Convertible equity solves some of the problems of debt financing by eliminating the interest rate and the need for repayment.
Any deal would also require a seemingly daunting amount of debt financing, raised from bank loans and junk-bond sales.
SoundCloud has raised £111m in funding since 2009, including a £24.5m round of debt financing in early 2016.
The reality is that traditional providers of debt financing have been very slow to understand clean energy technology investments.
They added that as recently as Friday, the company was in talks to secure several billion dollars worth of debt financing.
That dilutes returns.For a while after the crisis it looked like a paucity of debt financing might force rivals to follow the same operational path.
AMERICA's short term cost of debt financing has quadrupled, as the FT points out, from 3 basis points to 13 (having briefly been 18).
The groups are said to be considering bids using about $4.7 billion of equity, and are looking to secure about $11 billion of debt financing, the newspaper reports.
They note Dell's declining earnings, an increasingly dire outlook from analysts on the personal computer industry and the rising cost of debt financing.
Transformational deals into new sectors, which involve large amounts of debt financing and concerns about how successful they will be, face tough opposition.
To help fund the deal, Blackstone is taking out a whopping $4.25 billion of debt financing, writes Nicholas Yulico of TheStreet.com.
