Funds

 

First Quarter Report

 

May 31, 2006

 

 

ING Prime Rate Trust

 

 

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This report is submitted for general information to shareholders of the ING Funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the funds’ investment objectives, risks, charges, expenses and other information. This information should be read carefully.

 


 

ING Prime Rate Trust

 

FIRST QUARTER REPORT

May 31, 2006

 


 

Table of Contents

 

Portfolio Managers’ Report

2

 

 

 

 

Statement of Assets and Liabilities

8

 

 

 

 

Statement of Operations

9

 

 

 

 

Statements of Changes in Net Assets

10

 

 

 

 

Statement of Cash Flows

11

 

 

 

 

Financial Highlights

12

 

 

 

 

Notes to Financial Statements

13

 

 

 

 

Portfolio of Investments

21

 

 

 

 

Additional Information

51

 

 


 

 

 

 

 

 

 

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ING Prime Rate Trust

 

PORTFOLIO MANAGERS’ REPORT

 

Dear Shareholders:

 

ING Prime Rate Trust (the “Trust”) is a diversified, closed-end management investment company that seeks to provide investors with as high a level of current income as is consistent with the preservation of capital. The Trust seeks to achieve this objective by investing, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in senior loans.

 

PORTFOLIO CHARACTERISTICS
AS OF MAY 31, 2006

 

Net Assets

 

$

1,093,947,269

 

Total Assets

 

$

2,155,338,225

 

Assets Invested in Senior Loans

 

$

2,092,132,468

 

Senior Loans Represented

 

533

 

Average Amount Outstanding per Loan

 

$3,925,202

 

Industries Represented

 

39

 

Average Loan Amount per Industry

 

$53,644,422

 

Portfolio Turnover Rate

 

18%

 

Weighted Average Days to Interest Rate Reset

 

42

 

Average Loan Final Maturity

 

63 months

 

Total Leverage as a Percentage of Total Assets (including Preferred Shares)

 

47%

 

 

PERFORMANCE SUMMARY

 

The Trust declared $0.13 of dividends during the first fiscal quarter ended May 31, 2006. Based on the average month-end net asset value (“NAV”) per share of $7.54, this resulted in an annualized distribution rate of 7.18%(1) for the quarter. The Trust’s total net return for the first fiscal quarter, based on NAV, was 1.18%, versus a total gross return on the S&P/LSTA Leveraged Loan Index (“LLI”)(2) of 1.30% for the same quarter. The total market value return (based on full reinvestment of dividends) for the Trust’s common shares during the first fiscal quarter was 2.29%.

 

MARKET OVERVIEW

 

The tail end of the Trust’s first fiscal quarter of 2006 was a transitional period in the U.S. leveraged loan market, as the average bid for the most widely traded loans declined to a new seven-month low (100.21).(3) Fortunately, based on higher LIBOR rates and increasing credit spreads, total return during the period (as evidenced by LLI) was still positive, a good result relative to the experience of most other actively traded capital markets. Importantly, the reduction in the market premium was driven almost exclusively by technical factors (i.e., supply and demand) and not by a systemic increase in realized credit risk (i.e., defaults). During the quarter, new issue volume reached an all-time record, putting pressure on secondary loan prices and thereby increasing NAV volatility across

 


(1)       The distribution rate is calculated by annualizing dividends declared during the period and dividing the resulting annualized dividend by the Trust’s average month-end net asset value (in the case of NAV) or the average month-end NYSE Composite closing price (in the case of Market). The distribution rate is based solely on the 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 or losses, if any.

 

(2)    The S&P/LSTA Leveraged Loan Index (“LLI”) is an unmanaged total return index that captures accrued interest, repayments, and market value changes. It represents a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers. Standard & Poor’s and the Loan Syndications and Trading Association (“LSTA”) conceived the LLI to establish a performance benchmark for the syndicated leveraged loan industry. An investor cannot invest directly in an index.

 

(3)       Source: Standard & Poor’s Leveraged Commentary & Data

 

2


 

ING Prime Rate Trust

 

PORTFOLIO MANAGERS’ REPORT (continued)

 

the board. While this technical correction did hold down returns, it also marked what appears to be an important turning point in investor sentiment in that new issue spread pricing has increased materially across all ratings categories. The fact that credit spreads are reverting to more normalized risk-adjusted levels in a reasonably orderly fashion is a very healthy development.

 

Fundamentally, the credit environment and the direction of short-term interest rates remain the primary focus of market participants. In short, while pockets of weakness persist, credit conditions remain reasonably attractive as evidenced by a quarter-over-quarter improvement in the trailing default rate (1.54% at May 31, 2006, versus 2.08% at February 28, 2006).(3) And while visible deceleration of the U.S. housing market has had a moderating impact, the broader U.S. economy appears to be expanding at an acceptable rate, supporting the consensus view that the Fed may boost short-term interest rates a little further. Consequently, the fundamental outlook for leveraged loan issuers, and floating rate loan investments, remains favorable over the near-term.

 

TOP TEN INDUSTRY SECTORS
AS OF MAY 31, 2006
AS A PERCENTAGE OF:

 

 

 

TOTAL
ASSETS

 

NET
ASSETS

 

North American Cable

 

11.1

%

 

21.8

%

 

Healthcare, Education and Childcare

 

8.2

%

 

16.1

%

 

Chemicals, Plastics and Rubber

 

5.7

%

 

11.2

%

 

Oil and Gas

 

5.4

%

 

10.7

%

 

Buildings and Real Estate

 

4.7

%

 

9.3

%

 

Printing and Publishing

 

4.2

%

 

8.3

%

 

Utilities

 

3.9

%

 

7.8

%

 

Leisure, Amusement, Entertainment

 

3.9

%

 

7.7

%

 

Automobile

 

3.9

%

 

7.7

%

 

Retail Stores

 

3.8

%

 

7.6

%

 

 

Portfolio holdings are subject to change daily.

 

PORTFOLIO OVERVIEW

 

Coming off several strong consecutive quarters, the Trust’s net performance was marginally lower than the gross returns of the LLI (based on NAV) during the most recent quarter, due primarily to the secondary market price correction noted above. Price compression was most noticeable in the lower spread, typically higher credit quality subset of the market, an area emphasized by our strategy due to its low credit-related volatility profile. Aside from broader market issues, the Trust’s exposure to the Adelphia Communications group of affiliates was the biggest detractor to this quarter’s results. While cable operators have been posting favorable operating results generally, loan prices for the Adelphia group were negatively impacted by the continued delay in the company’s bankruptcy asset sale process and complicating factors surrounding the ultimate disposition of proceeds.

 

TOP TEN SENIOR LOAN ISSUERS
AS OF MAY 31, 2006
AS A PERCENTAGE OF:

 

 

 

TOTAL
ASSETS

 

NET
ASSETS

 

Charter Communications Operating, LLC

 

2.5

%

 

4.9

%

 

Metro-Goldwyn-Mayer Studios, Inc.

 

2.0

%

 

3.9

%

 

Georgia-Pacific Corporation

 

1.7

%

 

3.4

%

 

NRG Energy, Inc.

 

1.4

%

 

2.8

%

 

Century Cable Holdings, LLC

 

1.4

%

 

2.7

%

 

Sungard Data Systems, Inc.

 

1.3

%

 

2.6

%

 

Olympus Cable Holdings, LLC

 

1.3

%

 

2.5

%

 

Davita, Inc.

 

1.2

%

 

2.4

%

 

Fidelity National Information Solutions, Inc.

 

1.2

%

 

2.4

%

 

CSC Holdings, Inc.

 

1.1

%

 

2.2

%

 

 

Portfolio holdings are subject to change daily.

 

Although we continue to wait on the eventual resolution of these issues, we

 


(3)  Source: Standard & Poor’s Leveraged Commentary & Data

 

3


 

ING Prime Rate Trust

 

PORTFOLIO MANAGERS’ REPORT (continued)

 

still anticipate a favorable outcome for the company’s obligations held by the Trust.

 

Diversification remains very healthy. The average individual loan position at the end of the quarter represented approximately 0.25% of total assets, while the average industry sector accounted for roughly 2.56%.

 

USE OF LEVERAGE

 

The Trust utilizes financial leverage to seek to increase the yield to the holders of common shares. As of May 31, 2006, the Trust had $450 million of “Aaa/AAA(4)” rated cumulative auction rate preferred shares outstanding, and $567 million of borrowings outstanding under $625 million in available credit facilities. Total leverage, as a percentage of total assets (including preferred shares), was 47.19% at period end. The use of leverage for investment purposes increases both investment opportunity and investment risk.

 

 


(4)    Obligations rated ‘Aaa’ by Moody’s Investors Service are judged to be of the highest quality, with minimal credit risk. An obligator rated ‘AAA’ has extremely strong capacity to meet its financial commitments. ‘AAA’ is the highest Issuer Credit Rating assigned by Standard & Poor’s. Credit quality refers to the Trust’s underlying investments, not to the stability or safety of this Trust.

 

4


 

ING Prime Rate Trust

 

PORTFOLIO MANAGERS’ REPORT (continued)

 

OUTLOOK

 

As noted above, absent any material geo-political shock to the global economic system, credit conditions are expected to remain reasonably stable through the balance of the year. Moreover, while an unprecedented level of uncertainty currently surrounds near-term Fed action, it’s clear that inflationary pressures are not significantly receding. The unanswered question at this point is whether the economy is moderating at a pace sufficient to cause the Fed to pause. Given the recent price correction in our market, the combination of 1) level credit conditions, 2) an upward rate bias and 3) increasingly wider credit spreads would foster a favorable environment for non-investment grade loan performance.

 

Our strategy is dedicated to delivering attractive-risk adjusted returns and moderate NAV volatility. As such, we remain focused on the better quality subset of the loan universe (i.e., better relative credit ratings, traditional first position collateral packages, and standard covenant protections) and will cede excess returns to maintain that strategy.

 

 

Jeffrey A. Bakalar
Senior Vice President
Senior Portfolio Manager
ING Investment Management Co.

Daniel A. Norman
Senior Vice President
Senior Portfolio Manager
ING Investment Management Co.

 

 

ING Prime Rate Trust
July 18, 2006

 

5


 

ING Prime Rate Trust

 

PORTFOLIO MANAGERS’ REPORT (continued)

 

 

 

Average Annual Total Returns for the
Years Ended May 31, 2006

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

 

Based on Net Asset Value (NAV)

 

9.95

%

 

9.60

%

 

6.08

%

 

5.70

%

 

Based on Market Value

 

6.88

%

 

6.25

%

 

4.99

%

 

4.92

%

 

S&P/LSTA Leveraged Loan Index(a)

 

6.36

%

 

6.15

%

 

5.13

%

 

 

 

Credit-Suisse Leveraged Loan Index

 

6.94

%

 

6.70

%

 

5.28

%

 

5.63

%

 

 

The table above illustrates the total return of ING Prime Rate Trust against the Indices indicated. An Index has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index.

 

Total returns based on net asset value reflect that the Investment Manager may have waived or recouped fees and expenses otherwise payable by the Trust.

 

Performance data represents past performance and is no guarantee 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. The Trust’s future performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.

 

Assumes rights were exercised and excludes sales charges and commissions(b),(c)

 

(a)         Performance since inception for the index is 5.35% from January 1, 1997.

 

(b)         Calculation of total return assumes a hypothetical initial investment at the net asset value (in the case of NAV) or the NYSE Composite closing price (in the case of Market Value) on the last business day before the first day of the stated period, with all dividends and distributions reinvested at the actual reinvestment price.

 

(c)          On October 18, 1996, the Trust issued to its shareholders non-transferable rights which entitled the holders to subscribe for 18,122,963 shares of the Trust’s common stock at the rate of one share of common stock for each five rights held. On November 12, 1996, the offering expired and was fully subscribed. The Trust issued 18,122,963 shares of its common stock to exercising rights holders at a subscription price of $9.09. Offering costs of $6,972,203 were charged against the offering proceeds.

 

Senior loans are subject to credit risks and the potential for non-payment of scheduled principal or interest payments, which may result in a reduction of the Trust’s NAV.

 

This report contains statements that may be “forward-looking” statements. Actual results could differ materially from those projected in the “forward-looking” statements.

 

The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.

 

INDEX DESCRIPTIONS

 

The S&P/LSTA Leveraged Loan Index (“LLI”) is an unmanaged total return index that captures accrued interest, repayments, and market value changes. It represents a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers. Standard & Poor’s and the Loan Syndications & Trading Association (“LSTA”) conceived the LLI to establish a performance benchmark for the syndicated leveraged loan industry. An investor cannot invest directly in an index.

 

The Credit-Suisse Leveraged Loan Index is an unmanaged index of below investment grade loans designed to mirror the investable universe of the U.S. dollar-denominated leveraged loan market. An investor cannot invest directly in an index.

 

6


 

ING Prime Rate Trust

 

PORTFOLIO MANAGERS’ REPORT (continued)

 

YIELDS AND DISTRIBUTIONS RATES

 

Quarter Ended

 

Prime
Rate

 

Net Asset
Value (“NAV”)
30-Day SEC
Yield
(A)

 

Market
30-Day SEC
Yield
(A)

 

Average
Annualized
Distribution
Rate at NAV
(B)

 

Average
Annualized
Distribution
Rate at Market
(B)

 

May 31, 2006

 

8.00

%

 

9.63

%

 

10.31

%

 

7.10

%

 

7.57

%

 

February 28, 2006

 

7.50

%

 

8.40

%

 

9.10

%

 

6.59

%

 

7.25

%

 

November 30, 2005

 

7.00

%

 

8.09

%

 

9.17

%

 

6.25

%

 

6.97

%

 

August 31, 2005

 

6.50

%

 

7.24

%

 

7.73

%

 

6.07

%

 

6.48

%

 

 

(A)    Yield is calculated by dividing the Trust’s net investment income per share for the most recent thirty days by the net asset value (in the case of NAV) or the NYSE Composite closing price (in the case of market) at quarter-end. Yield calculations do not include any commissions or sales charges, and are compounded for six months and annualized for a twelve-month period to derive the Trust’s yield consistent with the SEC standardized yield formula for investment companies.

 

(B)    The distribution rate is calculated by annualizing each monthly dividend, then averaging the annualized dividends declared for each month during the quarter and dividing the resulting average annualized dividend amount by the Trust’s average net asset value (in the case of NAV) or the NYSE Composite closing price (in the case of Market) at the end of the period.

 

Risk is inherent in all investing. The following are the principal risks associated with investing in the Trust. This is not, and is not intended to be, a description of all risks of investing in the Trust. A more detailed description of the risks of investing in the Trust is contained in the Trust’s current prospectus.

 

Credit Risk: The Trust invests a substantial portion of its assets in below investment grade senior loans and other below investment grade assets. Below investment grade loans involve a greater risk that borrowers may not make timely payment of the interest and principal due on their loans. They also involve a greater risk that the value of such loans could decline significantly. If borrowers do not make timely payments of the interest due on their loans, the yield on the Trust will decrease. If borrowers do not make timely payment of the principal due on their loans, or if the value of such loans decreases, the value of the Trust’s NAV will decrease.

 

Interest Rate Risk: Changes in short-term market interest rates will directly affect the yield on the Trust. If short-term market interest rates fall, the yield on the Trust will also fall. To the extent that the interest rate spreads on loans in the Trust experience a general decline, the yield on the Trust will fall and the value of the Trust’s assets may decrease, which will cause the Trust’s value to decrease. Conversely, 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 assets in the Trust, the impact of rising rates will be delayed to the extent of such lag.

 

Leverage Risk: The Trust borrows money for investment purposes. Borrowing increases both investment opportunity and investment risk. In the event of a general market decline in the value of assets such as those in which the Trust invests, the effect of that decline will be magnified in the Trust because of the additional assets purchased with the proceeds of the borrowings.

 

7


 

ING Prime Rate Trust

 

STATEMENT OF ASSETS AND LIABILITIES as of May 31, 2006 (Unaudited)

 

ASSETS:

 

 

 

Investments in securities at value (Cost $2,095,849,139)

 

$

2,116,143,385

 

Foreign currencies at value (Cost $3,194,125)

 

3,208,127

 

Receivables:

 

 

 

Investment securities sold

 

16,820,255

 

Interest

 

18,977,344

 

Other

 

40,460

 

Prepaid expenses

 

148,654

 

Total assets

 

2,155,338,225

 

LIABILITIES:

 

 

 

Notes payable

 

567,000,000

 

Payable for investments purchased

 

36,190,559

 

Accrued interest payable

 

2,507,149

 

Deferred arrangement fees on senior loans

 

741,099

 

Dividends payable — preferred shares

 

212,129

 

Payable to affiliates

 

1,859,651

 

Payable to custodian

 

146,569

 

Accrued trustee fees

 

19,533

 

Unrealized depreciation on foreign currency contracts

 

26,729

 

Payable to custodian for bank overdraft

 

2,038,393

 

Other accrued expenses

 

649,145

 

Total liabilities

 

611,390,956

 

Preferred shares, $25,000 stated value per share at liquidation value (18,000 shares outstanding)

 

450,000,000

 

NET ASSETS

 

$

1,093,947,269

 

Net assets value per common share outstanding (net assets less preferred shares at liquidation value, divided by 145,033,235 shares of beneficial interest authorized and outstanding, no par value)

 

$

7.54

 

NET ASSETS CONSIST OF:

 

 

 

Paid-in capital

 

$

1,331,413,656

 

Undistributed net investment income

 

6,038,887

 

Accumulated net realized loss on investments

 

(263,786,793

)

Net unrealized appreciation on investments and foreign currency related transactions

 

20,281,519

 

NET ASSETS

 

$

1,093,947,269

 

 

See Accompanying Notes to Financial Statements

 

8


 

ING Prime Rate Trust

 

STATEMENT OF OPERATIONS for the Three Months Ended May 31, 2006 (Unaudited)

 

INVESTMENT INCOME:

 

 

 

Interest

 

$

37,462,790

 

Arrangement fees earned

 

291,756

 

Other

 

544,530

 

Total investment income

 

38,299,076

 

EXPENSES:

 

 

 

Investment management fees

 

4,188,612

 

Administration fees

 

1,308,941

 

Transfer agent and registrar fees

 

33,764

 

Interest

 

7,095,002

 

Shareholder reporting expense

 

42,780

 

Custodian fees

 

239,200

 

Professional fees

 

101,200

 

Preferred Shares — Dividend disbursing agent fees

 

308,274

 

Pricing expense

 

16,175

 

Postage expense

 

34,040

 

Trustees’ fees

 

18,492

 

Miscellaneous expense

 

67,883

 

Total expenses

 

13,454,363

 

Net investment income

 

24,844,713

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS:

 

 

 

Net realized gain (loss) on:

 

 

 

Investments

 

12,090,050

 

Foreign currency related transactions

 

(76,075

)

Net realized gain on investments and foreign currency related transactions

 

12,013,975

 

Net change in unrealized appreciation or depreciation on:

 

 

 

Investments

 

(19,701,446

)

Foreign currency related transactions

 

(12,727

)

Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions

 

(19,714,173

)

Net realized and unrealized loss on investments and foreign currency related transactions

 

(7,700,198

)

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS:

 

 

 

From net investment income

 

(5,233,054

)

Net increase in net assets resulting from operations

 

$

11,911,461

 

 

See Accompanying Notes to Financial Statements

 

9


 

ING Prime Rate Trust

 

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

 

 

 

Three Months
Ended
May 31,
2006

 

Year Ended
February 28,
2006

 

INCREASE IN NET ASSETS FROM OPERATIONS:

 

 

 

 

 

Net investment income

 

$

24,844,713

 

$

83,109,460

 

Net realized gain on investments and foreign currency related transactions

 

12,013,975

 

422,159

 

Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions

 

(19,714,173

)

16,658,806

 

Distributions to preferred shareholders from net investment income

 

(5,233,054

)

(15,839,470

)

Net increase in net assets resulting from operations

 

11,911,461

 

84,350,955

 

 

 

 

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS:

 

 

 

 

 

Distributions from net investment income

 

(18,635,466

)

(66,428,156

)

Decrease in net assets from distributions to common shareholders

 

(18,635,466

)

(66,428,156

)

Net increase (decrease) in net assets

 

(6,724,005

)

17,922,799

 

 

 

 

 

 

 

NET ASSETS:

 

 

 

 

 

Beginning of period

 

1,100,671,274

 

1,082,748,475

 

End of period (including undistributed net investment income of $6,038,887 and $5,062,694, respectively)

 

$

1,093,947,269

 

$

1,100,671,274

 

 

See Accompanying Notes to Financial Statements

 

10


 

ING Prime Rate Trust

 

STATEMENT OF CASH FLOWS for the Three Months Ended May 31, 2006 (Unaudited)

 

INCREASE (DECREASE) IN CASH
Cash Flows From Operating Activities:

 

 

 

Interest received

 

$

34,207,154

 

Dividend paid to preferred shareholder

 

(5,248,907

)

Arrangement fee received

 

120,684

 

Other income received

 

538,625

 

Interest paid

 

(6,574,905

)

Other operating expenses paid

 

(6,248,683

)

Purchases of securities

 

(465,211,190

)

Proceeds from sales of securities

 

361,927,137

 

Net cash used in operating activities

 

$

(86,490,085

)

Cash Flows From Financing Activities:

 

 

 

Dividends paid to common shareholders

 

$

(18,635,466

)

Net issuance of notes payable

 

102,000,000

 

Net increase in payable to custodian for bank overdraft

 

2,038,393

 

Net cash flows provided by financing activities

 

85,402,927

 

Net decrease

 

(1,087,158

)

Cash and foreign currencies at beginning of period

 

4,295,285

 

Cash and foreign currencies at end of period

 

$

3,208,127

 

Reconciliation of Net Increase In Net Assets Resulting From Operations to Net Cash Used in Operating Activities:

 

 

 

Net increase in net assets resulting from operations

 

$

11,911,461

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:

 

 

 

Change in unrealized depreciation on investments and foreign currency related transactions

 

19,714,173

 

Net accretion of discounts on securities

 

(257,315

)

Realized gain on investments and foreign currency related transactions

 

(12,013,975

)

Purchase of securities

 

(465,211,190

)

Proceeds on sale of securities

 

361,927,137

 

Increase in other receivables

 

(5,905

)

Increase in interest receivable

 

(2,998,321

)

Increase in prepaid expenses

 

(57,634

)

Decrease in deferred arrangement fees on senior loans

 

(171,072

)

Increase in accrued interest payable

 

520,097

 

Decrease in dividends payable — preferred shares

 

(15,853

)

Increase in payable to affiliates

 

193,288

 

Increase in accrued trustee fees

 

3,302

 

Decrease in other accrued expenses

 

(28,278

)

Total adjustments

 

(98,401,546

)

Net cash used in operating activities

 

$

(86,490,085

)

 

See Accompanying Notes to Financial Statements

 

11


 

ING PRIME RATE TRUST

 

FINANCIAL HIGHLIGHTS

 

For a common share outstanding throughout the period

 

 

 

Three Months
Ended
May 31,

 

Years Ended February 28 or February 29,

 

 

 

2006

 

2006

 

2005

 

2004

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

$

7.59

 

