Priority Income Fund Inc., a registered closed-end fund, is offering up to $22.5 million in shares of its 6.25% Series B Term Preferred Stock due 2023 in an underwritten public offering.
The company has applied to list the preferred stock on the New York Stock Exchange under the ticker symbol “PRIFB”. If the application is approved, trading will begin within 30 days after the issuance date of the preferred stock. The Series B Term Preferred Stock has been assigned a private rating of “AA” by Egan-Jones Ratings Co.
Shares are initially priced at $25.00 each, and the proceeds will be used to acquire investments and for general corporate purposes.
This is the second preferred stock offering launched by Priority Income Fund this year. The company announced a Series A Term Preferred Stock due 2025 offering in June 2018.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc., is acting as lead book-running manager for the offering. BB&T Capital Markets, B. Riley FBR Inc., and Incapital LLC are acting as joint book-running managers. Maxim Group LLC is acting as co-manager for the offering.
The company said that the terms of the preferred stock will be determined by negotiations between the company and the underwriters. Additionally, it plans to grant the underwriters a 30-day option to purchase additional shares to cover overallotments, if any.
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. The offering was declared effective in May 2013 and had raised approximately $371.8 million in investor equity as of August 31, 2018. In March 2018, Provasi Capital Partners LP terminated its dealer manager agreement for the Priority Income Fund offering, but later rescinded the termination notice and appointed investment management firm Destra Capital Investments LLC as sub-wholesaler for the offering.