PPR - $.0135 December Dividend

Rhea-AI Summary

Voya Prime Rate Trust (NYSE: PPR) announced a monthly dividend of 1.35 cents per share on December 31, 2020, with a payment date of January 25, 2021, for shareholders on record as of January 11, 2021. This marks the 392nd consecutive monthly dividend since its inception in May 1988. The annualized distribution rate based on this dividend is 3.25% based on Net Asset Value (NAV) and 3.57% based on market price. The Trust aims to maximize current income while preserving capital.

Positive

• 392 consecutive monthly dividends highlight consistent income for shareholders.
• Annualized distribution rate of 3.25% based on NAV represents solid returns.

Negative

• Investment in below investment grade loans carries heightened default risk.
• Changes in interest rates can negatively impact the Trust's yield.
• Limited secondary market for loans may restrict timely sales at favorable prices.

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 1.35 cents per share on December 31, 2020, payable on January 25, 2021 to shareholders of record on January 11, 2021. This represents the 392nd 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

December 31, 2020

$.0135

3.25%

3.57%

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 recent dividend declared by Voya Prime Rate Trust (PPR)?

Voya Prime Rate Trust declared a monthly dividend of 1.35 cents per share.

When is the dividend payment date for Voya Prime Rate Trust (PPR)?

The dividend payment date is January 25, 2021.

What is the annualized distribution rate for Voya Prime Rate Trust (PPR)?

The annualized distribution rate is 3.25% based on NAV.

How long has Voya Prime Rate Trust (PPR) been paying dividends?

The Trust has paid dividends for 392 consecutive months since its inception.

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

Risks include heightened default risk, interest rate changes, and limited market for loans.