As has been mentioned below, if the stock sells for more than Book Value, then the sale is accreative to Book Value. Also, if the money raised by the stock sale is then invested in such a manner that the earnings are greater than the effect of the dilution then eps increases.
Finally, since BDCs, like REITs are required to pay out 90% of their taxable income in dividends, issuing more stock is how they grow.
Therefore, issuing new shares, provided the price is accreative to Book Value, and provided the funds raised are invested so that the earnings are greater than the dilution is actually good.
PSEC management has demonstrated time and time again that they know how to issue more stock so as to be accreative to Book Value and how to invest the proceeds to increase earnings by more than the effects of dilution.
Conclusion: Secondary Offerings offer a good opportunity to buy shares at a "discounted" price.
it strictly depends on the price of sale. It is somewhat like a bond, if people buy more bonds at 4% interest rates does that make them less valuable? if people pay more than face value for a bond does that make other peoples bonds less valuable? if they sell the new stock at more than NAV then it increases your stocks value if they sell it below NAV then it reduces your value. PSEC is like a high yield bond more than a production company.