Volta Finance Limited : Dividend Declaration
May 11 2020 - 2:00AM
Volta Finance Limited : Dividend Declaration
Volta Finance
Limited (VTA/VTAS)
Dividend Declaration
NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE
UNITED STATES
Guernsey, 11 May 2020
Volta Finance Limited (the “Company”) announces
that it has declared a first interim dividend of €0.10 per share
payable in June 2020, amounting to approximately €3.7 million. The
ex-dividend date is 21 May 2020 with a record date of 22 May 2020
and a payment date of 16 June 2020 (“the Dividend”).
The Company had previously declared a first
interim dividend of €0.155 per share to be paid on 28 April
2020. As announced on 2 April 2020, this dividend was then
cancelled. At that time financial markets, the pricing of the
Company’s holdings and liquidity conditions were very
disorderly. The Directors and Investment Manager felt that,
at that stage, it would be prudent to cancel the dividend given the
profound uncertainty in economies and markets generally and,
specifically, in relation to the cash flows expected to be received
by the Company during April.
Those cash flows have now been received and
market and liquidity conditions have started to revert to more
normal levels. None of the Company’s positions had a cash
flow shortfall in April and, in particular, none of Volta’s CLO
Equity positions suffered any cash flow diversion, in contrast to
the broader market. The cash flows received are lower than
prior periods would have implied but solely because of the lower
level of prevailing interest rates.
The Board and Investment Manager recognise the
importance of dividends to our shareholders. Accordingly, the
Company has declared the Dividend. It believes that this
level of dividend, being approximately 8% annualised of the end of
March Net Asset Value, is prudent and appropriate. As at
today’s date, after deducting for the imminent repayment of the
repo and the payment of the Dividend, it leaves the Company with
around €8m of surplus cash. Allowing for a sensible buffer
for working capital, this remaining cash will be deployed, at
highly attractive expected returns, into current commitments and
new investments.
The exact profile of this crisis cannot be known
and it is inevitable that some diversion of cash flow in the
Company’s CLO Equity holdings will occur in the coming
quarters. This uncertainty means that the Board will evaluate
the cash flows received each quarter and make a specific dividend
decision on each occasion. However, unless conditions
deteriorate meaningfully, our intention going forwards is to seek
to distribute a material proportion of income received and, if
possible, seek to be consistent with our previously stated aim of
distributing approximately 8% of the NAV per annum. Should
income levels in the coming quarters exceed the Company’s current
central case, then additional income may well be distributed as an
enhanced dividend later in the year. Because the Board and
Investment Manager intend to wait for the receipt of cash flows
before making each determination of dividend payments, the
Company’s dividends are likely to be paid later than previously
guided – therefore in June, September, December & March.
Once conditions and cash flows become more predictable, the Company
may seek to revert to the previous dividend timetable.
The Company has arranged for its shareholders to
be able to elect to receive their dividends in either Euros or
Pounds Sterling. Shareholders will, by default, receive
their dividends in Euros, unless they have instructed the Company’s
Registrar, Computershare Investor Services (Guernsey) Limited
(“Computershare”), to pay dividends in Pounds Sterling. Such
instructions may be given to Computershare either electronically
via CREST or by using the Currency Election Form which has been
posted to shareholders and a copy of which is also available on the
website www.voltafinance.com within the “Investors – Other
Documents” section. The deadline for receipt of currency elections
is 12:00 (midday) on 26 May 2020.
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 €810 billion in assets under management as 31
December 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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