Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 36

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 36
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| Leverage                  
 U.S. Federal Income Taxes |     | We may borrow funds to make investments. In addition, we may issue additional shares of our Preferred Stock, which may be considered a form of leverage, after completion of this offering. As a result, we will be exposed to the risks of leverage, which may be considered a speculative investment technique. In addition, the CLO vehicles in which we invest will be leveraged, which will indirectly expose us to the risks of leverage. The use of leverage magnifies the potential gain and loss on amounts invested and therefore increases the risks associated with investing in our securities. The costs associated with use of leverage, including any increase in the management fee payable to our investment adviser, Priority Senior Secured Income Management, LLC, will be borne by our common stockholders. Under the 1940 Act, we are only permitted to incur additional indebtedness to the extent our asset coverage with respect to our outstanding senior securities representing indebtedness, as defined under the 1940 Act, is at least 300% immediately after each such borrowing.                                                                                                                             
 In addition, we are only permitted to issue additional Preferred Stock to the extent our asset coverage with respect to such Preferred Stock, as defined under the 1940 Act, which also reflects any outstanding borrowings, is at least 200% immediately after each such issuance. As of December 31, 2024, we had, approximately, $27.4 million of shares of 7.00% Series D Term Preferred Stock due 2029 outstanding, $30.8 million of 6.625% Series F Term Preferred Stock due 2027 outstanding, $29.9 million of 6.000% Series H Term Preferred Stock due 2026 outstanding, $40.0 million of 6.125% Series I Term Preferred Stock due 2028 outstanding, $39.5 million of 6.000% Series J Term Preferred Stock due 2028 outstanding,  $40 million of 7.000% Series K Cumulative Preferred Stock outstanding, $27.5 million of 6.375% Series L Term Preferred Stock due 2029 outstanding, $38.2 million under the Facility outstanding and $30 million in aggregate principal amount of our 2035 Notes outstanding and our asset coverage ratio, with respect to the Preferred Stock, was approximately 293%.The Asset Coverage per Unit is $23,283 for the Facility, $13,041 per