Closed end fund Priority Income Fund has registered a new offering of Term Preferred Shares.
The new issue will be PRIF-G, if it is sold. Priority has a habit of registering new issues and then waiting weeks and weeks before consummating the deal. We shall see when this one finally is launched. If it is sold it will trade on the OTC grey market prior to moving to the NYSE.
Priority Income Fund is a Collateralized Loan Obligation (CLO) holder so folks need to try to understand the company a bit before jumping in to this investment.
Priority Income Fund, which is a non traded fund, currently has 6 Term Preferreds outstanding. You can see them here. While the issues had traded weakly previously at this time they are all trading around $25.
As a CEF the company must have a asset coverage ratio of at least 200%–as of 12/31/2020 the ratio is about 295%. Obviously after this offering the coverage ratio will be reduced somewhat.
The new issue preliminary prospectus can be read here.
Disclosure–I own the PRIF-F 6.625% issue–50% position.