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PILGRIM PRIME RATE TRUST DECLARES 4.9 CENTS PER SHARE MONTHLY DIVIDEND

 LOS ANGELES, Oct. 1 /PRNewswire/ -- Pilgrim Prime Rate Trust (NYSE: PPR), a $716 million closed-end mutual fund, declared a monthly dividend of 4.9 cents per share, payable Oct. 18, 1993, to shareholders of record on Oct. 11, 1993. This represents the 65th consecutive monthly dividend since the Trust's inception in May 1988.
 The monthly dividend represents an annualized rate of 6.02 percent, calculated on the Trust's estimated ex-dividend net asset value per share of $9.90. Calculated at the Trust's closing market price on the New York Stock Exchange on Sept. 30, 1993, of $9.375, the annualized rate is 6.36 percent. Assuming reinvestment of dividends, the dividend rate will approximate 6.19 percent at NAV and 6.55 percent at market.
 "The Trust's portfolio presently has a weighted average rate reset period of 40 days and, therefore, its net asset value is minimally exposed to changes in prevailing interest rates," said Michael P. McAdams, portfolio manager. "Despite the continued sluggishness in the economy and uncertainty surrounding interest rates, The Trust continues to achieve its dual objectives of providing its shareholders with high current income with stability of principal," McAdams added.
 Pilgrim Prime Rate Trust was the first mutual fund to invest in a portfolio of senior collateralized, floating-rate loans originated by major commercial banks. Its objective is to provide investors with a high level of current income consistent with preservation of capital.
 According to Lipper Analytical Services Inc., the 5-year total return of the Trust through Aug. 31, 1993, was 50.60 percent, and the total return for the 12 months ended Aug. 31, 1993, was 5.45 percent.
 The Trust is managed by Pilgrim Management Corp., a subsidiary of The Pilgrim Group Inc., a Los Angeles-based mutual fund company which manages 18 mutual funds with approximately $3 billion in total assets under management.
 -0- 10/1/93
 /CONTACT: Michael P. McAdams, The Pilgrim Group, 800-336-3436/
 (PPR)


CO: The Pilgrim Group ST: California IN: SU: DIV

NY-MF -- LA010 -- 7640 10/01/93 08:31 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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