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Priority Income Fund Completes Merger with Stira Alcentra Global Credit Fund

Priority Income Fund Inc., a non-traded, closed-end fund, has completed its merger with Stira Alcentra Global Credit Fund (SAGC), a closed-end fund formerly known as Steadfast Alcentra Global Credit Fund.

Priority Income Fund Inc., a non-traded, closed-end fund, has completed its merger with Stira Alcentra Global Credit Fund (SAGC), a closed-end fund formerly known as Steadfast Alcentra Global Credit Fund.

Stira Alcentra fund shareholders approved the transaction at a special meeting of shareholders held on May 6, 2019.

The merger is a “NAV for NAV” transaction. The exchange ratio at which common shares of SAGC were converted to common shares of Priority was based on Priority’s most recent estimated net asset value per share of $13.70. Fractional shares were rounded up to the next greater number of whole Priority shares.

The Stira Alcentra Global Credit Fund launched in May 2017 and raised approximately $36.2 million in investor equity. In September 2018, the board suspended the fund’s $3 billion initial public offering and distribution reinvestment plan due to market conditions not being conducive to continuing the offering.

Priority Income Fund was created to acquire an investment portfolio of senior secured loans or pools of senior secured loans known as collateralized loan obligations. Priority commenced operations in January 2014 and had approximately $336 million of net assets as of September 30, 2018.

Priority is managed by Priority Senior Secured Income Management LLC, which is led by investment professionals from the investment and operations team of Prospect Capital Management L.P. Prospect and its affiliates have approximately $6.6 billion of assets under management as of December 31, 2018.

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