Terms

Series

4.375% Series A Cumulative Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

4.375%

Rate Type

Fixed

Annual Dividend

$1.09

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

November 15, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: U.S. Bank National Association Credit Facility (Up To $75,000,000), Any Future Senior Indebtedness Of The Fund; Pari Passu With: Any Future Series Of Preferred Stock Issued By The Fund; Senior To: Common Shares (Opp)

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,200,000

Prospectus Summary

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (NYSE: OPP) is offering 2,200,000 shares of its 4.375% Series A Cumulative Preferred Stock at a $25.00 liquidation preference per share, with an optional call at the Fund's discretion on or after November 15, 2025. The fixed annual dividend of $1.09375 per share ($0.2734 quarterly) is payable on February 15, May 15, August 15, and November 15, commencing November 15, 2020. These shares are cumulative, meaning that if the Board does not declare a dividend in any quarter, unpaid dividends accumulate and must be paid in full before any distribution can be made on the Common Shares. The Series A Preferred Shares sit above the Fund's common stock (OPP) in the capital stack for dividend priority and liquidation proceeds, but are expressly subordinate to all borrowings under the Fund's existing $75 million credit facility with U.S. Bank National Association, as well as any future senior indebtedness. This is a closed-end fund issuer—there is no bank subsidiary structural subordination concern—but the credit agreement can directly block preferred dividends if asset coverage covenants are breached. The Fund also carries a regulatory redemption feature: the preferred shares may be mandatorily redeemed if asset coverage falls below 200% at quarter-end and is not cured within 30 days, or if the Fund's Board determines redemption is necessary to preserve its RIC tax status. At the $25.00 offering price, the Series A Preferred Shares yield exactly 4.375% annually. Because the issuer is a regulated investment company (RIC closed-end fund), dividends are not straightforward qualified dividend income (QDI); the Fund intends to designate a portion of distributions as capital gain dividends, with the remainder likely treated as ordinary income—investors should not assume the 15%/20% preferential QDI rate applies. The record date falls between 10 and 20 calendar days before each payment date. Dividend payments can be interrupted if the Fund's senior lender restricts distributions due to a covenant breach, or if the Fund fails to maintain 200% asset coverage of its preferred stock, making asset coverage a key metric to monitor.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the Fund fails to maintain 200% asset coverage or has unpaid cumulative dividends on any parity preferred series, it cannot pay dividends or make redemptions on Common Shares; separately, the Fund's senior lender (U.S. Bank) can block dividend payments on the Series A Preferred Shares if asset coverage tests or credit agreement covenants are violated.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 73 (Strong)