 

7.47

 

 

7.34

 

 

6.73

 

 

7.20

 

 

Income (loss) from investment operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.16

 

 

0.57

 

 

0.45

 

 

0.46

 

 

0.50

 

 

Net realized and unrealized gain (loss) on investments

$

(0.04

)

 

0.12

 

 

0.16

 

 

0.61

 

 

(0.47

)

 

Total from investment operations

$

0.12

 

 

0.69

 

 

0.61

 

 

1.07

 

 

0.03

 

 

Distributions to Common Shareholders from net investment income

$

(0.13

)

 

(0.46

)

 

(0.43

)

 

(0.42

)

 

(0.45

)

 

Distribution to Preferred Shareholders

$

(0.04

)

 

(0.11

)

 

(0.05

)

 

(0.04

)

 

(0.05

)

 

Net asset value, end of period

$

7.54

 

 

7.59

 

 

7.47

 

 

7.34

 

 

6.73

 

 

Closing market price at end of period

$

7.05

 

 

7.02

 

 

7.56

 

 

7.84

 

 

6.46

 

 

Total Investment Return(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investment return at closing market price(2)

%

2.29

 

 

(0.82

)

 

2.04

 

 

28.77

 

 

2.53

 

 

Total investment return at net asset value(3)

%

1.18

 

 

8.53

 

 

7.70

 

 

15.72

 

 

0.44

 

 

Ratios/Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets end of period (000’s)

$

1,093,947

 

 

1,100,671

 

 

1,082,748

 

 

1,010,325

 

 

922,383

 

 

Preferred Shares-Aggregate amount outstanding (000’s)

$

450,000

 

 

450,000

 

 

450,000

 

 

450,000

 

 

450,000

 

 

Liquidation and market value per share of Preferred Shares

$

25,000

 

 

25,000

 

 

25,000

 

 

25,000

 

 

25,000

 

 

Borrowings at end of year (000’s)

$

567,000

 

 

465,000

 

 

496,000

 

 

225,000

 

 

167,000

 

 

Asset coverage per $1,000 of debt(4)

$

2,080

 

 

2,203

 

 

2,140

 

 

2,500

 

 

2,500

 

 

Average borrowings (000’s)

$

527,141

 

 

509,178

 

 

414,889

 

 

143,194

 

 

190,671

 

 

Ratios to average net assets including Preferred Shares(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(6)

%

1.63

 

 

1.64

 

 

1.60

 

 

1.45

 

 

1.49

 

 

Net expenses after expense reimbursement(6)

%

3.45

 

 

3.02

 

 

2.21

 

 

1.65

 

 

1.81

 

 

Gross expenses prior to expense reimbursement(6)

%

3.45

 

 

3.02

 

 

2.22

 

 

1.65

 

 

1.81

 

 

Net investment income(6)

%

6.35

 

 

5.44

 

 

4.21

 

 

4.57

 

 

4.97

 

 

Ratios to average net assets plus borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(6)

%

1.55

 

 

1.58

 

 

1.63

 

 

1.84

 

 

1.82

 

 

Net expenses after expense reimbursement(6)

%

3.29

 

 

2.90

 

 

2.26

 

 

2.09

 

 

2.23

 

 

Gross expenses prior to expense reimbursement(6)

%

3.29

 

 

2.90

 

 

2.27

 

 

2.09

 

 

2.23

 

 

Net investment income(6)

%

6.07

 

 

5.24

 

 

4.32

 

 

5.82

 

 

6.10

 

 

Ratios to average net assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(6)

%

2.30

 

 

2.33

 

 

2.29

 

 

2.11

 

 

2.19

 

 

Net expenses after expense reimbursement(6)

%

4.84

 

 

4.27

 

 

3.17

 

 

2.40

 

 

2.68

 

 

Gross expenses prior to expense reimbursement(6)

%

4.84

 

 

4.27

 

 

3.18

 

 

2.40

 

 

2.68

 

 

Net investment income(6)

%

8.97

 

 

7.71

 

 

6.04

 

 

6.68

 

 

7.33

 

 

Portfolio turnover rate

%

18

 

 

81

 

 

93

 

 

87

 

 

48

 

 

Common shares outstanding at end of period (000’s)

 

145,033

 

 

145,033

 

 

145,033

 

 

137,638

 

 

136,973

 

 

 

(1)                   Total investment return calculations are attributable to common shares.

(2)                   Total investment return measures the change in the market value of your investment assuming reinvestment of dividends and capital gain distributions, if any, in accordance with the provisions of the Trust’s dividend reinvestment plan.

(3)                   Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends and capital gain distributions in accordance with the provisions of the dividend reinvestment plan. This calculation differs from total investment return because it excludes the effects of changes in the market values of the Trust’s shares.

(4)                   Asset coverage represents the total assets available for settlement of Preferred Stockholder’s interest and notes payables in relation to the Preferred Shareholder interest and notes payable balance outstanding. The Preferred Shares were first offered November 2, 2000.

(5)                   Ratios do not reflect the effect of dividend payments to Preferred Shareholders; income ratios reflect income earned on assets attributable to the Preferred Shares; ratios do not reflect any add-back for the borrowings.

(6)                   Annualized for periods less than one year.

 

See Accompanying Notes to Financial Statements

 

12


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited)

 

NOTE 1 — ORGANIZATION

 

ING Prime Rate Trust (the “Trust”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end, management investment company. The Trust invests primarily in senior loans, which generally are not registered under the Securities Act of 1933, as amended (the “‘33 Act”), but which contain certain restrictions on resale and cannot be sold publicly. These loans bear interest (unless otherwise noted) at rates that float periodically at a margin above the London Inter-Bank Offered Rate (“LIBOR”) and other short-term rates.

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of the significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies.

 

A.                 Senior Loan and Other Security Valuation. Senior loans held by the Trust are normally valued at the mean of the means of one or more bid and ask quotations obtained from an independent pricing service or other sources determined by the Board of Trustees to be independent and believed to be reliable. Loans for which reliable market value quotations are not readily available may be valued with reference to another loan or a group of loans for which reliable quotations are readily available and whose characteristics are comparable to the loan being valued. Under this approach, the comparable loan or loans serve as a proxy for changes in value of the loan being valued.

 

The Trust has engaged an independent pricing service to provide market value quotations from dealers in loans and, when such quotations are not readily available, to calculate values under the proxy procedure described above. As of May 31, 2006, 99.57% of total investments were valued based on these procedures. It is expected that most of the loans held by the Trust will continue to be valued with reference to quotations from the independent pricing service or with reference to the proxy procedure described above.

 

Prices from a pricing source may not be available for all loans and ING Investments, LLC (the “Investment Manager”) or ING Investment Management Co. (“ING IM”, the “Sub-Adviser”), may believe that the price for a loan derived from market quotations or the proxy procedure described above is not reliable or accurate. Among other reasons, this may be the result of information about a particular loan or borrower known to the Investment Manager or the Sub-Adviser that the Investment Manager or the Sub-Adviser believes may not be known to the pricing service or reflected in a price quote. In this event, the loan is valued at fair value as determined in good faith under procedures established by the Trust’s Board of Trustees and in accordance with the provisions of the 1940 Act. Under these procedures, fair value is determined by the Investment Manager or Sub-Adviser and monitored by the Trust’s Board of Trustees through its Valuation, Brokerage and Proxy Committee.

 

In fair valuing a loan, consideration is given to several factors, which may include, among others, the following: (i) the characteristics of and fundamental analytical data relating to the loan, including the cost, size, current interest rate, period until the next interest rate reset, maturity and base lending rate of the loan, the terms and conditions of the loan and any related agreements, and the position of the loan in the borrower’s debt structure; (ii) the nature, adequacy and value of the collateral, including the Trust’s rights, remedies and interests with respect to the collateral; (iii) the creditworthiness of the borrower and the cash flow coverage of outstanding principal and interest, based on an evaluation of its financial condition, financial statements and information about the borrower’s business, cash flows, capital structure and future prospects; (iv) information relating to the market for the loan,

 

13


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

including price quotations for, and trading in, the loan and interests in similar loans; (v) the reputation and financial condition of the agent for the loan and any intermediate participants in the loan; (vi) the borrower’s management; and (vii) the general economic and market conditions affecting the fair value of the loan. Securities for which the primary market is a national securities exchange are valued at the last reported sale price. Securities reported by NASDAQ will be valued at the NASDAQ Official Closing Price. Securities traded in the over-the-counter market and listed securities for which no sale was reported on a valuation date are valued at the mean between the last reported bid and ask price on such exchange. Securities, other than senior loans, for which reliable market value quotations are not readily available, and all other assets, will be valued at their respective fair values as determined in good faith by, and under procedures established by, the Board of Trustees of the Trust. Investments in securities maturing in 60 days or less from the date of valuation are valued at amortized cost, which, when combined with accrued interest approximates market value.

 

B.                 Federal Income Taxes. It is the Trust’s policy to comply with subchapter M of the Internal Revenue Code and related excise tax provisions applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. Therefore, no federal income tax provision is required. No capital gain distributions will be made by the Trust until any capital loss carryforwards have been fully utilized or expire.

 

C.                 Security Transactions and Revenue Recognition. Revolver and delayed draw loans are booked on a settlement date basis. Security transactions and senior loans are accounted for on trade date (date the order to buy or sell is executed). Realized gains or losses are reported on the basis of identified cost of securities sold. Dividend income is recognized on the ex-dividend date. Interest income is recorded on an accrual basis at the then-current interest rate of the loan. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to meet payments as they become due. Upon such discontinuance, all unpaid accrued interest is reversed. Cash collections on non-accrual senior loans are generally applied as a reduction to the recorded investment of the loan. Senior loans are generally returned to accrual status only after all past due amounts have been received. For all loans, except revolving credit facilities, fees received are treated as discounts and are accreted whereas premiums are amortized. Fees associated with revolving credit facilities are deferred and recognized over the shorter of four years or the actual term of the loan.

 

D.                 Foreign Currency Translation. The books and records of the Trust is maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

 

(1)     Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at the end of the day.

 

(2)     Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

 

Although the net assets and the market values are presented at the foreign exchange rates at the end of the day, the Trust does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. For securities, which are subject to foreign withholding tax upon disposition, liabilities are recorded on the Statement of Assets and Liabilities for the estimated tax withholding based on the securities current market value. Upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

 

14


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Trust’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies and the U.S. government. These risks include, but are not limited to, revaluation of currencies and future adverse political and economic developments which could cause securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities.

 

E.                  Forward Foreign Currency Contracts. The Trust may enter into forward foreign currency contracts primarily to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a currency forward contract, the Trust agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the Trust’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the Statement of Assets and Liabilities. Realized and unrealized gains and losses are included in the Statement of Operations. These instruments involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in currency and securities values and interest rates. Open forward foreign currency contracts are presented following the respective Portfolio of Investments.

 

F.                   Distributions to Common Shareholders. The Trust declares and pays dividends monthly from net investment income. Distributions from capital gains, if any, are declared and paid annually. The Trust may make additional distributions to comply with the distribution requirements of the Internal Revenue Code. The character and amounts of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America for investment companies. The Trust records distributions to its shareholders on the ex-dividend date.

 

G.                 Dividend Reinvestments. Pursuant to the Trust’s Shareholder Investment Program (formerly known as the Automatic Dividend Reinvestment Plan, the “Program”), DST Systems, Inc., the Program administrator, purchases, from time to time, shares of beneficial interest of the Trust on the open market to satisfy dividend reinvestments. Such shares are purchased on the open market only when the closing sale or bid price plus commission is less than the NAV per share of the Trust’s common shares on the valuation date. If the market price plus commissions is equal to or exceeds the net asset value, new shares are issued by the Trust at the greater of (i) net asset value or (ii) the market price of the shares during the pricing period, minus a discount of 5%.

 

H.                Use of Estimates. Management of the Trust has made certain estimates and assumptions relating to the reporting of assets, liabilities, revenues, expenses and contingencies to prepare these financial statements in conformity with generally accepted accounting principles in the United States of America for investment companies. Actual results could differ from these estimates.

 

15


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

I.                     Share Offerings. The Trust issues shares under various shelf registration statements, whereby the net proceeds received by the Trust from share sales may not be less than the greater of (i) the NAV per share or (ii) 94% of the average daily market price over the relevant pricing period.

 

NOTE 3 — INVESTMENTS

 

For the three months ended May 31, 2006, the cost of purchases and the proceeds from principal repayment and sales of investments, excluding short-term notes, totaled $432,609,051 and $365,073,079 respectively. At May 31, 2006, the Trust held senior loans valued at $2,092,132,468 representing 98.9% of its total investments. The market value of these assets is established as set forth in Note 2.

 

The senior loans acquired by the Trust typically take the form of a direct lending relationship with the borrower, and are typically acquired through an assignment of another lender’s interest in a loan. The lead lender in a typical corporate loan syndicate administers the loan and monitors the collateral securing the loan.

 

Common and preferred shares, and stock purchase warrants held in the portfolio were acquired in conjunction with loans held by the Trust. Certain of these stocks and warrants are restricted and may not be publicly sold without registration under the ‘33 Act, or without an exemption under the ‘33 Act. In some cases, these restrictions expire after a designated period of time after issuance of the shares or warrants.

 

16


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 3 — INVESTMENTS (continued)

 

Dates of acquisition and cost of assigned basis of restricted securities are as follows:

 

 

 

Date of
Acquisition

 

Cost or
Assigned Basis

 

Allied Digital Technologies Corporation (Residual Interest in Bankruptcy Estate)

 

 

06/05/02

 

 

 

$

186,961

 

 

AM Cosmetics Corporation (Liquidation Interest)

 

 

03/07/03

 

 

 

25

 

 

Block Vision Holdings Corporation (571 Common Shares)

 

 

09/17/02

 

 

 

 

 

Boston Chicken, Inc. (Residual Interest in Boston Chicken Plan Trust)

 

 

12/26/00

 

 

 

9,993

 

 

Cedar Chemical (Liquidation Interest)

 

 

12/31/02

 

 

 

 

 

Covenant Care, Inc. (Warrants for 19,000 Common Shares, Expires January 13, 2005)

 

 

12/22/95

 

 

 

 

 

Covenant Care, Inc. (Warrants for 26,901 Common Shares, Expires March 31, 2013)

 

 

01/18/02

 

 

 

 

 

Decision One Corporation (1,402,038 Common Shares)

 

 

05/17/05

 

 

 

1,116,773

 

 

Electro Mechanical Solutions (Residual Interest in Bankruptcy Estate)

 

 

10/02/02

 

 

 

15

 

 

Enginen Realty (857 Common Shares)

 

 

 

 

 

 

 

 

Enterprise Profit Solutions (Liquidation Interest)

 

 

10/21/02

 

 

 

 

 

EquityCo, LLC (Warrants for 28,782 Common Shares)

 

 

02/25/05

 

 

 

 

 

Euro United Corporation (Residual Interest in Bankruptcy Estate)

 

 

06/21/02

 

 

 

305,999

 

 

Galey & Lord, Inc. (203,345 Common Shares)

 

 

 

 

 

 

 

 

Gate Gourmet Borrower, LLC (Warrants for 101 Common Shares)

 

 

12/04/03

 

 

 

 

 

Gemini Leasing, Inc. (143,079 common shares)

 

 

01/08/04

 

 

 

 

 

Grand Union Company (Residual Interest in Bankruptcy Estate)

 

 

07/01/02

 

 

 

2,576

 

 

Humphreys, Inc. (Residual Interest in Bankruptcy Estate)

 

 

05/15/02

 

 

 

50

 

 

Imperial Home Décor Group, Inc. (Liquidation Interest)

 

 

01/22/04

 

 

 

 

 

Insilco Technologies (Residual Interest in Bankruptcy Estate)

 

 

05/02/03

 

 

 

1,273

 

 

IT Group, Inc. (Residual Interest in Bankruptcy Estate)

 

 

09/12/03

 

 

 

100

 

 

Kevco, Inc. (Residual Interest in Bankruptcy Estate)

 

 

06/05/02

 

 

 

50

 

 

Lincoln Paper & Tissue (Warrants for 291 Common Shares, Expires August 24, 2015)

 

 

08/25/05

 

 

 

 

 

Lincoln Pulp and Eastern Fine (Residual Interest in Bankruptcy Estate)

 

 

06/08/04

 

 

 

 

 

London Clubs International (Warrants for 241,499 Common Shares, Expires February 27, 2011)

 

 

12/08/04

 

 

 

 

 

Morris Material Handling, Inc. (48,137 Common Shares)

 

 

10/09/01

 

 

 

3,009,059

 

 

Neoplan USA Corporation (1,084,000 Series C Preferred Shares)

 

 

08/29/03

 

 

 

428,603

 

 

Neoplan USA Corporation (1,814,180 Series B Preferred Shares)

 

 

08/29/03

 

 

 

 

 

Neoplan USA Corporation (17,348 Common Shares)

 

 

08/29/03

 

 

 

 

 

Neoplan USA Corporation (3,524,300 Series D Preferred Shares)

 

 

08/29/03

 

 

 

3,524,300

 

 

New Piper Aircraft, Inc. (Residual Interest in Litigation Proceeds)

 

 

07/02/03

 

 

 

 

 

New World Restaurant Group, Inc. (Warrants for 4,489 Common Shares, Expires June 19, 2006)

 

 

09/27/01

 

 

 

40

 

 

Norwood Promotional Products, Inc. (72,238 Common Shares)

 

 

08/23/04

 

 

 

32,939

 

 

Safelite Glass Corporation (810,050 Common Shares)

 

 

10/12/00

 

 

 

173,588

 

 

Safelite Realty Corporation (54,679 Common Shares)

 

 

10/12/00

 

 

 

 

 

Transtar Metals (Residual Interest in Bankruptcy Estate)

 

 

01/09/03

 

 

 

40,230

 

 

TSR Wireless, LLC (Residual Interest in Bankruptcy Estate)

 

 

10/15/02

 

 

 

 

 

U.S. Aggregates (Residual Interest in Bankruptcy Estate)

 

 

04/07/03

 

 

 

 

 

U.S. Office Products Company (Residual Interest in Bankruptcy Estate)

 

 

02/11/04

 

 

 

 

 

Total Restricted Securities excluding senior loans (market value of $18,850,930 was 1.7% of net assets at May 31, 2006)

 

 

 

 

 

 

$

8,832,574

 

 

 

17


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 4 — MANAGEMENT AND ADMINISTRATION AGREEMENTS

 

The Trust has entered into an Investment Management Agreement with the Investment Manager to provide advisory and management services. The Investment Management Agreement compensates the Investment Manager with a fee, computed daily and payable monthly, at an annual rate of 0.80% of the Trust’s Managed Assets. For purposes of the Investment Management Agreement, “Managed Assets” shall mean the Trust’s average daily gross asset value, minus the sum of the Trust’s accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Trust and the liquidation preference of any outstanding preferred shares).

 

The Investment Manager entered into a Sub-Advisory Agreement with ING IM, an indirect, wholly-owned subsidiary of ING Groep N.V., effective August 19, 2003. Subject to such policies as the Board or the Investment Manager may determine, ING IM manages the Trust’s assets in accordance with the Trust’s investment objectives, policies, and limitations.

 

The Trust has also entered into an Administration Agreement with ING Funds Services, LLC (the “Administrator”), an indirect, wholly-owned subsidiary of ING Groep N.V., to provide administrative services and also to furnish facilities. The Administrator is compensated with a fee, computed daily and payable monthly, at an annual rate of 0.25% of the Trust’s Managed Assets.

 

NOTE 5 — TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

 

At May 31, 2006, the Trust had the following amounts recorded in payables to affiliates on the accompanying Statement of Assets and Liabilities:

 

Accrued Investment
  Management Fees 

 

Accrued
Administrative Fees

 

Total

 

$1,416,877

 

$442,774

 

$1,859,651

 

 

The Trust has adopted a Retirement Policy covering all independent trustees of the Trust who will have served as an independent trustee for at least five years at the time of retirement. Benefits under this plan are based on an annual rate as defined in the plan agreement.

 

NOTE 6 — COMMITMENTS

 

The Trust has entered into both a $90 million 364-day revolving credit agreement which matures on August 23, 2006 and a $535 million 364-day revolving securitization facility which matures on July 9, 2006, which has been extended to June 14, 2007, collateralized by assets of the Trust. Borrowing rates under these agreements are based on a fixed spread over LIBOR, the federal funds rate, or a commercial paper-based rate. Prepaid arrangement fees for these facilities are amortized over the term of the agreements. The amount of borrowings outstanding at May 31, 2006, was $567 million. Weighted average interest rate on outstanding borrowings was 5.41%, excluding fees related to the unused portion of the facilities, and other fees. The amount of borrowings represented 26.2% of total assets at May 31, 2006. Average borrowings for the three months ended May 31, 2006 were $527,141,304 and the average annualized interest rate was 5.34% excluding other fees related to the unused portion of the facilities, and other fees.

 

18


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 6 — COMMITMENTS (continued)

 

As of May 31, 2006, the Trust had unfunded loan committments pursuant to the terms of the following loan agreements:

 

Babcock & Wilcox Company

 

$

2,000,000

 

Kerasotes Theatres, Inc.

 

$

1,125,000

 

Baker & Taylor, Inc.

 

1,022,727

 

MEG Energy Corporation

 

2,800,000

 

Baker Tanks, Inc.

 

510,000

 

Navistar International Corporation

 

1,109,000

 

Builders Firstsource, Inc.

 

1,500,000

 

Neoplan USA Corporation

 

382,500

 

Cequel Communications, LLC

 

525,000

 

Opti Canada, Inc.

 

933,333

 

Dave and Busters, Inc.

 

250,000

 

Owens-Illinois Group, Inc.

 

100

 

Eastman Kodak Company

 

2,117,647

 

PLY Gem Industries, Inc.

 

1,068,001

 

Federal-Mogul Corporation

 

2,380,000

 

Primedia, Inc.

 

808,695

 

FSC Acquisition, LLC

 

300,220

 

Riverstone C/R GS Holdings I

 

296,970

 

Green-Valley Ranch Gaming, LLC

 

400,000

 

Syniverse Holding, LLC

 

1,500,000

 

Hearthstone Housing Partners II, LLC

 

2,791,176

 

Trump Entertainment Resorts Holdings,

 

 

 

Hertz Corporation

 

323,504

 

L.P.

 

1,741,250

 

Interstate Bakeries Corporation

 

2,500,000

 

Wastequip, Inc.

 

210,785

 

Johnsondiversy, Inc.

