Hi. I am fairly new to stock investing, and now I am trying to get the basics of due diligence. Currently, I am analyzing study cases regarding SEC related news. One caught my attention, and I am trying to understand how the stock will evolve in the near/medium term.
When this came out, $PFLT tanked, but quickly recovered some ground. As I'm understanding, they are saying that they are going to emit more stock, which I think is usually ill received given that it will dilute current holders, and will put a lot of pressure on its dividend, which is one of the main buying points for this BDC.
But later I tried to read it again closer (English is not my first language, so sometimes it's hard for me to understand, so bear with me), and I couldn't figure out if they are actually emitting new shares/debt, or it's currently in hands of management and are going to distribute it. Or, even better, I couldn't tell if the deal is already done, or they are gathering interest from buyers.
The offer is for $11.2 a share, way below its current price. Who would be interested? I know there is much to analyze in a BDC, but based on the news alone, would you be bullish, bearish or just shrug it off as it won't have any impact? Earnings are being announced soon: what would you be interested to hear on the call?
Thank you in advance for whatever you think may be helpful when trying to understand news of this kind. Until next time.
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