He is correct is saying not to buy the stock in the marketplace and wait for the offering. The price of the secondary will certainly be lower than the current price. He is either uninformed or wrong about the dividend. There is no evidence that profits will be adequate enough to continue the dividend much less increase it. For fiscal 2009 UIL earned $54 Million and paid out $48 Million (89%) in dividends. With all the new debt profits may not keep up and with all the new stock it will be a wonder if the dividend stays at current levels. I cannot imagine what Cramer is thinking on this one.
If your broker offers this secondary buying you may get some shares. Otherwise, you will be out of luck and pay at the market price at the first day of secondary offering. This stock is for a short term holding not for a long period.