<DOCUMENT>
<TYPE>497
<SEQUENCE>1
<FILENAME>e5084.txt
<DESCRIPTION>PROSPECTUS SUPPLEMENT DATED 2/23/01
<TEXT>

                                                          SEC File No. 333-61831

                          Filed Pursuant to Rule 497(h)

                              Prospectus Supplement
                       (To Prospectus Dated June 30, 2000)

                            PILGRIM PRIME RATE TRUST

                    32,028.610 Shares of Beneficial Interest

                                   ----------

     During the period of February 16, 2001 through  February 20, 2001,  Pilgrim
Prime Rate Trust (the "Trust") sold 32,028.610 shares of beneficial  interest of
the Trust  through  the Trust's  Shareholder  Investment  Program  pursuant to a
Distribution Agreement with Pilgrim Securities, Inc. ("PSI") at a sales price of
$8.06000 per share.

     Gross Proceeds ...............................  $258,150.00
     Commission to PSI ............................  $      0.00
     Net Proceeds to Trust ........................  $258,150.00

     On February 15, 2001, the last day of the corresponding pricing period, the
last reported sales price of the Shares on the NYSE was 8.12.


THESE  SECURITIES  HAVE NOT BEEN APPROVED OR  DISAPPROVED  BY THE SECURITIES AND
EXCHANGE  COMMISSION OR ANY STATE  SECURITIES  COMMISSION NOR HAS THE SECURITIES
AND  EXCHANGE  COMMISSION  OR ANY STATE  SECURITIES  COMMISSION  PASSED UPON THE
ACCURACY OF THIS PROSPECTUS.  ANY  REPRESENTATION  TO THE CONTRARY IS A CRIMINAL
OFFENSE.

                                   ----------

            The Date of this Prospectus Supplement is February 23, 2001
</TEXT>
</DOCUMENT>
