Herzfeld Credit Income Fund, Inc. Announces Final Tender Offer Results
MWN-AI** Summary
On October 21, 2025, Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) announced the results of its recently concluded cash tender offer to buy back up to 5% of its outstanding common shares at 97.5% of its net asset value (NAV) per share. The offer, which expired on October 15, 2025, saw an overwhelming response, with shareholders tendering a total of 11,603,885 shares, significantly exceeding the available share limit of 845,433 shares set by the Fund.
As a result of the tender offer, the Fund will repurchase the maximum number of shares, with a proration factor established at 7.2858%. This means that shareholders who tendered their shares will receive payment for approximately 7.29% of the total shares they submitted. The purchase price for the properly tendered shares is set at $2.5935 per share, based on the NAV calculated at the close of trading on the expiration date. After completing this transaction, the total number of outstanding common shares will decrease to 16,063,219.
The tender offer was managed by EQ Fund Solutions, LLC, which acted as the information agent for the process. In light of shareholder interest and the dynamics of the closed-end fund space, the offer provides a liquidity option for investors while addressing the trading of the Fund’s shares, which can often occur at a discount to their NAV.
Investors are reminded of the inherent risks associated with investments in closed-end funds, including market risks and the potential for shares to trade below their NAV. Shareholders are encouraged to read the Fund’s disclosure documents and consider all investment risks before proceeding.
MWN-AI** Analysis
The recent announcement by Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) regarding the final results of its cash tender offer provides valuable insights for current and prospective investors. The fund's decision to buy back up to 5% of its outstanding common shares at 97.5% of its net asset value (NAV) as of October 15, 2025, is interpreted positively, suggesting management's confidence in the value of its assets. However, the tender offer received an overwhelming response, with over 11.6 million shares tendered, leading to a pro-ration factor of only about 7.29%.
This high tendering rate reflects shareholder enthusiasm but also suggests potential liquidity concerns. Post-tender, the fund retains 16,063,219 outstanding shares, which could indicate a decrease in liquidity for investors seeking to enter or exit positions. The market's response to the tender offer might show some volatility; generally, shares can experience price fluctuations when companies execute such buybacks.
Investors should consider that closed-end funds, like HERZ, often trade at a discount to their NAV. Although the tender offer can help to narrow this discount, it does not guarantee a long-term reduction. Market conditions, particularly related to the Underlying CLO investments in which the fund is involved, could adversely affect the fund's performance given the current economic climate.
In summary, existing investors should assess their long-term strategies and consider the potential volatility and discount to NAV. Prospective investors might see this as an opportunity, given the fund’s intrinsic valuation and management’s commitment to enhancing shareholder value. However, caution is warranted due to the inherent risks associated with the fund’s investment profile.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
MIAMI BEACH, Fla., Oct. 21, 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 final 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 final results for the Fund:
| Tender Offer Amount | Shares Properly Tendered | Shares to be Purchased | Pro-Ration Factor* | Purchase Price of Properly Tendered Shares** | Number of Outstanding Common Shares after Giving Effect to Tender Offer |
| Up to 5% or 845,433 shares | 11,603,885 | 845,433 | 7.2858% | $2.5935 | 16,063,219 |
| * The number of common shares to be purchased divided by the number of common shares properly tendered. The pro-ration factor is subject to rounding adjustment to avoid the purchase of fractional shares. ** 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). As indicated above, the Fund will purchase 7.2858% of the common shares properly tendered. The Fund will purchase the common shares accepted for payment as promptly as practicable.
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 exposed 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 factors contributed to the pro-ration factor of 7.2858% for the cash tender offer of Herzfeld Credit Income Fund Inc Com HERZ, considering that 11,603,885 shares were properly tendered?
How does the Fund's purchase price of $2.5935, which is 97.5% of net asset value (NAV), compare to its historical pricing performance in the market for Herzfeld Credit Income Fund Inc Com HERZ?
What are the potential risks and uncertainties that could affect the future performance of Herzfeld Credit Income Fund Inc Com HERZ, especially given its non-diversified investment strategy?
How could the outcome of this tender offer influence shareholder sentiment and the market price of Herzfeld Credit Income Fund Inc Com HERZ moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Herzfeld Credit Income Fund Inc Com (NASDAQ: HERZ).
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