Form 4: Herzfeld Credit Income Fund Portfolio Manager Acquires Shares

Herzfeld Credit Income Fund's Portfolio Manager, Ryan M. Paylor, acquired 14,670 shares of common stock as part of a December 2025 distribution.

Summary

• Ryan M. Paylor, a Portfolio Manager for Herzfeld Credit Income Fund, Inc. (HERZ), acquired 14,670 shares of common stock.
• The acquisition occurred on December 30, 2025, as part of the Fund's December 2025 Distribution.
• The distribution amounted to $0.6867 per share owned by stockholders as of the payment date.
• Stockholders had the option to receive the distribution in cash or shares of common stock.
• The total cash distributed to all stockholders was 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 was $2.5799, based on the volume weighted average price on December 12, 15, and 16, 2025.
• Following this transaction, Ryan M. Paylor beneficially owns 61,493 shares of common stock.
• The reported number of shares received is an estimate, and an amended Form 4 may be filed if the final allocation differs.

Sentiment

Score: 6

Explanation: The filing reports a routine insider transaction resulting from a distribution, which is generally neutral. The acquisition of shares by a portfolio manager, even through a distribution, can be viewed as a minor positive for alignment of interests.

Positives

• A Portfolio Manager increasing their beneficial ownership, even through a distribution, can signal alignment with shareholder interests.

Future Outlook

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

Management Comments

• Mr. R. Paylor received 14,670 shares of common stock of the Fund in connection with the December 2025 Distribution.
• The amount reported represents the estimate number of shares to be received by the reporting person 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.

Industry Context

This Form 4 reports a routine insider transaction related to a distribution by a closed-end fund. Distributions, often with cash/stock options, are a common practice for such funds to return value to shareholders.

Related Party Transactions

• The distribution of common stock to Ryan M. Paylor, a Portfolio Manager of the Fund, constitutes a related party transaction as he is an insider.

Stakeholder Impact

• Shareholders received a distribution of $0.6867 per share, with the option to receive cash or common stock, impacting their holdings and potential liquidity.

Next Steps

• An amended Form 4 may be filed if the final allocation of shares to the reporting person differs from the current estimate.

Key Dates

Recommendation

This Form 4 reports a routine insider transaction related to a pre-announced distribution. It does not contain new fundamental information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. It is an informational filing regarding a planned event.

Keywords

Herzfeld Credit Income Fund, HERZ, Ryan M. Paylor, Form 4, Insider Transaction, Stock Distribution, Beneficial Ownership, Portfolio Manager