Priority Income Fund (the Fund), a closed-end fund co-sponsored by Behringer Harvard Holdings, LLC and Prospect Capital Management, announced today that it will pay two bonus distributions. Declared by its board of directors, the Fund’s bonus distributions are separate from its monthly distributions, which it’s paid since March of this year.
Payable November 10, 2014, $0.0519 per share of common stock will be paid to stockholders of record at the close of business on the 7th of the month.
$0.0606 per share will be paid to stockholders of record at the close of business on December 26, 2014. This bonus distribution is payable on December 29, 2014.
The Fund’s class R shares are offered at $15 per share with a minimum investment of $1,000. Through the end of September, 2014, its annualized distribution rate is 8.75%.
Priority Income Fund paid its first distribution in February of 2014 and has made monthly distributions since, in addition to three additional bonus distributions.
“We are pleased to announce that once again we can meet our primary objective of providing income for our shareholders by declaring our fourth and fifth bonus distributions,” said Robert J. Klein, a managing director of Prospect Capital Management LLC.
Performance of the Fund is based on its underlying assets which could include senior secured loans or collateralized loan obligations also known as CLOs. CLOs are pools of senior secured loans that may have floating interest rates and include first liens on certain assets of the borrowers.
Through the end of Q3 2014, notable holdings currently include senior secured loan issuers such as Chrysler Group, Aramark, American Airlines, and Avaya.
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