Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 20

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 20
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 of December 31, 2024, $30 million in aggregate principal amount of the 2035 Notes remained outstanding. The use of borrowed funds, such as through the Facility, or the proceeds of notes, such as the 2035 Notes, or the proceeds of preferred stock, such as the Series M Term Preferred Stock, to make investments has its own specific set of benefits and risks, and all of the costs of borrowing funds or issuing preferred stock would be borne by holders of our common stock. See “Risk Factors—Risks Related to our Capital Structure and Leverage” for a discussion of the risks inherent to employing leverage.

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[We have applied to list the Series M Term Preferred Stock on the NYSE under the ticker symbol “PRIF PRM.”] If the application is approved, trading on the NYSE in the Series M Term Preferred Stock is expected to begin within 30 days following the issuance date of the Series M Term Preferred Stock. Our common stock is not listed on an exchange and will not be listed on an exchange in the foreseeable future, if at all.

See “Investment Objective and Strategy” for additional information regarding our investment strategy.

#### Market Opportunity
CLOs are investment vehicles that own a broadly assorted pool of Senior Secured Loans. A CLO uses the cash flows from a broadly assorted portfolio of Senior Secured Loans to service multiple classes of rated debt securities, the proceeds of which together with the junior capital tranches are used to fund the purchase of the underlying Senior Secured Loans. A CLO is a special purpose vehicle (typically formed in the Cayman Islands or another similar foreign jurisdiction) formed to purchase the Senior Secured Loans and issue rated debt securities and equity tranches and/or unrated debt securities (generally treated as equity interests). The rated debt tranches consist of long-term financing with specified financing terms, including floating interest rates at a stated spread to SOFR. See “Risk Factors - Risks Related to Our Investments - Investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments” and “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.”

In a typical CLO, as shown in the chart below, the capital structure would include approximately 90% debt, with the remainder comprising the junior most CLO securities, typically referred to as the CLO’s