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Enron Mail |
Enron Vice Chairman J. Clifford Baxter To Resign
Dow Jones News Service, 05/02/2001 India State Panel Invites Enron Unit For Talks May 5 Dow Jones, 05/02/01 ATS Announces First Half Results PR Newswire, 05/02/01 Saudi Gas Proj Consortia Seen Selected 2H May -Sources Dow Jones Energy Service, 05/02/2001 Corporate Bond Alert: WorldCom, Household Finance, AIG to Sell Bloomberg, 05/02/01 Enron Vice Chairman Baxter Resigns; No Successor Is Planned Blommberg, 05/02/01 Enron Vice Chairman J. Clifford Baxter To Resign 05/02/2001 Dow Jones News Service (Copyright © 2001, Dow Jones & Company, Inc.) HOUSTON -(Dow Jones)- Enron Corp. (EBE) Vice Chairman J. Clifford Baxter is resigning from the company to spend more time with his family. In a press release Wednesday, the energy and communications company said Baxter will continue working for Enron as a consultant. Baxter joined Enron in 1991 and was chairman and chief executive of Enron North America before being named chief strategy officer for Enron in June 2000 and vice chairman in October. Company Web site: http://www.enron.com -Susan Willetts; Dow Jones Newswires; 201-938-5388 India State Panel Invites Enron Unit For Talks May 5 05/02/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) NEW DELHI -(Dow Jones)- India's Maharashtra state government has formally asked U.S. energy major Enron Corp.'s (ENE) Indian unit Dabhol Power Co. to appoint a team to renegotiate the power purchase agreement with the state government's expert committee Saturday, the United News of India reported Wednesday. "We have formally requested the DPC president to send a team for renegotiation. We will be awaiting their response to commence the talks on May 5," UNI quoted the state's Energy Secretary V.M. Lal as saying after his meeting with officials of the Maharashtra State Electricity Board and the nine-member expert panel. The $3 billion, 2,184-megawatt DPC project in Maharashtra has been mired in financial disputes after the MSEB, its main customer, failed to pay several bills. The project has the largest single foreign investment in India. The Maharashtra state government has asked the committee to try to negotiate a revised agreement within a month. The committee's goals are to lower the power tariff and allow the sale of excess power to the federal government or its utilities. A restructure of the DPC's stakeholding may also be on the agenda. Texas-based Enron has a 65% stake in the DPC, and is the project's largest shareholder. Other shareholders include the MSEB with 15%, and General Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each. -By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427; himendra.kumar@dowjones.com ATS Announces First Half Results 05/02/2001 PR Newswire (Copyright © 2001, PR Newswire) CALGARY, May 2 /PRNewswire/ - Applied Terravision Systems Inc. (ATS) (CDNX: TER) is pleased to announce its first half results for the six-month period ended March 31, 2001. ATS's revenues for the first half increased to $17.868 million, 28.3 percent higher than the $13.925 million recorded for the first half of fiscal 2000. Gross Margin revenues increased 40.1 percent to $17.191 million from $12.214 million during the first half of fiscal year 2000. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization and Extraordinary Items) for the six month period-ended March 31, 2001 was $2.204 million or $0.07 per share, an increase of 355.6 percent, compared to EBITDA for the period-ended March 31, 2000, which was $0.484 million or $0.02 per share. Cash flow from operations, prior to changes in non-cash working capital, for the six-month period-ended March 31, 2001 was $1.067 million or $0.03 per share, as compared to the same period-ended March 31, 2000 when the cash flow from operations, prior to changes in non-cash working capital, was $0.264 million or $0.01 per share. Net income before tax, amortization of goodwill and extraordinary items for the first six months of fiscal 2001 was $0.656 million or $0.02 per share, an increase of 249.6 percent, compared to net a loss before tax and amortization of goodwill of $0.453 million for the corresponding period in fiscal 2000. After amortization of goodwill and allowance for United States income tax the company had a net income before extraordinary items of $0.141 million or $0.00 per share in the first six months of fiscal 2001 as compared to a loss of $0.879 million or $0.03 per share in the prior year period. FORWARD LOOKING STATEMENTS -------------------------- In the interest of providing ATS shareholders and potential investors with information regarding the Corporation, including management's assessment of the Corporation's future plans and operations, this presentation contains forward-looking information that represents the Corporation's internal projections, expectations or beliefs concerning future operating results and various components thereof of the Corporation's future economic performance. