NexPoint Credit Strategies Fund Completes Spin-Off of NexPoint Residential Trust, Inc.

NexPoint Credit Strategies Fund (NYSE: NHF) ("NHF") announced today that it completed its previously announced spin-off of NexPoint Residential Trust, Inc. (NYSE: NXRT) ("NXRT"). Starting tomorrow, April 1, 2015, NXRT will trade on the New York Stock Exchange ("NYSE") under the ticker symbol "NXRT," and NHF’s common shares will continue to trade on the NYSE under the ticker symbol "NHF."

Following the spin-off, NXRT will be an independent publicly traded real estate investment trust that will focus on acquiring, owning, operating and selectively developing multifamily properties. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., the adviser for NHF, and Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment advisor which, together with its affiliates, has approximately $20.2 billion in assets under management as of January 31, 2015. NexPoint Real Estate Advisors, L.P. will conduct substantially all of NXRT’s operations and manage NXRT’s real estate investments. The members of the management team of NexPoint Real Estate Advisors, L.P. are James Dondero, Brian Mitts, Matt McGraner, Matthew Goetz and Scott Ellington. The management team has significant experience across real estate investing, private lending, and private equity.

NHF completed the spin-off through a pro-rata taxable distribution of NXRT common stock to NHF shareholders of record as of the close of business on March 23, 2015 (the "Record Date"). NHF shareholders received one share of NXRT common stock for every three NHF common shares held on the Record Date. An information statement containing the details of the distribution and the business and management of NXRT following the spin-off can be found on NXRT’s website at www.nexpointliving.com under the Investor Relations section. The information statement is also being mailed to NHF shareholders.

There are approximately 21.3 million shares of NXRT common stock outstanding after the spin-off. The distribution of these shares was made in book-entry form, which means that no physical stock certificates were issued.

The spin-off is taxable for U.S. federal income tax purposes. Thus, the value of the NXRT common stock, as well as any cash received in lieu of fractional shares, will generally be taxable. However, NHF shareholders will only recognize a taxable gain to the extent such gain exceeds NHF’s available capital loss carry-forwards. NHF shareholders should consult their tax advisors with respect to U.S. federal, state, local and foreign tax consequences of the distribution, including, without limitation, the potential imposition of withholding taxes on the distribution of NXRT common stock.

Prior to the spin-off, NHF and NXRT entered into a separation and distribution agreement and various other agreements related to the spin-off, as described in the information statement. Please visit NXRT’s website at www.nexpointliving.com under the Investor Relations section for additional information regarding the spin-off, including links to filings with the SEC.

About NexPoint Credit Strategies Fund

NHF is a closed-end fund managed by NexPoint Advisors, L.P. NHF’s investment objectives are to provide both current income and capital appreciation. NHF is invested primarily in below investment grade debt and equity securities and has the ability to hedge risk. The manager attempts to exceed the return of the Dow Jones Credit Suisse Hedge Fund Index in a transparent, registered fund format with monthly dividends. No assurance can be given that NHF will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of NHF’s shares is determined by a number of factors, several of which are beyond the control of NHF. Therefore, NHF cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results. More information about NHF is available at http://www.nexpointadvisors.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "will” and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the operation of NHF and NXRT following the spin-off. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review NXRT’s final information statement and NXRT’s Form 10 registration statement, filed with the SEC, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, NHF does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release, except as required by law.