Herzfeld Credit Income Fund (HERZ) holder reports 37.8% stake ownership

Rhea-AI Filing Summary

Herzfeld Credit Income Fund, Inc. has an updated ownership report from major holder Erik M. Herzfeld and related advisory clients. They beneficially own 7,394,580 shares of common stock, equal to 37.85% of the fund’s 19,483,671 shares outstanding as of December 30, 2025, combining 714,113 shares over which he has sole voting and dispositive power and 6,680,467 shares over which he shares that power.

The fund paid a $0.6867 per-share cash and stock distribution on December 30, 2025, with total cash limited to 20% of the payout and the remainder in stock priced at $2.5799 per share. In this distribution, Mr. Herzfeld received 120,584 shares and advisory clients received 1,140,165 shares. Advisory client accounts also sold blocks of shares in open market trades between December 24, 2025 and January 7, 2026 at prices between $1.9612 and $2.7619 per share.

Insights

Equity ownership and fund governance analyst

Large holder reports 37.85% stake and details recent trades and stock distribution.

Erik M. Herzfeld and advisory clients report beneficial ownership of 7,394,580 shares of Herzfeld Credit Income Fund, Inc., representing 37.85% of the 19,483,671 shares outstanding as of December 30, 2025. This combines shares he controls directly with those held in client accounts where he has shared voting or dispositive power.

The fund made a mixed cash-and-stock distribution of $0.6867 per share on December 30, 2025, limiting total cash to 20% of the payout and issuing the rest as stock using a price of $2.5799, based on a volume‑weighted average over three December trading days. Mr. Herzfeld received 120,584 shares and advisory clients received 1,140,165 shares through this distribution.

Advisory client accounts executed several open‑market sales between December 24, 2025 and January 7, 2026 at prices ranging from $1.9612 to $2.7619 per share. Future ownership levels will depend on final allocation of the cash-or-stock election for the distribution, which the report notes may lead to an amended Form 4 once exact share amounts are known.

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 25)

Herzfeld Credit Income Fund, Inc.

(Name of Issuer)

Common Stock

(Title of Class of Securities)

42804T106

(CUSIP Number)

Thomas K. Morgan
119 Washington Ave., Suite 504
Miami Beach, FL, 33139
(305) 777-1660

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

01/07/2026

(Date of Event Which Requires Filing of This Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

SCHEDULE 13D

CUSIP No. 42804T106

1

Name of reporting person

Erik M. Herzfeld, et al.

2

Check the appropriate box if a member of a Group (See Instructions)

(a)
(b)

3

SEC use only

4

Source of funds (See Instructions)

PF, OO

5

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

6

Citizenship or place of organization

UNITED STATES

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 714,113.00
8	Shared Voting Power 6,680,467.00
9	Sole Dispositive Power 714,113.00
10	Shared Dispositive Power 6,680,467.00

11

Aggregate amount beneficially owned by each reporting person

7,394,580.00

12

Check if the aggregate amount in Row (11) excludes certain shares (See Instructions)

13

Percent of class represented by amount in Row (11)

37.95 %

14

Type of Reporting Person (See Instructions)

