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Enron Mail |
All,
Looks like we have a final structure that works for all parties, and should be relatively simple to execute. To confirm where we are: The transaction has essentially the same terms & cashflows as prior structures, however 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$150mm each Enron Canada pays monthly interest (fixed GJ) referenced to AECO 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 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 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 Please note that we may either do one C$300mm pre-pay with RBC or split the deal into 2 tranches, C$150mm with Royal Bank of Canada, C$150mm with Toronto Dominion, with Chase Manhattan Bank as the sleeve on both deals. Will be confirmed Tuesday am. Documentation Sara, Morris, I assume there are no issues around using Chase Manhattan Corp to sleeve, rather than Chase Canada as long as the legal jurisdiction remains as Canada. Please confirm. Current status of docs. Swap 1: Contracting parties Enron Canada & Royal Bank of Canada The ISDA has already been drafted , with RBC replacing Bow River Trust One schedule, one confirm for swap 1 (financial commodity swap), One Schedule, one confirm for swap 4 (interest rate swap) Verify Enron Canada has ISDA in place with TD Swap 2: Contracting parties Royal Bank of Canada/TD & Chase Manhattan Bank No docs required on Enron' s part Swap 3: Contracting parties Chase Manhattan Bank & Enron North America ENA already has an ISDA in place with Chase Corp, One schedule, one confirm for swap 1 (financial commodity swap), Swap 4: Contracting parties Enron Canada & Royal Bank of Canada/TD See swap 1 docs We'll set up a conference call Tuesday am. Regards, Soma
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