As noted earlier today by CR the Priority Income Fund 6.625% term preferred (PRIF-F) is to be redeemed on 6/11/2025.
This is another ‘hiding spot’ issue which I had mentioned months and months ago I thought would be called early–mandatory redemption is in 2027. PRIF has been aggressive in calling in their term preferreds and this is the 2nd issue recently that they have called way before mandatory redemption. The other was a 6.25% (PRIF-G) issue redeemed in December.
Everyone that bought this one recently is picking up a nice little capital gain with the call as it has been trading in the $24.50-$24.80 area.
All of their issues can be seen here.
The company SEC filing is here.
Any thoughts on if they will call PRIF-K when eligible next September. It is not a term preferred but has the highest coupon at 7.00%
The Priority Income Fund common class shares (non-preferred) are not publically traded (subject to change based upon their April 25th press release). These common shares (class I, R & RIA) have performed extremely poorly in the past 1 to 3 year period with 25% losses in the last year alone. This has caused the fund to suffer substantial redemptions. The preferred shares have asset coverage ratio covenants and therefore because of the shrinking asset base thay have redeemed some of the preferreds early. Most CLO funds have publically traded common shares and will just use ATM share issuance to keep maintaining/inflating the funds asset base. I suspect once they start trading publically, they will try to raise capital through share issuance to shore up the balance sheet. Therefore this might be the last early redemption for a while, depending on how well received their capital raises are.
Thanks for this input Jack.
PRIF-H has already been called. The next maturity date is for the 6.125% PRIF-I at 6/30/2028.
Thanks NewToThis2015–this old mind ain’t what it used to be.
why is prif-h coming up as an invalid symbol? (both here and on quantum).
-H was previously called last month
Well, that’s not all bad. I wonder about the implications of mine (PRIF-I and J)… I guess they’d be next after “H”, but since they’re in the $23.xx range, it won’t hurt my feelings.
Dumb luck on my part…I tried to sell a small amount of my -F Friday at 24.72 and couldn’t get a bite. And meanwhile, a small amount of my -I is on loan to a short seller, currently getting 23.75% interest. Guess I’ll hold on for a while.