"I can't see the bank syndicate agreeing to an extra $100M, with...

"I can't see the bank syndicate agreeing to an extra $100M, with 3 years plus terms, and lower interest rates if they were at all concerned with SPO's ability to service that debt."

@Roy2U,

Whether the company needs to raise equity capital is not solely a determinant of whether the debt can be serviced; it can.

But that, with respect, misses the relevant question.

Instead, the question that needs to be asked is how much financial flexibility does the company have to do anything else other than pay its interest and tax bills.

And the answer to that is: NONE.

And that, I'm afraid, is the ultimate determinant of the need to issue fresh equity; because publicly-listed companies need to be seen to be doing more than just existing to pay interest and taxes.