Subject: Re: Prepay deals
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 19 Jan 2001 00:31:00 -0800 (PST)

Li,

I will get with Errol and see what we can pull together.  I will get back 
with you when I get a better indication on how long this process will take.

I will also try and include Errol's counterpart in Crude to help with those 
prepays.

Eric

Li Sun
01/18/2001 04:38 PM
To: Eric Boyt/Corp/Enron@Enron
cc:  

Subject: Prepay deals

Hi, Eric,

This is Li Sun from Research Group, it was my pleasure meeting you yesterday. 
Since we basically went through Chase deal structure, but deal structure 
varies from each other. Just as Eric Moon said, one deal with Cage is gone 
now. I have the whole list of prepays which I gave it to you yesterday, could 
you explain to me the basic structure of each? For example, for the Chase 
deal, the net exposure of ENA is cash inflow of $300MM upfront and cash 
outflow of fixed $4 times fixed quantity of gas over time. In this deal, our 
commodity position is perfectly hedged, in other words, Enron is not exposed 
to commodity price risk. The only risk I can think of is credit risk from the 
third party. Will you please have the similar chart for each prepay deal? 
That will be very very helpful for me to understand what is Enron's exposure. 

Kevin and I talked to Errol who is keeping risk book today, unfortunately he 
doesn't know much about the structure of each deal. I will really appreciate 
if you could provide me some hint.

Thanks a lot!

Li