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.
<< AINV: please go have another 10 offerings and put the money to use in good investments, thanks. >>
Or: AINV: Please continue to do secondary stock offerings from time to time and invest the proceeds accretively to earnings so that future quarterly dividends can be raised just like ACAS has done for almost 10 years and ALD has done for 40 years.