Depends on what they do with the proceeds. Assuming they have good investments to fund that return profits greater than the dividend currently being paid you should see a NAV and dividend increase as a result. Secondaries are accretive if issued at a price greater than NAV although your percentage interest in the company has been diluted. Since they have to pay out 90% of net income or 98% of net income and capital gains according to law the only way a BDC can grow is to raise additional capital through secondaries. No different than a REIT.
They are increasing the shares outstanding by approximately 19.5%. 16,000,000/82,000,000 currently outstanding. So your ownership interest in the company will decline by approximately 20%. To maintain your interest you will need to buy 20% more shares and any percent over that will increase your ownership interest. Weakness in the price is usually a good time to do it. As Jay Gould said, Money is made by sitting. Not by thinking.
I simply don't understand all the hand-wringing here about the new shares. So, you own 20 % less of something that's worth 20% more, more or less, big deal. What's the difference between owning a 10th of something worth $100, and an 12th of something worth $120? Meanwhile, these BDCs have to do this to raise money for new investments. Isn't AINV doing EXACTLY what we expect them to be doing so the foundation will be laid for future dividend increases??? Just don't get all the negativity here.
AINV: please go have another 10 offerings and put the money to use in good investments, thanks.