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Enron Mail |
Joe, part of this deal is repayment of the sub debt at par and a series of
cashflows that we would probably like to monetize. Have you looked at this? Jeff, I would like to get your view on the economics - basically they are giving us 89% of our carry value in cash and 11% of our carry value in a contingent payment payable at restructuring or sale of their partnership. Lets discuss ASAP. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 09/25/2000 08:10 PM --------------------------- Enron North America Corp. From: Brad Alford 09/25/2000 05:34 PM To: David W Delainey/HOU/ECT@ECT cc: W David Duran/HOU/ECT@ECT, Joseph Deffner/HOU/ECT@ECT Subject: El Paso/ECP At Dave Duran's request I have attached for your information two files containing a term sheet from El Paso reflecting the final terms as negotiated and a spreadsheet analysis of the valuation of that offer ($206.6mm). The offer analysis uses a discount rate on the El Paso Deferred and Scheduled Payments of 8.25%. This rate is the middle of the range of a recent quote from Treasury/RAC as to the expected rate at which we will be able to monetize this payment stream. The Contingent Payments are in the form of a residual preferred partnership interest that we will retain and are discounted at the current project rate with a probability adjustment. The residual partnership interest should allow us to fair value these contingent payments (as we are currently doing on the existing contingent payments) and should also be beneficial to the tax structure of the transaction.
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