 

508,666

 

Yonkers Racing Corporation

 

721,307

 

 

 

 

 

 

 

$

29,825,881

 

 

NOTE 7 — RIGHTS AND OTHER OFFERINGS

 

As of May 31, 2006, outstanding share offerings pursuant to shelf registrations were as follows:

 

Registration
     Date     

 

Shares
Registered

 

Shares
Remaining

 

9/15/98

 

25,000,000

 

12,374,909

 

3/04/99

 

 5,000,000

 

 3,241,645

 

 

On November 2, 2000, the Trust issued 3,600 shares each of Series M, Series W and Series F Auction Rate Cumulative Preferred Shares, $0.01 Par Value, $25,000 liquidation preference, for a total issuance of $270 million. Also, on November 16, 2000, the Trust issued 3,600 shares of Series T and Series Th Auction Rate Cumulative Preferred Shares, $0.01 Par Value, $25,000, liquidation preference, for a total issuance of $180 million. The Trust used the net proceeds of the offering to partially pay down the then existing indebtedness and to purchase additional senior loans. Preferred Shares pay dividends based on a rate set at auctions, normally held every 7 days. In most instances dividends are also payable every 7 days, on the first business day following the end of the rate period. Preferred shares have no stated conversion, redemption or liquidation date, but may be redeemed at the election of the Trust. Such shares may only be redeemed by the Preferred Shareholders if the Trust fail to meet certain credit quality thresholds within its portfolio.

 

NOTE 8 — CUSTODIAL AGREEMENT

 

State Street Bank and Trust Company (“SSB”) serves as the Trust’s custodian and recordkeeper. Custody fees paid to SSB are reduced by earnings credits based on the cash balances held by SSB for the Trust. There were no earnings credits for the three months ended May 31, 2006.

 

NOTE 9 — SUBORDINATED LOANS AND UNSECURED LOANS

 

The Trust may invest in subordinated loans and in unsecured loans. The primary risk arising from investing in subordinated loans or in unsecured loans is the potential loss in the event of default by the issuer of the loans. The Trust may acquire a subordinated loan only if, at the time of acquisition, it acquires or holds a senior loan from the same borrower. The Trust will acquire unsecured loans only where the Investment Manager believes, at the time of acquisition, that the Trust would have the right to payment upon default that is not subordinate to any other creditor. The Trust may invest up to 5% of its total assets, measured at the time of investment, in subordinated loans and unsecured loans. As of May 31, 2006, the Trust held 0.4% of its total assets in subordinated loans and unsecured loans.

 

19


 

ING Prime Rate Trust

 

NOTES TO FINANCIAL STATEMENTS as of May 31, 2006 (Unaudited) (continued)

 

NOTE 10 — FEDERAL INCOME TAXES

 

The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of short-term capital gains, foreign currency transactions, and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as distributions of paid-in capital.

 

Dividends paid by the Trust from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders.

 

The tax composition of dividends and distributions to shareholders was as follows:

 

Three months ended May 31, 2006

 

Year ended February 28, 2006

 

 

 

Ordinary Income

 

Ordinary Income

$23,868,520

 

$82,267,626

 

The tax-basis components of distributable earnings and the expiration dates of the capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of February 28, 2006 were:

 

Undistributed
Ordinary Income

 

Undistributed
Long-Term
Capital Gains

 

Post-October
Unrealized
Appreciation

 

Capital
Capital Losses
Deferred

 

Loss
Carryforwards

 

Expiration
Dates

 

$5,290,676

 

$—

 

$39,881,614

 

$(1,126,243)

 

$

(10,485,033

)

2007

 

 

 

 

 

 

 

 

 

(38,118,850

)

2008

 

 

 

 

 

 

 

 

 

(847,193

)

2009

 

 

 

 

 

 

 

 

 

(47,376,376

)

2010

 

 

 

 

 

 

 

 

 

(97,064,717

)

2011

 

 

 

 

 

 

 

 

 

(57,686,392

)

2012

 

 

 

 

 

 

 

 

 

(22,421,058

)

2013

 

 

 

 

 

 

 

 

 

(560,828

)

2014

 

 

 

 

 

 

 

 

 

$

(274,560,447

)

 

 

 

NOTE 11 — SUBSEQUENT EVENTS

 

Subsequent to May 31, 2006, the Trust paid to Common Shareholders the following dividends from net investment income:

 

Per Share Amount

 

Declaration Date

 

Record Date

 

Payable Date

 

$0.046

 

5/31/06

 

6/12/06

 

6/22/06

 

 

Subsequent to May 31, 2006, the Trust paid to Preferred Shareholders the following dividends from net investment income:

 

Preferred
Shares

 

Total Per Share
Amount

 

Auction
Dates

 

Record
Dates

 

Payable
Dates

 

Series M

 

$150.40

 

06/05/06 to 07/10/06

 

06/12/06 to 07/17/06

 

06/13/06 to 07/18/06

 

Series T

 

$150.23

 

06/06/06 to 07/11/06

 

06/13/06 to 07/18/06

 

06/14/06 to 07/19/06

 

Series W

 

$151.60

 

06/07/06 to 07/12/06

 

06/14/06 to 07/19/06

 

06/15/06 to 07/20/06

 

Series Th

 

$147.75

 

06/01/06 to 07/06/06

 

06/08/06 to 07/13/06

 

06/09/06 to 07/14/06

 

Series F

 

$145.98

 

06/02/06 to 07/07/06

 

06/09/06 to 07/14/06

 

06/12/06 to 07/17/06

 

 

20

 


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited)

 

 

Senior Loans*: 191.3%

 

 

 

 

 

 

 

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Aerospace & Defense: 2.6%

 

 

 

 

 

 

 

 

 

 

 

Arinc, Inc.

 

Ba3

 

BB

 

 

 

$

980,000

 

 

 

Term Loan, 6.980%-7.110%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 10, 2011

 

 

 

 

 

$

981,225

 

 

 

(2)

 

Delta Air Lines, Inc.

 

Ba3

 

B+

 

 

 

2,000,000

 

 

 

Debtor in Possession Term Loan, 10.023%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 16, 2008

 

 

 

 

 

2,057,350

 

 

 

 

 

Dyncorp, Inc.

 

B2

 

B+

 

 

 

3,961,654

 

 

 

Term Loan, 7.438%-7.813%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 11, 2011

 

 

 

 

 

4,002,923

 

 

 

 

 

Hexcel Corporation

 

Ba3

 

BB-

 

 

 

1,233,333

 

 

 

Term Loan, 6.750%-6.938%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 01, 2012

 

 

 

 

 

1,240,271

 

 

 

 

 

IAP Worldwide Services, Inc.

 

B2

 

B+

 

 

 

997,500

 

 

 

Term Loan, 8.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 30, 2012

 

 

 

 

 

1,007,475

 

 

 

 

 

K&F Industries, Inc.

 

B2

 

B+

 

 

 

4,562,500

 

 

 

Term Loan, 7.030%-7.090%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 18, 2012

 

 

 

 

 

4,606,702

 

 

 

 

 

Spirit Aerosystems, Inc.

 

B1

 

BB-

 

 

 

1,157,917

 

 

 

Term Loan, 7.318%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2011

 

 

 

 

 

1,172,391

 

 

 

 

 

Standard Aero Holdings, Inc.

 

B2

 

B+

 

 

 

1,260,684

 

 

 

Term Loan, 6.960%-7.350%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 20, 2012

 

 

 

 

 

1,260,684

 

 

 

 

 

Transdigm, Inc.

 

B1

 

B+

 

 

 

1,955,100

 

 

 

Term Loan, 7.331%, maturing July 22, 2010

 

 

 

 

 

1,965,792

 

 

 

 

 

United Air Lines, Inc.

 

B1

 

B+

 

 

 

625,000

 

 

 

Term Loan, 8.875%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 01, 2012

 

 

 

 

 

634,531

 

3,375,000

 

 

 

Term Loan, 8.625%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 01, 2012

 

 

 

 

 

3,426,469

 

 

 

 

 

US Airways Group, Inc.

 

B2

 

B

 

 

 

4,000,000

 

 

 

Term Loan, 8.593%, maturing March 31, 2011

 

 

 

 

 

4,047,000

 

 

 

 

 

Wyle Holdings, Inc.

 

NR

 

B+

 

 

 

1,897,200

 

 

 

Term Loan, 7.880%, maturing January 28, 2011

 

 

 

 

 

1,928,030

 

 

 

 

 

 

 

 

 

 

 

28,330,841

 

Automobile: 7.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accuride Corporation

 

B1

 

B+

 

 

 

6,030,909

 

 

 

Term Loan, 6.938%, maturing January 31, 2012

 

 

 

 

 

6,082,926

 

 

 

 

 

Avis Budget Holdings, LLC

 

Ba2

 

BBB-

 

 

 

3,000,000

 

 

 

Term Loan, 6.350%, maturing April 19, 2012

 

 

 

 

 

2,995,179

 

 

 

(2)

 

Collins & Aikman Products Company

 

NR

 

NR

 

 

 

1,959,834

 

 

 

Debtor in Possession Term Loan,

 

 

 

 

 

 

 

 

 

 

 

7.938%-8.063%, maturing May 17, 2007

 

 

 

 

 

1,977,800

 

 

 

(2)

 

Dana Corporation

 

B3

 

BB-

 

 

 

3,200,000

 

 

 

Debtor in Possession Term Loan, 7.220%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 13, 2008

 

 

 

 

 

3,212,000

 

 

 

 

 

Dura Operating Corporation

 

B3

 

B

 

 

 

5,200,000

 

 

 

Term Loan, 8.831%, maturing May 03, 2011

 

 

 

 

 

5,278,000

 

 

See Accompanying Notes to Financial Statements

 

21


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Automobile: (continued)

 

 

 

 

 

 

 

 

 

(2)

 

Federal-Mogul Corporation

 

NR

 

BBB+

 

 

 

$

1,500,000

 

 

 

Debtor in Possession Term Loan, 7.188%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 09, 2006

 

 

 

 

 

$

1,505,625

 

2,620,000

 

 

 

Revolver, 7.313%-7.438%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 09, 2006

 

 

 

 

 

2,626,550

 

 

 

 

 

Goodyear Tire & Rubber Company

 

Ba3

 

BB

 

 

 

5,500,000

 

 

 

Term Loan, 6.690%, maturing April 30, 2010

 

 

 

 

 

5,536,669

 

 

 

 

 

Goodyear Tire & Rubber Company

 

B2

 

B+

 

 

 

9,400,000

 

 

 

Term Loan, 7.954%, maturing April 30, 2010

 

 

 

 

 

9,484,600

 

 

 

 

 

Hertz Corporation

 

Ba2

 

BB

 

 

 

1,027,778

 

 

 

Term Loan, 7.180%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 21, 2012

 

 

 

 

 

1,033,658

 

6,632,427

 

 

 

Term Loan, 7.090%-7.410%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 21, 2012

 

 

 

 

 

6,670,371

 

 

 

 

 

Keystone Automotive Industries, Inc.

 

B2

 

B+

 

 

 

1,181,773

 

 

 

Term Loan, 6.997%-7.420%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 30, 2009

 

 

 

 

 

1,183,988

 

1,496,250

 

 

 

Term Loan, 7.465%, maturing October 30, 2010

 

 

 

 

 

1,499,055

 

 

 

 

 

Lear Corporation

 

B2

 

B+

 

 

 

4,400,000

 

 

 

Term Loan, 7.570%, maturing April 25, 2012

 

 

 

 

 

4,380,750

 

 

 

 

 

Motorsport Aftermarket Group, Inc.

 

B2

 

B

 

 

 

1,996,485

 

 

 

Term Loan, 7.980%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 15, 2011

 

 

 

 

 

2,007,716

 

 

 

(2)

 

RJ Tower Corporation

 

Ba3

 

BBB

 

 

 

4,000,000

 

 

 

Debtor in Possession Term Loan, 8.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 02, 2007

 

 

 

 

 

4,081,668

 

 

 

 

 

Safelite Glass Corporation

 

B3

 

B+

 

 

 

4,218,047

 

 

 

Term Loan, 8.960%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2007

 

 

 

 

 

4,165,321

 

12,002,085

 

 

 

Term Loan, 9.460%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2007

 

 

 

 

 

11,852,059

 

 

 

 

 

Tenneco Automotive, Inc.

 

Ba3

 

BB-

 

 

 

1,129,257

 

 

 

Term Loan, 7.190%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 12, 2010

 

 

 

 

 

1,138,997

 

 

 

 

 

TRW Automotive Acquisitions Corporation

 

Ba2

 

BB+

 

 

 

2,416,275

 

 

 

Term Loan, 6.250%, maturing June 30, 2012

 

 

 

 

 

2,422,652

 

 

 

 

 

United Components, Inc.

 

B2

 

BB-

 

 

 

2,531,667

 

 

 

Term Loan, 7.410%, maturing June 30, 2010

 

 

 

 

 

2,541,160

 

 

 

 

 

Visteon Corporation

 

B1

 

B+

 

 

 

2,000,000

 

 

 

Term Loan, 9.180%, maturing June 20, 2007

 

 

 

 

 

2,010,500

 

 

 

 

 

 

 

 

 

 

 

83,687,244

 

Beverage, Food & Tobacco: 4.7%

 

 

 

 

 

 

 

 

 

 

 

Bumble Bee Foods, LLC

 

Ba3

 

B+

 

 

 

1,200,000

 

 

 

Term Loan, 6.824%-7.039%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 02, 2012

 

 

 

 

 

1,208,250

 

 

 

 

 

Commonwealth Brands, Inc.

 

B1

 

B+

 

 

 

8,580,000

 

 

 

Term Loan, 7.438%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 22, 2012

 

 

 

 

 

8,643,277

 

 

 

 

 

Constellation Brands, Inc.

 

Ba2

 

BB

 

 

 

13,698,611

 

 

 

Term Loan, 6.313%-6.375%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 30, 2011

 

 

 

 

 

13,764,543

 

 

See Accompanying Notes to Financial Statements

 

22


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Beverage, Food & Tobacco: (continued)

 

 

 

 

 

 

 

 

 

 

 

Dole Food Company, Inc.

 

Ba3

 

B+

 

 

 

$

232,558

 

 

 

Term Loan, 4.920%, maturing April 12, 2013

 

 

 

 

 

$

231,377

 

523,256

 

 

 

Term Loan, 6.875%-8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 12, 2013

 

 

 

 

 

520,599

 

1,744,186

 

 

 

Term Loan, 6.875%-8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 12, 2013

 

 

 

 

 

1,735,329

 

 

 

 

 

Gate Gourmet Borrower, LLC

 

B2

 

B-

 

 

 

169,681

 

 

 

Term Loan, 7.000%, maturing March 09, 2012

 

 

 

 

 

171,377

 

557,445

 

 

 

Term Loan, 7.640%, maturing March 09, 2012

 

 

 

 

 

563,019

 

 

 

 

 

Golden State Foods Corporation

 

B1

 

B+

 

 

 

3,920,000

 

 

 

Term Loan, 6.876%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 28, 2011

 

 

 

 

 

3,951,850

 

 

 

 

 

Keystone Foods Holdings, LLC

 

Ba3

 

B+

 

 

 

4,118,706

 

 

 

Term Loan, 6.750%-6.875%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 16, 2011

 

 

 

 

 

4,172,764

 

 

 

 

 

Le-Natures, Inc.

 

B1

 

B

 

 

 

309,224

 

 

 

Term Loan, 7.280%-10.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 23, 2010

 

 

 

 

 

311,156

 

688,262

 

 

 

Term Loan, 7.880%-10.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 23, 2010

 

 

 

 

 

692,564

 

 

 

 

 

Michael Foods, Inc.

 

B1

 

B+

 

 

 

3,651,006

 

 

 

Term Loan, 6.671%-7.032%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 21, 2010

 

 

 

 

 

3,675,348

 

 

 

 

 

Nutro Products, Inc.

 

B1

 

B

 

 

 

800,000

 

 

 

Term Loan, 7.023%, maturing April 26, 2013

 

 

 

 

 

801,500

 

 

 

 

 

Pierre Foods, Inc.

 

B1

 

B+

 

 

 

3,566,667

 

 

 

Term Loan, 6.060%, maturing June 30, 2010

 

 

 

 

 

3,592,304

 

 

 

 

 

Southern Wine & Spirits of America, Inc.

 

Ba3

 

BB+

 

 

 

3,195,000

 

 

 

Term Loan, 6.480%, maturing May 31, 2012

 

 

 

 

 

3,216,467

 

 

 

 

 

Sturm Foods, Inc.

 

B2

 

B+

 

 

 

1,488,750

 

 

 

Term Loan, 9.750%, maturing May 26, 2011

 

 

 

 

 

1,512,012

 

 

 

 

 

Sturm Foods, Inc.

 

B3

 

B-

 

 

 

500,000

 

 

 

Term Loan, 14.000%, maturing May 26, 2012

 

 

 

 

 

508,750

 

 

 

 

 

WM. Bolthouse Farms, Inc.

 

B2

 

B+

 

 

 

2,493,750

 

 

 

Term Loan, 7.370%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2012

 

 

 

 

 

2,522,585

 

 

 

 

 

 

 

 

 

 

 

51,795,071

 

Buildings & Real Estate: 9.3%

 

 

 

 

 

 

 

 

 

 

 

Atrium Companies, Inc.

 

B2

 

B

 

 

 

2,861,095

 

 

 

Term Loan, 8.230%-8.830%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 28, 2011

 

 

 

 

 

2,865,267

 

 

 

 

 

Builders Firstsource, Inc.

 

B1

 

BB-

 

 

 

888,889

 

 

 

Term Loan, 7.490%, maturing August 11, 2011

 

 

 

 

 

891,111

 

 

 

 

 

Building Materials Holding Corporation

 

Ba2

 

BB

 

 

 

1,945,000

 

 

 

Term Loan, 6.730%, maturing June 30, 2010

 

 

 

 

 

1,958,372

 

 

 

 

 

Capital Automotive REIT

 

Ba1

 

BB+

 

 

 

11,999,407

 

 

 

Term Loan, 6.780%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2010

 

 

 

 

 

12,061,276

 

 

 

 

 

Champion Home Builders Company

 

B1

 

B+

 

 

 

875,000

 

 

 

Term Loan, 4.879%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 31, 2012

 

 

 

 

 

885,938

 

995,000

 

 

 

Term Loan, 7.593%, maturing October 31, 2012

 

 

 

 

 

1,007,438

 

 

See Accompanying Notes to Financial Statements

 

23


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Buildings & Real Estate: (continued)

 

 

 

 

 

 

 

 

 

 

 

Contech Construction Products, Inc.

 

B1

 

B+

 

 

 

$

 1,750,000

 

 

 

Term Loan, 6.800%-7.220%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2013

 

 

 

 

 

$

1,761,485

 

 

 

 

 

Custom Building Products, Inc.

 

B1

 

B+

 

 

 

4,971,666

 

 

 

Term Loan, 7.210%-7.341%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 29, 2011

 

 

 

 

 

5,025,524

 

 

 

 

 

Euramax International, Inc.

 

B2

 

B

 

 

 

633,895

 

 

 

Term Loan, 7.688%, maturing June 29, 2012

 

 

 

 

 

639,838

 

 

 

 

 

Headwaters, Inc.

 

B1

 

BB-

 

 

 

3,619,713

 

 

 

Term Loan, 7.080%, maturing April 30, 2011

 

 

 

 

 

3,642,337

 

 

 

 

 

Hearthstone Housing Partners II, LLC

 

NR

 

NR

 

 

 

3,708,824

 

 

 

Revolver, 7.091%, maturing December 01, 2007

 

 

 

 

 

3,699,552

 

 

 

 

 

Lion Gables Realty, L.P.

 

Ba2

 

BB+

 

 

 

8,506,705

 

 

 

Term Loan, 6.820%-6.86%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2006

 

 

 

 

 

8,528,856

 

 

 

 

 

Macerich Partnership, L.P.

 

NR

 

BB+

 

 

 

1,500,000

 

 

 

Term Loan, 6.563%, maturing April 25, 2010

 

 

 

 

 

1,504,688

 

 

 

 

 

Maguire Properties, Inc.

 

Ba2

 

BB

 

 

 

1,622,222

 

 

 

Term Loan, 6.830%, maturing March 15, 2010

 

 

 

 

 

1,633,781

 

 

 

 

 

Masonite International Corporation

 

B2

 

BB-

 

 

 

4,945,787

 

 

 

Term Loan, 6.979%-7.108%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 05, 2013

 

 

 

 

 

4,920,584

 

4,954,213

 

 

 

Term Loan, 6.979%-7.108%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 05, 2013

 

 

 

 

 

4,928,966

 

 

 

 

 

NCI Building Systems, Inc.

 

Ba2

 

BB

 

 

 

2,393,767

 

 

 

Term Loan, 6.710%, maturing June 18, 2010

 

 

 

 

 

2,404,988

 

 

 

 

 

Newkirk Master, L.P.

 

Ba2

 

BB+

 

 

 

1,240,034

 

 

 

Term Loan, 6.834%, maturing August 11, 2008

 

 

 

 

 

1,248,948

 

1,073,643

 

 

 

Term Loan, 6.834%, maturing August 11, 2008

 

 

 

 

 

1,081,360

 

 

 

 

 

Nortek, Inc.

 

B2

 

B

 

 

 

8,052,214

 

 

 

Term Loan, 6.690%, maturing August 27, 2011

 

 

 

 

 

8,094,995

 

 

 

 

 

PGT Industries, Inc.

 

B2

 

B+

 

 

 

2,623,638

 

 

 

Term Loan, 8.130%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 14, 2012

 

 

 

 

 

2,643,316

 

 

 

 

 

PLY Gem Industries, Inc.

 

B1

 

BB-

 

 

 

181,999

 

 

 

Revolver, 7.210%-7.350%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 12, 2009

 

 

 

 

 

174,719

 

250,000

 

 

 

Term Loan, 7.590%, maturing August 15, 2011

 

 

 

 

 

251,250

 

3,750,000

 

 

 

Term Loan, 7.210%-7.350%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 15, 2011

 

 

 

 

 

3,768,750

 

 

 

 

 

Shea Capital I, LLC

 

Ba2

 

BB-

 

 

 

1,000,000

 

 

 

Term Loan, 7.150%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 27, 2011

 

 

 

 

 

1,002,500

 

 

 

 

 

Spanish Peaks, LLC

 

B1

 

B+

 

 

 

287,541

 

 

 

Term Loan, 4.879%, maturing August 09, 2011

 

 

 

 

 

288,799

 

282,711

 

 

 

Term Loan, 7.640%-7.880%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 09, 2011

 

 

 

 

 

283,948

 

 

 

 

 

St. Marys Cement, Inc.

 

B1

 

BB-

 

 

 

5,383,618

 

 

 

Term Loan, 6.527%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 04, 2009

 

 

 

 

 

5,467,737

 

 

See Accompanying Notes to Financial Statements

 

24


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Buildings & Real Estate: (continued)

 

 

 

 

 

 

 

 

 

 

 

Trizec Properties, Inc.

 

NR

 

BB+

 

 

 

$

12,400,000

 

 

 

Term Loan, 6.525%, maturing May 02, 2007

 

 

 

 

 

$

12,393,230

 

 

 

 

 

Trustreet Properties, Inc.

 

Ba3

 

BB

 

 

 

4,000,000

 

 

 

Term Loan, 7.023%, maturing April 08, 2010

 

 

 

 

 

4,030,000

 

 

 

 

 

Yellowstone Mountain Club

 

B1

 

BB-

 

 

 

2,388,000

 

 

 

Term Loan, 7.466%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2010

 

 

 

 

 

2,395,090

 

 

 

 

 

 

 

 

 

 

 

101,484,641

 

Cargo Transport: 2.0%

 

 

 

 

 

 

 

 

 

 

 

Baker Tanks, Inc.

