NexPoint Credit Strategies Fund Announces Rights Offering and Extension of Share Repurchase Program

DALLAS, April 19, 2017 /PRNewswire/ -- NexPoint Credit Strategies Fund (NYSE: NHF) (the "Fund") today announced the commencement of a non-transferable rights offering to purchase additional shares of common stock of the Fund (the "Offering") as the Fund's registration statement has been declared effective by the Securities and Exchange Commission.

The Fund is issuing non-transferable rights ("Rights") to its common shareholders of record as of May 5, 2017 (the "Record Date" and such shareholders, "Record Date Shareholders"). Record Date Shareholders will receive one Right for each common share held on the Record Date. The Rights will entitle the Record Date Shareholders to purchase one new share of common stock for every three Rights held (1 for 3). The Rights will be mailed to Record Date Shareholders approximately two business days after the Record Date.

Record Date Shareholders who fully exercise their Rights will be entitled to subscribe for additional common shares of the Fund that remain unsubscribed as a result of any unexercised Rights by Record Date Shareholders. In addition, the Fund in its sole discretion may elect to issue additional common shares in an amount up to 25% of the common shares issued in the primary subscription.

The subscription price per common share will be determined based upon a formula equal to the lesser of (1) 95% of the reported net asset value on May 24, 2017 (the "Expiration Date"), or (2) 95% of the average of the last reported sales price of the Fund's common shares on the New York Stock Exchange ("NYSE") on the Expiration Date and on each of the four trading days preceding the Expiration Date.

Important Upcoming Dates:

In connection with the Offering, the Board of Trustees of the Fund has approved the extension of the Fund's open-market share repurchase program pursuant to which the Fund may purchase and retire up to $10 million of its stock in open-market transactions (the "Repurchase Program"). The Repurchase Program has been extended for a period of one year from the closing of the Offering. No repurchases will be made during the Offering.

The amount and timing of the repurchases will be at the discretion of the Fund's investment adviser, subject to market conditions and investment considerations. There is no assurance that the Fund will purchase shares at any particular discount levels or in any particular amounts. Any repurchases made under the Repurchase Program would be made on a national securities exchange at the prevailing market price, subject to exchange requirements regarding volume, timing and other limitations under federal securities laws. The share repurchase program seeks to enhance shareholder value by purchasing shares trading at a discount from their net asset value per share.

You should read the prospectus for the Offering, which contains important information about the Fund, before deciding whether to invest, and retain for future reference. The statement of additional information for the Offering has been filed with the U.S. Securities and Exchange Commission.  You may request a free copy of the statement of additional information, request the Fund's most recent annual and semiannual reports or make shareholder inquiries by calling 1-877-665-1287 or by writing to the Fund at 200 Crescent Court, Suite 700, Dallas, Texas 75201.  You may also write AST Fund Solutions, NHF's information agent for the rights offering, at 55 Challenger Road, Suite 201, Ridgefield Park, NJ 07660 or call (877) 283-0323.

Exercising your Rights and investing in the Fund's common shares involves a high degree of risk and may be considered speculative. Before exercising your Rights and investing in the Fund's common shares, you should read the discussion of the material risks of investing in the Fund in the prospectus for the Offering, including the risks of leverage and of investing in below investment grade/high yield securities, in "Principal Risks of the Trust." Certain of these risks are summarized in "Prospectus Summary—Principal Risks of the Trust."  Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing.   Please read the prospectus, located at www.nexpointadvisors.com, carefully before you invest. 

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 Fund's investment adviser attempts to deliver consistent returns in excess of the Dow Jones Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in a transparent, registered fund format consistent with monthly dividends. 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.

MEDIA CONTACT:
Lucy Bannon
lbannon@highlandcapital.com 
+1 972-419-6272

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SOURCE NexPoint Credit Strategies Fund