Priority Income Fund Releases Annual Report

Closed end fund Priority Income Fund (untraded) has released their annual report after a short delay as they worked to verify processes and procedures relative to valuing their CLO’s (collateralized loan obligations).

PRIF has a gaggle of term preferreds outstanding and they are required to have an asset coverage ration of at least 200%. Their outstanding issues can be seen here.

PRIF uses term preferreds to leverage their portfolio almost exclusively–little debt.

The fund claims assets of about $858 million with total liabilities of $327 million (which includes all of their preferred stock) giving the fund a very respectable asset coverage ratio.

Net asset value per share is $12.04 as of 6/30/2022 which is only 11 cents lower than the previous year.

The report can be seen here.

Disclosure–we own a couple of the term preferred issues.

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