 

B2

 

B

 

 

 

1,990,000

 

 

 

Term Loan, 7.200%-7.593%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 22, 2012

 

 

 

 

 

2,012,388

 

 

 

 

 

Gainey Corporation

 

B2

 

BB-

 

 

 

800,000

 

 

 

Term Loan, 7.760%-7.840%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 20, 2012

 

 

 

 

 

813,000

 

 

 

 

 

Helm Holding Corporation

 

B2

 

B+

 

 

 

986,489

 

 

 

Term Loan, 7.610%-7.660%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 08, 2011

 

 

 

 

 

997,896

 

 

 

 

 

Horizon Lines, LLC

 

B2

 

B

 

 

 

2,456,250

 

 

 

Term Loan, 7.340%, maturing July 07, 2011

 

 

 

 

 

2,477,742

 

 

 

 

 

Kenan Advantage Group, Inc.

 

B3

 

B+

 

 

 

997,500

 

 

 

Term Loan, 7.979%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2011

 

 

 

 

 

1,008,722

 

 

 

 

 

Neoplan USA Corporation

 

NR

 

NR

 

 

 

1,867,500

 

 

 

Revolver, 8.536%, maturing June 30, 2006

 

 

 

 

 

1,867,500

 

5,306,058

 

 

 

Term Loan, 10.036%, maturing June 30, 2006

 

 

 

 

 

5,306,058

 

 

 

 

 

Pacer International, Inc.

 

Ba3

 

BB

 

 

 

976,294

 

 

 

Term Loan, 6.625%-8.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 10, 2010

 

 

 

 

 

984,837

 

 

 

 

 

Railamerica, Inc.

 

Ba3

 

BB

 

 

 

366,016

 

 

 

Term Loan, 7.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 29, 2011

 

 

 

 

 

370,592

 

3,096,301

 

 

 

Term Loan, 7.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 29, 2011

 

 

 

 

 

3,135,005

 

 

 

 

 

Transport Industries, L.P.

 

B2

 

B+

 

 

 

1,212,455

 

 

 

Term Loan, 7.563%-7.813%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2011

 

 

 

 

 

1,226,096

 

 

 

 

 

United States Shipping, LLC

 

Ba3

 

BB-

 

 

 

1,882,261

 

 

 

Term Loan, 6.979%, maturing April 30, 2010

 

 

 

 

 

1,888,143

 

 

 

 

 

 

 

 

 

 

 

22,087,977

 

Cellular: 3.9%

 

 

 

 

 

 

 

 

 

 

 

Cellular South, Inc.

 

Ba3

 

B+

 

 

 

1,965,000

 

 

 

Term Loan, 6.715%-8.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 04, 2011

 

 

 

 

 

1,980,966

 

 

 

 

 

Centennial Cellular Operating Company

 

B2

 

B

 

 

 

10,085,631

 

 

 

Term Loan, 7.210%-7.570%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 09, 2011

 

 

 

 

 

10,161,273

 

 

 

 

 

Cricket Communications, Inc.

 

B1

 

B-

 

 

 

11,356,250

 

 

 

Term Loan, 7.479%, maturing January 10, 2011

 

 

 

 

 

11,405,933

 

 

See Accompanying Notes to Financial Statements

 

25


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Cellular: (continued)

 

 

 

 

 

 

 

 

 

 

 

IWO Holdings, Inc.

 

Baa2

 

A-

 

 

 

$

3,175,000

 

 

 

Floating Rate Note, 8.818%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 15, 2012

 

 

 

 

 

$

3,294,063

 

 

 

 

 

Nextel Partners Operating Corporation

 

Ba1

 

BBB-

 

 

 

5,909,091

 

 

 

Term Loan, 6.320%, maturing May 31, 2012

 

 

 

 

 

5,917,706

 

 

 

 

 

Ntelos, Inc.

 

B2

 

B

 

 

 

4,443,750

 

 

 

Term Loan, 7.350%, maturing August 24, 2011

 

 

 

 

 

4,460,970

 

 

 

 

 

Rogers Wireless, Inc.

 

Ba2

 

BB

 

 

 

2,500,000

 

 

 

Floating Rate Note, 8.035%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 15, 2010

 

 

 

 

 

2,578,125

 

 

 

 

 

Rural Cellular Corporation

 

B2

 

B-

 

 

 

2,500,000

 

 

 

Floating Rate Note, 9.410%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 15, 2010

 

 

 

 

 

2,550,000

 

 

 

 

 

 

 

 

 

 

 

42,349,035

 

Chemicals, Plastics & Rubber: 11.2%

 

 

 

 

 

 

 

 

 

 

 

Basell Finance Company

 

Ba3

 

B+

 

 

 

833,333

 

 

 

Term Loan, 7.727%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 07, 2013

 

 

 

 

 

847,569

 

166,667

 

 

 

Term Loan, 7.727%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 07, 2013

 

 

 

 

 

169,514

 

833,333

 

 

 

Term Loan, 8.227%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 07, 2014

 

 

 

 

 

847,569

 

166,667

 

 

 

Term Loan, 8.227%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 07, 2014

 

 

 

 

 

169,514

 

 

 

 

 

Brenntag Holdings GMBH & Co. KG

 

B2

 

B+

 

 

 

1,178,182

 

 

 

Term Loan, 7.440%, maturing January 17, 2014

 

 

 

 

 

1,194,087

 

3,621,818

 

 

 

Term Loan, 7.440%, maturing January 17, 2014

 

 

 

 

 

3,670,713

 

 

 

 

 

Celanese, AG

 

B1

 

BB-

 

 

 

5,625,000

 

 

 

Term Loan, 5.069%, maturing April 06, 2009

 

 

 

 

 

5,674,219

 

5,692,104

 

 

 

Term Loan, 6.979%, maturing April 06, 2011

 

 

 

 

 

5,725,545

 

 

 

 

 

Columbian Chemicals Company

 

Ba3

 

BB-

 

 

 

600,000

 

 

 

Term Loan, 6.688%, maturing March 16, 2013

 

 

 

 

 

601,875

 

 

 

 

 

Covalence Specialty Materials Corporation

 

Ba3

 

B+

 

 

 

1,957,143

 

 

 

Term Loan, 7.080%, maturing May 18, 2013

 

 

 

 

 

1,960,202

 

 

 

 

 

Covalence Specialty Materials Corporation

 

B2

 

B-

 

 

 

500,000

 

 

 

Term Loan, 8.375%, maturing August 16, 2013

 

 

 

 

 

505,625

 

 

 

 

 

Hawkeye Renewables, LLC

 

B2

 

B

 

 

 

2,500,000

 

 

 

Term Loan, 7.835%, maturing January 31, 2012

 

 

 

 

 

2,497,658

 

 

 

 

 

Hercules, Inc.

 

Ba1

 

BB

 

 

 

4,201,472

 

 

 

Term Loan, 6.479%-6.528%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 08, 2010

 

 

 

 

 

4,231,013

 

 

 

 

 

Hexion Specialty Chemicals, Inc.

 

B2

 

B+

 

 

 

5,422,154

 

 

 

Term Loan, 7.125%, maturing May 05, 2013

 

 

 

 

 

5,420,462

 

1,177,846

 

 

 

Term Loan, 7.125%, maturing May 05, 2013

 

 

 

 

 

1,177,479

 

1,200,000

 

 

 

Term Loan, 2.000%, maturing May 15, 2013

 

 

 

 

 

1,199,626

 

 

 

 

 

Huntsman International, LLC

 

Ba3

 

BB-

 

 

 

21,339,473

 

 

 

Term Loan, 6.831%, maturing August 16, 2012

 

 

 

 

 

21,374,491

 

 

See Accompanying Notes to Financial Statements

 

26


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Chemicals, Plastics & Rubber: (continued)

 

 

 

 

 

 

 

 

 

 

 

Ineos US Finance, LLC

 

Ba3

 

B+

 

 

 

$

2,800,000

 

 

 

Term Loan, 7.339%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2012

 

 

 

 

 

$

2,830,450

 

3,000,000

 

 

 

Term Loan, 7.339%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2013

 

 

 

 

 

3,041,250

 

3,000,000

 

 

 

Term Loan, 7.839%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2013

 

 

 

 

 

3,041,250

 

 

 

 

 

Innophos, Inc.

 

B2

 

B

 

 

 

1,291,364

 

 

 

Term Loan, 7.120%-7.350%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 13, 2010

 

 

 

 

 

1,303,202

 

 

 

 

 

ISP Chemco, Inc.

 

Ba3

 

BB-

 

 

 

3,500,000

 

 

 

Term Loan, 6.938%, maturing February 16, 2013

 

 

 

 

 

3,519,415

 

 

 

 

 

Johnson Diversey, Inc.

 

B1

 

B

 

 

 

5,933,679

 

 

 

Term Loan, 7.580%-7.630%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2011

 

 

 

 

 

5,991,533

 

 

 

 

 

Kraton Polymers, LLC

 

B1

 

B+

 

 

 

1,800,000

 

 

 

Term Loan, 7.000%-7.125%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 12, 2013

 

 

 

 

 

1,827,000

 

 

 

 

 

Nalco Company

 

B1

 

BB-

 

 

 

14,843,812

 

 

 

Term Loan, 6.480%-6.820%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 04, 2010

 

 

 

 

 

14,916,175

 

 

 

 

 

Polypore, Inc.

 

B2

 

B

 

 

 

6,971,824

 

 

 

Term Loan, 7.980%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 12, 2011

 

 

 

 

 

7,047,350

 

 

 

 

 

PQ Corporation

 

B1

 

B+

 

 

 

2,475,000

 

 

 

Term Loan, 7.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 11, 2012

 

 

 

 

 

2,497,688

 

 

 

 

 

Rockwood Specialties Group, Inc.

 

B1

 

B+

 

 

 

16,458,750

 

 

 

Term Loan, 7.126%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 13, 2013

 

 

 

 

 

16,593,761

 

 

 

 

 

Supresta, LLC

 

B1

 

B

 

 

 

2,187,520

 

 

 

Term Loan, 8.210%, maturing July 20, 2011

 

 

 

 

 

2,184,785

 

 

 

 

 

 

 

 

 

 

 

122,061,018

 

Containers, Packaging & Glass: 6.5%

 

 

 

 

 

 

 

 

 

 

 

Berry Plastics Corporation

 

B1

 

B+

 

 

 

5,955,000

 

 

 

Term Loan, 6.840%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 02, 2011

 

 

 

 

 

5,992,219

 

 

 

 

 

Boise Cascade Corporation

 

Ba3

 

BB

 

 

 

6,220,238

 

 

 

Term Loan, 6.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 29, 2011

 

 

 

 

 

6,260,172

 

 

 

 

 

BWAY Corporation

 

B1

 

B+

 

 

 

1,102,000

 

 

 

Term Loan, 7.313%, maturing June 30, 2011

 

 

 

 

 

1,114,398

 

 

 

 

 

Graham Packaging Company, L.P.

 

B2

 

B

 

 

 

14,353,536

 

 

 

Term Loan, 6.938%-7.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 07, 2011

 

 

 

 

 

14,441,753

 

 

 

 

 

Graphic Packaging International, Inc.

 

B1

 

B+

 

 

 

9,653,154

 

 

 

Term Loan, 7.137%-7.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 08, 2010

 

 

 

 

 

9,758,306

 

 

 

 

 

Intertape Polymer Group, Inc.

 

Ba3

 

B+

 

 

 

2,708,750

 

 

 

Term Loan, 6.800%-7.140%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 28, 2011

 

 

 

 

 

2,748,818

 

 

See Accompanying Notes to Financial Statements

 

27


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Containers, Packaging & Glass: (continued)

 

 

 

 

 

 

 

 

 

 

 

Owens-Illinois Group, Inc.

 

B1

 

BB-

 

 

 

$

3,153,614

 

 

 

Term Loan, 6.850%, maturing April 01, 2008

 

 

 

 

 

$

3,157,556

 

 

 

 

 

Pro Mach, Inc.

 

B1

 

B

 

 

 

2,500,000

 

 

 

Term Loan, 7.360%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 01, 2011

 

 

 

 

 

2,532,813

 

 

 

 

 

Smurfit-Stone Container Corporation

 

Ba3

 

B+

 

 

 

9,376,513

 

 

 

Term Loan, 7.125%-7.375%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 01, 2011

 

 

 

 

 

9,442,280

 

3,180,923

 

 

 

Term Loan, 7.125%-7.313%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 01, 2011

 

 

 

 

 

3,203,234

 

 

 

 

 

Solo Cup, Inc.

 

B2

 

B+

 

 

 

9,286,250

 

 

 

Term Loan, 7.479%-7.610%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 27, 2011

 

 

 

 

 

9,372,343

 

 

 

 

 

Xerium Technologies, Inc.

 

B1

 

B+

 

 

 

3,562,698

 

 

 

Term Loan, 7.229%, maturing May 18, 2012

 

 

 

 

 

3,564,925

 

 

 

 

 

 

 

 

 

 

 

71,588,816

 

Data and Internet Services: 4.0%

 

 

 

 

 

 

 

 

 

 

 

Activant Solutions, Inc.

 

B2

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 7.188%, maturing May 01, 2013

 

 

 

 

 

1,003,438

 

 

 

 

 

Affiliated Computer Services, Inc.

 

Ba2

 

BB+

 

 

 

1,095,000

 

 

 

Term Loan, 6.581%, maturing March 20, 2013

 

 

 

 

 

1,098,765

 

 

 

 

 

Aspect Software, Inc.

 

B2

 

B+

 

 

 

1,500,000

 

 

 

Term Loan, 7.438%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 22, 2010

 

 

 

 

 

1,507,500

 

 

 

 

 

iPayment, Inc.

 

B2

 

B

 

 

 

3,000,000

 

 

 

Term Loan, 7.330%-7.343%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 10, 2013

 

 

 

 

 

3,015,000

 

 

 

 

 

Sungard Data Systems, Inc.

 

B1

 

B+

 

 

 

28,752,500

 

 

 

Term Loan, 7.660%, maturing February 11, 2013

 

 

 

 

 

28,971,738

 

 

 

 

 

Transaction Network Services, Inc.

 

Ba3

 

BB-

 

 

 

3,088,853

 

 

 

Term Loan, 6.890%, maturing May 04, 2012

 

 

 

 

 

3,096,575

 

 

 

 

 

Worldspan, L.P.

 

B2

 

B

 

 

 

5,279,948

 

 

 

Term Loan, 7.688%-7.938%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 11, 2010

 

 

 

 

 

5,275,001

 

 

 

 

 

 

 

 

 

 

 

43,968,016

 

Diversified Natural Resources, Precious Metals & Minerals: 3.4%

 

 

 

 

 

 

 

 

 

 

 

Georgia-Pacific Corporation

 

Ba2

 

BB-

 

 

 

32,319,000

 

 

 

Term Loan, 6.880%-6.979%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 20, 2012

 

 

 

 

 

32,412,434

 

 

 

 

 

Georgia-Pacific Corporation

 

Ba3

 

B+

 

 

 

4,500,000

 

 

 

Term Loan, 7.880%-8.081%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 20, 2013

 

 

 

 

 

4,564,256

 

 

 

 

 

 

 

 

 

 

 

36,976,690

 

Diversified / Conglomerate Manufacturing: 4.5%

 

 

 

 

 

 

 

 

 

 

 

Aearo Technologies, Inc.

 

B2

 

B

 

 

 

1,600,000

 

 

 

Term Loan, 7.450%, maturing March 24, 2013

 

 

 

 

 

1,618,333

 

 

 

 

 

Aearo Technologies, Inc.

 

Caa1

 

CCC+

 

 

 

1,200,000

 

 

 

Term Loan, 11.450%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 24, 2013

 

 

 

 

 

1,226,250

 

 

See Accompanying Notes to Financial Statements

 

28


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Diversified / Conglomerate Manufacturing: (continued)

 

 

 

 

 

 

 

 

 

 

 

Axia, Inc.

 

B2

 

B

 

 

 

$

1,496,250

 

 

 

Term Loan, 8.230%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 21, 2012

 

 

 

 

 

$

1,499,991

 

 

 

 

 

Brand Services, Inc.

 

B2

 

B

 

 

 

3,117,721

 

 

 

Term Loan, 7.979%-8.227%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 15, 2012

 

 

 

 

 

3,134,610

 

 

 

 

 

Chart Industries, Inc.

 

B1

 

B+

 

 

 

2,833,334

 

 

 

Term Loan, 7.125%-7.188%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 17, 2012

 

 

 

 

 

2,868,751

 

 

 

 

 

Cinram International, Inc.

 

B1

 

BB-

 

 

 

4,000,000

 

 

 

Term Loan, 6.826%, maturing May 02, 2011

 

 

 

 

 

4,002,500

 

 

 

 

 

Dayco Products, LLC

 

B1

 

BB

 

 

 

1,443,844

 

 

 

Term Loan, 7.710%-8.320%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 23, 2011

 

 

 

 

 

1,462,344

 

 

 

 

 

Dresser Rand, Inc.

 

B1

 

B+

 

 

 

760,402

 

 

 

Term Loan, 6.778%-7.110%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 29, 2007

 

 

 

 

 

768,125

 

 

 

 

 

Dresser, Inc.

 

Ba3

 

B+

 

 

 

942,814

 

 

 

Term Loan, 7.600%, maturing April 10, 2009

 

 

 

 

 

956,956

 

 

 

 

 

Flowserve Corporation

 

Ba3

 

BB-

 

 

 

3,784,293

 

 

 

Term Loan, 6.500%-6.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 10, 2012

 

 

 

 

 

3,806,170

 

 

 

 

 

Gentek, Inc.

 

B2

 

B+

 

 

 

2,348,141

 

 

 

Term Loan, 7.160%-7.420%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 28, 2011

 

 

 

 

 

2,371,256

 

 

 

 

 

Goodman Global Holdings, Inc.

 

B1

 

B+

 

 

 

1,774,286

 

 

 

Term Loan, 6.938%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 23, 2011

 

 

 

 

 

1,782,417

 

 

 

 

 

Mueller Group, Inc.

 

B2

 

B+

 

 

 

9,950,000

 

 

 

Term Loan, 7.229%-9.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 03, 2012

 

 

 

 

 

10,049,500

 

 

 

 

 

Norcross Safety Products, LLC

 

B1

 

BB-

 

 

 

992,413

 

 

 

Term Loan, 6.823%-9.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2012

 

 

 

 

 

999,856

 

 

 

 

 

Sensata Technologies, B.V.

 

B1

 

BB-

 

 

 

4,200,000

 

 

 

Term Loan, 6.860%, maturing April 27, 2013

 

 

 

 

 

4,201,688

 

 

 

 

 

Sensus Metering Systems, Inc.

 

B2

 

B+

 

 

 

1,582,609

 

 

 

Term Loan, 6.720%-7.080%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 17, 2010

 

 

 

 

 

1,590,522

 

210,217

 

 

 

Term Loan, 6.940%-7.080%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 17, 2010

 

 

 

 

 

211,268

 

 

 

 

 

Springs Window Fashions, LLC

 

B1

 

B+

 

 

 

997,500

 

 

 

Term Loan, 7.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 30, 2012

 

 

 

 

 

1,012,463

 

 

 

 

 

Universal Compression, Inc.

 

Ba2

 

BB

 

 

 

2,965,037

 

 

 

Term Loan, 6.480%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 15, 2012

 

 

 

 

 

2,985,422

 

 

 

 

 

Walter Industries, Inc.

 

Ba3

 

B+

 

 

 

1,448,211

 

 

 

Term Loan, 6.979%-7.130%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 03, 2012

 

 

 

 

 

1,461,108

 

 

 

 

 

Waterpik Technologies, Inc.

 

B1

 

BB-

 

 

 

1,500,000

 

 

 

Term Loan, 7.400%, maturing June 30, 2013

 

 

 

 

 

1,511,250

 

 

 

 

 

 

 

 

 

 

 

49,520,780

 

 

See Accompanying Notes to Financial Statements

 

29


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Diversified / Conglomerate Service: 4.6%

 

 

 

 

 

 

 

 

 

 

 

Affinion Group

 

B1

 

B+

 

 

 

$

3,720,930

 

 

 

Term Loan, 7.831%-7.921%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 17, 2012

 

 

 

 

 

$

3,745,931

 

 

 

 

 

Carey International, Inc.

 

B3

 

B-

 

 

 

1,231,250

 

 

 

Term Loan, 8.938%-10.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 11, 2012

 

 

 

 

 

1,225,094

 

 

 

 

 

CCC Information Services, Inc.

 

B1

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 7.580%, maturing February 10, 2013

 

 

 

 

 

1,007,917

 

 

 

 

 

Fidelity National Information Solutions, Inc.

 

Ba1

 

BB+

 

 

 

25,869,543

 

 

 

Term Loan, 6.830%, maturing March 09, 2013

 

 

 

 

 

25,940,271

 

 

 

 

 

Iron Mountain, Inc.

 

B2

 

BB-

 

 

 

6,912,500

 

 

 

Term Loan, 6.844%-8.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 02, 2011

 

 

 

 

 

6,974,422

 

2,246,140

 

 

 

Term Loan, 7.000%, maturing April 02, 2011

 

 

 

 

 

2,263,454

 

 

 

 

 

Mitchell International, Inc.

 

B1

 

B+

 

 

 

700,411

 

 

 

Term Loan, 6.981%, maturing August 15, 2011

 

 

 

 

 

706,102

 

 

 

 

 

US Investigations Services, LLC

 

B2

 

B+

 

 

 

4,439,693

 

 

 

Term Loan, 7.430%, maturing October 14, 2012

 

 

 

 

 

4,492,414

 

 

 

 

 

Vertafore, Inc.

 

B1

 

B+

 

 

 

1,069,750

 

 

 

Term Loan, 7.593%-7.727%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2012

 

 

 

 

 

1,077,773

 

 

 

 

 

Vertafore, Inc.

 

B3

 

CCC+

 

 

 

875,000

 

 

 

Term Loan, 10.980-11.227%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2013

 

 

 

 

 

881,563

 

 

 

 

 

Workflow Management

 

B2

 

BB-

 

 

 

1,975,000

 

 

 

Term Loan, 9.126%, maturing November 30, 2011

 

 

 

 

 

1,994,750

 

 

 

 

 

 

 

 

 

 

 

50,309,690

 

Ecological: 1.9%

 

 

 

 

 

 

 

 

 

 

 

Allied Waste North America, Inc.

 

B1

 

BB

 

 

 

7,470,022

 

 

 

Term Loan, 6.480%-6.860%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 15, 2012

 

 

 

 

 

7,478,582

 

3,191,130

 

 

 

Term Loan, 6.579%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 15, 2012

 

 

 

 

 

3,194,031

 

 

 

 

 

Envirosolutions, Inc.

 

B2

 

B-

 

 

 

2,750,000

 

 

 

Term Loan, 8.390%-8.545%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 07, 2012

 

 

 

 

 

2,779,219

 

 

 

 

 

IESI Corporation

 

B1

 

BB

 

 

 

1,800,000

 

 

 

Term Loan, 6.818%-6.939%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 14, 2012

 

 

 

 

 

1,814,625

 

 

 

 

 

Wastequip, Inc.

