Here is an email: First, thank you all for your hard work this last week, and in advance for the next weeks to come. Second, suspend your preparation of Canada work reports for the time being. I will let you know when to resume. I simply do not have time to collate the report the next few weeks. Third, be sure to let me know if you are having difficulties meeting deadlines, getting enough help, or the like. Fourth, we will keep our lunch meetings as scheduled and will use the time to strategize on our current projects rather than reviewing the form etc. We will get back to that after the workload settles down. Thanks again.
What is a potential subject line for this email?
A: Various
Here is an email: Here are my notes from today's call. As with Monday, I've focused on getting them out as quickly as possible rather than taking extra time to re-organize them by subject. Enron's business has been grouped into three buckets: Core, Non-core, and Under Review. Core: Wholesale energy business in North America and Europe, retail energy, pipelines Non-core: Broadband, water, and international assets (i.e. EGAS). Enron has approx. $8Bn in investments in these assets, and they have produced 'dismal' returns. Enron will be exiting these businesses and will attempt to wind them up in an orderly fashion. An aggressive divestiture program has been set in motion for these assets. Under Review: EGM, EIM. These businesses are being closely examined to determine whether they have a reasonable chance of long-term viability. Required resource levels are being carefully studied. Following review, Enron will move the different portions of these businesses to core or non-core as the analysis dictates. Approximately $800MM of asset sales are under contract and expected to close in the fourth quarter. These include a gas LDC in Brazil, EcoElectrica, and our Indian E&P assets. Enron is in active pursuit of an additional private equity infusion of $500MM-1Bn. Given the current environment, raising equity in the public markets would be 'inefficient', McMahon says. Short-term liquidity is provided by the $3Bn of credit drawn upon a few weeks ago, the $1Bn of new debt, and the $1.5Bn equity infusion from Dynegy. Longer-term, the proceeds from the sale of PGE will provide liquidity. Asset sales over the next year will be used to pay down debt. McMahon described the major off-balance-sheet vehicles: Marlin was set up to hold Azurix assets. It was initially capitalized with $950MM of 144a debt and $125MM of equity (raised from Enron and institutional investors). The debt is supported by the equity and by Azurix' assets. Enron is obligated to cover any deficit at the time the debt becomes due on 3/17/03 (the 'Enron topup' obligation). The 3/17/03 date is accelerated in the event that Enron is rated below-investment-grade by any one of the three major agencies. The primary asset of Marlin is Wessex Water. As long as Wessex is worth at least $2.6Bn, there will be no Enron topup required. If we take a 25% haircut to present book value, Enron will have to provide $650MM in consideration upon retirement of the debt. This $650MM would hit Enron cash, income, and equity balances. Osprey contains energy-related assets and 'other assets'. It was initially capitalized with $2.4Bn of 144a debt and $220MM in equity (ENE and institutionals). As with Marlin, the entity is an asset-backed structure with an Enron topup guarantee. The debt is supported by a) the assets; b) $1Bn of convertible preferred ENE (convertible into 50MM shares of ENE common); and c) additional ENE common as needed for topup. Assuming the same 25% hypothetical haircut to current book value, Enron would have to deliver approx. $600MM of topup funds--which would hit ENE cash, income, and equity. The debt must be retired by 9/17/02, with the same cut-to-junk early trigger provision as Marlin.
What is a potential subject line for this email?
A: Highlights from ENE Analyst Conference Call 11/14
Here is an email: Team, I'm not sure what the latest discussions you've had since our last meeting, but I need to get this concept outlined and in the hands of my customer. They are making their decision any day now and I believe this structure will add to the value of our Compression Service and reduce our dependence on the minimum load factor. I've attached a basic outline as I see it. Please review or we will discuss at our 3:00 meeting today. I would like to define or understand our (Enron's) wish list as well as a relative value at a minimum. I need to get the specifics to my customer tomorrow since it's not going to happen today. I ultimately need to have a price for the gas that ECS would be receiving ASAP. Thanks, mk
What is a potential subject line for this email?
A:
Bay Gas Storage - Parking Provision discussions