Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 14

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 14
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 of a CLO vehicle’s investments are concentrated.

• Failure to maintain adequate diversification of underlying obligors across the CLOs in which we invest would make us more vulnerable to defaults.

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• Our CLO investments are exposed to leveraged credit risk.

• Changes in credit spreads may adversely affect our profitability and result in realized and unrealized depreciation on our investments.

• There is the potential for interruption and deferral of cashflow.

• Investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.

• Our investments in Target Securities may be illiquid.

• We may invest in assets with no or limited performance or operating history.

• We are exposed to underlying borrower fraud through the Target Securities held in our portfolio.

• The payment of underlying portfolio manager fees and other charges could adversely impact our returns.

• The inability of a CLO collateral manager to reinvest the proceeds of the prepayment of Senior Secured Loans may adversely affect us.

• Our investments are subject to prepayments and calls, increasing re-investment risk.

• We will have limited control of the administration and amendment of Senior Secured Loans owned by the CLOs in which we invest.

• We will have no influence on management of underlying investments managed by non-affiliated third party CLO collateral managers.

• We will have limited control of the administration and amendment of any CLO in which we invest.

• Senior Secured Loans of CLOs may be sold and replaced resulting in a loss to us.

• Our financial results may be affected adversely if one or more of our significant equity or junior debt investments in a CLO vehicle defaults on its payment obligations or fails to perform as we expect.

• Non-investment grade or “junk” debt involves a greater risk of default and higher price volatility than investment grade debt.

• Our investments in CLOs may be subject to special anti-deferral provisions that could result in us incurring tax or recognizing income prior to receive cash distributions related to such income.

• The Collateralized Securities in which we invest may be subject to withholding tax if they fail to comply with certain reporting requirements.

• To the extent OID and PIK interest constitute a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash representing such income.

Risks Related to our Capital Structure and Leverage

• Our borrowings, including the Preferred Stock, expose us to additional risks