Terms

Series

Series A Term Preferred Stock (6.375% due 2025), Series B Term Preferred Stock (6.25% due 2023), Series C Term Preferred Stock (6.625% due 2024), Series D Term Preferred Stock (7.00% due 2029)

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

March 31, 2022

First Call Price

$25.00

Mandatory Redemption Date

June 20, 2029

Capital Stack Ranking

Junior To: Existing And Future Senior Indebtedness Of The Company; Pari Passu With: All Other Outstanding And Future Series Of Preferred Stock (Series A, B, C And D Pari Passu With Each Other); Senior To: Common Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

Priority Income Fund, Inc. is an externally managed, non-diversified closed-end fund (RIC) that has issued four series of fixed-rate Term Preferred Stock: Series A (6.375%, due 2025), Series B (6.25%, due 2023), Series C (6.625%, due 2024), and Series D (7.00%, due 2029), each with a $25.00 liquidation preference and $0.01 par value, offered in aggregate up to $200 million. Dividends are paid quarterly and the preferred stock is cumulative — meaning unpaid dividends accrue and must be paid before any distributions to common stockholders, giving holders meaningful protection against dividend interruption relative to non-cumulative structures. Each series of Term Preferred Stock sits above the company's common stock but below all existing and future senior indebtedness in the capital stack; the four series rank pari passu with each other. Critically, if the Company's asset coverage ratio (required by the 1940 Act at a minimum of 200%) falls below that threshold, it is obligated to redeem sufficient preferred shares to restore compliance — a mandatory regulatory redemption that functions as a built-in deleveraging mechanism. This is a holding-company-level obligation with no direct recourse to underlying CLO assets, and the fund's underlying investments in CLO equity and junior debt tranches are themselves highly subordinated and illiquid. At the $25.00 offering price, the effective annual yields are 6.375% (Series A), 6.25% (Series B), 6.625% (Series C), and 7.00% (Series D), paid quarterly (historically around March 31, June 30, September 30, and December 31), with record dates typically around the 15th of the month preceding payment. Because Priority Income Fund is a RIC investing primarily in CLO equity and junior debt tranches, dividends are unlikely to qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD), and investors should expect ordinary income treatment. Preferred dividends can be interrupted if the board does not authorize payment or if asset coverage deteriorates, though the cumulative feature preserves the right to accrued unpaid dividends.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If preferred dividends are in arrears by two or more years, preferred stockholders gain the right to elect a majority of directors, effectively pressuring the board to halt common stock dividends until preferred arrears are cured; the preferred ranks senior to common in payment priority.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)