Book value = $9.87 per share. Offering is new shares at $10.70 which adds $10.70 cash to book value for each new share issued. Thus, this particular offering is accretive to book value. Whether its accretive to shares you own depends on what you paid for your shares. If you paid less than $10.70, it is accretive. If you paid more than $10.70, it is dilutive. Note: I used the $10.70 offering price in my example; the true proceeds to the company would be closer to $10.40 after fees.
Something that I find interesting is that, "The Company expects net proceeds from the offering to be approximately $34.6 million, after deducting underwriting discounts, commissions and estimated offering expenses." On 3.5 million shares that is only $9.88 in proceeds or roughly book value. That's a lot of fees.
I like the refinancing of their debt fueling easy earnings growth along with not having any losses of in their main business of NYC taxi loans. The dividend continues to rise. I doubled up today and used this sell off to pick up an 8% yielder with growth.
If you want to spend your time counting nits, the addition to book value is the net proceeds from the secondary divided by the total number of outstanding shares. The impact is miniscule and relevant only in anticipation of liquidation.
While a secondary may be dilute earnings per share, the idea that "its accretive (sic) to shares you own depends on what you paid for your shares" is ludicrous.
Note: Book value and market price are independent variables.