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties which may cause the Corporation's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, shareholders and potential investors are cautioned that events or circumstances could cause actual results to differ materially from those contemplated. Companies continue to take advantage of ATS's Application Service Provider (ASP) and Business Function Outsourcing (BFO) eSolution business offerings. ASP subscription fees and associated revenues from ATS's intellectual property delivered on its ASP platform for the first half of fiscal 2001 increased 127.9 percent to $11.605 million from $5.093 million for the first half of fiscal 2000. These revenues comprised 64.9 percent of total revenues during the first half of fiscal 2001 as compared to 36.6 percent during the first half of fiscal 2000. BFO services generated $1.376 million in revenues for the first quarter of fiscal 2001, comprising 7.7 percent of total revenues during this period, whereas ATS recorded no BFO revenues during the first half of fiscal 2000. During the first six months of fiscal 2001 the ATS reoccurring revenue base (which includes maintenance, ASP Subscription Fees and BFO Contracts) increased 37.0 percent to $7.728 million from $5.642 million for the same period in 2000 while professional services revenues increased 66.8 percent to $10.332 million from $6.196 million during the same period. As anticipated, increased ASP and BFO sales offset reduced license fee revenues as customers move to ATS's reoccurring subscription fee business model. License fee revenues declined by 57.2 percent to $0.888 million from $2.074 million during the same six months of fiscal 2000. ATS's ASP centers continue to demonstrate value to new and existing customers. Stylus Exploration Inc., of Calgary, moved their business information systems to an ATS managed data center. Lyco Energy of Dallas entered into an agreement with ATS to utilize the Dallas BFO / ASP center. Additionally four non-operated interest companies began using ATS's BFO centers, two in Canada and two in the U.S. ATS's e-Solutions allow these customers to shift their non-core business functions and information technology needs to ATS so they can devote their time and attention to their core business functions of oil and gas exploration and production. ATS continues to grow its client base by providing the customers with business solutions that best fit their requirements, either through traditional software licenses, ASP access or BFO services. Traditional software licensing in the small business market continues to be strong with an additional 36 new clients in North American subscribing to ATS's small business solutions. ATS's 400 plus junior and emerging producer clients in North America establishes the company as the dominant provider of information solutions to this market segment, which is a foundation for future ASP and BFO growth. During the first half of fiscal year 2001 ATS significantly invested in expanding its Dallas operations in order to effectively service its growing ASP / BFO client base and further develop its product and service offerings. This investment contributed to the 29.7 percent increase in operating expenses for the first six months of fiscal 2001 to $12.459 million from $9.605 million for the same period in fiscal 2000. As an extraordinary item ATS expensed 100 percent of the previously accrued expenditures (See Extraordinary Items in the Financial Statements) related to the Plan of Arrangement with Petroleum Place, Inc. ATS accrued those charges related to the transaction that would have been accounted for as transaction costs if the merger had been capable of proceeding. As the Merger Agreement expired uncompleted, a result of financial market conditions that prevented Petroleum Place from effecting a qualified Initial Public Offering, events that were clearly out of the control of management, effective March 31, 2001 ATS has, as per Canadian Generally Accepted Accounting Principals, expensed all related Financial ($396,349 CDN), Accounting ($148,586 CDN), Legal ($88,168 CDN) and Managerial Expenses ($30,510 CDN) previously accrued. This results in a total one-time extraordinary charge of $663,613 CDN. Effective October 1, 2000, ATS changed from the deferral method of accounting for income tax to the liability method as pronounced by the Canadian Institute of Chartered Accountants. No adjustment was required to the consolidated financial statements for this change in policy. RESEARCH AND DEVELOPMENT INVESTMENT ----------------------------------- Prior to initiating new R & D projects ATS investigates the marketplace and strives to have its new product development initiatives endorsed by industry representatives to ensure market viability. The majority of ATS's new product R & D initiatives are backed by customers either by; 1) customer co-funded development projects (for example, the Horizon project with the Bank of America and the TAAMS project with the Bureau of Indian Affairs, or 2) the on-going maintenance revenue stream and User Group involvement through in-kind contributions (for example, the TEAM project). This approach allows ATS to continue to maintain its commitment to the expansion and improvement of its product and service offerings to its existing and new customers with leading edge technology that will have a positive impact on ATS's customers' bottom line. As part of ATS's growth plan ATS invested $2.528 million in R & D (14.1 percent of revenues) for the first half of fiscal 2001 as compared to $2.125 million (15.3 percent of gross revenues) for the same period in 2000. New product R & D initiatives include the TEAM product, a web-based tracking system for oil and gas well administration, which comprised 9.0 percent of expensed R & D for the half. Enhancements to the Horizon product, a financial accounting system originally created for the Bank of America, which will be introduced into the broader petroleum marketplace later this year, comprised 30.4 percent of expensed R & D for the half. As announced, one Texas-based producer has already contracted to have Horizon implemented, a positive confirmation of ATS's investment in this highly awaited solution. Additionally the Preview product, an asset management system with successful installs currently in progress, comprised 4.4 percent of R & D for the half. It is noted that ATS has continued with its policy of fully expensing these long-term investments rather than capitalizing these investments for future amortization. The balance of R & D dollars, approximately 56.2 percent, was invested in association with products that generate existing maintenance and enhancement revenue ensuring that these products remain current and continue to meet the needs of ATS's growing customer base. ENRON MUTUAL MARKETING AGREEMENT -------------------------------- On March 20, 2001 ATS was pleased to announce it's mutual marketing agreement partnership with Enron North America to provide outsourcing of accounting and administrative functions to Canadian and U.S. producers. The partnership combines Enron's commodity, asset management and financial services with ATS's outsourcing capabilities for back-office processing and information technology, providing producers with the ability to source any service from wellhead to burnertip connection in one transaction. Enron and ATS provide services to effectively aggregate, market, schedule and account for the producer's supply stream, while at the same time reduce their need for costly corporate infrastructure needs. Within the Enron partnership ATS offers the trained personnel and facilities to perform administration and accounting duties, such as joint venture, revenue and production accounting, transaction processing, expenditure authorization, tax payments, royalty payments and regulatory filings. The client benefits of outsourcing these back-office responsibilities to ATS include higher productivity, increased flexibility and lower administrative costs for the producers. It is anticipated that the partnership will provide limited growth for ATS during Fiscal 2001; however, the relationship positions ATS for significant revenue and earnings growth potential in fiscal 2002 and beyond. SEGMENTED FINANCIAL SUMMARY --------------------------- The company has significant operations in two geographic locations, Canada and the United States. Comparative segmented financial information is summarized as follows: 6 Mnths Ended March 31, 2001 ----------------------------------------- It is noted that the Canadian Division is charged with one hundred percent of the amortization of historical Application Software and Goodwill investments. Accordingly, the bottom line for the Canadian division is reduced by one hundred percent of these non-cash accounting charges. Under the