ING Prime Rate Trust, a closed-end fund (PPR), will redeem a portion of the outstanding auction rate preferred shares (ARPS) in its portfolio, “at par,” ING Investments, LLC, manager of the Trust, announced on September 3.
“The Trust’s Board of Trustees has approved a partial redemption that will be paid primarily by drawing on leverage available under the Trust’s credit facilities. The redemption would provide liquidity at par for the holders of a portion of the Trust’s ARPS,” according to the announcement.
This is the fourth of a planned series of redemptions the Trust had announced in December 2009. The Trust said then that of $225 million of the outstanding ARPS, it planned to redeem up to $100 million of them in a series of four $25 million redemptions. The Trust expects to complete this $25 million redemption by “mid- to late October.”