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