Company: PRIF-PJ
Filing Date: 2025-02-28
Form Type: N-CSRS
Source: 0001554625-25-000010
Chunk: 2

Company: Priority Income Fund, Inc.
Filing Date: 2025-02-28
Form: N-CSRS
Chunk 2
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, 2023), 13.97% based on the December 31, 2024 “Class RIA Shares” offering price of $9.59 (a 14.21% year-over-year increase from December 31, 2024), and 14.08% based on the December 31, 2024 “Class I Shares” offering price of $9.52 (an 14.23% year-over-year increase from June 30, 2023).

– Since inception in January 2014 through December 31, 2024, Priority’s Class I Shares’ annualized total return of 8.40% has outperformed the Bloomberg US Aggregate Bond Index’s 1.76% annualized return [1] and the Credit Suisse Leveraged Loan Index's 4.84% annualized return. [2] Likewise, Priority’s Class I Shares’ 10-Year annualized return of 8.15% outperformed Bloomberg US Aggregate Bond Index’s 1.22% 10-Year annualized return 1 and the Credit Suisse Leveraged Loan Index's 4.23% 10-Year annualized return. 2

– For the six months ended December 31, 2024, Priority purchased eleven CLO equity and six CLO debt investments totaling $92.4 million in cost basis, and sold seventeen CLO debt investments totaling $52.0 million in cost basis. For the six months ended December 31, 2024, the Fund held 159 CLO Equity and 85 CLO B- and BB-rated debt investments secured by more than 2,300 senior-secured loans to more than 1,600 issuers. Priority has continued to benefit from and selectively expects to continue its strategy of seeking out opportunistic CLO debt investments at discounted prices with equity-like returns, maintaining cushion-related resistance to defaults.

– The Fund successfully raised $42.7 million in the six months ended December 31, 2024. Priority ended fiscal year 2024 with $916M of total assets.

– Priority’s trailing twelve-month (“TTM”) default rate was 0.64% as of December 31, 2024, remaining below the TTM market default rate of 0.91%. [3]

– While traditional default rates remain well below historical averages, the market default rate including distressed exchanges was 4.70% as of December 31, 2024.

#### CLO Market Commentary