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PILGRIM PRIME RATE TRUST DECLARES 5.1 CENTS PER SHARE QUARTERLY DIVIDEND

 LOS ANGELES, Sept. 2 /PRNewswire/ -- The following was originally issued by The Pilgrim Group Inc. on Sept. 1:
 Pilgrim Prime Rate Trust (NYSE: PPR), a $717 million closed-end mutual fund, declared a monthly dividend of 5.1 cents per share, payable Sept. 17, 1993, to shareholders of record on Sept. 10, 1993. This represents the 64th consecutive monthly dividend since the Trust's inception in May 1988.
 The monthly dividend represents an annualized rate of 6.06 percent, calculated on the Trust's estimated ex-dividend net asset value per share of $9.91. Calculated at the Trust's closing market price on the New York Stock Exchange on Aug. 31, 1993, of $9.50, the annualized rate is 6.32 percent. Assuming reinvestment of dividends, the dividend rate will approximate 6.23 percent at NAV and 6.51 percent at market.
 "The Trust's portfolio presently has a weighted average rate reset period of 35 days and, therefore, its net asset value is minimally exposed to changes in prevailing interest rates," said Michael P. McAdams, portfolio manager. "This is significant when you note that the Trust's dividend rate, calculated at its current market price, continues to exceed the current yield on 30-year U.S. Treasuries," McAdams added.
 During the month of August, the Trust's NAV declined by approximately 7 cents as a result of an isolated problem loan situation involving Almac's Inc., a New England food chain to which the Trust loaned approximately $10 million in 1991 as part of a total $100 million refinancing.
 "While it is still too early to predict the final outcome for this loan, we remain hopeful that some portion of the NAV decline will be restored through Almac's successful reorganization in bankruptcy," McAdams said.
 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 five-year total return of the Trust through July 31, 1993, was 52.43 percent, and the total return for the 12-months ended July 31, 1993, was 6.53 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 total assets under management of approximately $2.9 billion.
 -0- 9/2/93
 /CONTACT: Michael McAdams, The Pilgrim Group, 800-336-3436/
 (PPR)


CO: Pilgrim Prime Rate Trust ST: California IN: FIN SU: DIV

EH-LM -- LA019 -- 8452 09/02/93 13:14 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
Words:432
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