If the GPT sale does occur you would imagine that the AAZPB would be redeemed even though it is not a requirement under the PDS.
ALZ would be awash with cash that would be returned to investors via a capital distribution. The fact that AAZPB are incurring an interest margin of 4.80% would be a big incentive to pay them down prior to paying the capital distribution.
Why would you leave an above market interest burden on a smaller entity with lumpy developer cash flow when you are fully capable of paying it out? There is no logical reason why you would.
ALZ Price at posting:
$3.21 Sentiment: Buy Disclosure: Held