 

B2

 

B

 

 

 

1,533,590

 

 

 

Term Loan, 7.229-7.380%, maturing July 15, 2011

 

 

 

 

 

1,537,424

 

 

 

 

 

Wastequip, Inc.

 

B3

 

CCC+

 

 

 

500,000

 

 

 

Term Loan, 10.479%, maturing July 15, 2012

 

 

 

 

 

502,500

 

 

 

 

 

WCA Waste Systems, Inc.

 

B2

 

B

 

 

 

3,465,000

 

 

 

Term Loan, 7.980%, maturing April 28, 2011

 

 

 

 

 

3,469,331

 

 

 

 

 

 

 

 

 

 

 

20,775,712

 

Electronics: 1.8%

 

 

 

 

 

 

 

 

 

 

 

 

Decision One Corporation

 

NR

 

NR

 

 

 

1,498,780

 

 

 

Term Loan, 12.000%, maturing April 15, 2010

 

 

 

 

 

1,498,780

 

 

See Accompanying Notes to Financial Statements

 

30


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Electronics: (continued)

 

 

 

 

 

 

 

 

 

 

 

Eastman Kodak Company

 

B1

 

B+

 

 

 

$

5,803,228

 

 

 

Term Loan, 7.180%-7.439%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 18, 2012

 

 

 

 

 

$

5,831,257

 

 

 

 

 

Invensys International Holdings, Ltd.

 

Ba3

 

B+

 

 

 

556,338

 

 

 

Term Loan, 8.501%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 05, 2009

 

 

 

 

 

559,119

 

 

 

 

 

ON Semiconductor Corporation

 

B2

 

B+

 

 

 

5,910,297

 

 

 

Term Loan, 7.230%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 15, 2011

 

 

 

 

 

5,957,396

 

 

 

 

 

Serena Software, Inc.

 

B1

 

B

 

 

 

4,400,000

 

 

 

Term Loan, 7.410%, maturing March 11, 2013

 

 

 

 

 

4,428,415

 

 

 

 

 

SI International, Inc.

 

B1

 

B+

 

 

 

1,123,557

 

 

 

Term Loan, 6.970%, maturing February 09, 2011

 

 

 

 

 

1,129,175

 

 

 

 

 

 

 

 

 

 

 

19,404,143

 

Farming & Agriculture: 0.6%

 

 

 

 

 

 

 

 

 

 

 

AGCO Corporation

 

Ba1

 

BB+

 

 

 

4,528,333

 

 

 

Term Loan, 6.729%, maturing March 31, 2008

 

 

 

 

 

4,567,956

 

 

 

 

 

Vicar Operating, Inc.

 

Ba3

 

BB-

 

 

 

2,498,296

 

 

 

Term Loan, 6.625%, maturing May 16, 2011

 

 

 

 

 

2,523,279

 

 

 

 

 

 

 

 

 

 

 

7,091,235

 

Finance: 2.3%

 

 

 

 

 

 

 

 

 

 

 

Ameritrade Holding Corporation

 

Ba1

 

BB

 

 

 

6,000,000

 

 

 

Term Loan, 6.600%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2012

 

 

 

 

 

6,002,250

 

 

 

 

 

LPL Holdings, Inc.

 

B2

 

B

 

 

 

4,987,500

 

 

 

Term Loan, 7.960%-8.229%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 28, 2013

 

 

 

 

 

5,043,609

 

 

 

 

 

Nasdaq Stock Market, Inc.

 

Ba3

 

BB+

 

 

 

5,222,583

 

 

 

Term Loan, 6.827-6.971%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 18, 2012

 

 

 

 

 

5,223,398

 

3,027,417

 

 

 

Term Loan, 6.830%-7.030%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 18, 2012

 

 

 

 

 

3,027,889

 

 

 

 

 

Rent-A-Center, Inc.

 

Ba2

 

BB+

 

 

 

5,895,000

 

 

 

Term Loan, 6.410%-6.670%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2010

 

 

 

 

 

5,937,739

 

 

 

 

 

 

 

 

 

 

 

25,234,885

 

Foreign Cable, Foreign TV, Radio and Equipment: 0.2%

 

 

 

 

 

 

 

 

 

 

 

UPC Financing Partnership

 

B1

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 4.986%, maturing March 12, 2013

 

 

 

 

 

1,335,516

 

1,000,000

 

 

 

Term Loan, 4.986%, maturing December 31, 2013

 

 

 

 

 

1,335,516

 

 

 

 

 

 

 

 

 

 

 

2,671,032

 

Gaming: 6.1%

 

 

 

 

 

 

 

 

 

 

 

Ameristar Casinos, Inc.

 

Ba3

 

BB+

 

 

 

1,995,000

 

 

 

Term Loan, 6.593%-6.727%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 10, 2012

 

 

 

 

 

2,006,846

 

 

 

 

 

Boyd Gaming Corporation

 

Ba2

 

BB

 

 

 

6,386,250

 

 

 

Term Loan, 6.479%-6.610%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2011

 

 

 

 

 

6,425,366

 

 

 

 

 

CCM Merger, Inc.

 

B1

 

B+

 

 

 

5,959,987

 

 

 

Term Loan, 6.850%-7.214%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 13, 2012

 

 

 

 

 

5,976,376

 

 

See Accompanying Notes to Financial Statements

 

31


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Gaming: (continued)

 

 

 

 

 

 

 

 

 

 

 

Global Cash Access, LLC

 

Ba3

 

B+

 

 

 

$

1,919,438

 

 

 

Term Loan, 6.843%, maturing March 10, 2010

 

 

 

 

 

$

1,933,834

 

 

 

 

 

Green Valley Ranch Gaming, LLC

 

NR

 

NR

 

 

 

100,000

 

 

 

Revolver, 6.525%, maturing December 23, 2008

 

 

 

 

 

99,750

 

2,453,937

 

 

 

Term Loan, 6.729%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 17, 2011

 

 

 

 

 

2,470,808

 

 

 

 

 

Herbst Gaming, Inc.

 

B1

 

B+

 

 

 

990,000

 

 

 

Term Loan, 6.979%-7.110%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2011

 

 

 

 

 

991,547

 

 

 

 

 

Isle of Capri Black Hawk, LLC

 

B1

 

B+

 

 

 

1,326,667

 

 

 

Term Loan, 6.890%-7.214%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 24, 2011

 

 

 

 

 

1,334,129

 

 

 

 

 

Isle of Capri Casinos, Inc.

 

Ba2

 

BB-

 

 

 

992,500

 

 

 

Term Loan, 6.729%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 04, 2011

 

 

 

 

 

997,214

 

1,481,250

 

 

 

Term Loan, 6.470%-7.008%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 04, 2011

 

 

 

 

 

1,488,286

 

 

 

 

 

Opbiz, LLC

 

B3

 

B-

 

 

 

7,234,623

 

 

 

Term Loan, 7.990%, maturing August 31, 2010

 

 

 

 

 

7,055,566

 

18,801

 

 

 

Term Loan, 8.990%, maturing August 31, 2010

 

 

 

 

 

18,533

 

 

 

 

 

Penn National Gaming, Inc.

 

Ba2

 

BB

 

 

 

1,279,070

 

 

 

Term Loan, 6.910%-7.020%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 03, 2011

 

 

 

 

 

1,284,826

 

13,432,500

 

 

 

Term Loan, 6.730%-7.020%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 03, 2012

 

 

 

 

 

13,538,845

 

 

 

 

 

Resorts International Hotel and Casino, Inc.

 

Caa1

 

CCC+

 

 

 

249,381

 

 

 

Term Loan, 8.980%, maturing April 26, 2012

 

 

 

 

 

252,498

 

 

 

 

 

Ruffin Gaming, LLC

 

NR

 

NR

 

 

 

1,485,376

 

 

 

Term Loan, 7.250%, maturing June 28, 2008

 

 

 

 

 

1,500,230

 

 

 

 

 

Trump Entertainment Resorts Holdings, L.P.

 

B2

 

BB-

 

 

 

1,736,875

 

 

 

Term Loan, 7.170%, maturing May 20, 2012

 

 

 

 

 

1,755,329

 

 

 

 

 

Venetian Casino Resorts, LLC

 

Ba3

 

BB-

 

 

 

11,606,837

 

 

 

Term Loan, 6.730%, maturing June 15, 2011

 

 

 

 

 

11,673,031

 

2,393,163

 

 

 

Term Loan, 6.730%, maturing June 15, 2011

 

 

 

 

 

2,406,812

 

 

 

 

 

VML US Finance, LLC

 

Ba3

 

BB-

 

 

 

1,200,000

 

 

 

Term Loan, 0.000%-0.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 26, 2013

 

 

 

 

 

1,210,800

 

 

 

 

 

Wembley, Inc.

 

B1

 

B+

 

 

 

995,000

 

 

 

Term Loan, 6.990%-7.100%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 23, 2011

 

 

 

 

 

1,007,127

 

 

 

 

 

Yonkers Racing Corporation

 

B3

 

B

 

 

 

715,976

 

 

 

Term Loan, 8.581%, maturing August 12, 2011

 

 

 

 

 

725,373

 

562,717

 

 

 

Term Loan, 8.581%, maturing August 12, 2011

 

 

 

 

 

570,103

 

 

 

 

 

 

 

 

 

 

 

66,723,230

 

Grocery: 1.0%

 

 

 

 

 

 

 

 

 

 

 

Giant Eagle, Inc.

 

Ba3

 

BB+

 

 

 

1,782,748

 

 

 

Term Loan, 6.210%-6.490%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 07, 2012

 

 

 

 

 

1,792,776

 

 

 

 

 

Roundy’s Supermarkets, Inc.

 

B2

 

B+

 

 

 

4,987,500

 

 

 

Term Loan, 7.870%-8.170%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 03, 2011

 

 

 

 

 

5,043,091

 

 

See Accompanying Notes to Financial Statements

 

32


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Grocery: (continued)

 

 

 

 

 

 

 

 

 

(5)

 

Supervalu, Inc.

 

Ba3

 

BBB

 

 

 

$

4,000,000

 

 

 

Term Loan, maturing June 01, 2012

 

 

 

 

 

$

4,000,000

 

 

 

 

 

 

 

 

 

 

 

10,835,866

 

Healthcare, Education and Childcare: 16.1%

 

 

 

 

 

 

 

 

 

 

 

Accellent Corporation

 

B2

 

BB-

 

 

 

1,995,000

 

 

 

Term Loan, 7.100%-7.230%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 22, 2012

 

 

 

 

 

2,001,859

 

 

 

 

 

AGA Medical Corporation

 

B2

 

B+

 

 

 

2,000,000

 

 

 

Term Loan, 7.380%, maturing April 28, 2013

 

 

 

 

 

2,013,750

 

 

 

 

 

Ameripath, Inc.

 

B1

 

BB-

 

 

 

500,000

 

 

 

Term Loan, 7.040%, maturing October 31, 2012

 

 

 

 

 

501,797

 

 

 

 

 

AMN Healthcare

 

Ba2

 

BB-

 

 

 

1,000,000

 

 

 

Term Loan, 6.729%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 02, 2011

 

 

 

 

 

1,009,375

 

 

 

 

 

AMR Holdco, Inc./Emcare Holdco, Inc.

 

B2

 

B+

 

 

 

3,394,638

 

 

 

Term Loan, 6.830%-7.020%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 10, 2012

 

 

 

 

 

3,414,796

 

 

 

 

 

Block Vision Holdings Corporation

 

NR

 

NR

 

 

 

13,365

 

 

 

Term Loan, 13.000%, maturing July 30, 2007

 

 

 

 

 

 

 

 

 

 

Capella Healthcare, Inc.

 

B3

 

B

 

 

 

2,992,500

 

 

 

Term Loan, 7.820%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 30, 2012

 

 

 

 

 

3,024,295

 

 

 

 

 

CCS Acquisition, Inc.

 

B3

 

B

 

 

 

4,488,750

 

 

 

Term Loan, 8.230%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2012

 

 

 

 

 

4,379,337

 

 

 

 

 

Community Health Systems, Inc.

 

Ba3

 

BB-

 

 

 

24,189,919

 

 

 

Term Loan, 6.850%-6.970%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 19, 2011

 

 

 

 

 

24,363,797

 

 

 

 

 

Compsych Investment Corporation

 

NR

 

NR

 

 

 

1,000,000

 

 

 

Term Loan, 7.730%-7.860%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 20, 2012

 

 

 

 

 

1,006,250

 

 

 

 

 

Concentra Operating Corporation

 

B1

 

B+

 

 

 

4,673,825

 

 

 

Term Loan, 6.690%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2011

 

 

 

 

 

4,702,064

 

 

 

 

 

CRC Health Corporation

 

B1

 

B

 

 

 

1,500,000

 

 

 

Term Loan, 7.229%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 06, 2013

 

 

 

 

 

1,512,188

 

 

 

 

 

Davita, Inc.

 

B1

 

BB-

 

 

 

26,373,725

 

 

 

Term Loan, 6.690%-7.210%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 05, 2012

 

 

 

 

 

26,399,835

 

 

 

 

 

DJ Orthopedics, LLC

 

Ba3

 

BB-

 

 

 

1,200,000

 

 

 

Term Loan, 6.563%, maturing April 07, 2013

 

 

 

 

 

1,201,500

 

 

 

(5)

 

Education Management Corporation

 

B2

 

B

 

 

 

6,000,000

 

 

 

Term Loan, maturing May 30, 2013

 

 

 

 

 

6,022,500

 

 

 

 

 

Encore Medical IHC, Inc.

 

B1

 

B

 

 

 

2,317,890

 

 

 

Term Loan, 6.671%-7.189%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 04, 2010

 

 

 

 

 

2,333,825

 

 

 

 

 

Fresenius Medical Care Holdings, Inc.

 

Ba2

 

BB

 

 

 

4,100,000

 

 

 

Term Loan, 6.354%-6.403%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 31, 2013

 

 

 

 

 

4,087,552

 

 

See Accompanying Notes to Financial Statements

 

33


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Healthcare, Education and Childcare: (continued)

 

 

 

 

 

 

 

 

 

 

 

Gentiva Health Services, Inc.

 

Ba3

 

B+

 

 

 

$

2,959,459

 

 

 

Term Loan, 7.240%-7.370%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 31, 2013

 

 

 

 

 

$

2,976,106

 

 

 

 

 

Golden Gate National Senior

 

 

 

 

 

 

 

 

 

 

 

Care Holdings, LLC

 

B1

 

B+

 

 

 

1,200,000

 

 

 

Term Loan, 7.818%-7.959%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 14, 2011

 

 

 

 

 

1,214,250

 

 

 

 

 

Harlan Sprague Dawley, Inc.

 

B2

 

B+

 

 

 

997,500

 

 

 

Term Loan, 7.480%-9.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 19, 2011

 

 

 

 

 

1,006,228

 

 

 

 

 

Healthcare Partners, LLC

 

B1

 

BB

 

 

 

2,835,996

 

 

 

Term Loan, 6.890%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 04, 2011

 

 

 

 

 

2,860,811

 

 

 

 

 

Healthsouth Corporation

 

B2

 

B+

 

 

 

6,000,000

 

 

 

Term Loan, 8.150%, maturing March 10, 2013

 

 

 

 

 

6,010,176

 

 

 

 

 

Iasis Healthcare Corporation

 

B1

 

B+

 

 

 

8,842,500

 

 

 

Term Loan, 7.229%-7.264%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 22, 2011

 

 

 

 

 

8,948,424

 

 

 

 

 

Kinetic Concepts, Inc.

 

Ba3

 

BB

 

 

 

3,297,830

 

 

 

Term Loan, 6.730%, maturing August 11, 2010

 

 

 

 

 

3,330,122

 

 

 

 

 

Lifepoint Hospitals, Inc.

 

Ba3

 

BB

 

 

 

13,180,938

 

 

 

Term Loan, 6.905%, maturing April 15, 2012

 

 

 

 

 

13,217,554

 

 

 

 

 

Magellan Health Services, Inc.

 

B1

 

BB

 

 

 

937,500

 

 

 

Term Loan, 7.160%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 15, 2008

 

 

 

 

 

939,844

 

 

 

 

 

MMM Holdings, Inc.

 

B1

 

B

 

 

 

1,615,000

 

 

 

Term Loan, 7.230%, maturing August 16, 2011

 

 

 

 

 

1,623,075

 

 

 

 

 

Multiplan Corporation

 

B2

 

B+

 

 

 

1,600,000

 

 

 

Term Loan, 7.120%, maturing April 12, 2013

 

 

 

 

 

1,605,333

 

 

 

 

 

Mylan Laboratories, Inc.

 

Ba1

 

BBB-

 

 

 

683,409

 

 

 

Term Loan, 6.600%, maturing June 30, 2010

 

 

 

 

 

688,677

 

 

 

 

 

Per-Se Technologies, Inc.

 

B1

 

B+

 

 

 

2,212,644

 

 

 

Term Loan, 7.230%-7.350%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 06, 2013

 

 

 

 

 

2,237,536

 

 

 

 

 

Psychiatric Solutions

 

B1

 

B+

 

 

 

923,077

 

 

 

Term Loan, 6.910%, maturing July 01, 2012

 

 

 

 

 

930,289

 

 

 

 

 

Quintiles Transnational Corporation

 

B1

 

BB-

 

 

 

2,650,000

 

 

 

Term Loan, 7.080%, maturing March 31, 2013

 

 

 

 

 

2,654,142

 

 

 

 

 

Radiation Therapy Services, Inc.

 

B1

 

BB

 

 

 

1,944,385

 

 

 

Term Loan, 6.979%-8.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 16, 2012

 

 

 

 

 

1,950,461

 

 

 

 

 

Renal Advantage, Inc.

 

NR

 

B+

 

 

 

4,062,917

 

 

 

Term Loan, 7.420%, maturing October 06, 2012

 

 

 

 

 

4,098,467

 

 

 

 

 

Rural/Metro Operating Company, LLC

 

B1

 

B

 

 

 

519,127

 

 

 

Term Loan, 4.708%, maturing March 04, 2011

 

 

 

 

 

524,967

 

1,258,822

 

 

 

Term Loan, 7.400%-7.502%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 04, 2011

 

 

 

 

 

1,272,984

 

 

 

 

 

Select Medical Corporation

 

B1

 

BB-

 

 

 

2,475,000

 

 

 

Term Loan, 6.840%-8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 24, 2012

 

 

 

 

 

2,465,204

 

 

 

 

 

Sterigenics International, Inc.

 

B2

 

B+

 

 

 

2,441,433

 

 

 

Term Loan, 7.910%, maturing June 14, 2011

 

 

 

 

 

2,459,743

 

 

See Accompanying Notes to Financial Statements

 

34


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Healthcare, Education and Childcare: (continued)

 

 

 

 

 

 

 

 

 

 

 

Team Health, Inc.

 

B2

 

B+

 

 

 

$

2,992,500

 

 

 

Term Loan, 7.580%-7.694%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 23, 2012

 

 

 

 

 

$

3,008,866

 

 

 

 

 

Vanguard Health Holding Company II, LLC

 

B2

 

B

 

 

 

18,004,364

 

 

 

Term Loan, 6.950%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 23, 2011

 

 

 

 

 

18,170,347

 

 

 

 

 

Ventiv Health, Inc.

 

Ba3

 

BB-

 

 

 

745,000

 

 

 

Term Loan, 6.479%, maturing October 05, 2011

 

 

 

 

 

747,328

 

 

 

 

 

VWR International, Inc.

 

B2

 

B+

 

 

 

3,701,897

 

 

 

Term Loan, 7.340%, maturing April 07, 2011

 

 

 

 

 

3,735,832

 

 

 

 

 

 

 

 

 

 

 

176,651,487

 

Home & Office Furnishings: 2.0%

 

 

 

 

 

 

 

 

 

 

 

Buhrmann U.S., Inc.

 

Ba3

 

BB-

 

 

 

3,915,263

 

 

 

Term Loan, 6.670%-6.880%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 23, 2010

 

 

 

 

 

3,934,839

 

 

 

 

 

Global Imaging Systems, Inc.

 

Ba2

 

BB

 

 

 

1,216,295

 

 

 

Term Loan, 6.070%-6.460%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 10, 2010

 

 

 

 

 

1,218,196

 

 

 

 

 

National Bedding Company

 

B1

 

BB-

 

 

 

2,233,125

 

 

 

Term Loan, 6.920%-7.090%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 31, 2011

 

 

 

 

 

2,254,898

 

 

 

 

 

Sealy Mattress Company

 

Ba3

 

BB-

 

 

 

6,769,912

 

 

 

Term Loan, 6.570%-6.831%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 06, 2012

 

 

 

 

 

6,816,455

 

 

 

 

 

Simmons Company

 

B2

 

B+

 

 

 

7,315,818

 

 

 

Term Loan, 6.750%-9.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 19, 2011

 

 

 

 

 

7,356,970

 

 

 

 

 

 

 

 

 

 

 

21,581,357

 

Insurance: 0.8%

 

 

 

 

 

 

 

 

 

 

 

Conseco, Inc.

 

Ba3

 

BB-

 

 

 

5,549,140

 

 

 

Term Loan, 6.831%, maturing June 22, 2010

 

 

 

 

 

5,579,200

 

 

 

 

 

HMSC Corporation

 

B1

 

B+

 

 

 

1,500,000

 

 

 

Term Loan, 7.827%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 16, 2011

 

 

 

 

 

1,515,000

 

 

 

 

 

Sedgewick CMS Holdings, Inc.

 

B1

 

B+

 

 

 

1,915,200

 

 

 

Term Loan, 6.979%-7.059%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2013

 

 

 

 

 

1,919,590

 

 

 

 

 

 

 

 

 

 

 

9,013,789

 

Leisure, Amusement, Entertainment: 7.7%

 

 

 

 

 

 

 

 

 

 

 

24 Hour Fitness Worldwide, Inc.

 

B2

 

B

 

 

 

3,250,000

 

 

 

Term Loan, 7.200%-7.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 08, 2012

 

 

 

 

 

3,270,313

 

 

 

 

 

AMF Bowling Worldwide, Inc.

 

B2

 

B

 

 

 

1,440,953

 

 

 

Term Loan, 7.965%-8.320%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 27, 2009

 

 

 

 

 

1,453,112

 

 

 

 

 

Easton-Bell Sports, Inc.

 

B1

 

B+

 

 

 

1,000,000

 

 

 

Term Loan, 6.810%-6.940%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 16, 2012

 

 

 

 

 

1,003,750

 

 

 

 

 

HIT Entertainment, Ltd.

 

B1

 

B

 

 

 

3,399,583

 

 

 

Term Loan, 7.420%, maturing March 20, 2012

 

 

 

 

 

3,426,780

 

 

See Accompanying Notes to Financial Statements

 

35


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Leisure, Amusement, Entertainment: (continued)

 

 

 

 

 

 

 

 

 

 

 

Lodgenet Entertainment Corporation

 

Ba3

 

B+

 

 

 

$

2,665,716

 

 

 

Term Loan, 7.343%, maturing August 29, 2008

 

 

 

 

 

$

2,694,873

 

 

 

 

 

London Arena & Waterfront Finance, LLC

 

Ba3

 

B

 

 

 

800,000

 

 

 

Term Loan, 8.380%, maturing March 08, 2012

 

 

 

 

 

811,000

 

 

 

 

 

Metro-Goldwyn-Mayer Studios, Inc.

