Message-ID: <18536556.1075863374681.JavaMail.evans@thyme>
Date: Tue, 18 Sep 2001 12:23:26 -0700 (PDT)
From: bradford.larson@enron.com
To: mark.bonney@enron.com, bjorn.hagelmann@enron.com, don.rollins@enron.com, 
	e-mail <.tom@enron.com>, raul.yzquierdo@enron.com
Subject: Update  from the Wizard
Cc: david.gorte@enron.com, rick.buy@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: david.gorte@enron.com, rick.buy@enron.com
X-From: Larson, Bradford </O=ENRON/OU=NA/CN=RECIPIENTS/CN=BLARSON>
X-To: Bonney, Mark </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mbonney>, Hagelmann, Bjorn </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bhagelm>, Rollins, Don </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Drollin>, Tom Moran (E-mail) </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tmoran>, Yzquierdo, Raul </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ryzquie>
X-cc: Gorte, David </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dgorte>, Buy, Rick </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rbuy>
X-bcc: 
X-Folder: \RBUY (Non-Privileged)\Buy, Rick\Inbox
X-Origin: Buy-R
X-FileName: RBUY (Non-Privileged).pst

Project OZ
 
The deal team is proceeding post-haste to draft a definitive term sheet.
 
Bjorn - you're correct - term is now 8 years likely to be 10
 
$40 million working capital facility - advance rate will exceed market - i.e. a portion of this is really equity
 
crack spreads - will be widened (still fine tuning)
 
Minimum investment case  - Morgan Stanley bridge, refinery cash flow to supply capex for Tier 2 upgrades, current volumes
 
After closing, to continue investigating expansion (max capex case) with [option] to hedge larger volumes ( ?- what if we don't agree with expansion plans)
 
RAC draft DASH with deal team's comments expected back this afternoon - will circulate
 
promised model by EOD tomorrow
 
 
anticipate that deal team will try to get approval delegation at the next BOD meeting (about ten days to get thru RAC process)