As a BDC PSEC can only lend at a 1:1 ratio. To bolster their lending power they offer shares below their NAV which decreases the holdings of existing stock holders. Why not release the shares as a 'split-dividend' to reward investors willing to weather the volatility they create. Don't get me started on their practice of hiding income in "revolving credit." It also seems strange for a business development company to end up owning their customer's businesses (and have the nerve to call the revolving credit they have in escrow for NRG "potential profit" as if it wasn't theirs to begin with.