CVC Credit Partners European Opportunities (CCPG) has reset the company’s dividend target to 4p per sterling share/4c per euro share for the next 12 months.
“As noted in the annual financial report for the year ended 31 December 2019, the board set the medium-term total return target at 8% per annum, which it regards as being over a rolling 5 year period. The board also noted that, having regard to the significant differences in both value and timing of the cash returns flowing from the performing credit and credit opportunities asset pools within the company’s portfolio, it was going to consider aligning future dividend distributions to those cash flows.
The impact of the covid-19 epidemic on markets as a whole and leveraged credit markets in particular has served to reconfirm the board’s view that it is desirable to reassess the company’s dividend distribution basis. As a result, and after detailed discussion with the Investment Vehicle in respect of sustainability in the medium term, the board has determined with immediate effect to reset the company’s dividend target at 4 pence per sterling share / 4 cents per Euro share for the next 12 months. For the avoidance of doubt, the board’s previously stated medium term total return target of 8%, referred to above, remains unchanged. It is the Board’s intention to seek to restore the annual dividend target to the previous level in due course if market conditions so justify.”
CCPE/CCPG: CVC Credit Partners European Opportunities updates on dividend policy