RE: $2.15 bn Enron Metals Inventory Financings Closed

GOOD JOB !!

----Original Message-----
<From: Paul Chivers/LON/ECT
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<Subj: $2.15 bn Enron Metals Inventory Financings Closed
<Sent: Thursday, December 07, 2000 3:20 AM
<
<Last Tuesday Global Finance Europe closed a new off balance sheet
facility with Barclays creating up to $1bn of capacity for existing and new
physical metals trades for Enron Metals. This transaction will be added to
through an additional $350mm of capacity from Credit Lyonnais and compliments
the $750mm Warrants structure completed in September.
<
<Each transaction involves a sale of either Physical Metal or Warrants to
the bank with Enron receiving an associated call option. The bank hedges its
market risk through a complimentary foward sale with the LME. The new
physical metal facility will start receiving its first trades this week.
<
<The transaction achieves much for Enron:
<Deconsolidation of approximately $2bn of debt financed inventory which
came with the aquisition of MG plc;
<The creation of new capacity to grow the business beyond its existing
base;
<Committed facilities for the business unit which are at a lower cost
than the original debt financed facilities;
<The c
<
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