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Enron Mail |
Can anyone of you assist me on this matter by sending me copies of draft Call
Option Agreements used by Enron in the US, Europe or any Latin America country ? Thanks, Sami ---------------------- Forwarded by Sami Arap/ENRON_DEVELOPMENT on 05/04/2000 08:15 AM --------------------------- Randy Young@ECT 05/04/2000 05:52 AM Sent by: Randy Young@ECT To: Sami Arap/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: physical option - proposals, term sheets, pricing Mark Taylor or Brent Hendry Sami Arap@ENRON_DEVELOPMENT 03/05/2000 22:08 To: Randy Young/ENRON_DEVELOPMENT@ECT cc: Subject: physical option - proposals, term sheets, pricing Randy; I don't want to re-invent the wheel ... who at Enron-Houston should I contact to obtain copies of US type of draft Call Option Agreements ? Thanks, Sami ---------------------- Forwarded by Sami Arap/ENRON_DEVELOPMENT on 05/03/2000 07:14 PM --------------------------- D'Arcy Carroll 04/19/2000 01:51 PM To: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Remi Collonges/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joao Guimaraes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Luiz Baccaro/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brett R Wiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joao Carlos Albuquerque/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sami Arap/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: physical option - proposals, term sheets, pricing Group - we need to address the due diligence for executing the " first " physical option transactions in Brasil and for Direct Sales ( and Wholesale ). The initial industrial candidates are: Owens Corning ( 1.6MWs firm ). 1 site, peaking unit. break-even R$182/MW - 5 year term Carbocloro ( 10 MWs firm ). 1 site 3rd part re-sale(Copel) , monthly call option. supplanting product sales, estimate minimum incentive strike R$ 125/MW - 3 or 4 year term, O Globo. (1-3MWs) 2 sites, peaking units. awaiting summary terms and conditions. White Martins (10-15MWs ). 8 sites (MG), intersite flexibility to adjust product between sites and maximize energy re-sale. 3rd party re-sale (Cemig). short-term capacity basis indutrial demand for gases short-term variable price - 2 or 3 year In all four cases, Enron is buying the right to buy power and all 3 are executable in Q2/Q3. We are expecting (hoping) to transact paying no premium - with the focus on the strike price itself being the profitability incentive to the customer. However, we'll need to guage our pricing ability ( and appetite from a book and risk control point of view ) for option length and the forward curve, not to mention getting the terms and conditions into reasonably standardized and legally binding contracts. Wholesale. Am including Wholesale on the wire given both the synergies on contracting and pricing and given the significant potential ( benefit and opportunity to Enron's regional trading effort ) to launch the physical and financial option product line into the commercial Wholesale effort. Note: Particularly to put options - how many LDCs would we expect to charge us anything for our right to sell them power at R$30 or R$40/MWh ( or have charged us 3-5 months ago for the right to sell closer to R$50-60. We're having first sit down with Remi and Sami this afternoon, Wed Apr 19; please shoot any/all additional inputs, insights.
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