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Credit Suisse High Yield Credit Fund's Board Confirms Reverse Share Split

In an important move aimed at bolstering its stock market appeal and liquidity, the Credit Suisse High Yield Credit Fund (NYSE American: DHY) has announced that its Board of Trustees has approved a 1-for-10 reverse share split of the Fund's common shares. This decision, revealed on August 18, 2026, is set to take effect prior to the market's opening on September 30, 2026, for shareholders of record as of September 29, 2026.

What This Means for Shareholders

A reverse share split is a process that consolidates the number of a company's outstanding shares into fewer, proportionally more valuable shares. In this specific instance, every ten shares that current investors hold will be consolidated into one share, effectively decreasing the total number of outstanding shares while potentially increasing the market price per share by a comparable ratio. The Fund aims to maintain the same percentage of ownership for each shareholder following this adjustment.

Strategic Intent Behind the Split

The trustees, along with the Fund's investment adviser, UBS Asset Management (Americas) LLC, believe that this strategic move could broaden the investor base for the Fund's shares. By enhancing the perceived value of each share, the Fund could mitigate transaction costs that typically accompany buying and selling within the secondary market. Greater liquidity can attract a wider array of potential investors, benefiting the overall market for the Fund's shares.

“An increase in the market price per share can enhance the overall attractiveness of our offerings,” stated a representative from UBS. This highlights a broader strategy not just to stabilize the Fund's market presence, but also to ensure that it draws attention from diverse investment channels.

Details on the New CUSIP Numbers and Trading

As part of this transition, the Fund's shares will continue trading under the existing ticker symbol, DHY. However, there will be a new CUSIP number assigned to reflect the changes post-split. Previously, the CUSIP number was 22544F103, and it will now be updated to 22544F202 following the reverse split.

For those concerned about fractional shares arising from this consolidation, the Fund has made provisions. Any resultant fractional shares will not be issued; instead, these will be aggregated and sold on the NYSE American, with the proceeds distributed pro rata among those shareholders impacted.

No Impact on Total Investments

Crucially, while the number of shares may decrease, the total asset value in each shareholder's account will remain unchanged. The Fund's portfolio and total value for investors will not be adversely impacted by the reverse split, assuring shareholders of stability in their investments.

Implications for Future Investors

The reversal is not merely a cosmetic adjustment; it signifies Credit Suisse's commitment to adapting to market conditions and investor needs. The Board expresses optimism regarding both current and prospective investors, emphasizing their focus on sustaining robust performance benchmarks. They remain forward-thinking about how the financial services landscape evolves and how their funds can adapt in response.

As potential investors engage with this news, they will be looking for assurance in the Fund's management and strategic direction moving forward, which remains pivotal during such transformative periods. The upcoming changes scheduled for late September promise to be a critical step in Credit Suisse's ongoing evolution in the high-yield credit market.

For more information regarding these developments, shareholders can expect communication from Computershare Trust Company, located in N.A., which manages the Fund's transfer aspects.

This strategic maneuver reflects a proactive approach in the financial sector, showcasing how companies can enhance their valuations through innovative changes and deliberate management decisions.