PPR - $.0121 January Dividend

Rhea-AI Summary

Voya Prime Rate Trust (NYSE: PPR) announced a monthly dividend of 1.21 cents per share on January 29, 2021, marking the 393rd consecutive monthly dividend since its launch in May 1988. The dividend is payable on February 23, 2021 to shareholders on record as of February 10, 2021. With an annualized distribution rate of 2.88% based on NAV and 3.17% based on market price, the Trust aims to deliver high current income while preserving capital. Investors should note the risks associated with below investment-grade loans and potential interest rate fluctuations.

Positive

• 393 consecutive monthly dividends demonstrate reliability.
• Monthly dividend of $0.0121 shows ongoing income for shareholders.
• Annualized distribution rates at 2.88% (NAV) and 3.17% (Market) indicate competitive returns.

Negative

• Investments in below investment grade loans carry default risks.
• Changes in short-term market interest rates may decrease yield.
• Limited secondary market for loans could restrict selling options.
• Leverage use may adversely affect the yield on Common Shares.

Voya Prime Rate Trust (NYSE: PPR), a diversified closed-end management investment company listed on the New York Stock Exchange, declared a monthly dividend of 1.21 cents per share on January 29, 2021, payable on February 23, 2021 to shareholders of record on February 10, 2021. This represents the 393rd consecutive monthly dividend since the Trust’s inception in May 1988.

The following is the annualized distribution rate calculation based on the declared dividend for the month, Net Asset Value (“NAV”) at month-end and the month-end NYSE composite closing price (“Market”).

Annualized Period-end Distribution Rate

DIVIDEND

NAV

MARKET

January 29, 2021

$.0121

2.88%

3.17%

The Trust's investment objective is to provide investors with as high a level of current income as is consistent with the preservation of capital.

The Trust is managed by Voya Investments, LLC and sub-advised by Voya Investment Management Co. LLC, and its shares are distributed by Voya Investments Distributor, LLC. The adviser, the sub-adviser and the distributor are indirect, wholly-owned subsidiaries of Voya Financial, Inc. (NYSE: VOYA). The Trust’s operations are based in Scottsdale, Arizona.

Distribution Rates are calculated by annualizing dividends declared during the period (i.e., divide the monthly dividend amount by the number of days in the related month and multiply by the number of days in the fiscal year) and then dividing the resulting annualized dividend by the month-ending NAV (in the case of NAV) or the month-end closing price on the NYSE composite (in the case of Market). The distribution rate is based solely on actual dividends and distributions, which are made at the discretion of management. The distribution rate may or may not include all investment income, and ordinarily will not include capital gains.

Past performance is no assurance of future results. Investment return and principal value of an investment in the Trust will fluctuate. Shares, when sold, may be worth more or less than their original cost.

Principal Risk Factor(s): The Trust invests primarily in below investment grade, floating rate senior loans that carry a higher than normal risk that borrowers may default in the timely payment of principal and interest on their loans, which would likely cause the value of the Trust’s Common Shares to decrease. Changes in short-term market interest rates will directly affect the yield on the Trust’s Common Shares. If such rates fall, the Trust’s yield will also fall. If interest rate spreads on Trust’s loans decline in general, the yield on the Trust’s loans will fall and the value of the Trust’s loans may decrease. When short-term market interest rates rise, because of the lag between changes in such short term rates and the resetting of the floating rates on loans in the Trust’s portfolio, the impact of rising rates will be delayed to the extent of such lag. Because of the limited secondary market for floating rate senior bank loans, the Trust’s ability to sell its loans in a timely fashion and/or at a favorable price may be limited. An increase in the demand for loans may adversely affect the rate of interest payable on new loans acquired by the Trust, and it may also increase the price of loans purchased by the Trust in the secondary market. A decrease in the demand for loans may adversely affect the price of loans in the Trust’s portfolio, which would cause the Trust’s NAV to decrease. The Trust’s use of leverage through borrowings or issuance of preferred shares can adversely affect the yield on the Trust’s Common Shares. The Trust may invest up to 20% of its assets in loans to borrowers in countries outside of the U.S. and Canada. Investment in foreign borrowers involves special risks, including potentially less rigorous accounting requirements, differing legal systems and potential political, social and economic adversity. The Trust may invest up to 15% of its assets in loans that are denominated in certain foreign currencies, however, the Trust will engage in currency exchange transactions to seek to hedge, as closely as practicable, 100% of the economic impact to the Trust arising from foreign currency fluctuations. Other risks include but are not limited to: Borrowings; Preferred Shares; Diversification Risks; and Concentration Risks. Investors should consult the Trust’s prospectus and Statement of Additional Information for a more detailed discussion of the Trust’s risks.

Voya Investments Distributor, LLC · 230 Park Ave, New York, NY 10169

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FAQ

What is the dividend amount declared by Voya Prime Rate Trust (PPR) in January 2021?

Voya Prime Rate Trust (PPR) declared a monthly dividend of 1.21 cents per share on January 29, 2021.

When will the dividend for Voya Prime Rate Trust (PPR) be paid?

The dividend will be payable on February 23, 2021.

What is the significance of the 393rd consecutive monthly dividend for Voya Prime Rate Trust (PPR)?

It highlights the Trust's consistent ability to provide income to its shareholders since its inception in May 1988.

What are the annualized distribution rates for Voya Prime Rate Trust (PPR)?

The annualized distribution rates are 2.88% based on NAV and 3.17% based on market price.

What risks are associated with investing in Voya Prime Rate Trust (PPR)?

Risks include investments in below investment grade loans, interest rate fluctuations, and a limited secondary market for loans.