March 24, 2020 / 9:48 AM / 14 days ago

BRIEF-Volta Finance Sees Very Limited Liquidity Risk Under Coronavirus Crisis

March 24 (Reuters) - VOLTA FINANCE LTD:

* 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: Further company coverage: (Gdansk Newsroom)

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