Message-ID: <30418314.1075840847315.JavaMail.evans@thyme>
Date: Wed, 5 Sep 2001 15:36:05 -0700 (PDT)
From: joseph.deffner@enron.com
To: louise.kitchen@enron.com
Subject: 
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X-From: Deffner, Joseph </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JDEFFNE>
X-To: Kitchen, Louise </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lkitchen>
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Chuck's numbers he walked you through earlier assumed 100 bps in fees so we=
 are slightly better than forecast. The 65 bps was comp for the original tr=
ansaction for which we drafted dox and received ratings from s&p and moodys=
. Had we not run into the el paso issues the number would have held. Given =
that the new structure requires a new market, new rating agency process and=
 new documentation, we are effectively documenting and selling a new second=
 transaction. An increase in the fee for this substantial change of the dea=
l is market. I still believe a sept 30 closing is unrealistic. If all goes =
well, I think we can be done by mid oct. To reach a sept 30 closing, I thin=
k the only option would be to ask bank of america to underwrite and buy the=
 whole thing. That would likely be an expensive option. We can discuss in m=
uch more detail at our 9am mtg tomorrow. I'd be hesitant to show panic that=
 we must sell the asset at any price prior to sep 30 and trade real economi=
c value and negotiate from a weaker position when we can have a clean sale =
2 weeks later (ideally before 3q earnings release). The assets are still wa=
rehoused off balance sheet and fortunately el paso's credit spreads have be=
en trading in to our benefit. Just my thoughts. Ps: your gift made my day. =
I'm fully recovered and back on pace. Thanks.
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