CEF Priority Income Fund to Sell New Term Preferred

Closed end fund Priority Income Fund is selling a new term preferred.

A few details of the new issue have been released and the issue will have a mandatory redemption in 2023 and they will sell 1 million shares.

The company has another term preferred issue outstanding with a coupon of 6.375% which was sold in June–PRIF-A which can be seen here.  The older issue has a maturity in 2025.  It looks to us like they probably shortened the maturity on the new issue to garner a lower coupon than would be available if they went longer out in maturities.

The preliminary  prospectus can be seen here for the new issue.

10 thoughts on “CEF Priority Income Fund to Sell New Term Preferred”

  1. AA by Egan Jones and brought to you by Landenberg Thalman. Another dreamboat issue!

    Bought very few new issues recently and not really in love with the ones I did buy. Much better value in seasoned issues IMO.

    1. Bob, my preference is for battle tested, time scared, veteran preferreds myself.

          1. Bob and Tim, there just is something comfortable knowing something has paid as long as I have been alive, lol.

    2. Bob another “seasoned issue” many may have forgotten is LANDP. I went back in as a hold issue at 25.40 today (goes exD tomm, monthly payer). I bought 400 shares. It has the short maturity approaching in less than 3 years at 9/2021. If they do not redeem it goes to 9.375% par. A fairly conservative play capital wise. I dont see a redemption soon here even though its past call. November and Dec dividends have been declared already.

      1. Grid, I went back into LANDP on the dip earlier this week. Just so everyone knows this is a monthly paying (.1328125) term dated preferred stock with a maturity date of 9/30/21 and is was callable 9/30/18. Wishing you profitable investing, Nomad

        1. I have been in it since issuance with a slight overweight position–it has been a bit of a ride but I love the maturity date and I am a sucker for monthly pays.

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