ING Prime Rate Trust Announces Intended Redemption of Auction-Rate Preferred Shares
PR Newswire
NEW YORK
Sep 1, 2011
NEW YORK, Sept. 1, 2011 /PRNewswire/ -- ING Prime Rate Trust (Trust), a diversified closed-end management investment company listed on the New York Stock Exchange (NYSE: PPR), has announced today its intention to redeem a portion of its outstanding auction-rate preferred shares (ARPS). 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.
The Trust expects to redeem approximately $25 million of the $50 million ARPS currently outstanding, approximately 50% by series, subject to satisfying the notice and other requirements that apply to ARPS redemptions. Upon completion of such notice and other requirements, the Trust will issue a formal redemption notice to the paying agent and record holders. The Trust expects to issue a formal redemption notice by the second week of September and anticipates that the redemption of the $25 million of ARPS will be completed by mid- to late October 2011.
In December 2009, the Trust announced its intention to redeem up to $100 million of the $225 million ARPS then outstanding, through a series of four quarterly periodic redemptions of up to $25 million each. In September 2010, the Trust's Board of Trustees approved the continuation of the program for quarterly redemptions of the outstanding ARPS of the Trust in amounts of up to $25 million each quarter subject to management's discretion to modify or cancel the program at any time.
The amount and timing of subsequent redemptions of ARPS will be at the discretion of the Trust's Board of Trustees and management, subject to market conditions and investment considerations.
The Depository Trust Company (DTC) will determine how partial series redemptions will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for its customers who are beneficial owners of the ARPS (street name shareholders), in turn will determine how redeemed shares are to be allocated among its customers. The procedures used by broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.
SHAREHOLDER INQUIRIES: ING Funds Shareholder Services at (800) 992-0180
Certain statements made on behalf of the Trust in this release may be considered forward-looking statements. The Trust's actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in markets in general or the Trust's investments specifically. Neither the Trust nor ING undertakes any responsibility to update publicly or revise any forward-looking statement.
ING Investment Management (ING IM) is a leading U.S.-based active asset management firm. As of June 30, 2011, ING IM manages approximately $162 billion for both institutions and individual investors. ING IM has the experience and resources to invest responsibly across asset classes, geographies and investment styles. Through our global asset management network, we provide clients with access to domestic, regional and global investment solutions.
With an emphasis on active management, our investment mission is to find unrecognized value ahead of consensus. To this end, our portfolio management teams seek original insights on markets and securities and a vision of investment potential that differs from the consensus view. We apply our proprietary research and analytics, portfolio diagnostics and risk management to the development of investment solutions in pursuit of our clients' objectives. We believe this is best achieved by structuring our investment platforms as entrepreneurial, skills-based strategy teams united by shared resources.
ING Investment Management is committed to investing responsibly and delivering client-oriented investment solutions and advisory services across asset classes, geographies and styles. We serve a variety of institutional clients, including public, corporate and union retirement plans, endowments and foundations, and insurance companies, as well as individual investors via intermediary distribution partners such as banks, broker/dealers and independent financial advisers.
SOURCE ING Investment Management U.S.
SOURCE: ING Investment Management U.S.
PR Newswire
NEW YORK, Sept. 1, 2011
NEW YORK, Sept. 1, 2011 /PRNewswire/ -- ING Prime Rate Trust (Trust), a diversified closed-end management investment company listed on the New York Stock Exchange (NYSE: PPR), has announced today its intention to redeem a portion of its outstanding auction-rate preferred shares (ARPS). 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.
The Trust expects to redeem approximately $25 million of the $50 million ARPS currently outstanding, approximately 50% by series, subject to satisfying the notice and other requirements that apply to ARPS redemptions. Upon completion of such notice and other requirements, the Trust will issue a formal redemption notice to the paying agent and record holders. The Trust expects to issue a formal redemption notice by the second week of September and anticipates that the redemption of the $25 million of ARPS will be completed by mid- to late October 2011.
In December 2009, the Trust announced its intention to redeem up to $100 million of the $225 million ARPS then outstanding, through a series of four quarterly periodic redemptions of up to $25 million each. In September 2010, the Trust's Board of Trustees approved the continuation of the program for quarterly redemptions of the outstanding ARPS of the Trust in amounts of up to $25 million each quarter subject to management's discretion to modify or cancel the program at any time.
The amount and timing of subsequent redemptions of ARPS will be at the discretion of the Trust's Board of Trustees and management, subject to market conditions and investment considerations.
The Depository Trust Company (DTC) will determine how partial series redemptions will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for its customers who are beneficial owners of the ARPS (street name shareholders), in turn will determine how redeemed shares are to be allocated among its customers. The procedures used by broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.
SHAREHOLDER INQUIRIES: ING Funds Shareholder Services at (800) 992-0180
Certain statements made on behalf of the Trust in this release may be considered forward-looking statements. The Trust's actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in markets in general or the Trust's investments specifically. Neither the Trust nor ING undertakes any responsibility to update publicly or revise any forward-looking statement.
ING Investment Management (ING IM) is a leading U.S.-based active asset management firm. As of June 30, 2011, ING IM manages approximately $162 billion for both institutions and individual investors. ING IM has the experience and resources to invest responsibly across asset classes, geographies and investment styles. Through our global asset management network, we provide clients with access to domestic, regional and global investment solutions.
With an emphasis on active management, our investment mission is to find unrecognized value ahead of consensus. To this end, our portfolio management teams seek original insights on markets and securities and a vision of investment potential that differs from the consensus view. We apply our proprietary research and analytics, portfolio diagnostics and risk management to the development of investment solutions in pursuit of our clients' objectives. We believe this is best achieved by structuring our investment platforms as entrepreneurial, skills-based strategy teams united by shared resources.
ING Investment Management is committed to investing responsibly and delivering client-oriented investment solutions and advisory services across asset classes, geographies and styles. We serve a variety of institutional clients, including public, corporate and union retirement plans, endowments and foundations, and insurance companies, as well as individual investors via intermediary distribution partners such as banks, broker/dealers and independent financial advisers.
SOURCE ING Investment Management U.S.
CONTACT: Dana Ripley, +1-770-980-4865