IN, IA

SCHEDULE 13D

Item 1.	Security and Issuer
(a)	Title of Class of Securities: Common Stock
(b)	Name of Issuer: Herzfeld Credit Income Fund, Inc.
(c)	Address of Issuer's Principal Executive Offices: 119 Washington Ave., Suite 504, Miami Beach, FLORIDA , 33139.
Item 5.	Interest in Securities of the Issuer
(a)	The aggregate number of shares of common stock to which this Schedule 13D relates is 7,394,580 shares representing 37.85% of the 19,483,671 shares outstanding as reported by the issuer as of December 30, 2025. (1) 1. The amount reported represents the estimate number of shares to be received by the reporting person and Advisory clients in connection with the cash or stock distribution announced on December 30, 2025. The exact distribution of cash and stock to the reporting person is dependent upon their election as well as elections of other stockholders, subject to the pro-rata limitation. If necessary, an amended Form 4 will be filed to report the number of shares actually received by the reporting person in connection with the cash or stock distribution once the final allocations are determined.
(b)	With respect to the shares of common stock owned individually, the Reporting Person beneficially owns with sole power to vote and dispose of 714,113 shares of common stock. With respect to the Accounts, the Reporting Person beneficially owns with shared power to vote and/or dispose of 6,680,467 shares of common stock.
(c)	On December 24, 2025 through open market transactions, the Advisory clients sold 8,308 shares at $2.60. On December 30, 2025 through open market transactions, the Advisory clients sold 42,346 shares at $2.7619. On January 2, 2026 through open market transactions, the Advisory clients sold 11,237 shares at $2.2117. On January 5, 2026 through open market transactions, the Advisory clients sold 38,866 shares at $2.0806. On January 7, 2026 through open market transactions, the Advisory clients sold 22,617 shares at $1.9612. On December 30, 2025, the Fund paid a distribution, in cash and shares of common stock, of $0.6867 per share owned by each stockholder as of the payment date of December 30, 2025 (the "December 2025 Distribution"). The December 2025 Distribution was paid in cash or shares of the Fund's common stock at the election of stockholders with the total amount of cash distributed to all stockholders limited to 20% of the total distribution to be paid, excluding any cash paid for fractional shares. The remainder of the December 2025 Distribution (approx. 80%) was paid in the form of shares of the Fund's common stock. The exact distribution of cash and stock to any given stockholder was dependent upon their election as well as elections of other stockholders, subject to the pro-rata limitation. The price per share used to calculate the number of shares to be issued in lieu of cash was $2.5799, which was determined using the volume weighted average price per share of the Fund on December 12, 15 and 16, 2025. Mr. E. Herzfeld received 120,584 shares of common stock of the Fund in connection with the December 2025 Distribution. The Advisory clients received 1,140,165 shares of common stock of the Fund in connection with the December 2025 Distribution.
(d)	The owner of each of the Accounts individually has the right to receive and the power to direct the receipt of dividends from, or proceeds from the sale of, the shares of common stock. To date no owner of an Account holds more than 5% of the Issuer's common shares.
(e)	Not applicable.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Erik M. Herzfeld, et al.

Signature:	/s/ Erik M. Herzfeld
Name/Title:	Erik M. Herzfeld, President
Date:	01/08/2026

FAQ

What ownership stake does Erik M. Herzfeld report in HERZ?

Erik M. Herzfeld and advisory clients report beneficial ownership of 7,394,580 shares of Herzfeld Credit Income Fund, Inc., representing 37.85% of the 19,483,671 shares outstanding as of December 30, 2025.

How many HERZ shares does Herzfeld control directly versus through clients?

He reports 714,113 shares of common stock with sole voting and dispositive power, and 6,680,467 shares with shared voting and/or dispositive power through advisory client accounts.

What distribution did Herzfeld Credit Income Fund (HERZ) pay in December 2025?

On December 30, 2025, the fund paid a distribution of $0.6867 per share, with up to 20% of the total distribution in cash and approximately 80% in common stock, priced at $2.5799 per share.

How many HERZ shares did Erik M. Herzfeld and advisory clients receive in the December 2025 distribution?

In the December 2025 distribution, Erik M. Herzfeld received 120,584 shares of common stock, and the advisory clients received 1,140,165 shares of common stock.

What recent trading activity by advisory clients is disclosed for HERZ?

Advisory clients sold HERZ shares in open market transactions: 8,308 shares at $2.60 on December 24, 2025; 42,346 shares at $2.7619 on December 30, 2025; 11,237 shares at $2.2117 on January 2, 2026; 38,866 shares at $2.0806 on January 5, 2026; and 22,617 shares at $1.9612 on January 7, 2026.

Do any individual advisory client accounts hold more than 5% of HERZ shares?

No. The report states that to date no owner of an advisory client account holds more than 5% of the issuer’s common shares.

How was the stock price determined for the HERZ stock distribution?

The price per share of $2.5799 used to calculate shares issued instead of cash was based on the volume weighted average price of the fund’s shares on December 12, 15 and 16, 2025.