A Note on Priority Income Fund

I note there are many questions on calls and mailings that folks are getting from Priority Income Fund. I have gotten the same mailings (just yesterday in fact).

Whether you hold the common OR preferred shares you have 1 vote per share. Unlike most preferreds shares the holders of the PRIF preferreds DO HAVE A VOTE.

Below is from the most recent prospectus.

“Each holder of the Series K Cumulative Preferred Stock is entitled to one vote on each matter submitted to a vote of our stockholders, and the holders of all of our outstanding preferred stock and common stock generally vote together as a single class. The holders of shares of our outstanding preferred stock are entitled to elect two of our directors and, if dividends on any outstanding shares of our preferred stock are in arrears by two years or more, to elect a majority of our directors”

I believe this is what these communications are about–they need a quorum to be able to validate the meeting and vote results. Without a quorum they are unable to transact business.

I have not responded to the mailings–although I would be more than happy to execute a ‘proxy vote’ as I do for all notices I get for the proxy vote website.

6 thoughts on “A Note on Priority Income Fund”

  1. Interesting. I haven’t received any calls but they did send a letter to my home saying that they “tried unsuccessfully to contact you” but I received their letter! They could have just mailed the proxy materials to the same address that they sent the letter to!

    Anyway, I called the 800 number and they emailed me the proxy materials but I haven’t looked at them yet. Looks like they are scrambling for a quorum.

    1. pb4uski–weird–why don’t they mail the proxies the normal way to everyone–I have gotten letters but no proxy.

  2. Glad I brought up the issue here. Good information, and I will not respond to the letter.

    Why are they so persistent about this? Is there not a majority held by insiders and/or other funds as is usual with such issues?

  3. Yes- several calls per day for a couple weeks, but nothing showing up on my Schwab acct or in emails. Talked to them twice- still at it.
    They are overly persistent.

    1. Same on the calls. After the 7th call, I requested they stand down on future calls though their investor relations / compliance department.

Leave a Reply

Your email address will not be published.