proposed Canadian Institute of Chartered Accountants (CICA) Emerging Issues Committee Exposure Draft on Business Combinations - Accounting for Goodwill, the practice of the amortization of Application Software and Goodwill would be discontinued with these investment values maintained on the Balance Sheet subject to annual value impairment reviews. Should the value be impaired then the company would write down the fixed asset value of the Purchased Application Software and Goodwill investments by the impairment reduction. Once implemented this pronouncement will put Canadian Companies on par with United States Reporting Issuers. When implemented this revised practice will enable ATS to more appropriately report Canadian and United States segmented financial results. ATS's decline in the Canadian revenues and increase in US revenues coincides with studies conducted by major research firms such as Giga, Forrester, IDC and others. The decrease in Canadian revenues is reflective of a mature marketplace for enterprise software and delayed customer expenditures associated with a recognized need for a new business model. Conversely the increased US revenues are directly attributable to acceptance of the ASP and BFO as desired business models in the US marketplace. Canadian companies have been slower to accept these business models and lag the United States marketplace by approximately 18-20 months in most sectors according to the above referenced research firms. This lag period is believed to be ending for most Canadian sectors and ATS is beginning to gain ASP and BFO. ATS anticipated this trend and planned its investments accordingly. Consequently we anticipate growth in ATS's Canadian operational reoccurring revenues as the Canadian industry adopts the ASP / BFO business model, similar to ATS's US operations. CORPORATE ACTIVITIES -------------------- March 6, 2001 ATS appointed of Mr. John A. Brussa, a partner with the firm of Burnet, Duckworth & Palmer, to the Company's Board of Directors. Mr. Brussa received his LL.B. in 1981 from the University of Windsor and graduated as a gold medallist. He was called to the Bar in 1982 and is presently a partner with the firm of Burnet, Duckworth & Palmer in Calgary, Alberta, Canada. Mr. Brussa's practice focuses on resource taxation, corporate reorganizations, cross border and international transactions and financings. Mr. Brussa is presently a director of several companies in the oil and gas industry. As of March 31, 2001 ATS announced that the plans to amalgamate ATS and The Petroleum Place, Inc. ("PPI") were terminated. Pursuant to the Amended and Restated Agreement and Plan of Arrangement among ATS, PPI and certain shareholders of ATS (the "Merger Agreement"), PPI was required complete an initial public offering. As of March 31, 2001 PPI did not complete an initial public offering and therefore the Merger Agreement between the two companies expired. On March 20, 2001 ATS announced, associated with the Enron Producer One Marketing Agreement, the issuance of three million warrants to Enron North America. Two million warrants are exercisable at a price of $0.85 CDN for a period of 18 months after the issue date with one million warrants exercisable at a price of $1.10 CDN for a period of 24 months after the issue date. SUBSEQUENT EVENTS the company's most recent annual financial statements. SOURCE Applied Terravision Systems Inc. /CONTACT: This release and more information are available at www.atsi.com or contact the following: Applied Terravision Systems Inc.: Robert W. Tretiak, President & Chief Executive Officer, 403-218-8301, btretiak@atsi.com; Warren Coles, Chief Financial Officer & Treasurer, 403-218-8340, wcoles@atsi.com/ 09:00 EDT Saudi Gas Proj Consortia Seen Selected 2H May -Sources By Dyala Sabbagh Of DOW JONES NEWSWIRES 05/02/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) DUBAI -(Dow Jones)- Consortium leaders and members for the three core gas ventures on offer in Saudi Arabia are expected to be announced in the second half of May, sources familiar with the negotiating process have told Dow Jones Newswires. As previously reported, the Saudi Arabian committee negotiating with international oil companies, or IOCs, on the so called Gas Initiative, recently submitted its proposals for consortium leaders to the kingdom's Supreme Petroleum Council for approval. Saudi Arabia invited international oil companies in October 1998 to participate in proposals for downstream gas projects and upstream gas enhancement. A series of meetings between the negotiating committee and shortlisted IOC's have taken place in the past