ING Prime Rate Trust to redeem remaining auction preferred shares

By Susanna Moon

Chicago, Nov. 11 - ING Prime Rate Trust said it plans to redeem the remaining $25 million of its outstanding auction-rate preferred shares by year-end.

The redemption would provide liquidity at par for the holders of the remaining preferreds, according to a press release.

Funding for the purchase will come from drawdowns on the trust's credit facilities.

ING expects to issue a redemption notice by the third week of November and expects to redeem the preferreds by mid- to late December.

The turst said on Sept. 2 that it would redeem 1,000, or half, of its series M, T, W, Th and F auction preferred shares over a four-day period in October.

In December 2009, the trust said it planned to redeem up to $100 million of the $225 million auction-rate preferreds through four quarterly periodic redemptions of up to $25 million each. In September 2010, the board of trustees approved continuing the redemption program.

The trust is a New York diversified closed-end management investment company.

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