this was not a shareholder friendly move on MAIN's behalf. always, always hurts current shareholders. done to raise capital at shareholders expense. some recent SO's I have lived thru is GNRC Generac and FLY Fly Jet Leasing. same story. same objective, same result. what I have found is that PPS generally recovers within a Q or 2. hang on and hold on cause the worst is what you've seen. 5% drop to PPS. face it, your shares have been diluted. now you need to worry about dividend as it is spread over so many new shares. the board approved the CEO request. they are not in your court.
i agree in principle. i bought in again a week post the S.O. while the same amt of dividend from 90% profit payout goes across more shares, it is likely that same yield cannot be supported. however, the reason i bought back in was that the capital raised in S.O. will support additional earnings thereby increasing the payout once more to push back to former yield. the result will be capital gains via PPS. i am gonna ride this one.
RRMS just had a secondary and dropped 5%, yields 5.4% and is a growing company which has been increasing its distributions. Also, RRTS: Roadrunner Transportation Systems. Another opportunity: secondary drops price about 10% over past few days. No dividend, but has had good growth.
Tiredo, I wish it were so but the dividend is indeed in jeopardy. While BDC's must distribute a fixed percentage of profits to shareholders (per SEC), there are now more shares to cover. quite frankly that means dividends, like PPS, will be diluted. to think otherwise would not make sense.