Priority Income Fund Sells Term Preferred

Because of our continuing crushing workload we haven’t been able to always catch new issues.

Fortunately readers can catch them (they always do).  Reader Jon notified us on a new Term Preferred with a mandatory redemption in 2025.

Closed end fund Priority Income Fund has sold the new issue and it has a coupon of 6.375%.. The issue is trading on the OTC market right now under ticker PIFNP and last priced at $24.55.

Note that the Priority Income Fund is not publicly traded.  This is the second term preferred from a non publicly trade fund–the other being the issue from RiverNorth.

While we don’t have time to do due diligence at this moment we may be a buyer of this issue later in the week.

The SEC document can be found here.

13 thoughts on “Priority Income Fund Sells Term Preferred”

  1. The new Enstar preferred is doing well, I should have taken a 2x position.

  2. Here us what is really amazing and beyond frightening. From their website “Priority Income Fund seeks to generate current income and long-term capital appreciation by strategically investing in broad pools of senior secured, floating rate loans made primarily to U.S. companies.”

    So they are in a very close related business of investing in similar investments to what they are offering to the preferred market. They come to market with a 6.375% coupon? This is what they consider to be an appropriate coupon for the risk of investing in their firm in the current marketplace. This dog doesn’t hunt.

    1. Reviewed the link article, and after the above comments, have decided to take a pass on this one.

      Plus, I have been hurt in the past by Prospect from its PSEC security. Best not to go toward the fire again, lol.

      This one is for those with strong cojones.

  3. thanks Bobe in DE… that is scary and looks to be a poorly managed fund.

    1. Thanks for the link, Bob in DE. I’m going to pass on this preferred stock issue. It’s very difficult for anyone to really understand the loans in the fund and their true value – especially if we are hit with another recession.

  4. Was at 24.40 but fidelity wont allow trade since it is on gray market and company hasnt filed official paperwork , once paperwork filed in will trade on OTC

  5. Tim, I took a quick look at the SEC filings and the fund does not appear to have any leverage, until this new preferred became available. However, I’m not sure if I am a fan of their underlying assets as they are complicated to value.

    1. kaptain lou–yes you are correct as there is no other ‘senior securities’ so the entire equity of the company is available to preferred holders.

      I am looking at the article Bob-in-DE linked.

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