NexPoint Credit Strategies Fund Effects Reverse Stock Split

DALLAS, Oct. 7, 2015 /PRNewswire/ — NexPoint Credit Strategies Fund (the “Fund”) (NYSE:  NHF) effected its 1-for-4 reverse stock split of the Fund’s issued and outstanding shares on October 6, 2015.  As a result of the reverse stock split, every 4 outstanding Fund shares (CUSIP # 65340G106) were converted into 1 share (CUSIP # 65340G 205), thereby reducing by a factor of 4 the number of shares outstanding.  Stockholders hold the same percentage of the Fund’s outstanding common stock immediately following the reverse stock split as such stockholder held immediately prior to the reverse stock split, subject to adjustments for fractional shares resulting from the reverse stock split.  Stockholders will be paid cash for any fractional shares resulting from the reverse stock split once the reverse stock split is processed by the Fund’s transfer agent, American Stock Transfer & Trust Company, LLC (“AST”).

Additionally, please note that the Fund’s dividend policy will not change due to the Reverse Stock Split; however, the regular monthly dividend payable on October 30, 2015, of $.06 per pre-split share, will represent $.24 per new share, reflecting the smaller number of shares outstanding post-split.

  • Holders of certificates representing pre-split shares of the Fund’s common stock will receive, upon surrender of their certificates representing such pre-split shares, uncertificated post-split shares of the Fund’s common stock (i.e., a stockholder’s holdings of post-split shares will be reflected only in the Fund’s record books). Although it is not mandatory for holders to exchange their pre-split certificates, stockholders will not be able to trade their shares or to receive any dividends or other distributions until the surrender of the certificates representing such pre-split shares of the Fund’s common stock. Stockholders will receive a Letter of Transmittal with additional information regarding the reverse stock split after the reverse stock split has settled.
  • Shares held in the Fund’s Dividend Reinvestment Program (“DRIP”) will automatically be exchanged into post-split shares. AST will provide investors with additional information about post-split shares with their post exchange DRIP statement. No additional action needs to be taken by DRIP investors to effect the exchange of their DRIP shares.
  • For those shares held in book-entry form, the changes resulting from the reverse stock split will be automatically reflected in the Fund’s record books. This means that an investor’s shares will be credited to an account registered in the investor’s name on the books of the Fund, which are maintained by AST.

Investors who hold Fund shares in street name will be notified of the change in share count by their broker. Please contact AST toll-free at (877) 248-6417 or at (718) 921-8317 if you need to update your address, have any questions, or need further information.

About NexPoint Credit Strategies Fund 

NexPoint Credit Strategies Fund is a closed-end fund managed by NexPoint Advisors, L.P.  The Fund is invested primarily in below investment-grade debt and equity securities and has the ability to hedge risk.  The manager attempts to exceed the return of Dow Jones Credit Suisse Hedge Fund Index in a transparent, registered fund format with monthly dividends.  Effective June 14, 2012, NexPoint Advisors, L.P. became the Fund’s investment adviser and administrator. Prior to June 14, 2012, Highland Capital Management Fund Advisors, L.P. (formerly Pyxis Capital, L.P.) was the Fund’s investment adviser and administrator.  An investment in the Fund is not appropriate for all investors.  No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value.  The price of the Fund’s shares is determined by a number of factors, several of which are beyond the control of the Fund.  Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value.

Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, fees and expenses. For a copy of a prospectus which contains this and other information, please visit our website at www.nexpointfunds.com or call 1-866-351-4440. Please read the fund prospectus carefully before investing.

Past performance does not guarantee future results.

Shareholder services: info@nexpointadvisors.com, (877) 665-1287

SOURCE NexPoint Credit Strategies Fund

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