Volta Fin Regulatory News (VTA)

2 Apr 2020 07:00

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.

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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.

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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.

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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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