Sorry, what is the argument that when a company refinances debt—replacing current cash obligations with larger future cash obligations—they’re not going to use

Sorry, what is the argument that when a company refinances debt—replacing current cash obligations with larger future cash obligations—they’re not going to use that current cash flow to build something new, or at least hire more people than they would have otherwise? AFAIK, manufacturers refinance debt to build more/better factories all the time, for example.