Priority Income Fund to Offer New Term Preferred Offering

Priority Income Fund (non traded) has announced the launch of a new term preferred issue.

Priority Income Fund is a closed end fund which primarily invests in collateralized loan obligations (CLOs) and as such it should be considered somewhat higher risk than the run of the mill closed end fund. DO YOUR DUE DILIGENCE.

The issue has not yet been priced, but will trade under PRIF-F on the NYSE. I believe it will trade on the OTC Grey market to start, but the ticker is not yet known.

The announcement can be found here.

The updated registration statement for the issue can be read here.

The company already has 5 term preferred outstanding which can be seen here.

Disclosure–I own some of the PRIF-D 7% term preferred.

13 thoughts on “Priority Income Fund to Offer New Term Preferred Offering”

  1. Expected Deal Size: $25mm+
    Managers: Incaptial, Ladenburg
    Stated Maturity: 6/30/2027
    Priced Talk 6.50% – 6.625%
    Ratings: Non Rated (Other outstanding PRIF Pref Debt BBB- Egan Jones)
    Interest: Quarterly
    QDI/DRD Eligible: NO/NO
    Redemption: Non-Callable 3 year

  2. Any early guidance on pricing? I hope I don’t need to make a swap out of my PRIF-E because liquidity is very poor.

    OXCPP still languishing around 24.75, so I’m guessing the coupon on the new PRIF will be at or above PRIF-E. Given the 2027 redemption date, I’d guess 6.5%.

    Also, any idea when their year end report comes out with updated NAV and preferred coverage numbers?

    Looks like they’ve also added a $10M term loan/facility and $10M in 2035 notes.

    1. Landlord–the NAV is 12.87 as of 1/31/2020 (their estimate). Right now they estimate that after the F issue (assumed to be 1 million shares) coverage will be around 292%.

      1. Thanks, Tim. Was the updated NAV and coverage somewhere in the documents you linked?

        1. Not a fan of these, but have no problem squeezing a 40 cent hit and run job on this PRIF issue too if I get a chance.

            1. Hey Nomad, So do you think they are toughening up their legendary soft ratings? I noticed they had the new Rily BB as triple B. I didnt know Egan had a rating below A, so maybe they are tired of being a running joke. But if they havent changed I would hate to know what the real rating is then, ha.

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