NexPoint Credit Strategies Fund Announces the Regular Monthly Dividend

NexPoint Credit Strategies Fund (NYSE: NHF) (“NHF” or the “Fund”) today announced its regular monthly dividend on its common stock. A dividend of $.050 per share will be payable on the last business day of October to shareholders of record at the close of business October 24, 2013. As of September 30, 2013, the Trust had estimated undistributed net investment income of approximately $8.1 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 returns in excess of the Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in a transparent, registered fund format with consistent monthly dividends.

Fund Earnings

In 2013, the Manager has recommended, and the board has approved, three dividend increases totaling 43%. The increases have been driven by increased earnings on portfolio positions and lower costs, particularly a decrease in the cost of its leverage facility. Prior to recommending increases in the dividend to the board, the Manager carefully analyzed each position in the Fund and its long-term earning potential as well as the Fund’s expense run rate. We feel confident the Fund can earn an amount that will sustain the current distribution rate. Below is a pro-forma calculation of the Fund’s anticipated earnings over the next twelve months based on the earnings as of September 30, 2013, and removing any one-time income and expense items:

Additionally, the Fund had an estimated undistributed net income (“UNI”) balance as of September 30, 2013 of $8.1 million (unaudited). This means the Fund has an accumulated excess of income earned historically versus dividends paid that it can utilize to maintain a steady $.05 per share monthly dividend in the event net income is lower than expected. It is anticipated dividends in the near-term will be covered by the net investment income earned by the Fund, meaning these dividends will not represent a return of capital.

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, and 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 and affiliates are entitled to a larger gross-up than unaffiliated shareholders. As of September 30, 2013, the Program holds shares valued at $39 million representing approximately 7.9% of the outstanding shares of the Fund.

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.

The information in this presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes" and words and terms of similar substance in connection with discussions of future operating or financial performance.

These forward-looking statements are based on our current expectations and assumptions regarding the fund’s portfolio and performance, the economy and other future conditions and forecasts of future events, circumstances and results. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances. The fund’s actual results may vary materially from those expressed or implied in its forward-looking statements.

Investors should consider the investment objectives, risks, charges and expenses of the NexPoint Credit Strategies Fund carefully before investing. This and other information can be found in the Fund's prospectuses, which may be obtained by calling 1-866-351-4440 or visiting www.nexpointadvisors.com. Please read the prospectus carefully before you invest.

Interest Rate Risk. Interest rate risk is the risk that debt securities, and the Trust’s net assets, may decline in value because of changes in interest rates. Generally, fixed rate debt securities will decrease in value when interest rates rise and increase in value when interest rates decline.

Leverage Risk. The Fund uses leverage through borrowings from notes and a credit facility, and may also use leverage through the issuances of preferred shares. The use of leverage magnifies both the favorable and unfavorable effects of price movements in the investments made by the Fund. Insofar as the Fund employs leverage in its investment operations, the Fund will be subject to substantial risks of loss.

Credit Risk. Investments rated below investment grade are commonly referred to as high-yield, high risk or “junk debt.” They are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and/or interest payments.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser’s assessment of their value or the amount originally paid for such investments by the Fund.

About NexPoint Credit Strategies Fund

NexPoint Credit Strategies Fund is a closed-end fund managed by NexPoint Advisors, L.P. The Fund’s investment objectives are to provide both current income and capital appreciation. 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.