ING Prime Rate Trust to redeem $25 million auction-rate preferreds

By Toni Weeks

San Diego, Feb. 28 - ING Prime Rate Trust announced in a news release that it will redeem $25 million of its $100 million of outstanding auction-rate preferred shares.

The redemption will be funded primarily by drawing on leverage available under the company's credit facilities. ING said the redemption would provide liquidity at par for the holders of a portion of the trust's preferreds.

The company said it expects to issue a formal redemption notice by the second week of March and complete the redemption by mid-April to late April.

In December 2009, the trust announced its intention to redeem up to $100 million of the $225 million preferreds then outstanding through four quarterly periodic redemptions of up to $25 million each. In September, the continuation of the redemption program was approved by the board of trustees.

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

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