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 Wednesday, April 29, 2015 NexPoint Advisors
6201 15th Avenue Brooklyn, NY 11219 Shareholder Services: (866) 351‐4440 www.nexpointadvisors.com Notification of Distribution Sources Pursuant to Rule 19a‐1 under the Investment Company Act of 1940 NexPoint Credit Strategies Fund (NYSE: NHF) estimates the spin‐off of NexPoint Residential Trust (NYSE: NXRT) stock on 3/31/15 was comprised of the following sources in the following percentages: Distribution Date ‐ 4/1/15 %1 Net income for the current or preceding fiscal year, and accumulated 33.7%
undistributed net income: Accumulated undistributed net profits from the sale of securities or 0%
other properties: Paid‐in surplus or other capital source: 66.3%
Total: 100.0%
1
The percentages attributed to each category are estimated using historical information because the character of the amounts received by NexPoint Credit Strategies Fund from its investments is unknown until after the end of the calendar year. In the spin‐off, NHF shareholders received one share of NXRT common stock plus cash in lieu of fractional amounts of NXRT stock for every three shares of NHF common stock held as of March 31, 2015 (the “Distribution”). The value of the Distribution is expected to be treated as a taxable dividend to NHF shareholders to the extent of NHF’s earnings and profits. Important Tax Information. Under U.S. tax accounting rules, the amount of distributable income for each fiscal year can only be determined as of the end of the Fund’s fiscal year; therefore, the characteristics of the above distributions likely will be different for tax purposes and shareholders should not use the information provided in this notice for tax reporting purposes. At the beginning of each calendar year, a Form 1099‐DIV will be sent to shareholders that will state the aggregate amount and tax characterization of distributions for the preceding calendar year.