Closed end fund Priority Income Fund (non traded fund) has sold a new offering of term preferred. These shares were part of an “at the market” offering by the company which was unlisted until they sold at least $10 million worth of shares.
The issue has the highest coupon of all the issues of term preferreds they have outstanding–with this issue they have 4 issues outstanding.
They have sold just over 1 million shares of this issue, but being part of an ongoing “at the market” offering they will be selling more shares.
The new issue is trading under the ticker of PRIF-D and has a coupon of 7%. We show the last trade at $24.94.
The shares have a mandatory redemption date on 6/30.2029 with an early redemption period starting 3/31/2022.
Being a CEF the company has to maintain the 200% asset coverage ratio which is always comforting. The ratio now is over 400%–although last December prior to numerous term preferred offering it was 800%.
The company holds a portfolio of CLOs (similar to Oxford Lane and Eagle Point Credit) which totals $465 million as of 5/30/2019.