Voya Prime Rate Trust to Repay Credit Facility
20 January 2021 - 12:30AM
Business Wire
The Board of Trustees (the “Board”) has determined that it is in
the best interest of Voya Prime Rate Trust (“the Fund”) (NYSE: PPR)
and its shareholders to repay the Fund’s outstanding borrowings
under the Fund’s line of credit (the “LOC”) to address concerns
they have about terms related to the LOC and the Fund’s ability to
obtain a long-term extension of the LOC . In furtherance of this
determination, the Board has directed Voya Investments, LLC (the
“Adviser”) to take the appropriate actions to repay the Fund’s
outstanding borrowings under the LOC.
As of the close of business on January 15, 2021, the Adviser has
completed selling senior loans sufficient to pay the outstanding
balance of the LOC and, pending settlement of those loans, will
temporarily manage the Fund without the use of leverage. The Fund
may use leverage in the future.
It is expected that the settlement for the sale of senior loans
will take place in the normal course of business, over which time
the balance of the LOC will be repaid. The Fund does not intend to
terminate the LOC upon its repayment. The Adviser and the Board
will continue to evaluate the distribution level of the Fund in the
coming months.
Voya Prime Rate Trust
The Fund is a diversified, closed-end investment management
company registered under the Investment Company Act of 1940, as
amended, and the rules, regulations, and applicable exemptive
orders thereunder (“1940 Act”). It was organized a Massachusetts
business trust on December 2, 1987. The Fund’s Common Shares are
traded on the NYSE under the symbol PPR.
The Fund seeks to provide investors with as high a level of
current income as is consistent with the preservation of capital.
There is no assurance that the Fund will achieve its investment
objective.
About Voya Investment Management
A leading, active asset management firm, Voya Investment
Management manages, as of September 31, 2020, more than $238
billion for affiliated and external institutions as well as
individual investors. With over 40 years of history in asset
management, Voya Investment Management has the experience and
resources to provide clients with investment solutions with an
emphasis on equities, fixed income, and multi-asset strategies and
solutions. Voya Investment Management was named in 2015, 2016,
2017, 2018, 2019 and 2020 as a “Best Places to Work” by Pensions
and Investments magazine. For more information, visit
voyainvestments.com. Follow Voya Investment Management on Twitter
@VoyaInvestments.
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version on businesswire.com: https://www.businesswire.com/news/home/20210119005590/en/
Media Contact: Kristopher Kagel (201) 221-6534
Kristopher.Kagel@voya.com
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