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“Relevant persons” are (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. The securities of the Company 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 access, or seek to act or rely on, this website: or any of its contents.
In our 5 May 2021 note, Re-Set, Re-Fi, Re-Light my Fire, we explored how favourable market conditions mean that CLO vehicles can re-finance debt cheaply, enhancing the value of Volta’s equity positions, and expected to lift total returns by 1%-1.5% p.a. for several years. Our latest report, Yield (10%, covered and growing) + capital growth, notes this will further increase dividend cover (Hardman & Co FY’21E: 1.8x) and generate capital returns through a growing NAV. The latter, in turn, will see the dividend grow (Hardman & Co FY’22E yield: 10.2%). Despite this favourable outlook, Volta still trades at a 16% discount to NAV, albeit down from March 2020 highs.
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