The Board of Voya Prime Rate Trust Selects Saba Capital as New Investment Adviser

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Voya Prime Rate Trust announced today that the Board of Trusteeshas selected Saba Capital Management, LP to serve as the new investment adviser to the Fund. The Fund’s current investment adviser, Voya Investments, and the Fund’s current sub-adviser, Voya Investment Management Co both previously announced their respective resignations, effective as of June 22, 2021. VIL and Voya IM are committed to ensuring a smooth transition to Saba and serving the Fund, its Board and its shareholders during the Adviser Transition.

Saba is considered a pioneer in credit investing and is known for its ability to navigate turbulent markets. Saba was named 2021 Hedge Fund of the Year by Risk.Net, the 2020 winner of the best Multi-Strategy Credit Fund by AltCredit’s U.S. Performance Awards and the 2020 winner of the Best Credit Fund Over $1 Billion by HFM’s U.S. Performance Awards.

Saba manages $3.2 billion in assets across a broad range of investment strategies, including through private investment funds, separately managed accounts and an exchange-traded fund. Saba is headquartered in the historic Chrysler Building in New York and is registered with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.

The Adviser Transition is contingent upon approval by the Fund’s shareholders of a new investment advisory agreement to be entered into by and between the Fund and Saba and certain other conditions that will be described in a related proxy statement.

If approved by shareholders, Saba intends to expand the Fund’s investment strategy while continuing with the Fund’s primary objective of providing a high level of current income as is consistent with the preservation of capital.

Boaz Weinstein, Founder and Chief Investment Officer of Saba, said, “The team is really looking forward to leveraging our investment process and credit expertise to create value for the Fund and its investors.”

In connection with the Adviser Transition, among other things:

• Saba will replace the current portfolio managers of the Fund with its team of 35 employees which includes 10 highly experienced investment and research professionals;

• While maintaining the Fund’s primary credit focus, in anticipation of the Adviser Transition, the Fund may depart from its investment strategy and may for example hold a larger cash position;

• While maintaining the Fund’s primary credit focus, Saba plans to transition a meaningful portion of the Fund’s portfolio from leveraged loans into investments that Saba believes can provide more attractive risk-adjusted returns, including: bonds, special purpose acquisition companies (SPACs) and other registered closed-end funds;

• The Fund’s current executive officers are expected to be replaced with certain individuals who are affiliated with either Saba or certain third-party service providers as part of the Adviser Transition; and

• The Fund will change its name.

The Fund intends to file a preliminary proxy statement with the SEC to solicit stockholder approval of the new investment advisory agreement and certain other matters relating to the Adviser Transition.

The Board previously set a record date of March 8, 2021 for determining shareholders of record for a special shareholder meeting tentatively scheduled to be held on May 21, 2021, where the new investment advisory agreement and related matters will be considered. Additionally, as previously disclosed, the Board intends to consider a tender offer for up to 30% of the Fund’s currently outstanding shares following the Special Meeting.

About Saba Capital

Saba Capital Management, L.P. is a registered investment adviser founded in 2009. Saba is a spin-out of a proprietary investing group founded by Boaz Weinstein at Deutsche Bank in 1998. Saba manages $3.2 billion across four core strategies: Credit Relative Value, Tail Hedge, SPACs and Closed-End Funds. Saba’s investors are predominantly institutions and include public and corporate pension plans, endowments and foundations, family offices, banks and insurers, bank private wealth platforms, fund of funds and certain high net worth individuals.

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