Priority Income Fund Term Preferred Trading

The new issue from CEF Priority Income Fund is now trading.  The ticker is PRIF-B and the issue carries a coupon of 6.25%.

The new issue is trading at a current price of $24.22 for a current yield of 6.45% and the issue has a mandatory redemption in December, 2023.

The CEF has an older 6.375% issue (PRIF-A) trading and it is at $24.68.  This issue matures in June, 2025.

Priority Income Fund is a non traded Closed End Fund and has a history that has been fairly marginal.  The preferred shares do have to have the 200% asset coverage ratio which helps lend some safety to the issue in spite of the marginal financials.

The prospectus can be found here.

20 thoughts on “Priority Income Fund Term Preferred Trading”

  1. Grid–no I am not. Being a non traded CEF the info is too sparse to follow. I suspect it will be ok long term but I don’t want to be involved.

  2. Hartford with new offering…..

    The Hartford Financial Services Group, Inc.
    Each of the depositary shares offered hereby (the “Depositary Shares”) represents a 1/1,000th interest in a share of % Non-Cumulative Preferred Stock, Series G, $25,000 liquidation
    preference per share (equivalent to $25.00 per Depositary Share) (the “Series G Preferred Stock”) of The Hartford Financial Services Group, Inc., deposited with Computershare Inc. and Computershare
    Trust Company, N.A., collectively, as depositary (the “Depositary”). The Depositary Shares are evidenced by depositary receipts. As a holder of Depositary Shares, you are entitled to a proportional
    fractional interest in all rights and preferences of the Series G Preferred Stock (including dividend, voting, redemption and liquidation rights). You must exercise these rights through the Depositary.
    We will pay dividends on the Series G Preferred Stock only when, as and if declared by our board of directors (or a duly authorized committee of the board), out of funds legally available for the
    payment of dividends. Any such dividends will be payable on a non-cumulative basis from the date of original issue, quarterly in arrears on the 15th day of February, May, August and November of each
    year, commencing on February 15, 2019. Payment of dividends on the Series G Preferred Stock is subject to certain restrictions as described elsewhere in this prospectus supplement, or in the documents
    incorporated by reference herein. Distributions will be made in respect of the Depositary Shares if and to the extent dividends are paid on the Series G Preferred Stock.
    Dividends on the Series G Preferred Stock will not be cumulative and will not be mandatory. Accordingly, if dividends are not declared on the Series G Preferred Stock for any dividend period, then
    any accrued dividends for that dividend period shall cease to accrue and be payable. If our board of directors (or a duly authorized committee of the board) has not declared a dividend before the dividend
    payment date for any dividend period, we will have no obligation to pay dividends accrued fo

  3. Hartford….. continued

    Dividends on the Series G Preferred Stock will not be cumulative and will not be mandatory. Accordingly, if dividends are not declared on the Series G Preferred Stock for any dividend period, then
    any accrued dividends for that dividend period shall cease to accrue and be payable. If our board of directors (or a duly authorized committee of the board) has not declared a dividend before the dividend
    payment date for any dividend period, we will have no obligation to pay dividends accrued for such dividend period on or after the dividend payment date for that dividend period, whether or not
    dividends on the Series G Preferred Stock are declared for any future dividend period.
    We may, at our option, redeem the Series G Preferred Stock, (a) in whole but not in part, at any time prior to November 15, 2023, within 90 days after the occurrence of a “rating agency event” (as
    defined herein), at a redemption price equal to $25,500 per share of Series G Preferred Stock (equivalent to $25.50 per Depositary Share), plus an amount equal to any accrued and unpaid dividends per
    share that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date and (b)(i) in whole but not in part, at any time prior to November 15,
    2023, within 90 days after the occurrence of a “regulatory capital event” (as defined herein), or (ii) in whole or in part, from time to time, on or after November 15, 2023, in each case (under clause (i) and
    (ii)), at a redemption price equal to $25,000 per share of Series G Preferred Stock (equivalent to $25.00 per Depositary Share), plus an amount equal to any accrued and unpaid dividends per share that
    have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. See “Description of the Series G Preferred Stock —Optional Redemption”. If we
    redeem the Series G Preferred Stock, the Depositary will redeem a proportionate number of Depositary Shares. Neither you, as a holder of Depositary Shares, nor the Depositary will have the right to
    require the redemption or repurchase of the Series G Preferred Stock or the Depositary Shares.

