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.