When is it likely ARCC wlll be forced to either distribute as a one time dividend or boost their annual dividend their significant UTI and what amount per share does the UTI amount to and what would you guess a one time dividend might be or what boost to the annual dividend do you suspect we might see?
Thanks for your input.
I'll need to dig into it myself if I'm going to even consider keeping the ARCC stub. But I'd say I'm highly unlikely to keep it.
Just for Kicks and Yuks, where does Bock's Lunch rank ACAS out of those 22 BDC's?
Or do they have a special subterranean quartile holding pen where only ACAS is allowed the shame of being shunned???
One must always remember to keep one's sense of humor, especially given the propensity of Chief Malon and the other ACAS Indians who have been consistently on the hunt for shareholder's scalps!
You see, NMB, that's why I love you! Even when we disagree we can still find a way to agree and everybody is happy!
I like your proposition! Now, from your lips to Gods ears to our pocket books!
A question for you: How do you think ARCC stacks up in terms of its quality and reputation as a company in the BDC sector relatice to peers and
how long have they been in business(?), and, of critical importance--how have they weathered Past Recessions in terms of maintaining their dividend(?) and, further, how have they grown their dividend in the past decade or so(?).
For anyone considering holdiING to deal close and receiving ARCC shares, THAT is critical analysis.
Of concern is that we may encounter a recession at some point here and if ARCC has a habit of falling apart during recessions(?) it is important to factor that into one's thinking.
As always, my best to you.
I disagree with your analysis but with a caveat. I speak from the point of view of an ACAS shareholder (and I think there are many like myself out there) who is looking to exit the BDC space with this deal. So to clarify, Art and others so inclined, if you do not want to continue on and own ARCC at deal closing, then you, like me, are looking to sell ACAS at the most optimum time and realize the most value you can get. My analysis applies to that scenario only. NMB is correct if you want to stay onboard with your ARCC shares after deal close.
The value to ACAS shareholders can change both up or down from the initial $17.40 based on the price of ARCC stock. If ARCC rises in price, that wil increase the value from $17.40 because the .483 share we receive in ARCC also carries a higher value. But, if the ARCC stock price falls in price that will mean our .483 shares reduce the value from 17.40.
You will need to weigh what you think will happen to the price of ARCC, among other considerations, in deciding to continue to hold your ACAS shares or to sell before the close of the deal.
If you think the market is going to drop substantially and carrt ARCC down with it between now and deal close time, you might consider selling now.
But if your view is for a stable or rising market that will keep ARCC trading where it is or higher, you may want to continue holding you shares to earn the discount now present (about 8% now) in ACAS share price now.
So a rough calculation would be that at present about 25% of ACAS market capitalization is in cash or cash equivalents and 75% would be in discounted assets.
In a buy out cash gets paid dollar for dollar and only the assets would sell for a discount.
Hence, the recent push to get portfolio assets sold as it in effect would raise the over all price paid to buy out ACAS.
Do you agree with this?
Yes, I meant as of the 1st Qtr in terms of cash/cash equivalents and discounted assets each as a percent of NAV.
Do you know at present the approximate NAV breakdown between cash and discounted assets at ACAS at the moment?
Nice to see that the Board saw the same opportunity as I saw which I posted about in this thread many months ago-- and raised the dividend about 50%!
Well done FR Board.
Thanks for rewarding your loyal long term shareholders.