NEW YORK, April 16, 2020 /BusinessWire/ -- Priority Income Fund, Inc. ("Priority Income Fund" or the "Fund") continues to work closely with its collateral management teams to navigate both Fund investment opportunities as well as challenges created by the current economic environment.
On April 14, 2020, the Fund disclosed that the net asset value ("NAV") of its investment portfolio as of March 31, 2020 was $10.73 per share of the Fund's common stock.
For tender offers commencing on or after June 1, 2020, the Fund previously had intended to expand the number of shares offered to be repurchased in any calendar quarter to up to 2.5% of the number of shares outstanding at the close of business on the last day of the prior fiscal year. Given the current economic environment, for the tender offer commencing in June 2020, the number of shares the Fund intends to offer to repurchase is expected to remain capped at the number of shares the Fund is able to repurchase with the cash retained from the Fund's distribution reinvestment plan.
The Fund may determine in the future to conduct any future repurchase offers more or less frequently than on a quarterly basis as well as for a greater or lesser amount of our shares than currently expected, and the Fund may suspend or terminate the share repurchase program at any time. The Fund currently intends to continue quarterly share repurchase offers.
The Fund's management team expects that it will recommend that the Fund's Board of Directors, at its May meeting, approve monthly common share distributions from June 2020 to August 2020 of $0.2625 per share in aggregate, or $1.05 per share on an annualized basis. The $1.05 annualized distribution per share results in a 9.1% annualized distribution rate on the current Class R offering price of $11.56 per share. The $1.05 per share annualized distribution rate is equivalent to the original base distribution rate the Fund paid.
The Fund's ability to pay distributions may be adversely affected by, among other things, the impact of one or more of the risk factors described in its prospectus, dated February 6, 2020, as amended or supplemented, including the risk that the current period of coronavirus-driven market disruption may continue for an extended period of time.
The Fund will continue to assess overall market conditions and impact on the Fund's investment portfolio related to the potential for future bonus distributions to common shareholders
Priority Income Fund, Inc. is a registered closed-end fund that was created to acquire and grow an investment portfolio primarily consisting of senior secured loans or pools of senior secured loans known as collateralized loan obligations ("CLOs"). Such loans will generally have a floating interest rate and include a first lien on the assets of the respective borrowers, which typically are private and public companies based in the United States. The Fund is managed by Priority Senior Secured Income Management, LLC, which is led by a team of investment professionals from the investment and operations team of Prospect Capital Management L.P. For more information, visit priorityincomefund.com.
Headquartered in New York City, Prospect is an SEC-registered investment adviser that, along with its predecessors and affiliates, has a more than 30-year history of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of approximately 100 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $6.0 billion of assets under management as of December 31, 2019. For more information, call 212.448.0702 or visit prospectcapitalmanagement.com.
Preferred Capital Securities, LLC serves as the dealer manager for Priority Income Fund, Inc. and has been a member of FINRA/SIPC since 2015. Formed in 2013, PCS is a boutique investment banking firm that distributes real estate and credit investment products in private and public structures through broker dealers and registered investment advisors. The PCS has raised over $2.3 billion of capital as a wholesale distributor for various alternative investment strategies. For more information, visit prefcapitalsecurities.com.
Past performance is not indicative of future performance. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.
Investors should consider the investment objective and policies, risk considerations, charges and ongoing expenses of an investment carefully before investing. The prospectus and summary prospectus contains this and other information relevant to an investment in the fund. Please read the prospectus or summary prospectus carefully before you invest or send money. To obtain a prospectus, please contact your investment representative or Investor Services at 866.655.3650.
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Priority Income Fund, Inc. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Priority Income Fund, Inc. may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Priority Income Fund, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.