year. Royal Dutch/Shell Group (RD), BP Amoco PLC (BP), Exxon Mobil (XOM), Chevron (CHV), TotalFinaElf (TOT) and ENI SpA (E) have been shortlisted for core venture number one, the $15 billion South Ghawar Area Development. Exxon, Shell and BP have been dubbed as the frontrunners with ExxonMobil seen as the strongest contender. For core venture two, the Red Sea Development, Enron Corp. (ENE) and Occidental Petroleum Corp. (OXY) are bidding jointly and Exxon Mobil, TotalfinaElf, Marathon Oil Canada Inc. (T.M), Shell and Conoco Inc. (COCA) have also been listed. Among these, TotalfinaElf and Shell are seen as strong possibilities. For core venture three, the Shaybah area, TotalFinaElf, Conoco, Phillips Petroleum (P), Enron & Occidental, Exxon Mobil, Shell and Marathon Oil have been listed. Conoco and TotalfinaElf are said to be frontrunners here. Role Of Consortium Leaders Still Unclear Sources have said some companies currently under consideration will be struck off the list in the final selection. Consortium leaders are expected to be responsible for directing further detailed negotiations on the projects at hand, such as pricing and finance. They are also likely to get the largest stake in any project as well as operatorship. But the IOCs are still in the dark as to what their exact roles will be in the event they are selected, industry sources said. Still, despite lacking a comprehensive framework, some deals are expected to be initialed this year. And once sealed, IOCs are also expected to start talking to local companies about contracting out participation on parts of the projects. The three ventures have a combined value of about $25 billion with each one having on average eight individual components. How these components will be dealt with or allocated is also as yet undetermined. Saudi Arabia has about 2.5 billion cubic feet of gas a day in its system currently and will have about 4 bcf/day by 2003. By 2025, it will need an estimated 14 bcf/day to meet its own consumption requirements and for possible export. By Dyala Sabbagh, Dow Jones Newswires; 9714 3314260; dyala.sabbagh@dowjones.com Corporate Bond Alert: WorldCom, Household Finance, AIG to Sell 2001-05-02 09:16 (New York) New York, May 2 (Bloomberg) -- Following is a description of corporate and other bond sales expected in the U.S. in coming days, weeks and months: Investment Grade WORLDCOM INC., the No. 2 U.S. long-distance company, is preparing to raise as much as $8 billion in the bond market in what would be the biggest debt sale by a U.S. company this year. Clinton, Mississippi-based WorldCom picked Salomon Smith Barney and J.P. Morgan Chase & Co. to manage the bond sale, which will be denominated in dollars, euros, and possibly pounds sterling, people familiar with the matter said. The dollar portion is to be sold in three parts, with maturities of three, 10, and 30 years. Banc of America Securities is expected to help manage the sale of these notes. WorldCom also plans to sell seven-year euro- denominated notes. Banc of America and ABN Amro Inc. are expected to help manage the sale of that debt. Presentations to investors are scheduled this week in Europe and next week in the U.S., and an investor call is set for Monday. Moody's Investors Service rates WorldCom's existing bonds ``A3,'' and Standard & Poor's rates them ``BBB+.'' (Updated: May 2. Company news: {WCOM US <Equity< <GO<}). HOUSEHOLD FINANCE CORP., a unit of Household International Inc., the second-largest U.S. consumer-loan company, plan to sell $1.5 billion of 10-year notes this week, said people familiar with the matter. Deutsche Banc Alex. Brown, J.P. Morgan Chase, and Salomon Smith Barney are arranging the sale, the people said. Prospect Heights, Illinois-based Household Finance's existing debt is rated ``A2'' at Moody's and ``A'' at S&P. (Updated May 2. Company news: {HI2 US <Equity< CN <GO<}). AIG SUNAMERICA GLOBAL FINANCE, a division of the second- biggest financial services company, plans to sell $1 billion of global bonds as soon as this week, said a syndicate official at Merrill Lynch & Co., one of the investment banks managing the sale. The parent company, American International Group Inc., will sell the bonds in two dollar-denominated portions through its subsidiary, Merrill Lynch said. Further details on the size and maturity of the bonds weren't available. Merrill Lynch and UBS Warburg are the lead managers of the sale, the banker said. S&P and Moody's each give AIG top triple-`A' credit ratings. (Updated May 2. Company news: {AIG US <Equity< CN <GO<}). CIT GROUP INC., a commercial and consumer financing company with more than $50 billion in assets, is preparing to sell global bonds denominated in multiple currencies, said people familiar with the matter. New York-based CIT has picked Deutsche Bank Alex. Brown and Lehman Brothers Inc. to manage the sale, the people said. The sale will launch following presentations to investors this week in the U.S. and Europe, and the bonds are expected to consist of U.S. dollar and Euro tranches in global format and benchmark size. Maturities are expected to be short to intermediate. Moody's Investors Service rates CIT's existing bonds ``A1,'' and Standard & Poor's rates them ``A+.'' (Updated April 30. Company news: {CIT US <Equity< CN <GO<}). AMERICAN ELECTRIC POWER CO., owner of utilities in the U.S. and Europe, will sell $1 billion in global notes, said bankers involved in the sale. The bonds will likely be sold in two parts, with a large bond of intermediate maturity and a shorter-dated security. Credit Suisse First Boston, Merrill Lynch & Co., and UBS Warburg LLC are to manage the sale. Last month, AEP filed with the Securities and Exchange Commission to sell as much as $1.5 billion of unsecured notes for general purposes. S&P rates AEP's debt ``A- ,'' while Moody's rates the utility's bonds ``Baa1.'' (Updated April 25. Company news: {AEP US <Equity< CN <GO<}). EXELON CORP., the power producer formed by the merger of Peco Energy Co. and Unicom Corp., plans to sell $500 million worth of 10-year notes next week, according to Credit Suisse First Boston, which is arranging the sale along with Salomon Smith Barney. The proposed senior notes are rated ``Baa2'' at Moody's and ``BBB+'' at S&P. (Updated May 1. Company news: {EXC US <Equity< CN <GO<}). INTERNATIONAL FLAVORS & FRAGRANCES INC., a maker of products that enhance food and perfumes, said is preparing to privately sell $500 million of five-year notes. Proceeds will pay off shorter-term debt taken on from the company's November acquisition of rival Bush Boake Allen Inc., International Flavors said in a release issued by Market News Publishing Inc. Salomon Smith Barney is arranging the sale. Presentations to investors are scheduled to conclude today. New York-based International Flavors & Fragrances' existing debt carries investment-grade ratings of ``A3'' at Moody's and ``BBB+'' at S&P. (Updated May 1. Company news: {IFF US <Equity< CN <GO<)}. WASHINGTON MUTUAL INC., the largest U.S. savings and loan, is to sell $500 million of three-year floating-rate senior notes on May 14, the company said in a release issued by Business Wire. Seattle-based Washington Mutual said the sale is part of a newly established $15 billion global bank note program. Merrill Lynch & Co. is arranging the sale of the notes, which are rated ``A2'' by Moody's and ``A-'' at S&P. (Updated April 30. Company news: {WM US <Equity< CN <GO<)}. INTERNATIONAL MULTIFOODS CORP., which distributes food to restaurants, theaters, and other businesses, plans to sell $200 million to $250 million of bonds, said people familiar with the sale. CIBC World Markets is arranging the sale, the people said. Minnetonka, Minnesota-based International Multifoods' existing debt carries investment-grade ratings of ``Baa3'' at Moody's and ``BBB-'' at S&P. (Updated April 11. Company news: {IMC US <Equity< CN <GO<}). ENRON CORP., the largest energy trader, plans to raise money by selling credit-linked notes in several currencies, according to Salomon Smith Barney, which will manage the sale with UBS Warburg. The sale will follow presentations to investors in Europe and will consist of issues of intermediate maturities. Investors usually regard notes maturing in five to seven years to be intermediate maturities. Salomon declined to provide details on the size or timing of the sale. Credit-linked notes are typically backed by assets owned by the issuer, and payments on the notes are linked to the creditworthiness of those assets. Houston-based Enron's credit is rated ``BBB+'' at S&P and ``Baa1'' at Moody's. (Updated May 2. Company news: {ENE US <Equity< CN <GO<}). Junk Bonds PRIMEDIA INC., the publisher of Seventeen, New York, and Modern Bride magazines, is to sell $350 million of high-yield bonds, said people familiar with the matter. New York-based Primedia, which is partly owned by buyout firm Kohlberg Kravis Roberts & Co., picked Salomon Smith Barney, J.P. Morgan Chase, and Banc of America to manage the sale, the people said. The 10-year notes are expected to price this week, they said. Proceeds will go to pay off bank loans, and also to repurchase existing notes with a 10.25 percent interest rate, according to a Moody's report. Moody's rates the senior notes ``Ba3,'' while S&P rates the company's credit ''BB-'', each three notches below investment grade. (Updated May 1. Company news: {PRM US <Equity< CN <GO<}). DEL MONTE FOODS CO., the largest U.S. producer of canned fruits and vegetables, plans to sell $275 million of senior subordinated 10-year notes. The company said in a release issued by Business Wire that it will use proceeds from the sale to repurchase notes due in 2006 and 2007. Del Monte also said it will enter into an amended credit agreement containing a six-year revolving credit facility of $325 million and a seven-year term loan of $415 million. The company will use those funds to repay its existing credit facility. San Francisco-based Del Monte chose Bank of America, J.P. Morgan Chase, and Deutsche Banc Alex. Brown to arrange the loans, bankers familiar with the sale said. Moody's rates Del Monte's 12 1/4 percent notes due 2007 ``B3,'' and S&P rates them ``B-''. (Updated April 30. Company news: {DLM US <Equity< CN <GO<}). ALLIANT TECHSYSTEMS INC., a maker of munitions and missile systems, plans to privately sell $250 million of 10-year senior subordinated notes, the company said in a release issued by PRNewswire. Minneapolis-based Alliant said it expects to sell the debt ``in the next few weeks,'' and proceeds will go to pay off existing debt. Alliant's existing bonds are rated ``B1'' at Moody's and ``BB-'' at S&P. (Updated April 30. Company news: {ATK US <Equity< CN <GO<)}. CALLON PETROLEUM CO., a Gulf Coast oil and gas producer, plans to sell $225 million of seven-year senior notes, the company said in a Business Wire statement. Funds will go to repay debt maturing in 2002 and 2004, borrowings under a credit line, and for day-to-day spending, Callon said. Neither Moody's nor S&P have rated Natchez, Missouri-based Callon's credit. J.P. Morgan Chase is expected to manage the sale, according to investors familiar with the sale. (Updated April 26. Company news: {CPE US <Equity< CN <GO<}). RADIO ONE INC. plans to sell $300 million of 10-year senior subordinated notes to refinance some of the radio broadcaster's outstanding debt. Banc of America and Credit Suisse First Boston are arranging the sale. Radio One's existing notes carry ratings of ``B3'' from Moody's and ``B-'' from S&P, each five notches below investment grade. (Updated April 26. Company news: {ROIA US <Equity< CN <GO<}. PLAYTEX PRODUCTS INC., the maker of Baby Magic lotions and Banana Boat sun lotion, plans to sell $350 million of junk bonds and is taking out $625 million in loans to refinance debt, said bankers familiar with the matter. Westport, Connecticut-based Playtex chose Credit Suisse First Boston to arrange the loans and manage the bond sale, the bankers said. The debt will refinance all of Playtex's outstanding loans and two existing bonds. Yesterday, Playtex received enough orders from investors to complete a $325 million term loan before a lenders meeting scheduled for today in New York. Playtex had to renegotiate its bank agreements at the end of last year because of falling profits. The company agreed to pay higher interest rates that would cut this year's earnings by 2 cents a share to get lenders to relax financial covenants. (Updated May 2. Company news: {PYX US <Equity< CN <GO<}). IMC GLOBAL INC., one of the largest fertilizer companies, plans to sell as much as $1 billion of high-yield bond and loans, said people familiar with the matter. Lake Forest, Illinois-based IMC may sell about $500 million bonds and the same amount in loans through Goldman Sachs and J.P. Morgan Chase, the people said. IMC's senior unsecured debt is rated ``Baa3'' by Moody's and ``BBB- '' by S&P. Both ratings are the lowest on the investment-grade scales and are under review for a possible cut, the rating companies said in recent commentaries. (Updated April 19. Company news: {IGL US <Equity< CN <GO<}). U.S. INDUSTRIES INC., a maker of Jacuzzi-brand baths and other household products, may restructure its $550 million bond sale, after delaying selling the bonds last month as planned, said people familiar with the matter. The company originally was to sell 10-year senior subordinated notes at proposed yields of about 12.25 percent, the people said. Details of the revised sale weren't immediately available, though investors said it might include some junior subordinated debt. Iselin, New Jersey-based U.S. Industries is privately selling bonds through Deutsche Bank AG and Credit Suisse First Boston to pay off existing debt. The company is also raising $700 million in bank loans, provided it can find buyers for the bonds. U.S. Industries has already lined up