VPC Specialty Lending confirms dividend pay-outs “for at least a year”
Victory Park Specialty Lending Investments (VSL) has confirmed a 2p-per-share dividend for the first quarter and said it plans to continue with investor pay-outs for at least a year, while its wind-down commences.
The alternative finance-focused trust last year proposed to enter a managed wind-down, following investor pressure regarding its low share price. The plan was approved by shareholders earlier this month.
VSL said an interim dividend of 2p per share for the three months to 31 March will be paid on 27 July to shareholders.
“The company has elected to designate all of the interim dividend for the three-month period to 31 March 2023 as an interest distribution to its shareholders, thereby ‘streaming’ income from interest-bearing investments into dividends that will be taxed in the hands of shareholders as interest income,” VSL said in a stock market announcement. “No income tax will therefore be deducted at source from this, or from future interest distributions.
“Based on existing market conditions, potential cash flows and on the assumption of continued strong portfolio performance, the board currently expects to continue paying dividends at the current rate for at least a year and potentially longer. The company intends to maintain its investment trust status during this managed realisation process prior to liquidation.”
Read more: VPC announces board reshuffle ahead of AGM
Late on Friday, VSL announced that Chair Graeme Proudfoot had been re-elected at the annual shareholder meeting, with just 78.18 per cent of the votes for his re-appointment.
Resolutions regarding the allotment of shares and pre-emption rights also passed with low levels of support.
The board said it will engage with those shareholders that voted against those resolutions, in order to understand their concerns, and will update shareholders on the outcome of those discussions.