Chuck's numbers he walked you through earlier assumed 100 bps in fees so we=
are slightly better than forecast. The 65 bps was comp for the original tr=
ansaction for which we drafted dox and received ratings from s&p and moodys=
. Had we not run into the el paso issues the number would have held. Given =
that the new structure requires a new market, new rating agency process and=
new documentation, we are effectively documenting and selling a new second=
transaction. An increase in the fee for this substantial change of the dea=
l is market. I still believe a sept 30 closing is unrealistic. If all goes =
well, I think we can be done by mid oct. To reach a sept 30 closing, I thin=
k the only option would be to ask bank of america to underwrite and buy the=
whole thing. That would likely be an expensive option. We can discuss in m=
uch more detail at our 9am mtg tomorrow. I'd be hesitant to show panic that=
we must sell the asset at any price prior to sep 30 and trade real economi=
c value and negotiate from a weaker position when we can have a clean sale =
2 weeks later (ideally before 3q earnings release). The assets are still wa=
rehoused off balance sheet and fortunately el paso's credit spreads have be=
en trading in to our benefit. Just my thoughts. Ps: your gift made my day. =
I'm fully recovered and back on pace. Thanks.
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