PILGRIM AMERICA PRIME RATE TRUST
497, 1998-11-09
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                    Supplement dated November 9, 1998 to the
                 Prospectus for Pilgrim America Prime Rate Trust
                            Dated September 15, 1998

         The name of  Pilgrim  America  Prime  Rate  Trust has been  changed  to
"Pilgrim Prime Rate Trust."

         In  addition,  the  name of  Pilgrim  America  Investments,  Inc.,  the
Investment  Manager for the Trust, has changed to "Pilgrim  Investments,  Inc.,"
and the name of Pilgrim America Securities,  Inc., the Trust's distributor,  has
changed to "Pilgrim Securities, Inc."





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