HCF Nexpoint Credit Strategies Fund

NexPoint Credit Strategies Fund (the “Trust”) (NYSE: HCF) today announced that its Board of Trustees (the “Board”) has declared a regular distribution on its common stock, for July 2012, of $0.035 per share, payable on the last business day of the month to holders of record at the close of business July 20, 2012.

As of June 30, 2012, the Trust had estimated undistributed net investment income of approximately $5.0 million (unaudited).

The following are annualized historical distribution rate calculations based on the total declared distribution for the month, the Trust’s net asset value (“NAV”) at month-end and the Trust’s month-end closing price (“Market Price”).

Month-End Distribution Rates         Annualized Payment Date   Amount     NAV  

Market Price

  Ordinary     ST Cap Gain     LT Cap Gain     Total       June 30, 2012 $ 0.0350     $ —     $ —     $ 0.0350 6.03 % 6.69 % May 31, 2012 $ 0.0350 $ — $ — $ 0.0350 6.12 % 6.82 % April 30, 2012 $ 0.0350 $ — $ — $ 0.0350 5.87 % 6.67 % March 31, 2012 $ 0.0350 $ — $ — $ 0.0350 5.97 % 6.62 % February 29, 2012 $ 0.0350 $ — $ — $ 0.0350 5.85 % 6.64 % January 31, 2012 $ 0.0400 $ — $ — $ 0.0400 6.77 % 7.64 % December 31, 2011 $ 0.0400 $ — $ — $ 0.0400 6.89 % 7.77 % November 30, 2011 $ 0.0400 $ — $ — $ 0.0400 6.85 % 7.62 % October 31, 2011 $ 0.0400 $ — $ — $ 0.0400 6.80 % 7.59 % September 30, 2011 $ 0.0400 $ — $ — $ 0.0400 6.96 % 7.74 % August 31, 2011 $ 0.0400 $ — $ — $ 0.0400 6.77 % 7.23 % July 31, 2011 $ 0.0400 $ — $ — $ 0.0400 6.36 % 6.62 %  

Distribution rates are calculated by annualizing the distribution declared during the period and then dividing the resulting annualized distribution by the month-end NAV (in the case of NAV) or the month-end closing price (in the case of Market Price). The distribution rate is based on an estimation of investment income and may or may not include a return of capital. The distribution rate is based solely on actual distributions, which are made at the discretion of the Board.

This press release is not for tax reporting purposes but is being provided to announce the amount of the Trust’s distributions that have been declared by the Board. In early 2013, after definitive information is available, the Trust will send shareholders a Form 1099-DIV specifying how the distributions paid by the Trust during the calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, short-term capital gain, long-term capital gain or return of capital).

About NexPoint Credit Strategies Fund

The Fund is a non-diversified, closed-end management investment company. The Fund’s investment objectives are to provide both current income and capital appreciation. The Fund seeks to primarily invest in secured and unsecured floating and fixed rate loans, bonds and other debt obligations, debt obligations of stressed, distressed and bankrupt issuers, structured products and equities. Within the categories of obligations and securities in which the Fund invests, the investment adviser employs various trading strategies, including capital structure arbitrage, pair trades and shorting. NexPoint Advisors, L.P. has served as the Fund’s investment adviser since June 11th, 2012 and is an affiliate of Pyxis Capital, L.P., the Fund’s investment adviser from December 15th, 2011 to June 8th, 2012 and Highland Capital Management, L.P., the Fund’s investment adviser from inception in 2006 to December 14th, 2011. The Fund’s shares are listed on the NYSE under the symbol “HCF”. 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.