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Priority Income Fund Announces New Term Preferred Offering

CEF (closed end fund) Priority Income Fund (non publicly traded) has announced another issuance of term preferred stock.

Priority Income Fund is a serial issuer of term preferreds, but most recently they have used proceeds to ‘refi’ older issues and this issue is no exception as they plan to call the PRIF-A 6.375% issue.

The registration statement for the new issue is here. The company press release announcing the effective of the statement is here.

PRIF has many term preferred outstanding and they can be found here.

Larry Rodbard was right on top of this new issue and posits yield talk in the 6.00-6.125% area.

3 thoughts on “Priority Income Fund Announces New Term Preferred Offering”

  1. Priced at 6.00%. They’ll redeem PRIF-A on August 11th.

    NEW YORK, Aug 05, 2021 (GLOBE NEWSWIRE via COMTEX) — NEW YORK, Aug. 05, 2021 (GLOBE NEWSWIRE) — Priority Income Fund, Inc. (the “Company”) today announced that it has priced an underwritten public offering of 1,400,000 shares of 6.000% Series J Term Preferred Stock due 2028 (the “Preferred Stock”) at a public offering price of $25 per share, which will result in net proceeds to the Company of approximately $33.7 million after payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 200,000 shares of Preferred Stock to cover overallotments, if any.

    The Company has applied to list the Preferred Stock on the New York Stock Exchange (“NYSE”) under the ticker symbol “PRIFJ”. If the application is approved, trading on the NYSE in the Preferred Stock is expected to begin within 30 days following the issuance date of the Preferred Stock. The Preferred Stock has been assigned a private rating of “BBB-” by Egan-Jones Ratings Co.

    The Company plans to use the net proceeds from the offering of the Preferred Stock to redeem all of the Company’s existing Series A Term Preferred Stock, to acquire investments in accordance with its investment objective and strategies, and for general working capital purposes. The Company will redeem all 1,468,265 shares of Series A Term Preferred Stock on August 11, 2021 for a redemption price of $25 per share of Series A Term Preferred Stock, plus the accrued but unpaid dividends per share of Series A Term Preferred Stock from June 30, 2021, to but excluding, August 11, 2021.

    The offering is expected to close on August 10, 2021, subject to customary closing conditions.

    Ladenburg Thalmann & Co. Inc. is acting as lead book-running manager for the offering and B. Riley Securities, Inc., Compass Point Research & Trading, LLC, InspereX LLC, Wedbush Securities Inc., and William Blair & Company, L.L.C. are acting as joint book-running managers for the offering.

    1. PRIF seems to handle their calls differently than most. Obviously, announcing a call on 8/5 for 8/11 seemingly doesn’t adhere to a required 30 day notice. HOWEVER, on 7/7 they had issued an N-23C-2 form giving a range of possible dates for the call of PRIF-A for “no earlier than on the following date (the “Redemption Date”): August 6, 2021, but no later than September 3, 2021.” That constituted/satisfied their 30 day minimum notice for this call on 8/11. This is the second time they’ve used that technique on a call that I’ve noticed.

      Another issuer recently used this same technique of initially publishing a range of possible dates for an official call instead of a specific date, but memory fails me as to whom – maybe INN?

  2. I sold my entire position in PRIF-E early this morning at $25.37. I fear a call on this one is next with only 2 months to the call date. Rather take my gain as a capital gain than income.

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