Message-ID: <22044333.1075858812659.JavaMail.evans@thyme> Date: Thu, 20 Sep 2001 17:23:39 -0700 (PDT) From: tanya.rohauer@enron.com To: treasa.kirby@enron.com, rajaram.jamadagni@enron.com Subject: RE: Confirms in Word Cc: sara.shackleton@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable Bcc: sara.shackleton@enron.com X-From: Rohauer, Tanya X-To: Kirby, Treasa , Jamadagni, Rajaram X-cc: Shackleton, Sara X-bcc: X-Folder: \SSHACKL (Non-Privileged)\Shackleton, Sara\Inbox X-Origin: Shackleton-S X-FileName: SSHACKL (Non-Privileged).pst You MUST carve this transaction out of the CSFBI master. The margin does NO= T flow around the structure. If you read the confirms, you will see that E= nron receives fixed 150MM from CSFBI day 1 and pays it back WTI basically a= t the end of the deal (that is where all the volumes are concentrated). Th= us, this deal is out of the money to Enron 150MM and they can call us for t= hat margin which we would have to post for the entire term of the deal. Ou= r swap with MSCG has us paying fixed, but we do not pay it until the end of= the deal (that is where all the volumes are concentrated). Thus, this swap= could allow for either party to margin based on WTI price movement - but i= n essence, it is an at the money trade today. You will NOT be able to margi= n MSCG. Thus, the net effect is you have to post margin, but you do not re= ceive any. If you do not carve this deal out of the margin arrangements, y= ou wil defeat the purpose of executing a prepay - you will have to post the= money they prepay you as collateral. Hope it is clear - I am out of the o= ffice tomorrow, but I will be back on Monday. Regards, Tanya -----Original Message----- From: =09Kirby, Treasa =20 Sent:=09Thursday, September 20, 2001 10:18 AM To:=09Rohauer, Tanya Subject:=09FW: Confirms in Word=20 Confirms as requested. Tanya, Raj and I will call you to discuss. Treasa -----Original Message----- From: =09Jamadagni, Rajaram =20 Sent:=0918 September 2001 17:37 To:=09Kirby, Treasa Subject:=09Confirms in Word=20 Treasa,=20 Both the MS and the CSFB confirms in word format.=20 Regards << File: csfb leg 1.doc >> << File: mstanley confirm.doc >>