Priority Income Fund Announces Redemption of Series H Preferred Shares
New York, NY – March 10, 2025 – Priority Income Fund, Inc. (the “Fund”), a publicly-traded closed-end investment company, has announced that it will be redeeming all outstanding shares of its 6.000% Series H Term Preferred Stock Due 2026 (CUSIP: 74274W 798; NYSE: PRIF PRH) (the “Series H Preferred Shares”). This redemption comes at a price of $25 per Series H Preferred Share, plus accrued but unpaid dividends from March 31, 2025, to but excluding, the Redemption Date, which is set for April 9, 2025 (the “Redemption Price”).
Impact on Preferred Shareholders
The redemption of the Series H Preferred Shares represents a significant event for those investors who hold these securities. Preferred shareholders will receive the stated redemption price, which includes the original investment amount and any accrued but unpaid dividends up to the redemption date. This means that preferred shareholders will realize a return on their investment, which might be attractive given the current low-interest-rate environment.
Market Reaction
- The announcement of the redemption has led to increased trading activity in the Series H Preferred Shares, as investors look to sell their holdings before the redemption date to lock in their profits.
- The redemption might also impact the price of other Priority Income Fund securities, as investors reassess their holdings and adjust their portfolios accordingly.
- Some market analysts believe that the redemption could signal a broader trend of closed-end funds repaying their debt, given the improving economic conditions and low-interest rates.
Impact on the Wider Economy
The redemption of the Series H Preferred Shares by Priority Income Fund is a relatively small event in the larger context of the global economy. However, it could have some ripple effects:
- The redemption could lead to an increase in the supply of preferred shares in the market, which might put downward pressure on their prices.
- The repayment of debt by Priority Income Fund might free up resources for the company to invest in new opportunities or pay dividends to common shareholders.
- The redemption could be a positive sign for the broader economy, as it shows that companies are in a position to repay their debt and are confident in their future prospects.
Conclusion
The announcement by Priority Income Fund to redeem all outstanding shares of its Series H Preferred Shares represents an important event for preferred shareholders and the wider market. Preferred shareholders will receive a return on their investment, while the market reacts to the increased trading activity and potential impact on other securities. The wider economy might also benefit from the repayment of debt and the potential for increased investment and dividends.
As always, investors should consult with their financial advisors to understand the implications of this news and how it might impact their portfolios.
