Closed end fund Priority Income Fund, (a non traded fund), will attempt again to sell a new term preferred issue. This issue will have a mandatory redemption in 2024.
As you may recall Priority tried to sell this issue back in November/December and with the turmoil in the marketplace they were unable to round up demand for the issue.
The company has 2 issues already outstanding.
The PRIF-A issue has a coupon of 6.375% and trades today around $24.60 as it has dropped on the announcement of a new issue–it had been trading around $25. This issue has a mandatory redemption in 2025.
The PRIF-B issue has a coupon of 6.25% and trades today around $24.50 after dropping based on the new issue–it had been trading around $24.90. This issue has a mandatory redemption in 2023.
Priority, being a closed end fund, is required to maintain a 200% coverage ratio on their senior securities. The last time we calculated the coverage ratio they were at 900%.