SCHEDULE: Herzfeld Fund Ownership Update: Thomas Herzfeld's Stake at 44.19%

Thomas J. Herzfeld and affiliated entities reported beneficial ownership of 44.19% of Herzfeld Credit Income Fund, Inc. common stock following a December 2025 distribution.

Summary

• Thomas J. Herzfeld, et al. beneficially own 8,609,180 shares of Herzfeld Credit Income Fund, Inc. common stock.
• This ownership represents 44.19% of the 19,483,671 shares outstanding as of December 30, 2025.
• The reported amount includes an estimated number of shares to be received from a cash or stock distribution announced on December 30, 2025.
• The December 2025 Distribution was $0.6867 per share, paid in cash or stock at stockholder election, with a 20% cash limit for the total distribution.
• The stock portion of the distribution was valued at $2.5799 per share, based on the volume weighted average price on December 12, 15, and 16, 2025.
• Thomas J. Herzfeld received 313,444 shares, and Advisory clients received 1,140,165 shares from this distribution.
• Advisory clients also sold a total of 106,517 shares in open market transactions between December 22 and December 30, 2025, at prices ranging from $2.5804 to $2.7619.

Sentiment

Score: 5

Explanation: The filing is a routine Schedule 13D amendment reporting changes in beneficial ownership and a distribution. It contains factual information without strong positive or negative sentiment regarding company performance or outlook.

Positives

• The Fund paid a distribution of $0.6867 per share to stockholders, providing immediate value.
• Stockholders had the option to receive the distribution in cash or shares, offering flexibility based on individual preferences.

Negatives

• Advisory clients, affiliated with the reporting person, sold a total of 106,517 shares in open market transactions between December 22 and December 30, 2025.

Risks

• 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.

Future Outlook

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.

Management Comments

• 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.

Industry Context

This Schedule 13D filing reflects a significant beneficial ownership stake by Thomas J. Herzfeld and affiliated entities in Herzfeld Credit Income Fund, Inc., a closed-end fund. Such substantial insider ownership is common in funds bearing the name of their founder, indicating strong alignment of interests between management and shareholders. The reported distribution is a standard practice for closed-end funds to manage their income and capital gains.

Comparison to Industry Standards

• NA

Related Party Transactions

• Thomas J. Herzfeld received 313,444 shares of common stock from the December 2025 Distribution.
• Advisory clients, affiliated with the reporting person, received 1,140,165 shares of common stock from the December 2025 Distribution.
• Advisory clients engaged in open market sales of 106,517 shares between December 22 and December 30, 2025.

Stakeholder Impact

• Shareholders received a distribution of $0.6867 per share, offering immediate value or increased equity.
• The significant beneficial ownership by Thomas J. Herzfeld and affiliated entities may reassure investors of strong insider alignment and commitment to the fund.

Next Steps

• Filing of an amended Form 4 to report the actual number of shares received by the reporting person after final distribution allocations are determined.

Key Dates

Keywords

Herzfeld Credit Income Fund, Schedule 13D, beneficial ownership, common stock, stock distribution, shareholder stake, investment fund, SEC filing