Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 13

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 13
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 risk.

• A downgrade, suspension or withdrawal of the rating assigned by a rating agency to the shares of our Preferred Stock could cause the liquidity or market value of such shares to decline significantly.

• There is a risk of delay in our redemption of the Series M Term Preferred Stock, and we may fail to redeem such securities as required by their terms.

• We may be unable to invest a significant portion of the net proceeds of our offering on acceptable terms in an acceptable timeframe.

• We have entered into a royalty-free license to use the name “Priority Income Fund, Inc.” which may be terminated if our Adviser is no longer our investment adviser.

Risks Related to Our Adviser and Its Affiliates

• Our Adviser and its affiliates, including our officers and some of our directors, will face conflicts of interest caused by compensation arrangements with us and our affiliates, which could result in actions that are not in the best interests of our stockholders.

• We may be obligated to pay our Adviser incentive compensation even if we incur a net loss due to a decline in the value of our portfolio.

• The recognition of income in connection with investments that we purchase with original issue discount may result in the payment of an incentive fee to our Adviser without a corresponding receipt of cash income.

• Our Adviser’s professionals’ time and resources may be diverted due to obligations they have to other clients.

• We may face additional competition due to the fact that individuals associated with our Adviser are not prohibited from raising money for or managing another entity that makes the same types of investments that we target.

• Our incentive fee may induce our Adviser to make speculative investments.

Risks Related to Our Investments

• Investing in Senior Secured Loans indirectly through CLO securities involves particular risks.

• Our investments in CLO securities and other structured finance securities involve certain risks.

• Our investments in the primary CLO market involve certain additional risks.

• Our investments in CLOs may be riskier and less transparent to us and our stockholders than direct investments in the underlying companies.

• CLOs typically will have no significant assets other than their underlying Senior Secured Loans; payments on CLO investments are and will be payable solely from the cashflows from such Senior Secured Loans.

• The Senior Loan portfolios of the CLO vehicles in which we invest may be concentrated in a limited number of industries or borrowers, which may subject those vehicles, and in turn us, to a risk of significant loss if there is a downturn in a particular industry in which a number