Herzfeld Credit Income Fund, Inc. Pays Distribution
Rhea-AI Summary
Herzfeld Credit Income Fund (NASDAQ: HERZ) announced a year-end distribution of $0.6867 per share, declared 11/10/2025 and paid on 12/30/2025 with an ex-date of 12/31/2025. Stockholders received cash or common stock by election; cash was limited to 20% of the total distribution. The VWAP used to calculate share issuance was $2.5799 (Dec 12, 15, 16, 2025).
Total cash paid was $2,206,188.40 and total shares issued were 3,420,452. Stock-only electors received ~0.26617 shares per share; ~84.49% of holders elected stock or made no election. Total outstanding shares after the distribution are ~19,483,671. The entire distribution is attributed to net realized long-term capital gains ($0.6867).
Positive
- Distribution size of $0.6867 per share
- Majority electors (84.49%) received stock, limiting cash outflow
- Total cash paid limited to $2,206,188.40, preserving liquidity
Negative
- Entire distribution classified as net realized long-term capital gains (no investment income)
- 5-year NAV total return of -2.62% through Nov 28, 2025
News Market Reaction
On the day this news was published, HERZ declined 16.23%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HERZ is up about 1.85% with elevated volume, while peers are mixed: CUBA at -1.18%, RAND at +2.9%, and NXN at +0.58%, suggesting a stock-specific reaction to the distribution rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 17 | Distribution details update | Positive | +2.8% | Corrected year-end distribution terms and outlined policy and allocation changes. |
| Nov 10 | Year-end distribution | Positive | +2.5% | Declared estimated year-end distribution and introduced monthly income policy. |
| Oct 21 | Final tender results | Positive | -2.1% | Reported final oversubscribed tender offer results and post‑offer share count. |
| Oct 16 | Prelim tender results | Positive | -0.8% | Announced preliminary oversubscription data for issuer tender offer. |
| Sep 17 | Tender offer launch | Positive | +0.1% | Commenced cash tender offer for up to 5% of outstanding common shares. |
HERZ often shows positive reactions to capital return and distribution announcements, though tender-offer related news has produced mixed price responses with both aligned gains and negative divergences.
Over the last few months, HERZ has focused on shareholder-oriented actions and distribution policy changes. On Nov 10 and Nov 17, 2025, the Fund outlined and corrected details of a year-end stock-and-cash distribution and signaled a shift to monthly net investment income distributions starting January 2026, both followed by gains. Earlier, from Sep–Oct 2025, HERZ ran a tender offer for 5% of its shares at 97.5% of NAV, with final pro‑ration around 7.2858%, generating mixed price reactions. Today’s payment announcement operationalizes those previously disclosed distribution terms.
Market Pulse Summary
The stock dropped -16.2% in the session following this news. A negative reaction despite this largely mechanical payment update would fit a pattern where capital actions sometimes led to mixed price responses, such as the tender-offer news on Oct 21 with a -2.1% move. The distribution increases shares outstanding to about 19,483,671, which could weigh on sentiment if markets focus on dilution. Past tender oversubscription and modest long-term total return of -2.62% may also color perceptions.
Key Terms
volume-weighted average price financial
net investment income financial
net realized short-term capital gains financial
net realized long-term capital gains financial
return of capital financial
net asset value financial
AI-generated analysis. Not financial advice.
MIAMI BEACH, Fla., Dec. 30, 2025 (GLOBE NEWSWIRE) -- Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) (the “Fund”) today announced that the Fund has made the following year-end distribution:
| Declaration Date | Ex-Date | Record Date | Payment Date | Per Share | |
| 11/10/2025 | 12/31/2025 | 11/21/2025 | 12/30/2025 | ||
The distribution for stockholders has been paid in cash or shares of the Fund’s common stock at the election of stockholders. The total amount of cash distributed to all stockholders was limited to
The price used to calculate the number of shares to be issued in lieu of cash is
| Total Cash | Total Shares | |
| 3,420,452 | ||
Stockholders who elected to receive the distribution solely in shares of common stock and stockholders who did not make an election will receive approximately 0.26617 shares of common stock for each share of common stock they owned on the payment date of December 30, 2025. Holders of approximately
Stockholders electing to receive the distribution in all cash will receive cash in the amount of
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions declared this fiscal year to date from the following sources: net investment income, net realized capital gains and return of capital. All amounts are expressed per common share.
| Current Distribution | % Breakdown of the Current Distribution | Total Cumulative Distributions for the Fiscal Year to Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date | |||||
| Net Investment Income | ||||||||
| Net Realized Short-Term Capital Gains | ||||||||
| Net Realized Long-Term Capital Gains | ||||||||
| Return of Capital | ||||||||
| Total (per common share) | ||||||||
| Average annual total return (in relation to NAV) for the 5-year period ending on November 28, 2025 | - | |
| Annualized current distribution rate expressed as a percentage of NAV as of November 28, 2025 | ||
| Cumulative total return (in relation to NAV) for the fiscal year through November 28, 2025 | ||
| Cumulative fiscal year distributions as a percentage of NAV as of November 28, 2025 | ||
No conclusions should be drawn about the Fund’s investment performance from the amount of the Fund’s distributions.
Stockholders should consult their tax advisor for proper tax treatment of the Fund’s distributions.
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 distribution did Herzfeld Credit Income Fund (HERZ) pay on December 30, 2025?
How was the HERZ distribution paid and what was the cash limit?
What VWAP was used to calculate HERZ shares issued in lieu of cash?
How many total shares did HERZ issue for the distribution and how many shares outstanding after?
What portion of the HERZ distribution was from net realized long-term capital gains?
What did holders who chose cash receive from the HERZ distribution on Dec 30, 2025?
