NexPoint Credit Strategies Fund Announces a 7% Increase in the Regular Monthly Dividend

NexPoint Credit Strategies Fund (NYSE: NHF) (“NHF” or the “Fund”) today announced an increase to its regular monthly dividend on its common stock. Effective for the May 2013 dividend, the dividend will increase from $0.042 per share to $0.045 per share. The new dividend will be payable on the last business day of May to shareholders of record at the close of business May 28, 2013. As of April 30, 2013, the Trust had estimated undistributed net investment income of approximately $4.0 million (unaudited).

The Fund is a closed-end fund managed by NexPoint Advisors, L.P. (the “Manager”), an affiliated adviser of Highland Capital Management, L.P. The Fund invests primarily in below investment grade debt and equity and has the ability to hedge risk. The Manager attempts to deliver consistent monthly dividends in excess of the DJ Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in a transparent, registered fund format.

Dividend Increase

The increase in the dividend is precipitated by a significant reduction in interest costs and meaningful reduction in non-interest expenses. 5-year notes (the “Notes”) with an annual interest rate of Libor + 1.70% with a 1.00% Libor floor (total interest expense of 2.70%), will be replaced in May with a revolver and margin facility with annual interest rates between one-month Libor + 0.65% and one-month Libor + 0.95%. At the Fund’s historical rate of leverage, the blended total borrowing costs are currently 2.03%, or $4.5 million per year. With the new facilities, the anticipated blended total borrowing costs are expected to be 1.02%, or $2.3 million per year. This represents a 50% reduction in the Fund’s borrowing costs or a savings of $2.2 million per year.

Additionally, the Fund is beginning to realize the savings from switching service providers for administration, custodial and transfer agency services. With these lower expenses, the projected expense ratio is expected to decrease to 1.70% from 2.26%, as reported in the Fund’s annual report dated December 31, 2012. These savings will be paid to shareholders through the increased dividend. Based on the Fund’s current portfolio mix and investment income, coupled with the expense reductions, the Fund believes it will be earning the dividend each month with a cushion. The Manager will continue to monitor the Fund’s income and expenses and recommend additional dividend increases to the Board as appropriate.

Additional Information

Since Jim Dondero began supervising the portfolio manager function in June 2012, the Manager has made a number of changes to the Fund:

• The portfolio was repositioned into higher earning assets
• Non-income generating assets have been reduced with the proceeds redeployed into income generating assets
• Assets classified as Level 3 assets*, which tend to be less liquid and may not pay current income, have been reduced from 25% of the portfolio as of September 30, 2012 to 12% of the portfolio as of April 30, 2013
• The Fund’s stock price is up 34.2% as of April 30, 2013, including reinvested dividends, and is currently trading at a 52-week high
• The Fund’s NAV is up 29.1% as of April 30, 2013, including reinvested dividends
• The expense ratio has been reduced from 2.26% to 1.70% on a run rate basis
• The Fund began publishing its NAV daily in February 2013 versus weekly

Shareholder Loyalty Program

In July 2012, the Manager implemented a unique and creative shareholder loyalty program (the “Program”). The purpose of the Program is to promote shareholder loyalty. The Program is available to all existing shareholders. Existing shareholders that purchase additional shares of NHF through the Program are entitled to a 2% gross-up (the “Gross-up Shares”). The Gross-up Shares are funded by the Manager and are used to purchase shares of NHF to be held in escrow for 12 months. If at the end of the 12 month period the shareholder continues to hold the additional purchased shares, the Gross-up Shares are transferred out of escrow and to the shareholder’s brokerage account. Employees of the Manager, affiliates and non-affiliated shareholders have purchased approximately 2.7 million shares between July 2012 and April 2013. As of April 30, 2013, the Program holds shares valued at $22 million representing approximately 4.2% of the outstanding shares of the Fund.

*Level 3 assets are assets whose valuations are determined using one or more significant inputs or significant value drivers that are unobservable.

The distribution rate is based on an estimation of investment income and does not represent a return of capital. This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund’s distributions that have been declared by the Board. In early 2014, after definitive information is available, the Trust will send shareholders a Form 1099-DIV specifying how the distributions paid by the Fund during the calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, short-term capital gain, long-term capital gain or return of capital).

Total operating expenses as of the most recent fund prospectus are 2.26%. Performance data represents past performance, which does not guarantee future results. Current performance may be higher or lower than the figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. For most recent month-end performance please visit www.nexpointadvisors.com or call 866-351-4440.

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. 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.

Past performance does not guarantee future results.