Priority Income Fund Inc., a registered closed-end fund, plans to offer shares of its Series A Term Preferred Stock due 2025 in an underwritten public offering. According to the pre-effective registration statement, the company plans to offer up to $34 million in preferred stock.
The company has applied to list the preferred stock on the New York Stock Exchange under the ticker symbol “PRIFA”. If the application is approved, trading is expected to begin within 30 days following the preferred stock issuance date. The Series A Term Preferred Stock has been assigned a rating of “AA” by Egan-Jones Ratings Co., the company said.
The terms of the preferred stock are to be determined by negotiations between Priority Income Fund and the underwriters. Additionally, the company said that it plans to grant the underwriters a 30-day option to purchase additional shares of the preferred stock to cover overallotments, if any.
Priority Income Fund plans to use the net proceeds from the preferred stock offering to acquire investments and for general corporate purposes.
Ladenburg Thalmann & Co. Inc. is acting as lead book-running manager for the preferred stock offering. BB&T Capital Markets and B. Riley FBR Inc. are acting as joint book-running managers; and Incapital LLC and Maxim Group LLC are acting as co-managers for 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. The offering was declared effective in May 2013 and raised $326.4 million in investor equity, including $18.3 million in redemptions.
In March 2018, amid mass lay-offs, Provasi Capital Partners LP terminated its dealer manager agreement for the Priority Income Fund offering. Provasi rescinded the termination notice last month and appointed investment management firm Destra Capital Investments LLC as the sub-wholesaler for the offering.