Priority Income Funds ‘Tees Up’ Another Preferred

As noted by Ken Priority Income Fund (not exchanged listed) has teed up another new issue. This new issue is a perpetual preferred (they have sold mostly term preferreds in the past).

They have filed a new registration statement–so they plan to come with a new issue soon, but the exact day is not known–Priority has a habit of filing and then it may take anywhere from 2 days to 2 months before the new issue is actual launched.

The company has a 7.00% term preferred available to redeem on 3/31/2022 so that may be a target of theirs although no mention is made of a redemption.

Priority Income Fund has bunches of issues outstanding right now–none currently callable.

The new registration statement can be found here.

7 thoughts on “Priority Income Funds ‘Tees Up’ Another Preferred”

  1. Is the fact that Priority Income Fund is not exchange listed the reason that they don’t declare dividends?

    I picked up some of the J and K issues a couple months ago based on posts here on III and my own DD, but the complete lack of info from the company about prefered dividends unnerves me. Ex-div was 14 dec with payment presumably scheduled for 31 dec. I can’t find anything on https://www.priorityincomefund.com/ which mentions any of their preferred issues, let alone dividends. What am I missing?

    Interesting that the K took an expected dive at ex-div, but has only headed downward from there. J and the others have held up well. Maybe because K is their only perpetual preferred?

    1. They talk about dividends under the “press” link. Also, I’d consider any perpetuals from this company to be pretty risky. Much better off owning the terms.

      1. Thanks DD. I’d perused the Press page (and just did so again). It does include releases about new pfd issues (I’d forgotten that), but although it includes info about distributions on their common, I can’t find info about dividends on their pfds. Frustrating.

    2. I have bought and sold a few different issues of PRIF over the last two years. One thing you also have to consider is the issues are very thinly traded, some days only a few hundred shares if that, so there can be a huge gap between the bid and ask prices. Not a good situation if you need to sell, best to stick with issues that have maturity dates, it seems the bid/ask spread is tighter and if worse comes to worse you can hold them until maturity.

    3. The “mother” company does not have commons trading to my best knowledge. Like all previous Priority Income Fund Preferred, the K has equal rights as all other preferreds. Quantum Online cited the daughters of this fund as follows:
      “Cumulative distributions of 7.00% per annum ($1.75 per annum or $0.4375 per quarter) will be paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date fixed by the board, not more than 20 days or less than 7 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). If the issuer fails to maintain an asset coverage ratio of at least 200% then the issuer is required to redeem the shares of Preferred Stock (see prospectus for further information). ” For that reason, I do have many shares of the K. What is puzzling pertains to the dividend info provided by the new owner of cdx3 taking over the biz of Doug Le Du.

      Ex div date Dec 14 only $0.102 payable Dec 31, soon enough. I sold my tiny position at Fidelity IRA under $1,000 with net loss around $10. Today however, the ask price seem okay. Replaced the asset along with closing out tiny eREIT APTS (gapped up either someone covering their shorts OR possible huge come back) and bought SACH-A. SACH common considered bullish by Fidelity analysts poll, consider fair by Schwab. I own small amount of SACH ECCC 7.75% coupon. Apparently Landmark merged with someone, my LMRKO got called or closed out. GBRPP new temp symbol for Green Brick Partner 5.75%. Egan Jones A started with $24.8 ish yesterday. Did not get filled. Now last trade $25.05. I have decided to bet on this one with 540 shares @ $25.02 along with 1000 bids . Thin volumes. The market apparently has respect for Egan Jones rating. Picked up the convert preferred Elington EFC-B having paid above par. Vanguard does not allow pink sheet trade. I will probably transfer half of my IRA to Fidelity. So far, Fido does not seem to charge that $6.75 fee. With vanguard I may replace the LMRKO with SACH-A or Tim’s SWAN EICA. I will watch PRIF-K and may liquidate some even with some small loss if there is better opportunity. This seems to be a fake Taper. Regretted having sold JPM-M and Morgan Stanley O. Holding onto SF-D. ATLCP, my Dallas friend Chuck J ‘s favorite pick, blessed by Gridbird, finally got RESPECT, apparently the market makers have exhausted their unsold inventory. Its sister bond ATLCL 6.25% coupon, which I has just a few hundred dollars, trading comfortably above par. For 2 quarters or 3, it sunk right after ex div date for the Preferred ATLCP. The worst SWAN has to be VNO-O. VNO apparently still facing headwinds in NYC got quite a few callable but not called preferreds. Thus, VNO-O has earned no respect. I will just hold it. Bought a few shares of OPP-B after having sold OPP-A. Both seem to be gaining respect. Gridbird’s LBRDP gets very expensive still close to 6% yield holding 800 shares. Mixed bags. Sold small quantity of ALIN-B for tax loss. Busted off shore pipeline took over by Brookfield. Suspended. Both CBL and Washington Prime (Rida’s favorite once upon a time) perhaps Jussi Askola too) filed bankruptcies and seem to be gone for good. PEI still holding, I will not put any more money on MAC either. LUMN the NewCo for Century Link still hanging on with nice dividend, which COULD BE cut but CEO plus one side of “analysts” claim its free cash flow and the miles of lines buried under the sea should be valuable for the big tech companies. Its bonds trading way above par, both real bond or baby bonds. I will not add more shares. Bought some after two days someone covering their shorts. It dropped immediately after one day. Still considered okay around $12 per share. Every so often BIT-A trading below or close to par, vs BIT-B lower coupon. This is the abnormally which I consider opportunity. Picked up a few yesterday.

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