Form 4: Director Acquires HERZ Shares via Distribution

Herzfeld Credit Income Fund director Brigitta Herzfeld acquired 24,821 common shares through a December 2025 distribution.

Summary

• Brigitta Suzanne Herzfeld, a Director of Herzfeld Credit Income Fund, Inc. (HERZ), acquired 24,821 shares of common stock.
• The acquisition occurred on December 30, 2025, as part of a distribution paid by the Fund.
• The Fund paid a distribution of $0.6867 per share to stockholders as of December 30, 2025.
• The distribution was paid in a combination of cash and shares of common stock, with the total cash portion limited to 20% of the total distribution (excluding fractional shares).
• Approximately 80% of the distribution was paid in shares of the Fund's common stock.
• The price per share used to calculate the number of shares issued in lieu of cash was $2.5799, determined by the volume-weighted average price on December 12, 15, and 16, 2025.
• The reported number of shares received by Ms. Herzfeld is an estimate, and an amended Form 4 may be filed if the final allocation differs.

Sentiment

Score: 7

Explanation: The filing reports a distribution to shareholders, which is generally positive. A director receiving shares through this distribution indicates alignment. The 'estimate' nature of the shares received introduces only minor uncertainty.

Positives

• A director receiving shares as part of a distribution indicates alignment of interests with shareholders.
• The distribution provides a return to shareholders, demonstrating the Fund's ability to distribute value.

Negatives

• The reported number of shares received by the director is an estimate, introducing a minor degree of uncertainty until a final allocation is confirmed.

Risks

• 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 a pro-rata limitation, which could affect individual outcomes.
• The reported amount of shares received by the reporting person is an estimate, and an amended Form 4 may be necessary to report the final number of shares.

Future Outlook

An amended Form 4 will be filed if necessary to report the final number of shares actually received by the reporting person once the final allocations are determined, as the current reported amount is an estimate.

Industry Context

This Form 4 reports an insider transaction related to a routine distribution by a closed-end fund. It does not provide broader industry context or trends.

Stakeholder Impact

• Shareholders received a distribution in cash and/or common stock, providing a return on their investment.

Next Steps

• Potential filing of an amended Form 4 to report the final number of shares received by the reporting person once final allocations are determined.

Key Dates

Recommendation

This Form 4 reports a routine distribution where a director received shares. It does not present new fundamental information that would significantly alter the investment thesis for Herzfeld Credit Income Fund, Inc. The transaction is a consequence of a planned corporate action rather than a discretionary open-market purchase or sale, thus warranting a 'hold' as it confirms ongoing operations without indicating a material change in outlook.

Keywords

Herzfeld Credit Income Fund, HERZ, Form 4, insider transaction, director, stock distribution, beneficial ownership, common stock, dividend