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Honeycomb fund looks to new GBP 400 mln cash raise

Monday 7 January 2019 10:02 CET | News

UK-based investment trust Honeycomb has announced a new share placing programme to raise up to GBP 400 million over 2019, according to a market update.

In its prospectus for the placing programme the company says that it will issue up to 40 million ordinary shares as part of the cash raise. Its current share price is GBP 11.39. Honeycomb last raised cash in April 2018 when it raised GBP 100m. This follows a strong run for the fund in 2018 with its NAV 0.65% in the month of November 2018, following returns of 7.8% and 9.1% in 2016 and 2017. As a result the fund has consistently traded at a premium to net asset value of 11.9%.

Pollen Street Capital, the manager of the fund, says that it is seeing ongoing strong performance from its underlying portfolio and that it has a high allocation to loans with either downside protection or loans with significant seasoning. Honeycomb has also been increasing leverage steadily over the past year with a currenty debt to equity ratio nearing 50% of assets and has also been upping its exposure to SME loans.


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Keywords: Honeycomb, investment fund, investment trust, funding round, investment, share placing programme, Pollen Street Capital, UK, Europe
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