VTA Volta Finance Limited

 
TIDMVTA 
 
 
   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 28(th) 2020. 
 
   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 (EUR2,7m 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 EUR9m (in January EUR9,1m was received) to pay a dividend that 
amounts to EUR5,6m.   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 Administrator 
 
   BNP Paribas Securities Services S.C.A, Guernsey Branch 
 
   https://www.globenewswire.com/Tracker?data=4GHSNtUgN1AQsgespRy6vLCf4uwUyCx5jD4_iTPcf3ZYn6wwr8_u-IQbP4Hr5Nj-MpwFbCSShOhFUlMZy4yKMA9V98H9UZL5SrvXBJ1bJlkvutet_CUpPWpmFN_FQPbqLQ4jqFXrcaBw2oc7YOspPA== 
guernsey.bp2s.volta.cosec@bnpparibas.com 
 
   +44 (0) 1481 750 853 
 
   Corporate Broker 
 
   Cenkos Securities plc 
 
   Rob Naylor 
 
   Will Talkington 
 
   Andrew Worne 
 
   +44 (0) 20 7397 8900 
 
   For the Investment Manager 
 
   AXA Investment Managers Paris 
 
   Serge Demay 
 
   https://www.globenewswire.com/Tracker?data=Cgn30nnNzPhCWGziy2peWgiN1zcDCaYFvfOFZwPnB4bAnlZ8ulsKj55C8cQr7109z7YgarRbLbZGIB1O5uHP7TaWXuR1QMNRWwashpCLkTQ= 
serge.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 MANAGERS 
 
   AXA 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 EUR750 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. 
 
   ***** 
 
 
 
 
 
 

(END) Dow Jones Newswires

April 02, 2020 02:00 ET (06:00 GMT)

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