Volta Finance Limited - Cancellation of Dividend
April 02 2020 - 1:00AM
Volta Finance Limited - Cancellation of Dividend
Volta Finance
Limited (VTA/VTAS)
Cancellation of Dividend
NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE
UNITED STATES
Guernsey, 2 April 2020
In light of the ongoing uncertainty caused by
the COVID-19 pandemic, the Board has resolved to cancel the
dividend payment that was planned for April 28th2020.
The Board and the Investment Manager recognize
the importance of dividends for Shareholders but believe that
cancellation is the appropriate and prudent action considering the
very considerable near term uncertainties that exist.
Commitments to previous investments are
relatively limited (€2,7m was drawn in March) and the Repo will be
completely repaid in the near term through cash resources already
held. The 28th April dividend payment was to be financed
predominantly from the payments from the CLO positions, mostly CLO
Equity positions, that are expected in the coming weeks. In normal
market conditions these cash flows would have been in the region of
€9m (in January €9,1m was received) to pay a dividend that amounts
to €5,6m. However, there is a growing uncertainty
regarding these short term cash flows because of the rapidly
accelerating pace of downgrades from ratings agencies.
In line with the most recent communication,
Volta’s liquidity and solvency are the paramount objectives.
Depending on the quantum of cash flows we receive in the coming
weeks, it is possible that payment of the dividend later this
month could have forced the Company to sell some assets in a
difficult environment, generating losses. The cancellation of
the dividend enables Volta to avoid sales of assets at unattractive
prices and removes all financing risks.
In the event that cash flows in the near term
are not impacted, the Board will consider whether a dividend should
be declared and make a further announcement as appropriate.
The dislocation in credit markets will create investment
opportunities and will also be considered in the context of seeking
to maximise shareholders' total return over the long term.
For further information, please
contact:Company Secretary and
AdministratorBNP Paribas Securities Services S.C.A,
Guernsey Branchguernsey.bp2s.volta.cosec@bnpparibas.com+44 (0) 1481
750 853
Corporate BrokerCenkos
Securities plcRob Naylor Will Talkington Andrew Worne+44 (0) 20
7397 8900
For the Investment ManagerAXA
Investment Managers ParisSerge Demayserge.demay@axa-im.com+33 (0) 1
44 45 84 47
***** ABOUT VOLTA FINANCE
LIMITED
Volta Finance Limited is incorporated in
Guernsey under The Companies (Guernsey) Law, 2008 (as amended) and
listed on Euronext Amsterdam and the London Stock Exchange's Main
Market for listed securities. Volta’s home member state for the
purposes of the EU Transparency Directive is the Netherlands. As
such, Volta is subject to regulation and supervision by the AFM,
being the regulator for financial markets in the Netherlands.
Volta’s investment objectives are to preserve
capital across the credit cycle and to provide a stable stream of
income to its shareholders through dividends. Volta seeks to attain
its investment objectives predominantly through diversified
investments in structured finance assets. The assets that the
Company may invest in either directly or indirectly include, but
are not limited to: corporate credits; sovereign and
quasi-sovereign debt; residential mortgage loans; and, automobile
loans. The Company’s approach to investment is through vehicles and
arrangements that essentially provide leveraged exposure to
portfolios of such underlying assets. The Company has appointed AXA
Investment Managers Paris an investment management company with a
division specialised in structured credit, for the investment
management of all its assets.
*****
ABOUT AXA INVESTMENT
MANAGERSAXA Investment Managers (AXA IM) is a multi-expert
asset management company within the AXA Group, a global leader in
financial protection and wealth management. AXA IM is one of the
largest European-based asset managers with 739 investment
professionals and €750 billion in assets under management as of the
end of March 2019.
*****
This press release is for information
only and does not constitute an invitation or inducement to acquire
shares in Volta Finance. Its circulation may be prohibited in
certain jurisdictions and no recipient may circulate copies of this
document in breach of such limitations or restrictions. This
document is not an offer for sale of the securities referred to
herein in the United States or to persons who are "U.S. persons"
for purposes of Regulation S under the U.S. Securities Act of 1933,
as amended (the "Securities Act"), or otherwise in circumstances
where such offer would be restricted by applicable law. Such
securities may not be sold in the United States absent registration
or an exemption from registration from the Securities Act. The
company does not intend to register any portion of the offer of
such securities in the United States or to conduct a public
offering of such securities in the United States.
*****
This communication is only being
distributed to and is only directed at (i) persons who are outside
the United Kingdom or (ii) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (iii) high net
worth companies, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order
(all such persons together being referred to as "relevant
persons"). The securities referred to herein are only available to,
and any invitation, offer or agreement to subscribe, purchase or
otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should
not act or rely on this document or any of its contents. Past
performance cannot be relied on as a guide to future
performance.
*****
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