[Veliladon]

Debt can be acquired so long as there's a counterparty willing to lend it. Banks can be convinced to pony up a lot the cash because the business will often have scrap value if all else fails and they can secure themselves a very senior tranche to get that scrap value if everything goes belly up. The unsecured tranches are often marketed directly by PE firms to suckers otherwise known as investors. They like to do lots of little things to make the investor feel better like being able to convert debt to equity at highly attractive rates ("if we IPO you'll make squillions!") but for the investor they might as well be buying a lottery ticket.