Did they not say in recent calls that it was time to utilize their borrowing capacity and lever up a bit? Did they not say there was no need for secondaries with their huge borrowing capacity? I don't understand why they would need to sell stock and dilute current shareholders AGAIN. The stock was finally showing solid strength and WHAM, welcome to a 6% haircut. The only possible reason I can see for them to do a secondary at this time is a HUGE acquisition that requires cash and borrowings to get done. Otherwise, this is simply money out of shareholder pockets. Without an acquisition, it means there are more shares needing the $1.36 payout, which means the earnings have to go further, which means current shareholders will NOT be getting a bigger payout soon. However, if they make a nice big accretive acquisition, we all benefit. to be so bold as to do a secondary, I would hope they have that acquisition in their sights.
This is an investment company, and they need capital to make investments. In the past, they have made good acquisitions with their capital, and I have no reason to doubt that this will happen this time too. But capital takes time to generate returns, and investment of capital always involves risk. Hence the price drop.