Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 102

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 102
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 equity tranches.

• Consistent long-term performance. Senior Secured Loans have provided, as shown in the chart below, positive cash yields in all years since 1997 and only three full years (2008, 2015, and 2022) of negative returns including mark-to-market volatility. Senior Secured Loans provided a 2-year return of 7.5% in 2008 and 2009 despite the market downturn. (4)

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(3) Source: Pitchbook, LCD Credit Analysis, Credit Research, Descriptive Statistics, “Par Amount of Outstanding Leveraged Loans,” as of February 2025.

(4) Source: S&P Capital IQ - Leveraged Loan Index Returns Summary.

Despite the historically favorable returns delivered by most junior classes of U.S. CLOs, these investments have generated lower returns during periods of extreme market volatility, particularly as a result of events impacting the U.S. credit markets. See “Risk Factors - The capital markets are currently in a period of disruption and economic uncertainty. Such market

conditions have materially and adversely affected debt and equity capital markets, which have had, and may continue to have, a negative impact on our business and operations.”

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Source: Morningstar LSTA US Leveraged Loan Index Returns Summary, as of February 28, 2025.

• Floating rate instruments. A Senior Secured Loan typically contains a floating interest rate versus a fixed interest rate, which we believe provides some measure of protection against the risk of increases in interest rates and inflation. Also, the debt tranches of a CLO have floating interest rates as well, which provides a partial matching of changes in the interest rates on the CLO’s assets and liabilities.

• Low default-rate environment. The default rate on all Senior Secured Loans included in the S&P/LSTA Leveraged Loan Index has averaged averaged 2.10% from January 1, 2003 through February 28, 2025. (5) In the current environment, we believe the above attributes are particularly desirable.

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(5) Source: Pitchbook LCD -- Morningstar LSTA US Leveraged Loan Index Default Rates.

#### Deal Sourcing
Deals will typically be sourced through our Adviser’s direct contact and access to major U.S.-based CLO collateral managers and extensive relationships and contacts with U.S. Senior Secured Loan and CLO originating and trading operations at banks and other financial institutions.

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