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

By Toni Weeks

San Diego, June 1 - ING Prime Rate Trust intends to redeem about $25 million of its $75 million of outstanding auction-rate preferred shares at par, according to a press release.

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

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

In December 2009, the trust announced its intention to redeem up to $100 million of the $225 million auction-rate preferreds then outstanding through four quarterly periodic redemptions of up to $25 million each. In September 2011, 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.

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