This move would indicate another major distribution cut is in store. Otherwise, the extra shares will just siphon off even more cash flow every month in the form of distributions. I would say before they are done, the distribution will get cut 50% two more times (75% reduction from current levels). Otherwise, the offering makes no sense.
Uhh - I think your analysis is flawed. Obviously, this is not a positive thing for the stock. This indicates that another distribution cut is imminent and probably will reduce the current distribution in half or more.
Does anybody know what interest rate this debt being retired is at? It seems to me that they would not retire debt at a low interest rate and then pay 9% in dividends (for long). Unless....they have no intention of sustaining that dividend. The interest is non-discretionary, but the dividend is only paid at their discretion. Additionally, the debt get retired over time, but the equity is ongoing.
Another dividend cut seems imminent, This seems like the only reasonable explanation.