 

Ba3

 

B+

 

 

 

8,500,000

 

 

 

Term Loan, 7.229%, maturing April 08, 2011

 

 

 

 

 

8,548,994

 

33,500,000

 

 

 

Term Loan, 7.229%, maturing April 08, 2012

 

 

 

 

 

33,747,063

 

 

 

 

 

Panavision, Inc.

 

B1

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 8.093%%-8.227%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 30, 2011

 

 

 

 

 

1,017,500

 

 

 

 

 

Pure Fishing, Inc.

 

B1

 

B+

 

 

 

2,815,650

 

 

 

Term Loan, 7.700%-8.060%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2010

 

 

 

 

 

2,833,248

 

 

 

 

 

RHI Entertainment, LLC

 

B1

 

B

 

 

 

1,750,000

 

 

 

Term Loan, 0.000%-0.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2011

 

 

 

 

 

1,760,938

 

 

 

 

 

Six Flags Theme Parks, Inc.

 

B2

 

B+

 

 

 

2,885,799

 

 

 

Term Loan, 7.260%-7.410%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2009

 

 

 

 

 

2,907,442

 

 

 

 

 

Universal City Development Partners, L.P.

 

Ba3

 

BB-

 

 

 

4,900,000

 

 

 

Term Loan, 6.980%-7.190%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 09, 2011

 

 

 

 

 

4,937,769

 

 

 

 

 

WMG Acquisition Corporation

 

Ba2

 

B+

 

 

 

16,258,474

 

 

 

Term Loan, 7.090%-7.320%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 28, 2011

 

 

 

 

 

16,353,732

 

 

 

 

 

 

 

 

 

 

 

84,766,513

 

Lodging: 1.5%

 

 

 

 

 

 

 

 

 

(5)

 

Hotel Del Partners, LP

 

NR

 

NR

 

 

 

16,400,000

 

 

 

Term Loan, maturing January 09, 2008

 

 

 

 

 

16,400,000

 

 

 

 

 

 

 

 

 

 

 

16,400,000

 

Machinery: 2.9%

 

 

 

 

 

 

 

 

 

 

 

Alliance Laundry Holdings, LLC

 

B1

 

B

 

 

 

3,097,500

 

 

 

Term Loan, 7.320%, maturing January 27, 2012

 

 

 

 

 

3,114,923

 

 

 

 

 

Blount, Inc.

 

Ba3

 

BB-

 

 

 

2,093,926

 

 

 

Term Loan, 6.740%-6.790%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 09, 2010

 

 

 

 

 

2,114,865

 

 

 

 

 

Enersys, Inc.

 

Ba3

 

BB

 

 

 

4,201,782

 

 

 

Term Loan, 6.671%-7.189%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 17, 2011

 

 

 

 

 

4,233,295

 

 

 

 

 

Maxim Crane Works, L.P.

 

B1

 

BB-

 

 

 

2,655,482

 

 

 

Term Loan, 6.938%-9.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 25, 2010

 

 

 

 

 

2,664,612

 

 

 

 

 

Rexnord Corporation

 

B1

 

B+

 

 

 

6,874,834

 

 

 

Term Loan, 7.230%-7.410%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2011

 

 

 

 

 

6,930,692

 

 

 

 

 

Terex Corporation

 

B2

 

BB-

 

 

 

1,192,085

 

 

 

Term Loan, 7.759%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2009

 

 

 

 

 

1,207,732

 

858,447

 

 

 

Term Loan, 7.259%, maturing July 03, 2009

 

 

 

 

 

870,251

 

 

See Accompanying Notes to Financial Statements

 

36


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Machinery: (continued)

 

 

 

 

 

 

 

 

 

 

 

United Rentals (North America), Inc.

 

B2

 

BB-

 

 

 

$

10,126,666

 

 

 

Term Loan, 7.100%, maturing February 14, 2011

 

 

 

 

 

$

10,195,234

 

 

 

 

 

 

 

 

 

 

 

31,331,604

 

Mining, Steel, Iron & Nonprecious Metals: 1.2%

 

 

 

 

 

 

 

 

 

 

 

Alpha Natural Resources, LLC

 

B2

 

BB-

 

 

 

665,000

 

 

 

Term Loan, 6.831%, maturing October 26, 2012

 

 

 

 

 

668,949

 

 

 

 

 

Carmeuse Lime, Inc.

 

NR

 

NR

 

 

 

1,884,100

 

 

 

Term Loan, 6.938%, maturing May 02, 2011

 

 

 

 

 

1,893,521

 

 

 

 

 

Foundation Coal Corporation

 

Ba3

 

BB-

 

 

 

2,672,872

 

 

 

Term Loan, 6.440%-6.840%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 30, 2011

 

 

 

 

 

2,700,018

 

 

 

 

 

International Coal Group, LLC

 

B2

 

B-

 

 

 

139,204

 

 

 

Term Loan, 7.710%, maturing October 01, 2010

 

 

 

 

 

139,204

 

 

 

 

 

Longyear Holdings, Inc.

 

B2

 

B+

 

 

 

213,490

 

 

 

Term Loan, 7.980%, maturing July 28, 2012

 

 

 

 

 

215,625

 

1,478,010

 

 

 

Term Loan, 7.980%, maturing July 28, 2012

 

 

 

 

 

1,492,790

 

 

 

 

 

Novelis, Inc.

 

Ba2

 

BB-

 

 

 

2,290,680

 

 

 

Term Loan, 7.380%, maturing January 07, 2012

 

 

 

 

 

2,309,828

 

3,978,550

 

 

 

Term Loan, 7.380%, maturing January 07, 2012

 

 

 

 

 

4,011,807

 

 

 

 

 

 

 

 

 

 

 

13,431,741

 

North American Cable: 21.8%

 

 

 

 

 

 

 

 

 

(2)

 

Adelphia Communications Corporation

 

NR

 

BBB

 

 

 

11,000,000

 

 

 

Debtor in Possession Term Loan, 7.125%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 07, 2006

 

 

 

 

 

11,044,693

 

 

 

 

 

Atlantic Broadband Finance, LLC

 

B2

 

B

 

 

 

2,000,000

 

 

 

Term Loan, 7.620%, maturing August 04, 2012

 

 

 

 

 

2,030,000

 

 

 

 

 

Bragg Communications, Inc.

 

B1

 

NR

 

 

 

2,456,250

 

 

 

Term Loan, 7.227%, maturing August 31, 2011

 

 

 

 

 

2,471,602

 

 

 

 

 

Bresnan Communications, LLC

 

B1

 

B+

 

 

 

4,000,000

 

 

 

Term Loan, 6.930%-7.130%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 29, 2013

 

 

 

 

 

4,018,332

 

 

 

 

 

Bresnan Communications, LLC

 

B3

 

B-

 

 

 

1,000,000

 

 

 

Term Loan, 9.430%-9.630%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 29, 2014

 

 

 

 

 

1,024,583

 

 

 

(2)

 

Century Cable Holdings, LLC

 

Caa1

 

NR

 

 

 

1,230,000

 

 

 

Revolver, 9.000%, maturing March 31, 2009

 

 

 

 

 

1,189,000

 

21,357,940

 

 

 

Term Loan, 10.000%, maturing June 30, 2009

 

 

 

 

 

20,815,085

 

8,000,000

 

 

 

Term Loan, 9.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2009

 

 

 

 

 

7,787,040

 

 

 

 

 

Cequel Communications, LLC

 

Caa1

 

B-

 

 

 

17,150,000

 

 

 

Term Loan, 7.319%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 05, 2013

 

 

 

 

 

17,081,091

 

 

 

 

 

Cequel Communications II, LLC

 

NR

 

NR

 

 

 

3,850,000

 

 

 

Term Loan, 10.069%, maturing October 30, 2007

 

 

 

 

 

3,830,750

 

 

 

 

 

Charter Communications Operating, LLC

 

B2

 

B

 

 

 

53,500,000

 

 

 

Term Loan, 7.755%, maturing April 28, 2013

 

 

 

 

 

53,812,761

 

 

 

 

 

CSC Holdings, Inc.

 

Ba3

 

BB

 

 

 

1,000,000

 

 

 

Term Loan, 6.070%-6.399%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 24, 2012

 

 

 

 

 

997,000

 

23,400,000

 

 

 

Term Loan, 6.670%-6.880%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 29, 2013

 

 

 

 

 

23,420,241

 

 

See Accompanying Notes to Financial Statements

 

37


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

North American Cable: (continued)

 

 

 

 

 

 

 

 

 

(2)

 

Hilton Head Communications, L.P.

 

Caa1

 

NR

 

 

 

$

7,000,000

 

 

 

Revolver, 8.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2007

 

 

 

 

 

$

6,750,625

 

8,500,000

 

 

 

Term Loan, 9.250%, maturing March 31, 2008

 

 

 

 

 

8,232,607

 

 

 

 

 

Insight Midwest Holdings, LLC

 

Ba3

 

BB-

 

 

 

18,083,750

 

 

 

Term Loan, 7.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2009

 

 

 

 

 

18,194,712

 

 

 

 

 

Knology, Inc.

 

B3

 

NR

 

 

 

2,106,639

 

 

 

Term Loan, 10.479%-10.626%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 29, 2010

 

 

 

 

 

2,180,371

 

 

 

 

 

Mediacom Communications Corporation

 

Ba3

 

BB-

 

 

 

10,890,000

 

 

 

Term Loan, 6.809%-7.002%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 01, 2014

 

 

 

 

 

10,881,495

 

 

 

 

 

Nextmedia Operating, Inc.

 

B1

 

B

 

 

 

1,148,077

 

 

 

Term Loan, 7.090%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 15, 2012

 

 

 

 

 

1,155,252

 

510,256

 

 

 

Term Loan, 7.059%, maturing November 15, 2012

 

 

 

 

 

513,446

 

 

 

(2)

 

Olympus Cable Holdings, LLC

 

B2

 

NR

 

 

 

7,500,000

 

 

 

Term Loan, 9.250%, maturing June 30, 2010

 

 

 

 

 

7,287,308

 

21,000,000

 

 

 

Term Loan, 10.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2010

 

 

 

 

 

20,497,491

 

 

 

 

 

Patriot Media and Communications, LLC

 

B1

 

B+

 

 

 

2,666,667

 

 

 

Term Loan, 7.458%, maturing March 31, 2013

 

 

 

 

 

2,689,168

 

 

 

 

 

Patriot Media and Communications, LLC

 

B3

 

B-

 

 

 

1,000,000

 

 

 

Term Loan, 10.080%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 04, 2013

 

 

 

 

 

1,022,031

 

 

 

 

 

Persona Communication, Inc.

 

B2

 

B

 

 

 

3,447,500

 

 

 

Term Loan, 7.960%, maturing August 01, 2011

 

 

 

 

 

3,473,356

 

 

 

 

 

Quebecor Media, Inc.

 

B2

 

B

 

 

 

2,992,500

 

 

 

Term Loan, 7.068%, maturing January 17, 2013

 

 

 

 

 

3,025,232

 

 

 

 

 

San Juan Cable, LLC

 

B1

 

B+

 

 

 

1,747,500

 

 

 

Term Loan, 6.840%, maturing October 31, 2012

 

 

 

 

 

1,756,784

 

 

 

 

 

WideOpenWest Finance, LLC

 

B2

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 7.290%, maturing May 01, 2014

 

 

 

 

 

1,002,232

 

 

 

 

 

 

 

 

 

 

 

238,184,288

 

Oil & Gas: 10.7%

 

 

 

 

 

 

 

 

 

 

 

CDX Funding, LLC

 

NR

 

NR

 

 

 

2,000,000

 

 

 

Term Loan, 10.250%, maturing March 31, 2013

 

 

 

 

 

2,046,666

 

 

 

 

 

Cheniere LNG Holdings, LLC

 

NR

 

BB

 

 

 

6,965,000

 

 

 

Term Loan, 7.729%, maturing August 30, 2012

 

 

 

 

 

7,032,477

 

 

 

 

 

Coffeyville Resources, LLC

 

B1

 

BB-

 

 

 

1,000,000

 

 

 

Term Loan, 4.900%, maturing June 24, 2012

 

 

 

 

 

1,005,938

 

1,488,778

 

 

 

Term Loan, 7.500%-9.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 08, 2012

 

 

 

 

 

1,497,618

 

 

 

 

 

Complete Production Services, Inc.

 

Ba2

 

B

 

 

 

2,985,000

 

 

 

Term Loan, 7.520%-7.660%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 12, 2012

 

 

 

 

 

3,004,901

 

 

 

 

 

El Paso Corporation

 

B3

 

B+

 

 

 

5,500,000

 

 

 

Term Loan, 7.140%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 30, 2007

 

 

 

 

 

5,539,342

 

17,597,602

 

 

 

Term Loan, 7.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 23, 2009

 

 

 

 

 

17,723,477

 

 

See Accompanying Notes to Financial Statements

 

38

 


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Oil & Gas: (continued)

 

 

 

 

 

 

 

 

 

 

 

EPCO Holdings, Inc.

 

Ba3

 

B+

 

 

 

$11,632,500

 

 

 

Term Loan, 7.077%-7.221%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 18, 2010

 

 

 

 

 

$

11,759,213

 

 

 

 

 

Helix Energy Solutions Group, Inc.

 

B2

 

BB

 

 

 

5,200,000

 

 

 

Term Loan, 7.346%-7.640%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 15, 2013

 

 

 

 

 

5,220,150

 

 

 

 

 

Key Energy Services, Inc.

 

NR

 

NR

 

 

 

4,488,750

 

 

 

Term Loan, 8.250%-8.400%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2012

 

 

 

 

 

4,526,626

 

 

 

 

 

LB Pacific, L.P.

 

B1

 

B-

 

 

 

3,960,000

 

 

 

Term Loan, 7.710%-7.729%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 15, 2012

 

 

 

 

 

4,019,400

 

 

 

 

 

Lyondell-Citgo Refining, L.P.

 

Ba3

 

BB

 

 

 

1,965,000

 

 

 

Term Loan, 6.979%, maturing May 21, 2007

 

 

 

 

 

1,969,913

 

 

 

 

 

Magellan Midstream Holdings, L.P.

 

Ba3

 

BB-

 

 

 

1,855,278

 

 

 

Term Loan, 6.930%, maturing June 30, 2012

 

 

 

 

 

1,869,192

 

 

 

 

 

Mainline, L.P.

 

Ba3

 

BB-

 

 

 

7,041,667

 

 

 

Term Loan, 7.310%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 17, 2011

 

 

 

 

 

7,120,885

 

 

 

 

 

MEG Energy Corporation

 

Ba3

 

BB

 

 

 

2,800,000

 

 

 

Term Loan, 7.000%, maturing April 03, 2013

 

 

 

 

 

2,820,751

 

 

 

 

 

Niska Gas Storage, LLC

 

Ba3

 

BB-

 

 

 

424,242

 

 

 

Term Loan, 8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 20, 2011

 

 

 

 

 

424,508

 

2,333,333

 

 

 

Term Loan, 8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 20, 2013

 

 

 

 

 

2,334,792

 

445,455

 

 

 

Term Loan, 8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 20, 2013

 

 

 

 

 

445,733

 

 

 

 

 

OPTI Canada, Inc.

 

Ba3

 

BB+

 

 

 

2,066,667

 

 

 

Term Loan, 6.830%, maturing May 15, 2013

 

 

 

 

 

2,068,444

 

 

 

 

 

Regency Gas Services, LLC

 

B1

 

B+

 

 

 

1,488,750

 

 

 

Term Loan, 7.230%, maturing June 01, 2010

 

 

 

 

 

1,492,472

 

 

 

 

 

Semcrude, L.P.

 

Ba3

 

NR

 

 

 

5,224,154

 

 

 

Term Loan, 7.229%, maturing March 16, 2011

 

 

 

 

 

5,233,949

 

3,676,205

 

 

 

Term Loan, 7.160%-7.331%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 16, 2011

 

 

 

 

 

3,683,098

 

 

 

 

 

Targa Resources, Inc.

 

Ba3

 

B+

 

 

 

6,500,000

 

 

 

Term Loan, 7.477%, maturing October 31, 2007

 

 

 

 

 

6,516,250

 

1,000,000

 

 

 

Term Loan, 7.229%, maturing October 31, 2012

 

 

 

 

 

1,008,333

 

7,735,323

 

 

 

Term Loan, 7.229%-7.470%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 31, 2012

 

 

 

 

 

7,799,781

 

 

 

 

 

Venoco, Inc.

 

Caa1

 

B-

 

 

 

2,000,000

 

 

 

Term Loan, 9.625%-9.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 30, 2009

 

 

 

 

 

2,017,500

 

 

 

 

 

Vulcan Energy Corporation

 

Ba2

 

BB

 

 

 

4,921,824

 

 

 

Term Loan, 6.689%, maturing August 12, 2011

 

 

 

 

 

4,940,281

 

 

 

 

 

W&T Offshore, Inc.

 

B2

 

B+

 

 

 

1,400,000

 

 

 

Term Loan, 0.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 15, 2010

 

 

 

 

 

1,407,000

 

 

 

 

 

 

 

 

 

 

 

116,528,690

 

 

See Accompanying Notes to Financial Statements

 

39


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Other Broadcasting and Entertainment: 3.6%

 

 

 

 

 

 

 

 

 

 

 

Alliance Atlantis Communications, Inc.

 

Ba2

 

BB

 

 

 

$

2,301,152

 

 

 

Term Loan, 6.479%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 20, 2011

 

 

 

 

 

$

2,308,343

 

 

 

 

 

Deluxe, Inc.

 

B1

 

B

 

 

 

2,000,000

 

 

 

Term Loan, 8.729%, maturing January 28, 2011

 

 

 

 

 

2,030,416

 

 

 

 

 

DirecTV Holdings, LLC

 

Ba1

 

BB

 

 

 

10,000,000

 

 

 

Term Loan, 6.581%, maturing April 13, 2013

 

 

 

 

 

10,056,250

 

 

 

 

 

Echostar DBS Corporation

 

Ba3

 

BB-

 

 

 

9,000,000

 

 

 

Floating Rate Note, 8.240%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 01, 2008

 

 

 

 

 

9,146,250

 

 

 

 

 

Liberty Media Corporation

 

Ba2

 

BB+

 

 

 

4,500,000

 

 

 

Floating Rate Note, 6.410%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 17, 2006

 

 

 

 

 

4,512,780

 

 

 

 

 

Rainbow National Services, LLC

 

Ba3

 

BB+

 

 

 

10,890,000

 

 

 

Term Loan, 7.875%, maturing March 31, 2012

 

 

 

 

 

11,000,033

 

 

 

 

 

 

 

 

 

 

 

39,054,072

 

Other Telecommunications: 3.3%

 

 

 

 

 

 

 

 

 

 

 

Cavalier Telecom Corporation

 

B2

 

B

 

 

 

2,000,000

 

 

 

Term Loan, 9.520%, maturing March 24, 2012

 

 

 

 

 

2,035,000

 

 

 

 

 

Cincinnati Bell, Inc.

 

Ba3

 

B+

 

 

 

3,482,500

 

 

 

Term Loan, 6.514%-6.660%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 31, 2012

 

 

 

 

 

3,485,767

 

 

 

 

 

Consolidated Communications, Inc.

 

B1

 

BB-

 

 

 

2,452,170

 

 

 

Term Loan, 6.729%-6.924%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 14, 2011

 

 

 

 

 

2,464,431

 

 

 

 

 

D&E Communications, Inc.

 

Ba3

 

BB-

 

 

 

2,931,867

 

 

 

Term Loan, 6.840%-9.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2011

 

 

 

 

 

2,946,527

 

 

 

 

 

Fairpoint Communications, Inc.

 

B1

 

BB-

 

 

 

2,000,000

 

 

 

Term Loan, 6.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 08, 2012

 

 

 

 

 

2,001,250

 

 

 

 

 

Iowa Telecommunications Services, Inc.

 

Ba3

 

BB-

 

 

 

4,250,000

 

 

 

Term Loan, 6.400%-6.730%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 23, 2011

 

 

 

 

 

4,271,250

 

 

 

 

 

Qwest Capital Funding, Inc.

 

B2

 

B

 

 

 

10,000,000

 

 

 

Floating Rate Note, 8.670%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 15, 2009

 

 

 

 

 

10,175,000

 

 

 

 

 

Qwest Corporation

 

B1

 

BB

 

 

 

800,000

 

 

 

Term Loan, 9.831%, maturing June 30, 2007

 

 

 

 

 

816,350

 

 

 

 

 

Time Warner Telecom Holdings, Inc.

 

B2

 

CCC+

 

 

 

3,000,000

 

 

 

Floating Rate Note, 9.170%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 15, 2011

 

 

 

 

 

3,045,000

 

 

 

 

 

Valor Telecommunication Enterprises II, LLC

 

Ba3

 

BB-

 

 

 

4,680,272

 

 

 

Term Loan, 6.729%-6.809%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 14, 2012

 

 

 

 

 

4,692,811

 

 

 

 

 

 

 

 

 

 

 

35,933,385

 

Personal & Nondurable Consumer Products: 6.0%

 

 

 

 

 

 

 

 

 

 

 

Advantage Sales & Marketing, Inc.

 

B2

 

B

 

 

 

3,100,000

 

 

 

Term Loan, 7.100%-7.220%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 29, 2013

 

 

 

 

 

3,098,063

 

 

See Accompanying Notes to Financial Statements

 

40


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Personal & Nondurable Consumer Products: (continued)

 

 

 

 

 

 

 

 

 

 

 

Amscan Holdings, Inc.

 

B1

 

B+

 

 

 

$

1,500,000

 

 

 

Term Loan, 8.194%-10.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 23, 2012

 

 

 

 

 

$

1,513,437

 

 

 

 

 

Bushnell Performance Optics, Inc.

 

B1

 

B+

 

 

 

1,741,463

 

 

 

Term Loan, 8.081%, maturing August 19, 2011

 

 

 

 

 

1,755,613

 

 

 

 

 

Central Garden & Pet Company

 

Ba2

 

BB

 

 

 

1,800,000

 

 

 

Term Loan, 6.520%-6.530%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2012

 

 

 

 

 

1,809,751

 

 

 

 

 

Fender Musical Instruments Corporation

 

B2

 

B+

 

 

 

2,089,598

 

 

 

Term Loan, 7.240%-7.370%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 30, 2012

 

 

 

 

 

2,089,598

 

 

 

 

 

Fender Musical Instruments Corporation

 

Caa1

 

B-

 

 

 

2,500,000

 

 

 

Term Loan, 9.620%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2012

 

 

 

 

 

2,500,000

 

 

 

 

 

Hillman Group, Inc.

