Traders should monitor the trading price of the rights (DHY RT) and the final subscription price determination on May 14, 2026. The offering creates a dilution risk for non-participating shareholders, but the ability to sell rights provides partial compensation. The impact on the fund's leverage ratio and expense ratio should be evaluated post-offering.
Price Chart
Executive Summary
Credit Suisse High Yield Credit Fund (DHY) is conducting a rights offering, issuing 34.5 million new shares at a discount to current net asset value. Shareholders receive transferable rights to buy shares at a price below market, but non-participation leads to ownership dilution. The offering proceeds will be used to invest in senior loans and CLOs, with a 3.75% dealer manager fee and $820k in estimated expenses.
Key Facts
- DHY is issuing 34,536,541 new shares via transferable rights, representing a 33.33% increase in shares outstanding
- Subscription price will be 92.5% of the average market price over the 5 days ending May 14, 2026, or 86% of NAV if lower
- Estimated subscription price is $1.75, with $57.35 million in net proceeds expected
- Non-participating shareholders will experience ownership dilution and NAV reduction
- Dealer Manager (UBS Securities) will receive a 3.75% fee on proceeds, totaling $2.27 million
- The Fund anticipates investing proceeds in senior loans and CLOs to take advantage of high yield credit opportunities
Financial Impact
$57.35 million in net proceeds, $2.27 million in dealer fees, $820k in offering expenses
Risk Factors
- Substantial dilution of NAV for all shareholders, even those who exercise rights
- Market risk that subscription price could exceed market price on expiration date
- Uncertainty about final subscription price until May 14, 2026
Market Snapshot
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001193125-26-167236 |
| Document: 0001193125-26-167236-index-headers.html | 0001193125-26-167236 |
| Document: 0001193125-26-167236-index.html | 0001193125-26-167236 |
| Document: 0001193125-26-167236.txt | 0001193125-26-167236 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 20d ago | SC 13G/A | $15.96 | awaiting T+20 | — | $16.37 (+2.57%) |
Apr 21, 2026 27w ago | 424B5 | $1.80 $1.77 | ▼ −1.86% | ▼ −5.02% | $16.37 (+807.68%) |
Apr 3, 2026 29w ago | EFFECT | $1.86 $1.76 | ▼ −5.22% | ▼ −14.21% | $16.37 (+781.53%) |
US Market Status
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