      1. Tim, I posting only because you enjoy goofy stuff like this, lol. After 4 years of chasing, I caught one of the oddest fish on the hook ever.
        I got it in two small transactions totaling 800 shares. So blended together it is an 8.08% yield bank QDI non cum preferred stock. The bank has been around since 1901, and basically the insiders own most of the common stock. The common bank stock trades for $3540 a share and averages 9 shares traded daily. So you know what this bank is. A public bank meant to serve in a private manner. I wont even mention tickers even after studying for a few years, as I dont really know what I got, other than it pays and pays, even through the bank crisis. In fact they “helped” the Feds by absorbing one of the nearby banks during the crisis at very favorable terms for themselves. Solidly profitable bank but trades on OTC and they clearly dont want to be bothered. In fact on their website they stated if you want to buy any common or preferred one would better off contacting an owner of them directly. All while not providing any contact names either, lol.
        I got mine online but it has only traded a few times in several years I could track. Vanguard lists it as a 7.5% issue, if that can be trusted, I bought it comfortably under par. I wanted a few more, but they started playing pricing games with me, so I packed it in. I doubt I need more anyways as I will have to treat it as an annuity anyways.

        1. Im impressed with Kaptain Lou… He correctly decoded the clues and correctly guessed what it was..Kuddos to him…While digging more he correctly determined it was a $10 par, (9% par yield) and Vanguard was wrong (no surprise there). The company bought some of the preferred back in open market at $11.25 in 2004 and specifically said so. So this means it was issued at least in 1990s if not earlier and is either never going to be redeemed or is uncallable. The common stock was $425 in 2004 and now its over $3500…

          1. Grid, you left too many clues for a guy that has been buying preferred stocks for 20 years. There are not many of us, but Lieutenant Columbo was able to track this one down in about 20 minutes and then dig into the deeper details.

            As always, your comments and thoughts on fixed income securities on this board are always appreciated. Tim has done a wonderful job bringing some us “fixed income junkies” together on the board.

            1. It kind of is a disease…I studied financials for a few years lurking on it waiting to find and remember to find any shares. But after I buy I tend to dig into the history. The history of this bank is long and interesting. The preferred itself is still a bit of a mystery outside of the standard features such as payment and priority. It definitely is a convertible but what triggers it? I have gone back to 1998 now and the issue was there then. The stock has went from under $400 to over $5000. If that doesnt trigger a conversion and after over 20 years, I sure as hell give up trying to figure out what would trigger the action. Maybe I will ecentually find out that 1 share of the preferred converts into 1.2 common shares (like CNIGP) at owners option, lol…

          1. But Dave, that is 30 minutes of your life you will never get back! :)….Dont worry, I am wasting way more time. I can determine it was trading in the 1980s now, along with its sister which is basically all owned by insiders and a significantly smaller float too. But some times it has said convertible and in other years its labeled as just a straight preferred. Havent been able to determine if its officially callable or perpetual non callable.
            Bank went “Dark” on purpose about a dozen years ago. But filings are easily found on company website and report filings to Federal Reserve.

          2. Dave it took some work, but I have about put this baby to bed and tucked away for good. It was issued in 1987 and was convertable for first 5 years, and that expired in 1992. It has a $10 liquidation value, but no redeemable or call date. The sister issue that you noticed I am sure have identical terms. This one will have to be clawed from my cold dead hands along with FIISO… lol…

  4. Tim and Crew, on another tangent, just curious if anyone has any insight into Global Ship Lease and it’s GSL-B preferred, which peaked this a.m. c. 23.50?
    I had picked up small positions in several accounts a week or two ago and bailed at at the high (dumb luck) but left a couple of stub holdings behind. The common seems to have peaked and reverted as well today. Does anyone have any insight?

    1. D – I have played shipping sector preferreds in the past and GSL-B is on my “do not touch at any price list.” I’m not sure how the deal with Poseidon Containers will work, but there are better shipping companies out there now if you want to play this risky sector.

        1. D – if you really want to play the risky shipping sector, then I would go with CMRE-E shares. I’m out of the shipping sector right now, but have 50 of those shares left in one of my retirement accounts. Not really sure why I kept the 50 shares, but if they tank into the upper teens then I may purchase more. It’s a tough business, but someone has to move the goods.

          1. Right, I re-established a small position in it recently, also will add modestly if it plunges. Thank you very much for your suggestion, I appreciate the back and forth in these comments very much, very educational. D

  5. Speaking of preferred share risk…Gastar Exploration (GST), a US based independent energy company, has filed for chapter 11 reorganization subject to a restructuring support agreement (RSA) with its largest creditor and shareholder Ares Management.

    Anyone interested in how preferred shares get treated in bankruptcy should read this story. https://www.prnewswire.com/news-releases/gastar-announces-comprehensive-restructuring-plan-to-be-implemented-with-pre-packaged-chapter-11-cases-300738998.html

    1. This is a hot poker up the old wazoo. I don’t own the common or the preferred but if I did I’d be objecting.

      But this is a good object lesson. If you don’t have a seat at the table you get offered nothing.

      As a general rule it is easier to screw over the preferred than any other equity or debt holder.

      1. I dont buy seriously financially stressed company preferred. It is just easier to assume in reorganization preferreds will get zilch, so I stay away. Gastar sent distressed signals for a long time.

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