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Enron Mail |
---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 12/30/99 09:08
AM --------------------------- Tracy Ngo 12/28/99 12:30 PM To: Sara Shackleton/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT cc: William S Bradford/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Rick Buy/HOU/ECT@ECT, Rodney Malcolm/HOU/ECT@ECT Subject: Project Moosehead - Revised Terms Pursuant to my recent conversation with Rodney Malcolm, I am detailing below newly negotiated terms that have been accepted by Credit in regards to the contracts/confirms for the Merrill Lynch physical and financial transactions: on behalf of EPMI, Enron Corp. will provide a $60MM guaranty to Merrill Lynch Capital Services covering exposures under both Master contracts (either amend existing $30MM physical guaranty or supersede existing guaranty with a new guaranty) usage of the the stair-step Threshold that is currently in the Credit Support Annex (Paragraphe 13) of the existing Master power contract will remain effective for the specific power confirmation. However, the valuation of the parties' exposure will be defined as exposures under the existing physical power Master agreement as well as the new financial ISDA Master. [both the physical confirmation and the ISDA Master will need to reference this stair-step Threshold provision that will govern margin calls under both transactions] deletion of the investment grade MAC for both credit worksheets (replaced by stair-step Threshold discussed above) third party cross-default amounts: Merrill Lynch & Co. Inc. is $100MM and Enron Corp. is $50MM (contingent upon approval by Andy Fastow or Jeff McMahon. I have left a voice message and an email for Jeff McMahon requesting approval of the third-party cross-default exception.) Tracy x3-0554 ---------------------- Forwarded by Tracy Ngo/HOU/ECT on 12/28/99 11:50 AM --------------------------- Tracy Ngo 12/28/99 11:14 AM To: Sara Shackleton/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT cc: Mark E Haedicke/HOU/ECT@ECT, Rick Buy/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Rodney Malcolm/HOU/ECT@ECT Subject: Latest Credit Worksheets for Project Moosehead Attached please find the latest credit worksheets for the physical and financial transactions between EPMI and Merrill Lynch Capital Services, Inc. The credit worksheet for the physical transaction is in the form of a specific confirmation that will be confirmed under the existing Master Energy Purchase and Sale Agreement between EPMI and Merrill Lynch Capital Services. The credit worksheet for the financial transaction is in the form of a new ISDA Master Swap Agreement. Per Bill Bradford, please note that Credit approval for both worksheets are contingent upon legal approval by Mark Haedicke of the physical and financial setoff/netting assumption. I have requested and am waiting approval from Jeff McMahon to accept the counterparty's request to set the third party cross-default amount of $50,000,000. For the purposes of these credit worksheets, the amount proposed remains at $100,000,000 for both parties. Please call should you have any questions, x3-0554. Regards, Tracy (physical confirm - credit worksheet) (new ISDA Master - credit worksheet)
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