institutional investors for a $275 million term loan that forms part of the credit agreement. S&P rates the proposed senior subordinated bonds ``B+.'' (Updated April 24. Company news: {USI US <Equity< CN <GO<}). --Terence Flanagan and Jennifer Ryan in the New York newsroom (212) 893-5662, or at tflanagan@bloomberg.net/bw PG&E Has 1st-Qtr Loss Because of Power-Buying Costs (Update2) (Adds company comment in fourth paragraph, operating profit by segment beginning in ninth paragraph. For more on California's power crisis, see {EXTRA <GO<}.) San Francisco, May 2 (Bloomberg) -- PG&E Corp., owner of California's largest electric utility, had a first-quarter loss after taking a $1.1 billion charge for debts from buying power at soaring prices it couldn't pass on to customers. The loss of $951 million, or $2.62-a-share, compares to net income of $280 million, or 77 cents, in the year-earlier quarter. Sales rose 33 percent to $6.68 billion from $5.01 billion. PG&E's Pacific Gas & Electric utility filed for bankruptcy protection last month. PG&E and Edison International, owner of California's No. 2 utility, have run up more than $14 billion in debt buying power at prices higher than state regulators will let utilities charge customers. ``Taking this charge does not diminish our conviction that the utility is entitled under law to recover these costs,'' PG&E Chief Executive Robert Glynn said in the statement. Excluding the power-buying charge and other costs related to California's energy crisis, profit from operations fell 14 percent to $243 million, or 67 cents a share, in the first quarter. A year earlier, PG&E had a $4 million charge for severance costs, resulting in profit from operations of $284 million, or 78 cents. Hefty Losses ``They're being very conservative in these charges,'' because PG&E probably will receive money to pay off some of the debt, Credit Suisse First Boston analyst Paul Patterson said. The charges also include power purchased for PG&E customers by the California Independent System Operator that PG&E probably won't have to pay for, he said. In the fourth quarter, PG&E took a $4.1 billion charge for power-buying losses. Chief Financial Officer Peter Darbee said last month the company probably would have to take more power- buying charges. The company has estimated its total power-buying debt at $9 billion. California power prices averaged $317.13 a megawatt hour in the first and fourth quarters, almost 10 times as much as in the year-earlier quarters. Shares of San Francisco-based PG&E were unchanged at $9 in midday trading. They have fallen 55 percent this year. Excluding the charges, profit at Pacific Gas & Electric, a utility with 13 million customers in northern California, would have been $192 million, a 16 percent drop from $228 million a year earlier, PG&E said. PG&E's National Energy Group, which generates and trades electricity on the wholesale market and ships gas by pipeline, earned $54 million, 3.6 percent less than in the year-earlier period, the company said. Sales rose 40 percent to $4.2 billion from $2.8 billion. Profit from interstate pipeline operations rose 43 percent to $20 million, offsetting a 17 percent decline to $35 million in earnings from energy trading and marketing, the statement said. (PG&E will hold a conference call today at 11:30 a.m. San Francisco time to discuss the company's results. The public can participate on a listen-only basis through the company's Web site, http://www.pgecorp.com. To hear a replay, dial (800) 947-3657.) --Jim Polson in the Princeton newsroom, (609) 279-4106 or jpolson@bloomberg.net/slb/alp Enron Vice Chairman Baxter Resigns; No Successor Is Planned 2001-05-02 16:38 (New York) Houston, May 2 (Bloomberg) -- Enron Corp. Vice Chairman J. Clifford Baxter, part of the team that built the company's wholesale energy trading business, resigned after 10 years with the company to spend more time with his family. Enron, the world's largest energy trader, has no immediate plans to appoint a successor, spokeswoman Karen Denne said. Baxter, 42 years old, will continue to work for Enron as a consultant. He was named vice chairman in October. Baxter was responsible for strategy, including acquisitions and divestitures, Denne said. Baxter was named Enron's chief strategy officer in June 2000. Before that, he was chairman and chief executive of Enron North America. Shares of Houston-based Enron fell $1.91, or 3.1 percent, to $60.50. --Margot Habiby in the Dallas newsroom (214) 740-0873, or mhabiby@bloomberg.net, through the Princeton newsroom (609) 279-4000/cct
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