Terms

Series

4.75% Series B Cumulative Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

4.75%

Rate Type

Fixed

Annual Dividend

$1.19

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

February 15, 2027

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: Series A Preferred Shares (4.375% Series A Cumulative Preferred Stock), All Future Series Of Preferred Stock Issued By The Fund; Senior To: Common Shares

Credit Rating (Moody's)

rated by Moody's Investors Service, Inc. (specific rating not disclosed in prospectus)

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,400,000

Prospectus Summary

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (NYSE: OPP) is offering 2,400,000 shares of its 4.75% Series B Cumulative Perpetual Preferred Stock at a $25.00 liquidation preference per share — a direct preferred share (not a depositary receipt). The fixed dividend rate of 4.75% per annum yields $1.1875 per share annually ($0.296875 per quarter), payable February 15, May 15, August 15, and November 15, commencing February 15, 2022. The shares are cumulative, meaning any missed dividends accrue and must be paid in full before the Fund can resume distributions to common shareholders — providing a meaningful layer of income protection for preferred holders. The Series B Preferred Shares rank senior to the Fund's Common Shares and pari passu with the existing 4.375% Series A Cumulative Preferred Shares and any future preferred series. They are structurally junior to all senior indebtedness, most notably the Fund's $75 million credit facility with U.S. Bank National Association, whose lenders can block preferred dividends and redemptions if asset coverage tests or credit agreement covenants are breached. The Fund — a closed-end RIC — also faces a special early redemption trigger: the Board may call the shares before the February 15, 2027 optional call date if doing so is necessary to preserve the Fund's RIC tax status. Additionally, mandatory redemption can be forced at any time if the Fund fails to maintain the 200% asset coverage ratio required under the 1940 Act for a period exceeding 30 days past quarter-end. At par, the effective yield is 4.75%. Dividends are paid quarterly on the 15th of February, May, August, and November, with record dates set 10–20 calendar days prior. Because the Fund is a Regulated Investment Company investing primarily in fixed income, mortgage-backed securities, and closed-end funds, distributions may comprise ordinary income and capital gain dividends rather than qualified dividend income — limiting access to the preferential 15%/20% QDI tax rate for individual investors or the dividends-received deduction for corporate holders. The Fund intends to designate a portion of dividends as capital gain distributions. Dividend payments on the Series B shares can be blocked by the senior lender if the Fund violates credit facility covenants or fails asset coverage thresholds, and a default triggers an elevated rate of 6.75% (4.75% plus 2%) until cured.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Series B Preferred Shares are outstanding, the Fund cannot pay dividends on or repurchase Common Shares unless it meets 200% asset coverage and has paid all cumulative preferred dividends. Conversely, the Fund's senior lenders under the Credit Facility can block dividends on the Series B Preferred Shares if asset coverage or other credit agreement conditions are not satisfied.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 75 (Strong)