The debt holders are converting their notes into shares and selling them. That means 2 things, well better yet 3 things...
1 It's not the company diluting
2 The debt HAS to be reducing. It's just a common sense thing. If you are paying off your creditors (loans), you are reducing your debt. Pretty simple to understand
3 The creditors HAVE to run out of notes to convert. They don't have unlimited notes, therefore they absolutely have to run out so there is in fact, an end to it.