Bloomberg also asking questions for a story.  

Vance Meyer
 -----Original Message-----
From: 	Schmidt, Ann M.  
Sent:	Friday, November 16, 2001 4:08 PM
To:	Meyer, Vance
Subject:	=DJ Enron Set To Close/Revolver -2: Pipelines Support $1 Bln

=DJ Enron Set To Close/Revolver -2: Pipelines Support $1 Bln
2001-11-16 16:56 (New York)

   By Michael Barr 
   Of DOW JONES NEWSWIRES 
 
  NEW YORK (Dow Jones)--Embattled energy services company Enron Corp. (ENE)
said Friday that it closed on one revolving credit agreement earlier this week
and expects to close on another one Monday for a total of $1 billion in new
credit. 

  The $1 billion is crucial to Houston-based Enron's efforts to regain investor
confidence, which has been badly eroded. Concerns about Enron's finances
precipitated a 75% drop in its stock price over the past month and left its
bonds trading at levels typically associated with junk-rated debt. 

  Chase Manhattan Bank (JPM) and Citibank, N.A. (C) closed a revolving credit
agreement in the amount of $550 million with Enron subsidiary Transwestern
Pipeline Co. on Wednesday, according to company spokesman Mark Palmer. And the
company expects the same two banks to close a $450 million revolving credit
agreement with its Northern Natural Gas Co. subsidiary on Monday. 

  Original conditions in the credit agreements that could have prevented the
closings have been removed, Enron spokesman Mark Palmer said. 

  The agreements required that Enron be rated at least triple-B-minus by
Standard & Poor's and Baa3 by Moody's Investors Service and accompanied by a
stable outlook. While Enron is rated triple-B-minus and Baa3, Moody's has
Enron's ratings on review for a downgrade and S&P has Enron on negative credit
watch. 

  The rating agencies use the outlook system as an indication of the direction
of a possible future rating revision. 

  "Both banks removed the `stable' requirement," Palmer said, allowing the
closings to proceed. 

  Enron reached agreement on the credit lines Nov. 1, after the company drew
down all its previously available credit facilities to buy back its outstanding
commercial paper and raise cash. 

  Last week, energy-industry rival Dynegy Inc. (DYN) announced it had reached
an agreement to acquire Enron in a stock swap now valued at about $10 billion
plus assumed debt. Without the agreement, Enron's ratings would fall to
speculative grade, S&P has said. 

  Enron restated four and a half years' worth of financial reports last
Thursday because of questionable partnership arrangements, lowering its
earnings over the period by 20%. Resulting downgrades by Moody's and S&P led
some energy companies to severely restrict their business with Enron. 

  -By Michael C. Barr, Dow Jones Newswires; 201-938-2008;
michael.barr@dowjones.com