I echo Paul's comments.  This is a tremendously important transaction to 
Enron and could not have been done without the efforts of the entire team.

Conagratulations to the entire team on the closing and thank you for both the 
effort and the creativity.

Ben



	Paul Chivers
	12/07/2000 03:16 AM
		 
		 To: Andrew S Fastow/HOU/ECT@ECT, Ben F Glisan/HOU/ECT@ECT, Mark 
Frevert/NA/Enron@Enron, John Sherriff/LON/ECT@ECT, Michael R 
Brown/LON/ECT@ECT, Greg Whalley/HOU/ECT@ECT, Jeffrey McMahon/HOU/ECT@ECT, 
Michael J Hutchinson/EU/Enron@Enron, Michael Farmer/EU/Enron@ENRON, Tom 
McKeever/EU/Enron@Enron, David P Tregar/EU/Enron@Enron, Kelly H 
Boots/HOU/ECT@ECT, Joe Gold/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT, Matthew 
Scrimshaw/LON/ECT@ECT, Fernley Dyson/LON/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT
		 cc: Bill Appleby/LON/ECT@ECT, Anne Edgley/LON/ECT@ECT, David P 
Tregar/EU/Enron@Enron, Howard Carter/EU/Enron@Enron, Justin Boyd/LON/ECT@ECT, 
Melissa Allen/LON/ECT@ECT, Phillip D Lord/LON/ECT@ECT, Eric Gadd/LON/ECT@ECT, 
Tim DeSpain/HOU/ECT@ECT, Michael Kopper/HOU/ECT@ECT, Peter 
Russell/EU/Enron@Enron, Clive Hutchings/EU/Enron@Enron, William 
Sell/EU/Enron@Enron, Janine Juggins/LON/ECT@ECT, Catharina 
Clabots/LON/ECT@ECT, Angela A Brown/LON/ECT@ECT
		 Subject: $2.15 bn Enron Metals Inventory Financings Closed

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 creation of an additional  $2.15 bn capacity in the bank markets as the 
facilities extinguish up to 20 lines of existing credit in the banks market; 
A clearer reporting and control structure for the funding of Enron Metals.; 
A repeatable low cost structure which meets all tax and accounting tests for 
applications across all our business lines    

Congratulations to the deal team on this great effort  

EGF     Bill Appleby, Anne Edgley
Enron Metals    David Tregar; John Lunzer; Howard Carter; Clive Hutchings; 
William Sell  
Legal    Justin Boyd 
TransSupport / Acctg   Melissa Allen; Phillip Lord
Tax    Janine Juggins; Catharina Clabots; Angela Brown