The announcement re the Babcock and Brown agreement initially pushed the price up, however, I cannot see how the agreement is such a good deal for PLF holders. In fact it looks like a good deal for Babcock and Brown.
I think that the reality of the agreement set in and the price fell back. It is interesting that the deal will not go well at a price lower than $1.15 as this is the fixed price of the new issue.
Mt best guess is that the price will settle at around $1.20 when the dust settles.