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Enron Mail |
Andy,
Another point to note is that 50% of the funding occurs at closing and 50% after our link with EOL is up and running for 30 days, so all the funding is not required at closing. I understand Enron will probably not invest, but I wanted to make sure you had all the info. Frank < -----Original Message----- < From: Frank Getman, HSE < Sent: Monday, March 05, 2001 1:02 PM < To: Andy Zipper (E-mail) < Cc: Howard Smith; John Applegate < Subject: Financing update < < Andy, < < As I mentioned during our call on Friday, HoustonStreet is doing a $4mm < round of debt financing with warrants allowing the holders to convert the < debt into equity at $.15 per share. An additional approximately $8mm of < outstanding indebtedness is also being converted into the same security. < The following is the information you requested to analyze Enron's postion: < < 1. Enron currently owns 8.16% of HoustonStreet; < 2. Enron will be granted three additional blocks of 254,400 shares each < based upon achieving agreed upon volume targets; < 3. Enron will receive an additional 10% of HoustonStreet (on a fully < diluted basis) if the link with HoustonStreet is exclusive after one year < from going live; < 4. If Enron does not participate in this round of financing, it would own < approximatley 2%. The shares awarded for volume targets and exclusivity < (points 2 and 3 above) remain unchanged; < 5. Enron's pro rata share of the $4mm of new capital is $343k. If Enron < invested $343k, it would own 4% after the financing; and < 6. Enron's pro rata share of the $12mm financing ($4mm of new capital and < $8mm of debt conversion) is approximately $1mm. If Enron invested $1mm, < it would own 8.6% after the financing. < < I hope this provides you with the information you need. Please feel free < to contact me if you have any questions. The closing for this round of < financing is scheduled for March 12, 2001. < < Best regards, < Frank
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