RE:Overnight OfferingUnlike the previous offering, which was conducted to replace all the preferred shares that were retracted due to the extension of the term of the fund, this new offering is an attempt to increase the assets under management for Brompton. Since the capital shares were trading at a sufficient premium to their true value, it created an excellent opportunity for a large offering.
This is beneficial in that it improves liquidity and should increase the NAV, albeit only marginally. It definitely dilutes current shareholders though, but the drop in price is usually temporary and in the end it's actually good for the fund.
wolverine99 wrote: For those of you more educated than I, this is the 2nd Overnight Offering in 2 monts, in October it was Preferred only. Seems a bit odd to have them stacked this close together,is this to cover some Share imbalance or to raise cash in adavance of the increase in Divy to the Preferreds or something else. Thanks in adavance for any insight.