 

B2

 

B

 

 

 

2,940,000

 

 

 

Term Loan, 8.313%-8.375%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 30, 2011

 

 

 

 

 

2,968,483

 

 

 

 

 

Hunter Fan Company

 

B1

 

B

 

 

 

900,000

 

 

 

Term Loan, 7.760%, maturing March 24, 2012

 

 

 

 

 

896,625

 

 

 

 

 

Jarden Corporation

 

B1

 

B+

 

 

 

10,222,132

 

 

 

Term Loan, 6.990%, maturing January 24, 2012

 

 

 

 

 

10,257,275

 

2,026,762

 

 

 

Term Loan, 6.740%, maturing January 24, 2012

 

 

 

 

 

2,033,730

 

 

 

 

 

Levlad, LLC/Arbonne International, LLC

 

B2

 

B

 

 

 

1,549,616

 

 

 

Term Loan, 8.330%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 16, 2011

 

 

 

 

 

1,559,301

 

 

 

 

 

Mega Bloks, Inc.

 

Ba3

 

BB-

 

 

 

992,500

 

 

 

Term Loan, 6.813%-6.938%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 27, 2010

 

 

 

 

 

998,703

 

 

 

 

 

Norwood Promotional Products Holdings, Inc.

 

NR

 

NR

 

 

 

7,814,802

 

(3)

 

Term Loan, maturing August 17, 2011

 

 

 

 

 

2,344,441

 

 

 

 

 

Norwood Promotional Products, Inc.

 

NR

 

NR

 

 

 

12,184,772

 

 

 

Term Loan, 11.188%, maturing August 17, 2009

 

 

 

 

 

12,123,849

 

 

 

 

 

Oreck Corporation

 

B1

 

B+

 

 

 

906,001

 

 

 

Term Loan, 7.730%, maturing January 27, 2012

 

 

 

 

 

913,929

 

 

 

 

 

Prestige Brands Holdings, Inc.

 

B1

 

B+

 

 

 

1,950,175

 

 

 

Term Loan, 7.230%-9.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 06, 2011

 

 

 

 

 

1,969,272

 

 

 

 

 

Reddy Ice Group, Inc.

 

B1

 

B+

 

 

 

1,000,000

 

 

 

Term Loan, 6.795%, maturing August 09, 2012

 

 

 

 

 

1,006,875

 

 

 

 

 

Spectrum Brands, Inc.

 

B1

 

B-

 

 

 

8,249,739

 

 

 

Term Loan, 8.030%-8.170%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 06, 2012

 

 

 

 

 

8,336,105

 

 

 

 

 

Tupperware Corporation

 

Ba2

 

BB

 

 

 

7,966,452

 

 

 

Term Loan, 6.390%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 05, 2012

 

 

 

 

 

7,962,301

 

 

 

 

 

 

 

 

 

 

 

66,137,349

 

Personal, Food & Miscellaneous: 4.7%

 

 

 

 

 

 

 

 

 

 

 

Acosta, Inc.

 

B1

 

B+

 

 

 

2,992,500

 

 

 

Term Loan, 7.340%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 06, 2012

 

 

 

 

 

3,009,333

 

 

See Accompanying Notes to Financial Statements

 

41


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Personal, Food & Miscellaneous: (continued)

 

 

 

 

 

 

 

 

 

 

 

AFC Enterprises, Inc.

 

B1

 

B+

 

 

 

$

1,266,055

 

 

 

Term Loan, 7.250%, maturing May 11, 2011

 

 

 

 

 

$

1,277,132

 

 

 

 

 

Alderwoods Group, Inc.

 

B1

 

BB

 

 

 

1,543,411

 

 

 

Term Loan, 6.730%-7.080%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 29, 2009

 

 

 

 

 

1,554,505

 

 

 

 

 

Arby’s Restaurant Group, Inc.

 

B1

 

B+

 

 

 

5,955,000

 

 

 

Term Loan, 7.229%-7.376%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 25, 2012

 

 

 

 

 

6,010,084

 

 

 

 

 

Brickman Group Holdings, Inc.

 

Ba3

 

BB-

 

 

 

1,418,182

 

 

 

Term Loan, 6.527%-6.690%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 19, 2008

 

 

 

 

 

1,414,636

 

 

 

 

 

Burger King Corporation

 

Ba2

 

B+

 

 

 

2,950,526

 

 

 

Term Loan, 6.500%, maturing June 30, 2012

 

 

 

 

 

2,952,139

 

 

 

 

 

Burt’s Bees, Inc.

 

B2

 

B

 

 

 

1,222,500

 

 

 

Term Loan, 7.440%-7.919%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 24, 2011

 

 

 

 

 

1,234,725

 

 

 

 

 

Carrols Corporation

 

B1

 

B+

 

 

 

3,148,275

 

 

 

Term Loan, 7.375%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2010

 

 

 

 

 

3,184,185

 

 

 

 

 

CBRL Group, Inc.

 

Ba2

 

BB

 

 

 

2,067,586

 

 

 

Term Loan, 6.580%-6.630%,

 

 

 

 

 

 

 

 

 

 

 

maturing April 27, 2013

 

 

 

 

 

2,070,170

 

 

 

 

 

Coinmach Corporation

 

B2

 

B

 

 

 

5,494,452

 

 

 

Term Loan, 7.625%-7.688%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 19, 2012

 

 

 

 

 

5,561,990

 

 

 

 

 

Coinstar, Inc.

 

Ba3

 

BB-

 

 

 

2,448,519

 

 

 

Term Loan, 6.960%-7.030%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 07, 2011

 

 

 

 

 

2,485,247

 

 

 

 

 

Culligan International Company

 

B1

 

B+

 

 

 

2,475,000

 

 

 

Term Loan, 7.081%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2011

 

 

 

 

 

2,488,922

 

 

 

 

 

Dave and Busters, Inc.

 

B1

 

B-

 

 

 

250,000

 

 

 

Term Loan, 7.625%, maturing March 08, 2013

 

 

 

 

 

250,781

 

 

 

 

 

Doane Pet Care Company

 

B1

 

BB-

 

 

 

1,492,500

 

 

 

Term Loan, 6.940%-7.376%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 24, 2012

 

 

 

 

 

1,494,366

 

 

 

 

 

Domino’s, Inc.

 

Ba3

 

BB-

 

 

 

2,108,839

 

 

 

Term Loan, 6.438%-6.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 25, 2010

 

 

 

 

 

2,118,504

 

 

 

 

 

Jack in the Box, Inc.

 

Ba2

 

BB

 

 

 

3,408,871

 

 

 

Term Loan, 6.320%-6.630%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 08, 2011

 

 

 

 

 

3,439,407

 

 

 

 

 

MD Beauty, Inc.

 

B1

 

B-

 

 

 

2,872,787

 

 

 

Term Loan, 10.000%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 18, 2012

 

 

 

 

 

2,879,969

 

 

 

 

 

MD Beauty, Inc.

 

B3

 

CCC

 

 

 

2,000,000

 

 

 

Term Loan, 12.100%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 18, 2013

 

 

 

 

 

2,010,000

 

 

 

 

 

N.E.W. Holdings I, LLC

 

B1

 

B+

 

 

 

1,886,577

 

 

 

Term Loan, 7.750%-8.125%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 08, 2011

 

 

 

 

 

1,904,264

 

 

See Accompanying Notes to Financial Statements

 

42


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Personal, Food & Miscellaneous: (continued)

 

 

 

 

 

 

 

 

 

 

 

Quiznos, LLC

 

B2

 

B

 

 

 

$

2,066,667

 

 

 

Term Loan, 7.310%, maturing May 05, 2013

 

 

 

 

 

$

2,069,680

 

 

 

 

 

Quiznos, LLC

 

Caa1

 

CCC+

 

 

 

1,000,000

 

 

 

Term Loan, 10.875%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 05, 2013

 

 

 

 

 

1,023,750

 

 

 

 

 

U.S Security Holdings, Inc.

 

B1

 

B

 

 

 

625,000

 

 

 

Term Loan, 9.500%, maturing April 30, 2011

 

 

 

 

 

631,250

 

 

 

 

 

 

 

 

 

 

 

51,065,039

 

Printing & Publishing: 8.3%

 

 

 

 

 

 

 

 

 

 

 

Adams Outdoor Advertising, L.P.

 

B1

 

B+

 

 

 

4,421,199

 

 

 

Term Loan, 7.030%-7.210%,

 

 

 

 

 

 

 

 

 

 

 

maturing October 18, 2012

 

 

 

 

 

4,465,411

 

 

 

 

 

American Achievement Corporation

 

Ba3

 

BB-

 

 

 

687,164

 

 

 

Term Loan, 7.552%-9.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 25, 2011

 

 

 

 

 

690,600

 

 

 

 

 

American Media Operations, Inc.

 

B1

 

B

 

 

 

6,350,000

 

 

 

Term Loan, 8.120%, maturing January 31, 2013

 

 

 

 

 

6,413,500

 

 

 

 

 

American Reprographics Company

 

Ba3

 

BB-

 

 

 

2,352,870

 

 

 

Term Loan, 6.831%-8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 18, 2009

 

 

 

 

 

2,361,693

 

 

 

 

 

Ascend Media Holdings, LLC

 

B3

 

B

 

 

 

1,717,188

 

 

 

Term Loan, 8.480%-8.620%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2012

 

 

 

 

 

1,682,844

 

 

 

 

 

Caribe Information Investment, Inc.

 

B1

 

B

 

 

 

2,000,000

 

 

 

Term Loan, 7.330%-7.460%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 31, 2013

 

 

 

 

 

2,016,250

 

 

 

 

 

Dex Media East, LLC

 

Ba2

 

BB

 

 

 

3,338,860

 

 

 

Term Loan, 6.480%-6.690%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 08, 2009

 

 

 

 

 

3,341,177

 

 

 

 

 

Dex Media West, LLC

 

Ba2

 

BB

 

 

 

1,086,571

 

 

 

Term Loan, 6.230%-6.470%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 09, 2009

 

 

 

 

 

1,085,697

 

13,566,858

 

 

 

Term Loan, 6.380%-6.720%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 09, 2010

 

 

 

 

 

13,561,200

 

 

 

 

 

Enterprise Newsmedia, LLC

 

B2

 

B

 

 

 

2,992,500

 

 

 

Term Loan, 7.990%, maturing June 30, 2012

 

 

 

 

 

3,007,463

 

 

 

 

 

FM Mergerco, Inc.

 

B1

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 2.330%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 21, 2012

 

 

 

 

 

1,005,625

 

 

 

 

 

FSC Acquisition, LLC

 

B2

 

B

 

 

 

2,514,115

 

 

 

Term Loan, 7.070%-7.330%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 01, 2012

 

 

 

 

 

2,527,208

 

 

 

 

 

IWCO Direct, Inc.

 

B1

 

B

 

 

 

1,485,002

 

 

 

Term Loan, 8.230%, maturing January 31, 2011

 

 

 

 

 

1,497,996

 

 

 

 

 

Liberty Group Publishing

 

B2

 

B+

 

 

 

1,955,244

 

 

 

Term Loan, 7.375%, maturing February 28, 2012

 

 

 

 

 

1,967,098

 

 

 

 

 

MC Communications, LLC

 

B2

 

B

 

 

 

3,331,409

 

 

 

Term Loan, 7.440%-7.590%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2010

 

 

 

 

 

3,368,887

 

 

 

 

 

Merrill Communications, LLC

 

B1

 

B+

 

 

 

2,953,378

 

 

 

Term Loan, 7.229%-7.343%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 15, 2011

 

 

 

 

 

2,980,605

 

 

See Accompanying Notes to Financial Statements

 

43


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Printing & Publishing: (continued)

 

 

 

 

 

 

 

 

 

 

 

Newspaper Holdings, Inc.

 

NR

 

NR

 

 

 

$

1,666,667

 

 

 

Term Loan, 6.188%, maturing August 24, 2012

 

 

 

 

 

$

1,671,355

 

 

 

 

 

PBI Media, Inc.

 

B2

 

B

 

 

 

1,990,000

 

 

 

Term Loan, 7.229%-7.376%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2012

 

 

 

 

 

1,997,463

 

 

 

 

 

Primedia, Inc.

 

B2

 

B

 

 

 

324,555

 

 

 

Revolver, 7.875%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2008

 

 

 

 

 

310,762

 

6,467,500

 

 

 

Term Loan, 7.875%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2013

 

 

 

 

 

6,391,507

 

 

 

 

 

R.H. Donnelley, Inc.

 

Ba3

 

BB

 

 

 

411,255

 

 

 

Term Loan, 6.280%-6.460%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 31, 2009

 

 

 

 

 

409,713

 

11,651,175

 

 

 

Term Loan, 6.350%-6.720%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2011

 

 

 

 

 

11,649,089

 

 

 

 

 

Source Media, Inc.

 

B1

 

B

 

 

 

3,234,300

 

 

 

Term Loan, 7.210%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 08, 2011

 

 

 

 

 

3,279,784

 

 

 

 

 

Triple Crown Media, Inc.

 

B2

 

B

 

 

 

1,492,917

 

 

 

Term Loan, 8.090%-10.250%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 30, 2010

 

 

 

 

 

1,491,051

 

 

 

 

 

Visant Holding Corporation

 

B1

 

B+

 

 

 

10,605,115

 

 

 

Term Loan, 7.068%, maturing October 04, 2011

 

 

 

 

 

10,687,305

 

 

 

 

 

Ziff Davis Media, Inc.

 

B3

 

CCC

 

 

 

1,500,000

 

 

 

Floating Rate Note, 11.149%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 01, 2012

 

 

 

 

 

1,406,250

 

 

 

 

 

 

 

 

 

 

 

91,267,533

 

Radio and TV Broadcasting: 4.0%

 

 

 

 

 

 

 

 

 

 

 

Block Communications, Inc.

 

Ba2

 

BB-

 

 

 

997,500

 

 

 

Term Loan, 6.979%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 22, 2011

 

 

 

 

 

1,004,358

 

 

 

 

 

CMP KC, LLC

 

NR

 

NR

 

 

 

1,400,000

 

 

 

Term Loan, 9.250%-9.313%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 03, 2011

 

 

 

 

 

1,400,000

 

 

 

 

 

CMP Susquehanna Corporation

 

B1

 

B-

 

 

 

5,200,000

 

 

 

Term Loan, 7.250%-7.375%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 05, 2013

 

 

 

 

 

5,204,061

 

 

 

 

 

Emmis Operating Company

 

Ba2

 

B+

 

 

 

4,017,385

 

 

 

Term Loan, 6.830%-8.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 10, 2011

 

 

 

 

 

4,033,391

 

 

 

 

 

Entravision Communications Corporation

 

Ba3

 

B+

 

 

 

2,985,000

 

 

 

Term Loan, 6.490%, maturing March 29, 2013

 

 

 

 

 

2,997,749

 

 

 

 

 

Gray Television, Inc.

 

Ba2

 

BB-

 

 

 

498,750

 

 

 

Term Loan, 6.480%, maturing June 15, 2011

 

 

 

 

 

500,683

 

997,500

 

 

 

Term Loan, 6.490%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 22, 2012

 

 

 

 

 

1,001,365

 

 

 

 

 

Mission Broadcasting, Inc.

 

Ba3

 

B

 

 

 

2,420,232

 

 

 

Term Loan, 7.318%, maturing August 14, 2012

 

 

 

 

 

2,427,796

 

 

 

 

 

Montecito Broadcast Group, LLC

 

B1

 

B

 

 

 

1,995,000

 

 

 

Term Loan, 7.723%, maturing January 27, 2013

 

 

 

 

 

2,019,315

 

 

See Accompanying Notes to Financial Statements

 

44


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Radio and TV Broadcasting: (continued)

 

 

 

 

 

 

 

 

 

 

 

NEP Supershooters, L.P.

 

B1

 

B

 

 

 

$

2,408,329

 

 

 

Term Loan, 8.980%-9.130%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 03, 2011

 

 

 

 

 

$

2,442,197

 

960,468

 

 

 

Term Loan, 8.480%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 03, 2011

 

 

 

 

 

971,574

 

 

 

 

 

Nexstar Broadcasting, Inc.

 

Ba3

 

B

 

 

 

2,407,338

 

 

 

Term Loan, 6.729%, maturing August 14, 2012

 

 

 

 

 

2,414,861

 

 

 

 

 

Paxson Communications Corporation

 

B2

 

CCC+

 

 

 

4,500,000

 

 

 

Term Loan, 8.318%, maturing January 15, 2012

 

 

 

 

 

4,618,125

 

 

 

 

 

Raycom TV Broadcasting, LLC

 

NR

 

NR

 

 

 

3,362,019

 

 

 

Term Loan, 6.500%, maturing July 31, 2013

 

 

 

 

 

3,370,424

 

 

 

 

 

Spanish Broadcasting Systems, Inc.

 

B1

 

B+

 

 

 

3,960,000

 

 

 

Term Loan, 7.640%-7.880%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 10, 2012

 

 

 

 

 

3,982,275

 

 

 

 

 

Young Broadcasting, Inc.

 

B2

 

B-

 

 

 

4,962,500

 

 

 

Term Loan, 7.250%-7.438%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 03, 2012

 

 

 

 

 

4,956,297

 

 

 

 

 

 

 

 

 

 

 

43,344,471

 

Retail Stores: 7.6%

 

 

 

 

 

 

 

 

 

 

 

Advance Stores Company, Inc.

 

Ba1

 

BB+

 

 

 

1,808,855

 

 

 

Term Loan, 6.500%-6.688%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2010

 

 

 

 

 

1,816,768

 

3,034,350

 

 

 

Term Loan, 6.375%-6.750%,

 

 

 

 

 

 

 

 

 

 

 

maturing September 30, 2010

 

 

 

 

 

3,047,625

 

 

 

 

 

Alimentation Couche-Tard, Inc.

 

Ba1

 

BB+

 

 

 

1,196,939

 

 

 

Term Loan, 6.875%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 17, 2010

 

 

 

 

 

1,210,653

 

 

 

 

 

Baker & Taylor, Inc.

 

Ba3

 

B+

 

 

 

1,227,273

 

 

 

Revolver, 6.440%-6.831%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 11, 2010

 

 

 

 

 

1,221,137

 

 

 

 

 

Baker & Taylor, Inc.

 

B1

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 12.119%, maturing May 06, 2011

 

 

 

 

 

1,010,000

 

 

 

 

 

Blockbuster Entertainment Corporation

 

B3

 

B-

 

 

 

1,000,000

 

 

 

Term Loan, 8.420%-9.050%,

 

 

 

 

 

 

 

 

 

 

 

maturing August 20, 2011

 

 

 

 

 

1,002,727

 

 

 

 

 

Burlington Coat Factory

 

 

 

 

 

 

 

 

 

 

 

Warehouse Corporation

 

B2

 

B

 

 

 

5,486,250

 

 

 

Term Loan, 7.430%-7.530%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 28, 2013

 

 

 

 

 

5,434,816

 

 

 

 

 

Dollarama Group, L.P.

 

B1

 

B+

 

 

 

3,456,250

 

 

 

Term Loan, 7.126%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 18, 2011

 

 

 

 

 

3,477,852

 

 

 

 

 

Harbor Freight Tools, Inc.

 

B1

 

B+

 

 

 

7,250,739

 

 

 

Term Loan, 6.921%, maturing July 15, 2010

 

 

 

 

 

7,277,929

 

 

 

 

 

J Crew Operating Corporation

 

B2

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 9.250%, maturing May 15, 2013

 

 

 

 

 

1,002,292

 

 

 

 

 

Jean Coutu Group, Inc.

 

B2

 

BB-

 

 

 

9,018,931

 

 

 

Term Loan, 7.625%, maturing July 30, 2011

 

 

 

 

 

9,079,683

 

 

 

 

 

Mapco Express, Inc.

 

B2

 

B+

 

 

 

2,245,553

 

 

 

Term Loan, 7.690%, maturing April 28, 2011

 

 

 

 

 

2,258,184

 

 

See Accompanying Notes to Financial Statements

 

45


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Retail Stores: (continued)

 

 

 

 

 

 

 

 

 

 

 

Movie Gallery, Inc.

 

Caa1

 

CCC+

 

 

 

$

688,403

 

 

 

Term Loan, 10.230%, maturing April 27, 2011

 

 

 

 

 

$

666,514

 

 

 

 

 

Nebraska Book Company, Inc.

 

B2

 

B-

 

 

 

2,450,000

 

 

 

Term Loan, 7.480%-7.740%,

 

 

 

 

 

 

 

 

 

 

 

maturing March 04, 2011

 

 

 

 

 

2,462,250

 

 

 

 

 

Neiman-Marcus Group, Inc.

 

B1

 

B+

 

 

 

18,037,975

 

 

 

Term Loan, 7.340%, maturing April 06, 2013

 

 

 

 

 

18,212,727

 

 

 

 

 

Oriental Trading Company, Inc.

 

B1

 

B+

 

 

 

3,068,519

 

 

 

Term Loan, 7.250%, maturing August 04, 2010

 

 

 

 

 

3,091,533

 

 

 

 

 

Oriental Trading Company, Inc.

 

B3

 

B-

 

 

 

1,750,000

 

 

 

Term Loan, 9.750%, maturing January 08, 2011

 

 

 

 

 

1,771,875

 

 

 

 

 

Pantry, Inc.

 

Ba3

 

BB

 

 

 

2,493,750

 

 

 

Term Loan, 6.850%, maturing January 02, 2012

 

 

 

 

 

2,510,116

 

 

 

 

 

Pep Boys - Manny, Moe & Jack

 

Ba2

 

B+

 

 

 

1,000,000

 

 

 

Term Loan, 8.210%, maturing January 27, 2011

 

 

 

 

 

1,014,375

 

 

 

 

 

Sears Canada, Inc.

 

Ba1

 

BB+

 

 

 

3,000,000

 

 

 

Term Loan, 6.712%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 22, 2012

 

 

 

 

 

3,024,375

 

 

 

 

 

Sports Authority, Inc.

 

B2

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 7.348%, maturing May 03, 2013

 

 

 

 

 

1,001,458

 

 

 

 

 

Tire Rack, Inc.

 

B1

 

BB-

 

 

 

939,623

 

 

 

Term Loan, 6.730%-6.780%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 24, 2012

 

 

 

 

 

942,559

 

 

 

 

 

Travelcenters of America, Inc.

 

B1

 

BB

 

 

 

9,975,000

 

 

 

Term Loan, 6.440%-6.860%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 01, 2011

 

 

 

 

 

10,049,813

 

 

 

 

 

 

 

 

 

 

 

82,587,261

 

Satellite: 1.1%

 

 

 

 

 

 

 

 

 

 

 

Panamsat Corporation

 

Ba3

 

BB+

 

 

 

11,820,000

 

 

 

Term Loan, 6.900%, maturing August 20, 2011

 

 

 

 

 

11,918,874

 

 

 

 

 

 

 

 

 

 

 

11,918,874

 

Telecommunications Equipment: 0.4%

 

 

 

 

 

 

 

 

 

 

 

Sorenson Communications, Inc.

 

B2

 

B

 

 

 

1,940,741

 

 

 

Term Loan, 7.830%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 15, 2012

 

 

 

 

 

1,957,117

 

 

 

 

 

Sorenson Communications, Inc.

