Foley Partner Paul Broude co-authored an article titled “Incite: Raising equity can be an ‘overnight’ success” in the October 1, 2009 issue of CFO Zone. Broude discusses “overnight deals,” also known as “accelerated book building” offerings. He notes that issuers utilize overnight deals in order to raise equity capital without the potential downward pressure on its stock price that may follow the announcement of a fully-marketed secondary offering days or weeks in advance. He adds that the increasing use of overnight deals can spell trouble for short sellers when debt-heavy issuers recapitalize and leave them scrambling to cover their positions.
