They raised as much 12% money as they could...$100mm. (which, by the way is trading down as we speak, buyers did so to do lehman a favor--trivia - who runs lehman high yield? hint, nickname the human piranha in "liars poker"...) That was financing of last recourse. They need to raise capital to grow. Marginal cost of capital is the yield on the stock > return on capital. Game over, dickweed.