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Enron Mail |
Brant:
Is this what was agreed to? When we last spoke, it appeared as if you had not agreed to a collateral threshold of $50M and a cap of $55M. Please advise. Carol ----- Forwarded by Carol St Clair/HOU/ECT on 05/18/2000 08:41 AM ----- "Shuttee, John" <ShutteeJ@EPEnergy.com< 05/18/2000 08:30 AM To: "'Carol.St.Clair@enron.com'" <Carol.St.Clair@enron.com< cc: "Shuttee, John" <ShutteeJ@EPEnergy.com< Subject: RE: Credit Response By cap, I assume you mean the Guaranty amount or limit - $55MM was agreed upon. John < -----Original Message----- < From: Carol.St.Clair@enron.com [SMTP:Carol.St.Clair@enron.com] < Sent: Wednesday, May 17, 2000 6:00 PM < To: Shuttee, John < Subject: RE: Credit Response < < < John: < I will send you my remaining comments shortly. Here is a draft of the < Enron Guaranty. What have the credit people decided on with respect to a < cap? < (See attached file: El Paso Enron Guaranty 5-17.doc) < < < Carol St. Clair < EB 3892 < 713-853-3989 (Phone) < 713-646-3393 (Fax) < < < < < "Shuttee, < < John" To: "'Carol St Clair'" < <Carol.St.Clair@enron.com< < <ShutteeJ@EPE cc: < < nergy.com< Subject: RE: Credit Response < < < < 05/17/2000 < < 03:05 PM < < < < < < < < < < Dear Carol - < < Enclosed are drafts of (i) the ISDA schedule, (ii) Paragraph 13 to the < Credit Support Annex, and (iii) our standard guarantee. Also included is < a < draft what should be in the L/C and Schedule 1 of a Stby L/C. < < Please note that I have accepted most of the previous changes so the < current < issues would more easily be seen in the draft. < < Comments concerning the schedule and para 13 are below: Note - our legal < council is out this week but I thought I would send this draft to you now, < and we can make further adjustments, if any, based on our legal department < review next week. < < 1. Part 1 (e): After Charles Hofer spoke with your Credit Manager, Brant < Reves, they decided to make the cross default threshold at $100MM for each < credit support provider. < 2. 1(h): Made change per our phone conversation that Market Quotation < will < apply for 3 years or less; Loss for over 3 years. < 3. 5(g): I am confused by this change. I added back in the word < "obligations" in para B, 5th line and added back in the phrase concerning < affiliates. I'm not sure my predecessor deleted them (it is not deleted < on < my 3/20/00 draft) but I can't imagine who else would. Two comments (i) do < you think this is best way to word this, and (2) my legal council (who is < out most of this week) will have to review your final wording before we < can < execute. < 4. 5(l): Changed the telephone recording paragraph by (a) not limiting < it < to just trading staff and (b) adding "to the extent permitted by < applicable < law". < 5. 5(n-q): All new paragraphs that are not part of our standard < agreement. < However, these were not discussed in Susan's last memo to you (except the < adding back in of paragraph q) so I am leaving them as is. < 6. Part 6: After reviewing your changes vs. our standard paragraphs, I < have no objections to your changes < 7. 13(b)(i)(C) Accepted your definition of Credit Support Amount even < though we don't normally use Independent Amounts. < 8. 13(b)(iii)(A) Letters of Credit - changes days to 20 from 10, per < your < request. After re-reading, I don't understand how it improves the < position < of the secured party. If the L/C has an expiration date and the secured < party attempts to execute (i.e.: cash in) this L/C, then if the L/C is < within 20 days of its expiration, the value can drop to zero. Before, the < L/C maintained 100% of its value until 10 days prior to expiration. Since < Enron looks at these contracts from the secured party perspective, how < does < your position improve based on this change? < 8. 13(b)(iii)(B and C) Threshold for both of us has been increased to < $50MM < and Minimum Transfer Amount has been reduced to zero ($0). < < For questions, please call at 713-420-3548 or email me. < < Thanks! < < John < . < <<Enron Schedule -Draft 5-16.doc<< <<Enron CSA - Draft 5-16.doc<< < < < < < < -----Original Message----- < < From: Carol St Clair [SMTP:Carol.St.Clair@enron.com] < < Sent: Friday, May 12, 2000 5:07 PM < < To: Shuttee, John < < Subject: Credit Response < < < < < < < < Carol St. Clair < < EB 3892 < < 713-853-3989 (Phone) < < 713-646-3393 (Fax) < < ----- Forwarded by Carol St Clair/HOU/ECT on 05/12/2000 05:07 PM ----- < < |--------+-----------------------< < < | | Carol St | < < | | Clair | < < | | | < < | | 05/12/2000 | < < | | 05:02 PM | < < | | | < < |--------+-----------------------< < < < < < < ------------------------------------------------------------------------- < < ---| < < | < < | < < | To: shuttej@epenergy.com < < | < < | cc: Brant Reves/HOU/ECT@ECT < < | < < | Subject: Credit Response < < | < < < < < < ------------------------------------------------------------------------- < < ---| < < < < < < < < John: < < Our credit person has agreed to the 3% equity test for cross-default. < < With < < respect to setoff, given our relationships with El Paso, this is an < < important < < credit point for us and one that I guess the credit people will need to < < discuss < < since it is important for us to have the Affiliate language. Our credit < < person < < is Brant Reves (713-853-9897). < < Carol St. Clair < < EB 3892 < < 713-853-3989 (Phone) < < 713-646-3393 (Fax) < < < < < ****************************************************************** < This email and any files transmitted with it from El Paso < Energy Corporation are confidential and intended solely < for the use of the individual or entity to whom they are < addressed. If you have received this email in error < please notify the sender. < ****************************************************************** < < (See attached file: Enron Schedule -Draft 5-16.doc) < (See attached file: Enron CSA - Draft 5-16.doc) < << File: El Paso Enron Guaranty 5-17.doc << << File: Enron Schedule < -Draft 5-16.doc << << File: Enron CSA - Draft 5-16.doc <<
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