No doubt that non-publicly trade closed end fund Priority Income Fund likes term preferred issues–and they have registered the next new issue.
The last issue sold (PRIF-I) was on 6/15/2021 and that one carried a coupon of 6.125% and it is now trading at $25.51. The proceeds of this issue were used to call the 6.625% PRIF-C issue.
The 6.375% PRIF-A issue is currently redeemable and trading at $25.19.
The registration statement for the next new issue can be read here.
Is this a solid company ?
Is the preferred worthy owning ?
Do you like PSEC, Leo? it’s the same people running this the same way imho only without the common being listed…….. BTW, that’s not an endorsement by any means……..
I do have PSEC but TBO , is PSEC a good company? I don’t do my own research.
Former PSEC investor here. I have PSEC on my “avoid” list for the horrible way they manage shareholder relations. They once sent a letter requesting I contact them about an “urgent matter”, which turned out to be their upcoming board elections. Shortly thereafter, a third party vendor began aggressively calling to ‘remind’ me to submit my proxy. I haven’t been hassled like that since I missed a car payment in college…no thanks.
Historically, PSEC has been a very poorly managed company
I hold this issue, at least for a little while yet. No, not all that solid, but compared to the pure junk like Cadiz that has been floated lately it was worth taking a chance on. Because it is a fund (not publicly traded though), they have to maintain at least 200% asset coverage or they have to redeem the issue, so there is some minor level of protection I guess. And of course that solid BB rating from Egan-Jones makes for a good nights sleep 🙂 I can’t complain though, I bought it in February just under $24, collected two dividends since and may get one more , or at least a partial one. I still hold PRIF-H & PRIF-F.
It is safer than PSEC, isn’t it ?
NEW YORK (S&P Global Ratings) May 20, 2021–S&P Global Ratings today said it assigned its ‘BBB-‘ debt rating to Prospect Capital Corp.’s (PSEC’s) proposed issuance of $300 million in senior unsecured notes due 2026. PSEC expects to use the net proceeds from this offering primarily for the refinancing of existing indebtedness, including but not limited to the redemption of its 2028 notes, which had approximately $70.8 million outstanding as of May 18, 2021, and the repayment of borrowings under its revolving credit facility. Therefore, we view this transaction as leverage neutral.
Why that’s almost as good as having solid BB rating from Egan-Jones … granted comparing senior unsecured rating to a preferred but nevertheless…
Actually PRIF invests in more junk than PSEC but they may be better managed so it’s hard to say which has more risk. They’re not the same.
Boom!
At this rate we might see series AA or A2 ! Around 1% coupon