ING Prime Rate Trust to buy $25 million more auction-rate preferreds in third redemption this year

By Susanna Moon

Chicago, June 2 - ING Prime Rate Trust said it plans to redeem about $25 million of its $175 million outstanding auction-rate preferred shares, the third redemption in a series of four planned for this year.

The trust's board of trustees has approved a partial redemption that will be paid by drawing on leverage available under the trust's credit facilities, according to a press release.

ING said the redemption would provide liquidity at par for the holders of a portion of the trust's preferreds.

The trust said it expects to issue a formal redemption notice by the second week of June and expects to complete the redemption by mid- to late July.

In December 2009, the trust announced it would redeem up to $100 million of the $225 million preferreds then outstanding through a series of four quarterly periodic redemptions of up to $25 million each.

The first two redemptions were completed in late January and mid-April, the company noted.

ING said the amount and timing of subsequent redemptions of the preferreds will be at the discretion of the trust's board of trustees and management, subject to market conditions and investment considerations. As such, there is no assurance that the trust will redeem $100 million of preferreds.

The trust is a New York diversified closed-end management investment company listed on the New York Stock Exchange.

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