Except I'm guessing they are not selling their equity, they are making debt backed by their equity?

Yea this is speculation, you might be right. I'm not sure how exactly they're doing this but my thinking would be.

1. Selling equity (probably good).

2. Financed with actual profits over time showing up as lower margins on the income statement (probably good).

3. Issuing debt backed by their equity (possibly a dumpster fire).