John Hancock Funds says it has completed restructuring the holdings of the last of 7 closed-end funds affected by the turmoil in the auction rate preferred securities market.

John Hancock, Boston, a unit of Manulife Financial Corp., Boston, says the latest transactions affects $89 million in leverage at the John Hancock Income Securities Trust bond fund.

An outside commercial bank will provide a credit facility needed to redeem and replace 100% of the auction rate preferred securities in the fund, and to change the form of leverage from ARPS to debt, John Hancock says.

In May, John Hancock announced similar transactions involving 6 other closed end funds.

John Hancock has restructured a total of $1.6 billion in holdings at the funds.

John Hancock says it has made the moves in response to the failures in the market for auction rate preferred securities that have been occurring since February.

Redemption of the ARPS holdings for the bond fund trust will be completed on a tranche-by-tranche basis, John Hancock says.