Hancock Replaces Income Fund Securities

John Hancock Funds says it has completed restructuring the holdings of the last of 7 closed-end funds affected by the turmoil in the auction rate preferred securities market.

John Hancock, Boston, a unit of Manulife Financial Corp., Boston, says the latest transactions affects $89 million in leverage at the John Hancock Income Securities Trust bond fund.

An outside commercial bank will provide a credit facility needed to redeem and replace 100% of the auction rate preferred securities in the fund, and to change the form of leverage from ARPS to debt, John Hancock says.

In May, John Hancock announced similar transactions involving 6 other closed end funds.