Brief: Volta Finance Sees Very Limited Liquidity Risk Under Coronavirus Crisis

Volta Finance

24/03/2020 09:44

March 24 (Reuters) - VOLTA FINANCE LTD  VTA.AS :
    * UPDATE ON THE IMPACT OF COVID-19 AND MARKET MOVEMENTS ON
VOLTA
FINANCE
    * AT THE TIME OF WRITING, WE ESTIMATE THAT VOLTA’S NAV IS
NEAR
€4.60 PER SHARE, A LIKELY DROP IN NAV IN THE REGION OF 35%
    * BASED ON THE CURRENT LEVELS OF UNCERTAINTY, WE SOLD LAST
WEEK
TWO POSITIONS (2 CLO BB TRANCHES FOR $8M PRINCIPAL HAVE BEEN
SOLD) TO INCREASE OUR CASH POSITION SO THAT WE CAN TERMINATE THE
REPURCHASE AGREEMENT WHENEVER WE WISH
    * ON A SHORT-TERM BASIS, WE EXPECT ALL VOLTA ASSETS TO PAY
THEIR
CASHFLOWS IN APRIL, ALLOWING US TO PAY THE END OF APRIL DIVIDEND
AND SEIZE OPPORTUNITIES CREATED BY THE CURRENT DISLOCATIONS
    * COVID-19: AT THIS POINT IT IS TOO EARLY TO ESTIMATE THE
FUNDAMENTAL IMPACTS
    * PERFORMANCE IS HIGHLY VOLATILE AND MAY CHANGE MATERIALLY
(UPWARDS OR DOWNWARDS) BY THE END OF MARCH
    * HAVING PUT ASIDE CASH NEEDED TO CLOSE REPURCHASE AGREEMENT
AND
HAVING A VERY LIMITED AMOUNTS OF CURRENCY HEDGING IN PLACE,
VOLTA HAS TAKEN ACTIONS TO MINIMIZE LIQUIDITY RISK TO ALMOST
ZERO
    * AT TIME OF WRITING VOLTA’S CASH IS CLOSE TO €3M IN EXCESS
OF
AMOUNT ($20M) NEEDED TO CLOSE THE REPO

Source text for Eikon:  ID:nGNE67lXnB 
Further company coverage:  VTA.AS 

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