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EXHIBIT (a)(1)(i)
This announcement is not an offer to purchase or a solicitation of an offer
to sell Common Shares. The Offer is made only by the Offer to Purchase
dated June 16, 2000 and the related Letter of Transmittal.
The Offer is not being made to, nor will tenders be accepted from or on behalf
of, holders of Common Shares in any jurisdiction in which making or
accepting the Offer would violate that jurisdiction's laws.
VAN KAMPEN PRIME RATE INCOME TRUST
NOTICE OF OFFER TO PURCHASE FOR CASH
100,569,693 OF ITS ISSUED AND OUTSTANDING COMMON SHARES
AT NET ASSET VALUE PER COMMON SHARE
THE OFFER, PRORATION PERIOD AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT
EASTERN STANDARD TIME ON FRIDAY, JULY 14, 2000, UNLESS THE OFFER IS EXTENDED.
Van Kampen Prime Rate Income Trust (the "Trust") is offering to purchase
100,569,693 of its issued and outstanding common shares of beneficial interest,
par value of $0.01 per share ("Common Shares"), at a price equal to their net
asset value ("NAV") determined as of 5:00 pm Eastern Standard Time on July 14,
2000, unless extended by action of the Trust's Board of Trustees. The tendering,
acceptance and withdrawal of tenders are subject to the terms and conditions set
forth in the Offer to Purchase dated June 16, 2000 and the related Letter of
Transmittal (which together constitute the "Offer"). An "Early Withdrawal
Charge" will be imposed on most Common Shares accepted for payment that have
been held for less than five years. The NAV on June 9, 2000 was $9.52 per Common
Share. The purpose of the Offer is to provide liquidity to shareholders since
the Trust is unaware of any secondary market which exists for the Common Shares.
The Offer is not conditioned upon the tender of any minimum number of Common
Shares, but is subject to certain conditions as set forth in the Offer.
If more than 100,569,693 Common Shares are duly tendered prior to the
expiration of the Offer, the Trust presently intends to, assuming no changes in
the factors originally considered by the Board of Trustees when it determined to
make the Offer and the other conditions set forth in the Offer, but is under no
obligation to, extend the Offer period, if necessary, and increase the number of
Common Shares that the Trust is offering to purchase to an amount which it
believes will be sufficient to accommodate the excess Common Shares tendered as
well as any Common Shares tendered during the extended Offer period, or purchase
100,569,693 Common Shares (or such greater number of Common Shares sought) on a
pro rata basis.
Common Shares tendered pursuant to the Offer may be withdrawn at any time
prior to 12:00 Midnight Eastern Standard Time on July 14, 2000, and, if not yet
accepted for payment by the Trust, Common Shares may also be withdrawn after
August 11, 2000.
The information required to be disclosed by paragraph (d)(1) of Rule 13e-4
under the Securities Exchange Act of 1934, as amended, is contained in the Offer
to Purchase and is incorporated herein by reference.
Questions and requests for assistance, for current NAV quotations or for
copies of the Offer to Purchase, Letter of Transmittal and any other tender
offer document, may be directed to Van Kampen Funds Inc. at the address and
telephone number below. Copies will be furnished promptly at no expense to you.
Shareholders who do not own Common Shares directly may tender their Common
Shares through their broker, dealer or nominee.
THE OFFER TO PURCHASE AND THE RELATED LETTER OF TRANSMITTAL CONTAIN IMPORTANT
INFORMATION THAT SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH
RESPECT TO THE OFFER.
VAN KAMPEN FUNDS INC.
1 PARKVIEW PLAZA, P.O. BOX 5555 - OAKBROOK TERRACE, IL 60181-5555
800-421-5666
(Between the hours of 7:00 am to 7:00 pm Central Standard Time)
June 16, 2000
