More Enron Principal Investments - Hornbeck--Leevac--$23.5 million

Another transaction that was left off my report of yesterday.
KG

-----Original Message-----
From: Lydecker Jr., Richard
Sent: Thursday, July 19, 2001 9:22 AM
To: Garland, Kevin
Cc: Fastow, Andrew; Donahue, Jeff; Neyman, Jesse; Morris, Brandi
Subject: Hornbeck--Leevac--$23.5 million

Hornbeck--Leevac has prepaid the full principal of $23.5 million on its 7% loan. The original term was a bullet payment in 2005. This is the culmination of an extended negotiation/persuasion of the Company and its Board (which includes SCF which had to be dragged kicking and screaming to the transaction). Jempy has the lead on Hornbeck and Brandi is the alternate. Both did an outstanding job! (We also extracted a $300K consent fee for the Company's high yield debt offering, part of the proceeds of which was used to take us out). The loan was on the books for $20.4 million. There was a net $3.4 million earnings pickup on the transaction in addition to a major recovery of capital.

We retain our warrants. The objective is to monetize by yearend. Expected value $10 - $12 million, net to Enron.