Subject: Project with Maria Garcia
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 28 Jan 2000 07:15:00 -0800 (PST)

Vince,

Here is a brief about the project with Maria Garcia.

Promigas, in partnership with others,  wants to acquire $80 MM TVCable 
company in Mexico.
Promigas's ownership would be 25%, i.e. , 20MM.  10MM of it would come from 
debt.
Enron wants to participate this deal by offer Promigas loan guarantee in 
exchange of call options
on 50% Promigas equity in TVCable.

Following suggestions have been made:

1) get a market quote for the loan guarantee;
    use credit risk model to price the guarantee internally;
    need to speak to Vasant

2) find a comparable company, study the volatility
    using company value histogram from economics model(crystal ball output), 
I can fit a lognormal
    distribution, then find the volatility

3)calcalte the call option value, find braek-even strike.

Any inputs are extremely welcome.

Zimin