Form 4: Director Kay Tatum Boosts HERZ Stake via Stock Distribution

Herzfeld Credit Income Fund Director Kay W. Tatum increased her beneficial ownership by 1,413 shares of common stock through a December 2025 distribution.

Summary

• Kay W. Tatum, a Director of Herzfeld Credit Income Fund, Inc (HERZ), acquired 1,413 shares of common stock.
• The transaction occurred on December 30, 2025, as part of a distribution paid by the Fund.
• The distribution amounted to $0.6867 per share, payable in cash and/or shares of common stock.
• Stockholders could elect to receive cash or shares, with the total cash distributed 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 for the stock distribution was $2.5799, determined by the volume weighted average price (VWAP) on December 12, 15, and 16, 2025.
• Following this transaction, Ms. Tatum beneficially owns a total of 6,722 shares of common stock.
• The reported number of shares is an estimate, and an amended Form 4 may be filed once final allocations are determined.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as a director increasing their stake, even through a distribution, generally indicates continued confidence and alignment with shareholder interests. It is not a direct purchase, but it is not a divestment either.

Positives

• A director increasing their beneficial ownership, even through a distribution, can signal continued alignment of interests with shareholders.

Risks

• The reported number of shares received by the reporting person is an estimate, and the final amount may differ, potentially requiring an amended Form 4 filing.

Future Outlook

An amended Form 4 may be filed to report the exact number of shares actually received by the reporting person once the final allocations of the cash or stock distribution are determined.

Management Comments

• 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 distribution was paid in cash or shares at the election of stockholders, with the total cash distributed limited to 20% of the total distribution.
• The remainder of the distribution (approximately 80%) was paid in 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 a pro-rata limitation.
• The price per share used to calculate the number of shares issued in lieu of cash was $2.5799, determined using the volume weighted average price on December 12, 15, and 16, 2025.
• The amount reported represents the estimated number of shares to be received, and an amended Form 4 will be filed if necessary to report the actual number of shares received.

Industry Context

Form 4 filings are routine disclosures for insiders (directors, officers, and significant shareholders) to report changes in their beneficial ownership of company securities. This specific filing details a director's participation in a company-wide distribution, which is a common event for closed-end funds or companies paying dividends in stock.

Stakeholder Impact

• Shareholders: The distribution mechanism (cash/stock election with pro-rata limits) impacts how shareholders receive their distribution. Increased director ownership can align management interests with those of other shareholders.

Next Steps

• The company may file an amended Form 4 to report the final, exact number of shares received by the reporting person once the distribution allocations are finalized.

Key Dates

Keywords

Herzfeld Credit Income Fund, HERZ, Form 4, Insider Transaction, Stock Distribution, Director Ownership, Beneficial Ownership, Dividend