DWR

I told DWR that Enron is not comfortable with the risk/reward of the transaction. They are reviewing the following modification:

April Price: $200
May and beyond: $127
7 day payments through April 30
Standard EEI payment terms thereafter
Credit for Feb, Mar, April ($17MM) paid 7 days after investment grade bonds are issued
ENA has right to walk at any time for any reason up until the earlier of 7 days after bonds issued or Sep 1
Cal Reg Out (with termination payment) modified to include ballott initiatives and CPUC orders

This is effectively a $5MM premium for a 4MMMwhr put swaption

I will update when I hear back from them.