Message-ID: <11001045.1075858307127.JavaMail.evans@thyme>
Date: Mon, 6 Nov 2000 21:37:00 -0800 (PST)
From: rick.buy@enron.com
To: dave.gorte@enron.com, michael.tribolet@enron.com
Subject: New Power Company
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fyi-comments? rick
---------------------- Forwarded by Rick Buy/HOU/ECT on 11/07/2000 05:30 AM 
---------------------------


Molly Harris
11/03/2000 05:57 PM
To: Jimmie Williams/HOU/EES@EES, Mark S Muller/HOU/EES@EES, James E 
Keller/HOU/EES@EES, Mike D Smith/HOU/EES@EES
cc: William S Bradford/HOU/ECT@ECT, Rick Buy/HOU/ECT@ECT 
Subject: New Power Company


Credit recommends offering the following two options to the New Power Company 
(NPC) as it relates to Firmwide collateral thresholds:

Option #1 - NPC receives a $10MM collateral threshold with standard 
collateral annex terms.

Option #2: - NPC receives a $40MM collateral threshold with standard annex 
terms as well as the following two additional required covenants:

a) Liquidity - Maintain minimum liquidity of $300MM, where:
 Liquidity = cash + marketable securities - debt - LCs - third party 
guarantees

b) Tangible Net Worth - Maintain minimum tangible net worth, as defined by 
GAAP, of $450MM
 Note: TNW will be equal to equity less intangible assets including but not 
limited to goodwill, trademarks, etc. 

Regards,
Molly