Investment Strategy

The Fund intends to generate current income and, as a secondary objective, long-term capital appreciation by investing at least 80% of total assists in securitized pools of senior secured loans and/or investing in senior secured loans in the primary or secondary markets.

Industries of underlying senior secured loans

Healthcare & Pharmaceuticals - 10.60%
High Tech Industries - 8.93%
Banking, Finance, Insurance & Real Estate - 8.20%
Services: Business - 7.78%
Media: Broadcasting & Subscription - 6.20%
Hotel, Gaming & Leisure - 6.11%
Telecommunications - 5.64%
Chemicals, Plastics & Rubber - 3.78%
Beverage, Food & Tobacco- 3.14%
Construction & Building- 3.00%
Retail - 2.99%
Automotive - 2.94%
Utilities Electric - 2.77%
Capital Equipment- 2.67%
Containers, Packaging & Glass - 2.66%
Energy: Oil & Gas- 2.53%
Transportation: Consumer- 2.51%
Aerospace & Defense- 2.27%
Media: Advertising, Printing & Publishing- 1.94%
Consumer Goods: Non-durable - 1.79%
Other - 7.92%

Distribution Rate

Annualized Distribution ($)
$1.20
Annualized Distribution Rate (%)
10.77%
Cumulative Distributions Per Share (since inception)
$9.81714
NII Distribution Coverage
110%

Portfolio Characteristics (estimated)

Total Capital Raised*
$692 million
Underlying Loans in Portfolio
2,435
Aggregate Balance of Underlying Loans
$63.6 billion
Default Rate of Underlying Loans
2.35%

Key Facts

Inception Date: May 9, 2013
Offering Period: 100 Million shares or up to 18 months from the effective date of the current prospectus.
Distribution Frequency: Monthly
Portfolio Manager: Prospect Capital Management, L.P.
Minimum Investment: $1,000
Redemption Policy: Capped at DRP proceeds

Priority income fund
five key features

1. Senior secured loans
Priority Income Fund invests in pools of 1st lien, senior secured loans to large U.S. companies.
2. Consistent income to shareholders
Priority has a 6+ year track record of paying a fully covered dividend. Priority currently pays a 10.77% annualized distribution paid monthly.
3. Diversification
Well diversified with exposure to 2,435 senior secured loans to over 1,000 companies through approximately 138 CLO positions.
4. Lack of duration risk
PRIS is not significantly impacted by interest rate movements due to floating rate nature of underlying loans and the financing in CLOs.
5. Access to best-in-class mgmt teams
Only chosen to partner with approximately 20 out of nearly 150+ fixed income managers that have issued CLO since the credit crisis.**

BENEFITS OF Senior Secured Loans

Priority in claims
Features Include:
  • Highest priority in the capital structure
  • First lien on borrower's assets
  • Restrictive financial covenants
  • Loans are not interest rate sensitive due to floating rate and Libor floors
Typical borrower:
  • Average loan size of $1.0B+
  • EBITDA of $100M+
  • Rated by Moody's and S&P
                   *Includes $34.7 million from Stira merger
 **Creditflux, an Acuris Company
                                                                             Data presented above are as of Sept 30, 2020 unless otherwise noted

An investment in shares of Priority Income Fund, Inc. (the"Fund") involves substantial risk and may result in the loss of principal invested. This Fund may not be suitable for all investors. You should carefully read the information found in the Fund’s prospectus, including the"Risk Factors " section, before deciding to invest in the Fund’s shares. These risks include but are not limited to:

  • The Fund seeks to achieve its objective by investing at least 80% of its total assets in senior secured loans made to companies whose debt is rated below investment grade.  Senior Secured Debt involves a greater risk of default and higher price volatility than investment grade debt.
  • The fund will invest in equity and junior tranches of collateralized loan obligations (“CLOs”), which may be riskier than a direct investment in the underlying companies.
  • CLOs will typically have no significant assets other than their underlying Senior Secured Loans.
  • Our shares are not currently listed on any securities exchange, and we do not expect a public market for them to develop in the foreseeable future, if ever. Therefore, stockholders should not expect to be able to sell their shares promptly or at a desired price. No stockholder will have the right to require us to repurchase his or her shares or any portion thereof. Because no public market will exist for our shares, and none is expected to develop,     stockholders will not be able to liquidate their investment prior to our liquidation or other liquidity event, other than through our share repurchase program, or, likely in limited circumstances, as a result of transfers of shares to other eligible investors.
  • The Fund’s investment strategy involves investments in securities issued by foreign entities, which will expose investors to risks not typically associated with investing in U.S. securities.
  • The Fund may invest a substantial percentage of its portfolio in securities that are considered illiquid, which may prevent the advisor from readily disposing of securities at favorable prices.

 Investors should carefully consider the investment objectives and risk factors of the Priority Income Fund. This and other important information about the Fund is contained in the prospectus which should be read carefully before investing.

Strategic Investing
Increase income
Diversification
Capital Management