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Apollo Investment Corporation Message Board

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  • dogdaynooner dogdaynooner Jan 4, 2007 5:52 PM Flag

    Is this secondary going to kill this thing?

    You shouldn't own a BDC if you are unwilling to live with the results of periodic secondary offerings.

    Of course AINV will deploy the money over time in a manner that becomes accretive. But for the time being the raising of monies is treated as dilutive.

    ACAS is doing a secondary too. ACAS stock is down too.

    A BDC that stops raising money is a dead BDC that would reach a theoretical limit on the amount of annual dividend income they could pay.

    AINV is 1/5 the size of ACAS. AINV needs to grow itself and the only way is to raise proceeds from secondaries AND deploy the money accretively so that dividends can go higher.

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