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Enron Mail |
Chris, when did BP Amoco get involved? I thought we were dealing with Avista.
Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 05/15/2000 09:57 AM --------------------------- Christopher F Calger 05/13/2000 02:29 PM To: David W Delainey/HOU/ECT@ECT cc: Subject: Deal Update Dave, Update from Friday Afternoon: Coyote: Avista Board approved a 50% equity investment in Coyote Springs II and publicly announced their intention to move forward. Their equity partner, BP Amoco, indicated that they need 30 more days to "get comfortable with the market". This thirty day period coincides with the expected financial close of June 15 so it may just be posturing to let us know that they are not committed until the deal actually closes. Nevertheless, we (Avista and Enron) will pursue fallback investors that have already seen the project and previously expressed interest in a 50% share. In parallel, we will try to get BP Amoco "comfortable". It might make sense to consider someone else that can move quickly. Deal probability drops from 80% to 50%. LVCogen: Vickers and Gilbert met with Sierra Pacific and confirmed their interest in and ability to effect a restructuring of the PPA. Although timing of "securitization" is open-ended, Sierra has agreed to a contract valuation that supports a valuation uplift of $10MM - $14MM. If we assume a 40%-50% probability of restructuring, we get to the hotlisted $5MM gain for QII. Attached is a spreadsheet that shows the breakup value of LVCogen. CTG and Power Structuring are finalizing the RAC models that support this approach. Regards, Chris
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