Priority Income Fund Announces Quarterly Cash Bonus Distribution to Common Shareholders in Addition to Monthly Cash Base Distributions
September 8, 2020
Priority Income Fund, Inc. ("Priority Income Fund" or the "Fund") Dividend Announcement:
• Priority Income Fund announced that the Fund’s board of directors has declared monthly cash “base” common shareholder distributions as well as a quarterly cash “bonus” common shareholder distribution.
• The annualized total cash distribution rate for Class R common shares is 10.56% for distributions from September 4, 2020 through November 30, 2020 based on the current offering price of $11.37 per common share.
• The quarterly bonus distribution of $0.03750 per share will be paid on September 28, 2020 to common shareholders of record as of September 25, 2020.
• The cash “bonus” distribution represents the 26th cash quarterly “bonus” common shareholder distribution that the Fund has declared since 2014.
• The Fund has paid or declared cumulative cash distributions totaling $10.00 per common share since inception in January 2014 through November 2020.
• Priority Income Fund has as 6+ year track record of paying a fully covered ~10% annualized dividend to its shareholders.
• Throughout the six full fiscal year life of the Fund, Priority Income Fund has more than covered its dividend with net investment income and has out-earned its dividend by a total of $0.50 per current common share.
About Priority Income Fund:
• Priority Income Fund, Inc. is a registered closed-end fund that launched in 2014 and has $548 million in assets as of June 30, 2020.
• The Fund invests in pools of 1st lien, senior secured loans to large U.S. companies known as collateralized loan obligations ("CLOs").
• The Fund is well diversified with exposure to 2,400 senior secured loans to over 1,000 companies through 133 CLO positions.
• The Fund’s largest exposure to an underlying senior secured loan is less than 1.00% of the portfolio.
• As of June 30, 2020, Priority Income Fund continues to outperform from a credit standpoint with an LTM default rate of 1.78% vs. a market default rate of 3.23% (Priority outperformance of 1.39%).
• The average market default rate since December 31, 2016 is 1.74% compared to Priority’s average of 0.64%, for an average Priority outperformance of 1.10%.
• Since inception through June 30, 2020, Priority Income Fund Class R shares have outperformed the Credit Suisse US Leveraged Loan Index by 2.01% annualized, have outperformed the Barclays US IG Aggregate Bond Index by 1.21% annualized and have outperformed the Ice BofA US High Yield Total Return Index by 0.32% annualized.
• Priority Income Fund has also outperformed on a risk adjusted basis, with a Sharpe ratio since inception for Class R shares that is higher than the Credit Suisse US Leveraged Loan Index by 0.25, higher than the Barclays US IG Aggregate Bond Index by 0.12 and higher than the Ice BofA US High Yield Total Return Index by 0.05.
• Priority Income Fund’s correlation is low with other asset classes. Correlation for the Fund is 0.02 vs. the Credit Suisse Leverage loan Index, 0.01 vs. the Barclays US IG Aggregate Bond Index, and 0.05 vs. the S&P 500 as of 12/31/2019.
• 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.
• Prospect Capital Management is a market leader in the CLOs with a track record spanning $2.7 billion of total CLO investments.
For more information, please refer to the following website: https://www.priorityincomefund.com/
About Prospect Capital Management L.P.
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 $5.9 billion of assets under management as of June 30,2020 For more information, call 212.448.0702 or visit prospectcapitalmanagement.com.
About Preferred Capital Securities, LLC
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. mayor 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.
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