SCHEDULE: Herzfeld Group Amends Stake in Credit Income Fund

Erik M. Herzfeld and affiliated entities updated their beneficial ownership in Herzfeld Credit Income Fund, Inc. to 40.3% following a tender offer and open market transactions.

Summary

• Erik M. Herzfeld and affiliated entities (the "Reporting Person") beneficially own 6,473,630 shares of Herzfeld Credit Income Fund, Inc. common stock.
• This represents 40.3% of the 16,063,219 shares outstanding as of December 12, 2025.
• The Reporting Person has sole voting and dispositive power over 593,529 shares and shared power over 5,880,101 shares.
• The Fund completed a cash tender offer to purchase up to 5% (845,433 shares) of its outstanding common stock at 97.5% of Net Asset Value (NAV) as of October 15, 2025.
• The Reporting Person tendered 640,171 shares, of which 46,642 shares were purchased by the Fund at $3.5935 per share due to a pro-rata purchase rate of 7.2858%.
• Advisory clients engaged in various open market transactions between October 23, 2025, and December 12, 2025, involving both purchases and sales of shares.

Sentiment

Score: 5

Explanation: The filing is neutral, primarily reporting factual ownership changes and transaction details. There are no explicit positive or negative statements about the company's performance or future prospects, only the mechanics of a tender offer and open market trading.

Positives

• The Fund successfully completed a tender offer, providing liquidity to participating shareholders.
• The Reporting Person participated in the tender offer, selling a portion of their shares at 97.5% of NAV.

Negatives

• The pro-rata purchase rate of 7.2858% in the tender offer meant the Reporting Person could only sell a small fraction of the shares they tendered.
• Open market sales by Advisory clients occurred at various prices, some lower than the tender offer price.

Future Outlook

NA

Industry Context

This Schedule 13D amendment reflects significant ownership changes by a major shareholder group in a closed-end credit income fund. Such filings are common for activist investors or large institutional holders adjusting their positions, often in response to corporate actions like tender offers or market conditions. The activity indicates active portfolio management by the Herzfeld group within the credit income fund sector.

Stakeholder Impact

• Shareholders: The tender offer provided an opportunity for some shareholders to sell shares at a premium to market price (97.5% of NAV), though on a pro-rata basis. The significant ownership stake of the Herzfeld group (40.3%) indicates a concentrated ownership structure, which could influence future corporate decisions.

Key Dates

Recommendation

This filing is an update on beneficial ownership and recent trading activity by a significant shareholder group. It does not contain new information regarding the company's financial performance, strategic direction, or operational outlook that would warrant a change in investment recommendation. The tender offer and open market transactions reflect routine portfolio management by the reporting person. Investors should hold their position and await further fundamental updates from the company.

Keywords

Herzfeld Credit Income Fund, Schedule 13D, Beneficial Ownership, Tender Offer, Common Stock, Investment Fund, SEC Filing, Shareholder Activity, Closed-End Fund