01337nas a2200157   4500008004100000245006900041210006700110260000900177300001200186490000700198520082300205653001201028100001401040700001601054856010901070       2011                        eng d00aPrivate Debt, Unused Credit Lines, and Seasoned Equity Offerings0 aPrivate Debt Unused Credit Lines and Seasoned Equity Offerings  c2011  a376-3880 v513 aWe study a sample of SEOs to examine the impact of private debt and unused credit lines on SEO underpricing and long-run stock and operating performance. We do not find significant effects of private debt financing on SEO underpricing and long-run stock underperformance. However, firms with more bank debt and unused lines of credit exhibit significantly better pre-issue operating performance. Changes in operating performance from the pre-issue year to the post-issue period are negatively related to the size of unused credit lines. Capital spending decreases with the size of unused credit lines in the year prior to SEOs, but increases following SEOs. Our overall evidence suggests that the post-issue operating performance we observed may be a result of overinvestment, which is enhanced by unused credit lines.10aFinance1 aLiu, Yang1 aYang, Jimmy  u/biblio/private-debt-unused-credit-lines-and-seasoned-equity-offerings-0