder percentages may adjust due to fractional-share treatment
News Market Reaction
On the day this news was published, HERZ declined 1.77%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HERZ fell 0.26% while peers were mixed: CUBA -1.18%, RAND -2.43%, ICMB +1.07%, NXN +0.58%, GRF flat. Moves do not point to a unified sector reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 30 | Year-end distribution | Positive | -16.2% | Large capital-gains distribution paid mostly in stock with share issuance. |
| Nov 17 | Distribution correction | Positive | +2.8% | Corrected distribution details plus policy and operational updates. |
| Nov 10 | Distribution declaration | Positive | +2.5% | Announced year-end stock/cash distribution and CLO investment plans. |
| Oct 21 | Tender offer final | Positive | -2.1% | Final results of tender offer repurchasing 5% of shares at 97.5% of NAV. |
| Oct 16 | Tender offer prelim | Positive | -0.8% | Preliminary oversubscribed tender offer results at 97.5% of NAV. |
Corporate actions and distribution announcements have produced mixed reactions, with notable downside on large capital-gains distributions and some support on income and policy updates.
Over the past few months, HERZ has focused on capital returns and balance sheet actions. A large year-end distribution of $0.6867 per share and related corrections in November–December 2025 led to meaningful share issuance and a sharp -16.23% move on the payment announcement. Earlier, the Fund completed a tender offer repurchasing 845,433 shares at $2.5935, which saw modest negative price reactions. Policy shifts toward monthly net investment income distributions and allocations to CLOs were met with small positive moves. The new reverse split follows this sequence of structural adjustments.
Market Pulse Summary
This announcement details a 10-for-1 reverse stock split designed to lift HERZ’s trading price without changing par value or the 100,000,000 authorized shares. The move follows sizable capital-gains distributions, tender offers, and shifts toward monthly net investment income. Investors may focus on how the higher post-split price interacts with prior dilution from the 2023 rights offering and recent stock issuance, and on whether subsequent distributions and portfolio income developments support the adjusted share structure over time.
Key Terms
reverse stock split financial
par value financial
CUSIP technical
Managed Distribution Policy financial
Net Asset Value financial
rights offering financial
AI-generated analysis. Not financial advice.
MIAMI BEACH, Fla., Jan. 15, 2026 (GLOBE NEWSWIRE) -- Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) (the “Fund”) today announced that its Board of Directors has approved implementation of a reverse stock split (the “Reverse Split”) of the Fund’s common stock, par value
No fractional shares of Common Stock will be issued as a result of the Reverse Split. Instead, any shareholder who would have been entitled to receive a fractional share as a result of the Reverse Split will receive one whole share in lieu of such fractional shares. The Reverse Split affects all shareholders uniformly and will not alter any shareholder’s percentage interest in the Fund’s outstanding Common Stock, except for adjustments that may result from the treatment of fractional shares. The number of authorized shares of Common Stock under the Fund’s Articles of Incorporation, as amended, will remain unchanged at 100,000,000 shares of Common Stock.
Holders of the Common Stock held in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the Reverse Split. Shareholders of record will receive information from the Company’s transfer agent, Equiniti Trust Company, LLC, regarding their post-split Common Stock ownership. Stockholders holding shares of Common Stock in certificate form will receive a transmittal letter from Equiniti Trust Company, LLC, accompanied by instructions specifying how to exchange old stock certificates for new book entry shares.
The Fund’s Board of Directors approved the Reverse Split upon recommendation of the Fund’s investment manager, Thomas J. Herzfeld Advisors, Inc. (the “Investment Manager”). In recommending the Reverse Split, the Investment Manager noted that the Reverse Split is designed to:
- Provide a better price point for the Fund following reductions in the Fund’s Net Asset Value following required distributions under the Fund’s Managed Distribution Policy and dilution from the Fund’s 2023 rights offering;
- Position the Fund to appeal to a broader range of institutional investors and generate greater investor interest in the Fund; and
- Lower trading costs for investors.
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 is the reverse split ratio and effective date for HERZ?
Will HERZ continue trading under the same ticker after the reverse split?
What happens to fractional HERZ shares after the reverse split?
Do HERZ holders in book-entry form need to take action for the split?
What is the new CUSIP for HERZ after the reverse split?
Why did the Fund approve the reverse split for HERZ?
