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Enron Mail |
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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Boyd, Samantha </O=ENRON/OU=NA/CN=RECIPIENTS/CN=SBOYD2< X-To: Bailey, Susan </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sbaile2<, Panus, Stephanie </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Spanus<, Heard, Marie </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mheard< X-cc: X-bcc: X-Folder: \MHEARD (Non-Privileged)\Heard, Marie\Inbox X-Origin: Heard-M X-FileName: MHEARD (Non-Privileged).pst Good Morning, Samantha asked me to check her email for items that appear to need resoluti= on and send them to the ladies of the SWAP group. If I may be of any assis= tance, please don't hesitate to contact me at 53317. I am not sure if this= item needs immediate attention or not. Thank you! Keegan Samantha M. Boyd Senior Legal Specialist Enron Wholesale Services 1400 Smith Street, EB3803 Houston, Texas 77002 Ph: (713) 853-9188 Fax: (713) 646-3490 -----Original Message----- From: =09Otto, Randy =20 Sent:=09Thursday, November 22, 2001 1:03 PM To:=09Boyd, Samantha; Rohauer, Tanya Cc:=09Espinoza, Veronica; Williams, Jason R (Credit); Johnston, Greg Subject:=09Mirant Canada's purchase of TransCanada Pipelines trading busine= ss On October 11, Mirant Canada Energy Marketing Ltd. purchased a substantial = portion of TransCanada Pipeline's trading and marketing business. As a resu= lt, Mirant will be purchasing the entire business of TransCanada Energy Fin= ancial Products Limited, and will be taking assignment of the physical gas = transactions/contracts of TransCanada Gas Services Inc. and TransCanada Gas= Services, a division of TransCanada Energy Ltd. As a result of this transaction, TransCanada Pipelines Ltd. will be termina= ting whatever credit support they provided for these entities and that cred= it support will be picked up by Mirant Corp, depending on the arrangements = that we have negotiated. With respect to TransCanada Energy Financial Produ= cts Limited, it was agreed that the ISDA that is currently between Enron Ca= nada Corp. and TransCanada Energy Financial Products Limited will be assign= ed to Mirant Canada Energy Marketing Ltd under the same credit terms as cur= rently exist. Mirant Corp will issue a $30 million USD guaranty to provide= the credit support for this document, the same dollar amount that TransCan= ada Pipelines Ltd was providing. They have also agreed to provide whatever= necessary collateral to cover their exposure, over the threshold, as a res= ult of their purchasing this entity. With respect to TransCanada Gas Services Inc., the only outstanding gas tra= nsactions are with Enron North America and these all relate to physical pro= duct. There is no contract between TransCanada Gas Services Inc. and Enron = North America, but TCPL is currently providing a guaranty for this business= . This guaranty will be terminated, and these transactions will be covered = under a current Mirant Corp guaranty covering Mirant Canada Energy Marketin= g Ltd. for physical gas transactions with Enron North America. This current= guaranty is for USD $10 million and is of a sufficient amount to cover the= current exposure as well as the exposure being brought over from TransCana= da Gas Services Inc.. Finally, with respect to TransCanada Gas Services, a division of TransCanad= a Energy Ltd, there is currently a physical gas master with Enron Canada Co= rp. However, this was executed in 1993 and is outdated with respect to cred= it provisions. I have been working with the credit contact at Mirant Canada= to get a new physical master between ECC and Mirant Canada Energy Marketin= g Ltd. This new master would govern all existing trades between ECC and Mir= ant Canada, as well as those coming over from TransCanada Gas Services, a d= ivision of TransCanada Energy Ltd. However, in the interim, the TransCanada= trades would still be covered by the existing master. TransCanada Pipeline= s will terminate their guaranty of this entity with respect to these transa= ctions. Alternatively, Mirant Corp has agreed to amend their existing guar= anty covering physical gas transactions between Mirant Canada Energy Market= ing Ltd. and Enron Canada Corp by increasing the coverage from USD $30 mill= ion to USD $50 million. This entity also has some exposure with Enron North= America, which will also be covered under the existing Mirant Corp. guaran= ty for USD $10 million. A contract between ENA and Mirant Canada Energy Marketing Ltd. would also b= e an ideal outcome out of this; however, the first priority is getting a ne= w physical gas master between ECC and Mirant Canada Energy Marketing Ltd. If there is any other information that I can provide on this matter, please= do not hesitate to contact me. Thanks Randy Otto Senior Credit Analyst Enron Canada Corp. 3500 Canterra Tower 400 - 3rd Avenue S.W. Calgary, Alberta T2P 4H2 403-974-6716 (ph) 403-974-6706 (fax)
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