Message-ID: <6190251.1075844457869.JavaMail.evans@thyme> Date: Tue, 15 Jun 1999 04:28:00 -0700 (PDT) From: patricia.cini@enron.com To: don.black@enron.com Subject: Re: Cuiaba Cc: sara.shackleton@enron.com, william.bradford@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: sara.shackleton@enron.com, william.bradford@enron.com X-From: Patricia Cini X-To: Don Black X-cc: Sara Shackleton, William S Bradford X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_1\Notes Folders\Cuiaba X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Don- I have left a message for you so that we can discuss this deal. I spoke to Ted Murphy briefly about this deal and he wanted to know if ECT has been involved in this transaction since they would be entering into the swap. We have outlined a few issues that may have been addressed already, but maybe we can discuss these when you have a moment. Gary Hickerson would need to see this deal due to the CPI and PPI in the pricing. The crude desk needs to look at this deal as well since their is also a crude piece in the pricing. We also need to address the appropriate credit reserve that needs to be in place that reflects the credit risk of TBS Need to see pricing information between EPE and EN Let's discuss when you have a moment. Regards, Pat From: William O Butler AT ENRON_DEVELOPMENT@CCMAIL on 06/04/99 08:54 AM To: Patricia Cini@ECT cc: Sara Shackleton@ECT, Wade Doshier@ECT, "Don Black/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, "Richard A Lammers/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL Subject: Re: Cuiaba Please Patricia, Sara, give either Don Black or myself a call. There are many parameters of the TBS, YPF deal that can only be managed from a risk perspective by EI Southern Cone. The details of how the oil, PPI and CPI risks contained within the transaction are to be managed jointly between EI and ECT have yet to be determined but will be shortly. Please do not proceed further until discussions occur with either Don or myself. Bill ---------------------- Forwarded by William O Butler/ENRON_DEVELOPMENT on 06/04/99 08:38 AM --------------------------- Don Black 06/03/99 05:12 PM To: William O Butler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Nasim H Khan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kent Castleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard A Lammers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Cuiaba (Document link: William O Butler) Stop The Presses!!!!!!!!!!!! This is a steamroller that needs to be de-railed. Bill Butler; Can you find out what is going on here? If you need to get together for a call on this, I suggest we do it fast. This thing is getting away from us. We just want the guarantees and the neutral swaps from ECT or Corp. to keep the lenders happy. If we need to, we (EI) will enter into exactly offsetting swaps with ECT and keep them position neutral. Richard A Lammers 06/03/99 02:21 PM To: Nasim H Khan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kent Castleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Cuiaba (Document link: Don Black) what do the numbers look like here ? how much value are we transferring to ect? do we have to do the swap? Nasim H Khan 06/02/99 06:38 PM To: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard A Lammers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kent Castleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Cuiaba Please review the following cc-mail form ECT. This is the dirction we are headed. Please provide any comments ypou may have. Nasim ---------------------- Forwarded by Nasim H Khan/ENRON_DEVELOPMENT on 06/02/99 03:38 PM --------------------------- From: Patricia Cini@ECT on 06/02/99 03:20 PM To: Sara Shackleton/HOU/ECT@ECT, Nasim H Khan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Tanya Rohauer/HOU/ECT@ECT, Marie Heard/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, John Novak/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Debbie R Brackett/HOU/ECT@ECT Subject: Cuiaba I just want to summarize the documentation that we are putting in place for this deal: Guaranty from Enron Corp. covering 72.5% of the liabilities of TBS. The other 27.5% will be guaranteed by Shell. The guaranty is put in place specifically to make TBS eligible to enter into financial transactions and so that TBS can secure financing. The guaranty will be cancelled once TBS becomes eligible to enter into financial transactions (in 1999). The guaranty will be structured so that Enron Corp. will be released from any obligations that it entered into while the guaranty was open. TBS is 72.5% owned by Atlantic Commercial Finance (wholly owned sub of Enron Corp.) and 27.5% owned by Shell Generating Limited. Master Swap agreement between ECT and TBS to swap out the pricing mismatch that TBS incurs due to indexation mismatch between TBS Gas Revenue and TBS Gas Expense. As a result of this Master Swap, ECT will have on its book a 19 year open position, which will be swapped out (closed). This position will be on ECT's books (not on EI's) since the Master Swap is between ECT and TBS. This position will not be left open by ECT. A side letter from EI stating that EI agrees to make ECT whole on any TBS liabilities that ECT may incur. Please let me know if there are any unanswered questions with this deal. Regards, Pat Cini