Message-ID: <26406040.1075844485438.JavaMail.evans@thyme>
Date: Tue, 26 Sep 2000 12:25:00 -0700 (PDT)
From: soma.ghosh@enron.com
To: hulla@tdsecurities.com, katherine_lucey@tdbank-us.tdsecurities.com, 
	tim_jennings@tdbank-us.tdsecurities.com
Subject: Alberta pre-pay
Cc: brian.kerrigan@enron.com, catherine.clark@enron.com, 
	sara.shackleton@enron.com, peter.keohane@enron.com, 
	greg.johnston@enron.com, sara.shackleton@enron.com
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Please forward this message to Anthony as I am unsure that I have the correct 
e-mail address.
 
Anthony,  as per my voice-mail I have attached a final structure that works 
for all parties, and should be relatively simple to execute. 

I would very much like to discuss structure & docs tomorrow morning. My tel. 
no. is 713 345 3284

We will transact the pre-pay with a bank as principal, and have the commodity 
risk hedged by us via another bank ( see diagram)



Swap 1: Enron Canada enters into a financial gas swap pre-pay with Royal Bank 
of Canada/Toronto Dominion
 Royal Bank of Canada & TD pre-pay C$147.4mm each
 Enron Canada pays monthly interest (fixed GJ) referenced to AECO calculated 
off NYMEX  March 02 index

Swap 2: Royal Bank of Canada/TD enters into a financial gas swap with Chase 
Manhattan Bank (identical volumes & prices as Swap 1)
 Chase Manhattan Bank pays fixed volumes of gas @ fixed price
 Royal Bank of Canada/TD pay monthly interest (fixed GJ) referenced to AECO 
calculated off NYMEX  March 02 index
 
Swap 3:  Chase Manhattan Bank enters into a financial gas swap with Enron 
North America (identical volumes & prices as Swap 1)
 Enron North America pays fixed volumes of gas @ fixed price
 Chase Manhattan Bank pays monthly interest (fixed GJ) referenced to AECO 
calculated off NYMEX  March 02 index

Internal: internal back to back of Swap 3 to Enron Canada

Swap 4: Enron Canada enters into interest rate swap with Royal Bank of 
Canada/TD
 Enron Canada pays floating rate monthly
 Royal Bank of Canada/TD pay  fixed interest rate monthly 

Regards,

Soma