I still believe that the finance deal expanded from just AN to include PB around the time BV started to syndicate.
If it was just $58 million for AN, I could not see why BV couldn't have done the deal on their own as we were led to believe at the start. I believe that PB was added into the deal (most likely at BV's want) so the potential loan amount grew to over $200 million. $58 million for now and the bulk of the loan later.
Hence the need for syndication. I don't think AVB ever thought there was a real need for a Plan B. However, once PB went down the syndication path, AVB started looking for a plan B. Plan B couldn't be another bank loan because BV were still involved in the bank loan for AN and PB.
If AVB would have looked for an alternative loan, AVB may well have lost the option of using BV for a loan for PB.
So while we may have taken a hit in the first battle, the main objective (PB) continues as per Plan A.
All IMO.
AVB Price at posting:
7.9¢ Sentiment: Buy Disclosure: Held
