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 of $.06 per share. The dividend will be payable on the last business day of December to shareholders of record at the close of business December 24, 2014. As of November 30, 2014, the Fund had estimated undistributed net investment income (“UNI”) of approximately $18.4 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 2014, the Manager has recommended, and the board has approved, two dividend increases totaling 17%. The increases were driven by increased earnings on portfolio positions. 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. Below is the Fund’s annualized earnings rate as of November 30, 2014, excluding any one-time income and expense items:

Additionally, the Fund had an estimated undistributed net investment income (“UNI”) balance as of November 30, 2014 of $18.4 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 $.06 per share monthly dividend in the event net investment 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.

In 2013, the Fund’s NAV increased 61.9%, inclusive of dividends, from $7.44 per share on December 31, 2012 to $11.33 per share on December 31, 2013. During the year, the dividend was increased three times for a total increase of 43% from a monthly dividend of $.035 per share to $.05 per share. The Fund finished the year as the best performing closed-end fund of 2013.¹ Additionally, as of December 31, 2013, the fund had $461 million of capital loss carryforwards available to shield capital gains.

On September 29, 2014, NHF announced that the board approved the spin-off of NexPoint Residential Trust (“NXRT”) and plans to list it on the New York Stock Exchange under the ticker NXRT once the spin-off is completed.² Although the board of NXRT will set the dividend policy, we believe NXRT will have approximately $0.30 per share of original NHF shares of annual income available for distribution. Additionally, management believes NHF can maintain its current $0.72 per share of annual distributions. In other words, management believes NHF can maintain the same dividend on a lower NAV base, effectively increasing the yield.

Total operating expenses as of the most recent fund annual report are 1.98%. 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.

(1) Source: Morningstar as of 12/31/2013 among 623 US closed-end funds.

(2) Upon the occurrence of the spin-off, NHF will distribute 100% of the shares of NXRT to NHF holders of record as of a date to be determined.

Interest Rate Risk. Interest rate risk is the risk that debt securities, and the Fund’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.