Dr. Lay - Just a quick note to let you know that the daily updates are informative. Enron is a great company and will make it through this! Thanks for your leadership in a very difficult time. SM
From: Enron Announcements/Corp/Enron@ENRON On Behalf Of Ken Lay- Chairman of the Board@ENRON
Sent: Thursday, November 01, 2001 12:15 PM
To: All Enron Worldwide@ENRON
Subject: Daily Update
Today we announced another positive development in our efforts to regain shareholder and market confidence, strengthen our balance sheet and help maintain our credit rating.
We have executed a commitment letter with two of our longstanding banking partners, JPMorgan (the investment banking arm of JPMorgan Chase & Co.) and Salomon Smith Barney (the investment banking arm of Citigroup Inc.), that will provide us with additional secured credit lines worth $1 billion. Our Northern Natural Gas Company and Transwestern Pipeline Company will support these assets. The proceeds will be used to supplement short-term liquidity and to refinance maturing obligations.
The pipelines are not being sold. Enron is only using these assets for this new credit line. Secured financing like this provides an expeditious way to increase liquidity and restore confidence. We also have the capacity to increase this facility by an additional $200 million if we bring in additional banks to participate.
This money is in addition to the $3 billion in our credit lines we accessed last week to pay off short-term commercial debt and keep more than $1 billion in cash.
I know it is discouraging to read the negative media coverage about our company. On a positive note, there was an editorial in last Sunday's Houston Chronicle that I want you to read: <http://www.chron.com/cs/CDA/story.hts/editorial/outlook/1107504<. This is an extremely difficult time for everyone and I appreciate everything you do for Enron.
Don't forget to read our voice mail and e-mail transcripts covering these developments on the Enron Updates intranet site at (<http://home.enron.com/updates/<).