Herzfeld Credit Income Fund changes dividend reinvestment policy

Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) announced that its Board of Directors approved amendments to the Fund's Dividend Reinvestment Plan on May 8, 2025. The changes will become effective thirty days from the date notice is mailed to shareholders.

The amendments modify the plan to allow the Fund to issue new shares to plan participants regardless of whether the Fund's common stock trades at a premium or discount to the Fund's net asset value. The previous plan required the Fund to purchase shares on the open market when the common stock traded below NAV.

Under the amended plan, the number of shares received when distributions are reinvested will be determined by dividing the distribution amount by 95% of the market price per share at the close of regular trading on the NASDAQ Capital Market on that date. If no sale occurs on the exchange that date, the average between the closing bid and asked quotations will be used.

The Fund stated that the changes align the terms with dividend reinvestment plans of similar funds in the industry. The company encourages shareholders to review the plan to determine whether they wish to remain or become plan participants.

Thomas J. Herzfeld Advisors, Inc., founded in 1984, serves as the Fund's advisor and is an SEC registered investment advisor specializing in closed-end fund investment analysis and account management.

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