 

B3

 

CCC+

 

 

 

750,000

 

 

 

Term Loan, 11.910%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 15, 2012

 

 

 

 

 

767,500

 

 

 

 

 

Syniverse Holding, LLC

 

Ba3

 

BB-

 

 

 

1,594,007

 

 

 

Term Loan, 6.730%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 15, 2012

 

 

 

 

 

1,601,977

 

 

 

 

 

 

 

 

 

 

 

4,326,593

 

Textiles & Leather: 1.5%

 

 

 

 

 

 

 

 

 

 

 

Polymer Group, Inc.

 

B1

 

BB-

 

 

 

7,481,250

 

 

 

Term Loan, 7.215%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 22, 2012

 

 

 

 

 

7,593,469

 

 

 

 

 

Propex Fabrics, Inc.

 

B1

 

BB-

 

 

 

955,769

 

 

 

Term Loan, 7.340%, maturing July 31, 2012

 

 

 

 

 

960,548

 

 

 

 

 

St. John Knits International, Inc.

 

B1

 

B+

 

 

 

871,551

 

 

 

Term Loan, 7.250%, maturing March 18, 2012

 

 

 

 

 

881,356

 

 

See Accompanying Notes to Financial Statements

 

46


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Textiles & Leather: (continued)

 

 

 

 

 

 

 

 

 

 

 

Targus Group International, Inc.

 

B1

 

B

 

 

 

$

1,483,433

 

 

 

Term Loan, 8.081%-8.297%,

 

 

 

 

 

 

 

 

 

 

 

maturing November 22, 2012

 

 

 

 

 

$

1,501,975

 

 

 

 

 

Targus Group International, Inc.

 

B3

 

CCC+

 

 

 

1,625,000

 

 

 

Term Loan, 12.800%, maturing May 22, 2013

 

 

 

 

 

1,629,063

 

 

 

 

 

Warnaco, Inc.

 

Ba2

 

B+

 

 

 

1,000,000

 

 

 

Term Loan, 6.350%-8.500%,

 

 

 

 

 

 

 

 

 

 

 

maturing January 31, 2013

 

 

 

 

 

1,001,875

 

 

 

 

 

William Carter Company

 

B2

 

BB

 

 

 

3,239,611

 

 

 

Term Loan, 6.559%-6.758%,

 

 

 

 

 

 

 

 

 

 

 

maturing July 14, 2012

 

 

 

 

 

3,249,735

 

 

 

 

 

 

 

 

 

 

 

16,818,020

 

Utilities: 7.8%

 

 

 

 

 

 

 

 

 

 

 

Astoria Generating

 

 

 

 

 

 

 

 

 

 

 

Company Acquisitions, LLC

 

B1

 

BB-

 

 

 

923,858

 

 

 

Term Loan, 6.940%, maturing February 23, 2011

 

 

 

 

 

928,147

 

2,469,952

 

 

 

Term Loan, 6.940%, maturing February 23, 2013

 

 

 

 

 

2,481,420

 

 

 

 

 

Babcock & Wilcox Company

 

B1

 

B+

 

 

 

2,500,000

 

 

 

Term Loan, 4.879%, maturing January 22, 2012

 

 

 

 

 

2,518,750

 

 

 

 

 

Coleto Creek WLE, L.P.

 

Ba3

 

BB

 

 

 

872,384

 

 

 

Term Loan, 6.979%, maturing June 30, 2011

 

 

 

 

 

874,929

 

 

 

 

 

Coleto Creek WLE, L.P.

 

B1

 

BB-

 

 

 

1,000,000

 

 

 

Term Loan, 8.376%, maturing June 30, 2012

 

 

 

 

 

1,004,063

 

 

 

 

 

Infrastrux Group, Inc.

 

B1

 

B+

 

 

 

500,000

 

 

 

Term Loan, 8.063%, maturing May 01, 2012

 

 

 

 

 

507,188

 

 

 

 

 

KGen, LLC

 

B2

 

B

 

 

 

4,950,000

 

 

 

Term Loan, 7.604%, maturing August 01, 2011

 

 

 

 

 

4,990,219

 

 

 

 

 

La Paloma Generating Company

 

Ba3

 

BB-

 

 

 

218,579

 

 

 

Term Loan, 6.843%, maturing August 16, 2012

 

 

 

 

 

220,519

 

107,648

 

 

 

Term Loan, 6.729%, maturing August 16, 2012

 

 

 

 

 

108,604

 

1,351,636

 

 

 

Term Loan, 6.729%, maturing August 16, 2012

 

 

 

 

 

1,363,632

 

 

 

 

 

La Paloma Generating Company

 

B2

 

B

 

 

 

1,000,000

 

 

 

Term Loan, 8.479%, maturing August 16, 2013

 

 

 

 

 

1,015,313

 

 

 

 

 

LSP Gen Finance Co., LLC

 

Ba3

 

BB-

 

 

 

4,444,444

 

 

 

Term Loan, 6.843%, maturing May 04, 2013

 

 

 

 

 

4,465,742

 

 

 

 

 

LSP-Kendall Energy, LLC

 

B1

 

B

 

 

 

9,899,019

 

 

 

Term Loan, 6.979%, maturing October 07, 2013

 

 

 

 

 

9,890,773

 

 

 

 

 

NRG Energy, Inc.

 

Ba2

 

BB-

 

 

 

6,000,000

 

 

 

Term Loan, 6.979%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 01, 2013

 

 

 

 

 

6,031,404

 

24,575,269

 

 

 

Term Loan, 6.820%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 01, 2013

 

 

 

 

 

24,705,125

 

 

 

 

 

Pike Electric, Inc.

 

Ba3

 

BB

 

 

 

2,380,147

 

 

 

Term Loan, 6.563%, maturing July 01, 2012

 

 

 

 

 

2,384,610

 

1,430,123

 

 

 

Term Loan, 6.625%,

 

 

 

 

 

 

 

 

 

 

 

maturing December 10, 2012

 

 

 

 

 

1,432,804

 

 

 

 

 

Plum Point Energy Associates, LLC

 

B1

 

B

 

 

 

1,198,857

 

 

 

Term Loan, 8.167%, maturing March 14, 2014

 

 

 

 

 

1,213,343

 

3,401,143

 

 

 

Term Loan, 8.343%, maturing March 14, 2014

 

 

 

 

 

3,442,239

 

 

 

 

 

Primary Energy Finance, LLC

 

Ba2

 

BB-

 

 

 

2,736,250

 

 

 

Term Loan, 6.979%, maturing August 24, 2012

 

 

 

 

 

2,756,772

 

 

See Accompanying Notes to Financial Statements

 

47


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

Principal Amount

 

 

 

Borrower/Term Loan Description

 

Moody’s

 

S&P

 

Value

 

Utilities: (continued)

 

 

 

 

 

 

 

 

 

 

 

Riverside Energy Center, LLC

 

B1

 

B

 

 

 

$

244,856

 

 

 

Term Loan, 9.376%, maturing June 24, 2010

 

 

 

 

 

$

252,814

 

3,079,877

 

 

 

Term Loan, 9.376%, maturing June 24, 2011

 

 

 

 

 

3,179,973

 

2,130,920

 

 

 

Term Loan, 9.376%, maturing June 24, 2011

 

 

 

 

 

2,200,175

 

 

 

 

 

Thermal North America, Inc.

 

Ba3

 

BB-

 

 

 

1,000,000

 

 

 

Term Loan, 6.780%, maturing October 12, 2013

 

 

 

 

 

1,003,125

 

1,493,927

 

 

 

Term Loan, 6.730%, maturing October 12, 2013

 

 

 

 

 

1,498,596

 

 

 

 

 

Wolf Hollow I, L.P.

 

B1

 

BB-

 

 

 

1,800,000

 

 

 

Term Loan, 7.331%, maturing June 22, 2012

 

 

 

 

 

1,820,250

 

450,000

 

 

 

Term Loan, 7.330%-7.331%,

 

 

 

 

 

 

 

 

 

 

 

maturing June 22, 2012

 

 

 

 

 

454,922

 

2,222,290

 

 

 

Term Loan, 7.185%, maturing June 22, 2012

 

 

 

 

 

2,247,291

 

 

 

 

 

 

 

 

 

 

 

84,992,741

 

 

 

 

 

Total Senior Loans

 

 

 

 

 

 

 

 

 

 

 

(Cost $2,080,263,240)

 

 

 

 

 

2,092,230,732

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Corporate Debt: 0.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automobile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avis Budget Car Rental

 

Ba3

 

BB-

 

 

 

750,000

 

 

 

Unsecured Floating Rate Note, 7.576%,

 

 

 

 

 

 

 

 

 

 

 

maturing May 15, 2014

 

 

 

 

 

761,250

 

 

 

 

 

Navistar International Corporation

 

B1

 

BB-

 

 

 

4,091,000

 

 

 

Unsecured Term Loan, 10.014%,

 

 

 

 

 

 

 

 

 

 

 

maturing February 28, 2009

 

 

 

 

 

4,111,455

 

 

 

 

 

Total Other Corporate Debt

 

 

 

 

 

 

 

 

 

 

 

(Cost $5,950,000)

 

 

 

 

 

4,872,705

 

 

Equities and Other Assets: 1.7%

 

 

 

Description

 

Value

 

(1), (@) , (R)

 

Allied Digital Technologies Corporation (Residual Interest in Bankruptcy Estate)

 

186,961

 

(2), (@) , (R)

 

AM Cosmetics Corporation (Liquidation Interest)

 

25

 

(@) , (R)

 

Block Vision Holdings Corporation (571 Common Shares)

 

 

(2), (@) , (R)

 

Boston Chicken, Inc. (Residual Interest in Boston Chicken Plan Trust)

 

 

(2), (@) , (R)

 

Cedar Chemical (Liquidation Interest)

 

 

(@) , (R)

 

Covenant Care, Inc. (Warrants for 19,000 Common Shares, Expires January 13, 2005)

 

 

(@) , (R)

 

Covenant Care, Inc. (Warrants for 26,901 Common Shares, Expires March 31, 2013)

 

 

(@) , (R)

 

Decision One Corporation (1,402,038 Common Shares)

 

145,812

 

(2), (@) , (R)

 

Electro Mechanical Solutions (Residual Interest in Bankruptcy Estate)

 

1,112

 

(@) , (R)

 

Enginen Realty (857 Common Shares)

 

 

(2), (@) , (R)

 

Enterprise Profit Solutions (Liquidation Interest)

 

141,398

 

(@) , (R)

 

EquityCo, LLC (Warrants for 28,782 Common Shares)

 

 

 

See Accompanying Notes to Financial Statements

 

48


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 

 

 

Description

 

Value

 

(4), (@) , (R)

 

Euro United Corporation (Residual Interest in Bankruptcy Estate)

 

$

305,999

 

(@) , (R)

 

Galey & Lord, Inc. (203,345 Common Shares)

 

 

(@) , (R)

 

Gate Gourmet Borrower, LLC (Warrants for 101 Common Shares)

 

 

(@) , (R)

 

Gemini Leasing, Inc. (143,079 common shares)

 

 

(2), (@) , (R)

 

Grand Union Company (Residual Interest in Bankruptcy Estate)

 

54,523

 

(@)

 

Hayes Lemmerz International, Inc. (73,835 Common Shares)

 

189,018

 

(@)

 

Hayes Lemmerz International, Inc. (246 Preferred Shares)

 

 

(2), (@) , (R)

 

Humphreys, Inc. (Residual Interest in Bankruptcy Estate)

 

 

(2), (@) , (R)

 

Imperial Home Décor Group, Inc. (Liquidation Interest)

 

 

(2), (@) , (R)

 

Insilco Technologies (Residual Interest in Bankruptcy Estate)

 

2,619

 

(2), (@) , (R)

 

IT Group, Inc. (Residual Interest in Bankruptcy Estate)

 

100

 

(2), (@) , (R)

 

Kevco, Inc. (Residual Interest in Bankruptcy Estate)

 

50

 

(2), (@) , (R)

 

Lincoln Pulp and Eastern Fine (Residual Interest in Bankruptcy Estate)

 

 

(@) , (R)

 

Lincoln Paper & Tissue (Warrants for 291 Common Shares, Expires August 24, 2015)

 

 

(@) , (R)

 

London Clubs International (Warrants for 241,499 Common Shares, Expires February 27, 2011)

 

353,975

 

(@) , (R)

 

Morris Material Handling, Inc. (48,137 Common Shares)

 

3,128,925

 

(@), (R)

 

Neoplan USA Corporation (17,348 Common Shares)

 

 

(@), (R)

 

Neoplan USA Corporation (1,814,180 Series B Preferred Shares)

 

 

(@), (R)

 

Neoplan USA Corporation (1,084,000 Series C Preferred Shares)

 

 

(@), (R)

 

Neoplan USA Corporation (3,524,300 Series D Preferred Shares)

 

 

(2), (@) , (R)

 

New Piper Aircraft, Inc. (Residual Interest in Litigation Proceeds)

 

 

(@) , (R)

 

New World Restaurant Group, Inc. (Warrants for 4,489 Common Shares, Expires June 19, 2006)

 

61,589

 

(@), (R)

 

Norwood Promotional Products, Inc. (72,238 Common Shares)

 

 

(@) , (R)

 

Safelite Glass Corporation (810,050 Common Shares)

 

13,778,511

 

(@) , (R)

 

Safelite Realty Corporation (54,679 Common Shares)

 

317,922

 

(1), (@) , (R)

 

Transtar Metals (Residual Interest in Bankruptcy Estate)

 

 

(1), (@) , (R)

 

TSR Wireless, LLC (Residual Interest in Bankruptcy Estate)

 

 

(2), (@) , (R)

 

U.S. Aggregates (Residual Interest in Bankruptcy Estate)

 

 

(2), (@) , (R)

 

U.S. Office Products Company (Residual Interest in Bankruptcy Estate)

 

 

(@)

 

USA Mobility

 

371,409

 

 

 

Total for Equity and Other Assets

 

 

 

 

 

 

 

(Cost $9,635,899)

 

 

 

19,039,948

 

 

 

Total Investments

 

 

 

 

 

 

 

(Cost $2,095,849,139)

193.4

%

 

2,116,143,385

 

 

 

Other Assets and Liabilites - Net

(93.4

)

 

(1,022,196,116

)

 

 

Net Assets

100.0

%

 

1,093,947,269

 

 

See Accompanying Notes to Financial Statements

 

49


 

ING Prime Rate Trust

 

PORTFOLIO OF INVESTMENTS as of May 31, 2006 (Unaudited) (continued)

 


*

 

Senior loans, while exempt from registration under the Securites Act of 1933, as amended, contain certain restrictions on resale and cannot be sold publicly. These senior loans bear interest (unless otherwise noted) at rates that float periodically at a margin above the London Inter-Bank Offered Rate (“LIBOR”) and other short-term rates.

 

Bank Loans rated below Baa3 by Moody’s Investor Services, Inc. or BBB- by Standard & Poor’s Group are considered to be below investment grade.

NR

 

Not Rated

(1)

 

The borrower filed for protection under Chapter 7 of the U.S. Federal bankruptcy code.

(2)

 

The borrower filed for protection under Chapter 11 of the U.S. Federal Bankruptcy code.

(3)

 

Loan is on non-accrual basis.

(4)

 

The borrower filed for protection under the Canadian Bankruptcy and Insolvency Act.

(5)

 

Trade pending settlement. Contract rates do not take effect until settlement date.

(@)

 

Non-income producing security.

(R)

 

Restricted security.

**

 

For Federal Income Tax purposes cost of investments is $2,095,971,047.

 

 

Net unrealized appreciation consists of the following:

 

 

Gross Unrealized Appreciation

 

$27,938,451

 

 

 

Gross Unrealized Depreciation

 

(7,766,113

)

 

 

Net Unrealized Appreciation

 

$20,172,338

 

 

At May 31, 2006 the following forward foreign currency contracts were outstanding for the ING Prime Rate Trust:

 

Currency

 

Buy/Sell

 

Settlement
Date

 

In
Exchange
For

 

Value

 

Unrealized
Depreciation

 

Euro

 

 

 

 

 

USD

 

 

 

 

 

EUR 1,350,000

 

Sell

 

06/15/06

 

1,725,651

 

1,732,388

 

 

$

(6,737

)

 

Euro

 

 

 

 

 

USD

 

 

 

 

 

 

 

EUR 1,800,000

 

Sell

 

07/14/06

 

2,305,044

 

2,316,391

 

 

(11,347

)

 

Euro

 

 

 

 

 

USD

 

 

 

 

 

 

 

EUR 1,350,000

 

Sell

 

08/15/06

 

1,732,252

 

1,740,897

 

 

(8,645

)

 

 

 

 

 

 

 

 

 

 

 

 

$

(26,729

)

 

 

See Accompanying Notes to Financial Statements

 

50


 

ING Prime Rate Trust

 

ADDITIONAL INFORMATION (Unaudited)

 

SHAREHOLDER INVESTMENT PROGRAM

 

The Trust offers a Shareholder Investment Program (the “Program,” formerly known as the Dividend Reinvestment and Cash Purchase Plan) which allows holders of the Trust’s common shares a simple way to reinvest dividends and capital gains distributions, if any, in additional common shares of the Trust. The Program also offers holders of the Trust’s common shares the ability to make optional cash investments in any amount from $100 to $100,000 on a monthly basis.

 

For dividend and capital gains distribution reinvestment purposes, DST Systems, Inc. will purchase shares of the Trust on the open market when the market price plus estimated fees is less than the net asset value on the valuation date. The Trust will issue new shares for dividend and capital gains distribution reinvestment purchases when the market price plus estimated fees is equal to or exceeds the net asset value on the valuation date. New shares may be issued at the greater of (i) net asset value or (ii) the market price of the shares during the pricing period, minus a discount of 5%.

 

For optional cash investments, shares will be purchased on the open market by the DST Systems, Inc. when the market price plus estimated fees is less than the net asset value on the valuation date. New shares will be issued by the Trust for optional cash investments when the market price plus estimated fees is equal to or exceeds the net asset value on the valuation date. Such shares will be issued at a discount to market, determined by the Trust, between 0% and 5%.

 

There is no charge to participate in the Program. Participants may elect to discontinue participation in the Program at any time. Participants will share, on a pro rata basis, in the fees or expenses of any shares acquired in the open market.

 

Participation in the Program is not automatic. If you would like to receive more information about the Program or if you desire to participate, please contact your broker or the Trust’s Shareholder Services Department at (800) 992-0180.

 

KEY FINANCIAL DATES — CALENDAR 2006 DIVIDENDS:

 

DECLARATION DATE

 

EX-DIVIDEND DATE

 

PAYABLE DATE

January 31

 

February 8

 

February 23

February 28

 

March 8

 

March 22

March 31

 

April 6

 

April 24

April 28

 

May 8

 

May 22

May 31

 

June 8

 

June 22

June 30

 

July 6

 

July 24

July 31

 

August 8

 

August 22

August 31

 

September 7

 

September 22

September 29

 

October 6

 

October 23

October 31

 

November 8

 

November 22

November 30

 

December 7

 

December 22

December 20

 

December 27

 

January 12

 

Record date will be two business days after each Ex-Dividend Date. These dates are subject to change.

 

51


 

ING Prime Rate Trust

 

ADDITIONAL INFORMATION (Unaudited) (continued)

 

STOCK DATA

 

The Trust’s common shares are traded on the New York Stock Exchange (Symbol: PPR). Effective March 1, 2002, the Trust’s name changed to ING Prime Rate Trust and its CUSIP number changed to 44977W106. The Trust’s NAV and market price are published daily under the “Closed-End Funds” feature in Barron’s, The New York Times, The Wall Street Journal and many other regional and national publications.

 

REPURCHASE OF SECURITIES BY CLOSED-END COMPANIES

 

In accordance with Section 23(c) of the 1940 Act, and Rule 23c-1 under the 1940 Act the Trust may from time to time purchase shares of beneficial interest of the Trust in the open market, in privately negotiated transactions and/or purchase shares to correct erroneous transactions.

 

NUMBER OF SHAREHOLDERS

 

The approximate number of record holders of Common Stock as of May 31, 2006 was 5,811 which does not include approximately 45,287 beneficial owners of shares held in the name of brokers of other nominees.

 

PROXY VOTING INFORMATION

 

A description of the policies and procedures that the Registrant uses to determine how to vote proxies related to portfolio securities is available (1) without charge, upon request, by calling Shareholder Services toll-free at 800-992-0180; (2) on the Registrant’s website at www.ingfunds.com and (3) on the SEC’s website at www.sec.gov. Information regarding how the Registrant voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Registrant’s website at www.ingfunds.com and on the SEC website at www.sec.gov.

 

QUARTERLY PORTFOLIO HOLDINGS

 

The Registrant files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Registrant’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Registrant’s Forms N-Q may be reviewed and copied at the Commissions Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and is available upon request from the Registrant by calling Shareholder Services toll-free at 1-800-992-0180.

 

CERTIFICATIONS

 

In accordance with Section 303A.12 (a) of the New York Stock Exchange Listed Company Manual, the Trust submitted the Annual CEO Certification on June 19, 2006 certifying that he was not aware, as of that date, of any violation by the Trust of the NYSE’s Corporate governance listing standards. In addition, as required by Section 203 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Trust’s principal executive and financial officers have made quarterly certifications, included in filings with the SEC on Forms N-CSR and N-Q, relating to, among other things, the Trust’s disclosure controls and procedures and internal controls over financial reporting.

 

52


 

Investment Manager

ING Investments, LLC

7337 East Doubletree Ranch Road

Scottsdale, Arizona 85258

 

Sub-Adviser

ING Investment Management Co.

230 Park Avenue

New York, NY 10169

 

Institutional Investors and Analysts

Call ING Prime Rate Trust

1-800-336-3436, Extension 2217

 

Administrator

ING Funds Services, LLC

7337 East Doubletree Ranch Road

Scottsdale, Arizona 85258

1-800-992-0180

 

Written Requests

Please mail all account inquiries and other comments to:

ING Prime Rate Trust Account

c/o ING Fund Services, LLC

7337 East Doubletree Ranch Road

Scottsdale, Arizona 85258

 

Distributor

ING Funds Distributor, LLC

7337 East Doubletree Ranch Road

Scottsdale, Arizona 85258

1-800-334-3444

 

Transfer Agent

DST Systems, Inc.

P.O. Box 219368

Kansas City, Missouri 64141

 

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, Missouri 64105

 

Legal Counsel

Dechert LLP

1775 I Street, N.W.

Washington, D.C. 20006

 

Toll-Free Shareholder Information

Call us from 9:00 a.m. to 7:00 p.m. Eastern time on any business day for account or other information, at (800)-992-0180

 

For more complete information, or to obtain a prospectus on any ING fund, please call your Investment Professional or ING Funds Distributor, LLC at (800) 992-0180 or log on to www.ingfunds.com. The prospectus should be read carefully before investing. Consider the Trust’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this information and other information about the Trust. Information regarding how the Trust’s voting proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Trust’s website at www.ingfunds.com and on the SEC’s website at www.sec.gov.

 

 

PR1Q-UPRT     (0506-072806)