Enron Vice Chairman J. Clifford Baxter To Resign
Dow Jones News Service, 05/02/2001

India State Panel Invites Enron Unit For Talks May 5
Dow Jones, 05/02/01

ATS Announces First Half Results
PR Newswire, 05/02/01

Saudi Gas Proj Consortia Seen Selected 2H May -Sources
Dow Jones Energy Service, 05/02/2001

Corporate Bond Alert: WorldCom, Household Finance, AIG to Sell
Bloomberg, 05/02/01

Enron Vice Chairman Baxter Resigns; No Successor Is Planned
Blommberg, 05/02/01

Enron Vice Chairman J. Clifford Baxter To Resign

05/02/2001
Dow Jones News Service 
(Copyright (c) 2001, Dow Jones & Company, Inc.) 

HOUSTON -(Dow Jones)- Enron Corp. (EBE) Vice Chairman J. Clifford Baxter is 
resigning from the company to spend more time with his family. 
In a press release Wednesday, the energy and communications company said 
Baxter will continue working for Enron as a consultant. 
Baxter joined Enron in 1991 and was chairman and chief executive of Enron 
North America before being named chief strategy officer for Enron in June 
2000 and vice chairman in October.
Company Web site: http://www.enron.com 
-Susan Willetts; Dow Jones Newswires; 201-938-5388

India State Panel Invites Enron Unit For Talks May 5

05/02/2001
Dow Jones International News 
(Copyright (c) 2001, Dow Jones & Company, Inc.) 

NEW DELHI -(Dow Jones)- India's Maharashtra state government has formally 
asked U.S. energy major Enron Corp.'s (ENE) Indian unit Dabhol Power Co. to 
appoint a team to renegotiate the power purchase agreement with the state 
government's expert committee Saturday, the United News of India reported 
Wednesday. 
"We have formally requested the DPC president to send a team for 
renegotiation. We will be awaiting their response to commence the talks on 
May 5," UNI quoted the state's Energy Secretary V.M. Lal as saying after his 
meeting with officials of the Maharashtra State Electricity Board and the 
nine-member expert panel.
The $3 billion, 2,184-megawatt DPC project in Maharashtra has been mired in 
financial disputes after the MSEB, its main customer, failed to pay several 
bills. The project has the largest single foreign investment in India. 
The Maharashtra state government has asked the committee to try to negotiate 
a revised agreement within a month. 
The committee's goals are to lower the power tariff and allow the sale of 
excess power to the federal government or its utilities. A restructure of the 
DPC's stakeholding may also be on the agenda. 
Texas-based Enron has a 65% stake in the DPC, and is the project's largest 
shareholder. Other shareholders include the MSEB with 15%, and General 
Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each. 
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427; 
himendra.kumar@dowjones.com

ATS Announces First Half Results

05/02/2001
PR Newswire 
(Copyright (c) 2001, PR Newswire) 

CALGARY, May 2 /PRNewswire/ - Applied Terravision Systems Inc. (ATS) (CDNX: 
TER) is pleased to announce its first half results for the six-month period 
ended March 31, 2001. ATS's revenues for the first half increased to $17.868 
million, 28.3 percent higher than the $13.925 million recorded for the first 
half of fiscal 2000. Gross Margin revenues increased 40.1 percent to $17.191 
million from $12.214 million during the first half of fiscal year 2000. 
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization and 
Extraordinary Items) for the six month period-ended March 31, 2001 was $2.204 
million or $0.07 per share, an increase of 355.6 percent, compared to EBITDA 
for the period-ended March 31, 2000, which was $0.484 million or $0.02 per 
share.
Cash flow from operations, prior to changes in non-cash working capital, for 
the six-month period-ended March 31, 2001 was $1.067 million or $0.03 per 
share, as compared to the same period-ended March 31, 2000 when the cash flow 
from operations, prior to changes in non-cash working capital, was $0.264 
million or $0.01 per share. 
Net income before tax, amortization of goodwill and extraordinary items for 
the first six months of fiscal 2001 was $0.656 million or $0.02 per share, an 
increase of 249.6 percent, compared to net a loss before tax and amortization 
of goodwill of $0.453 million for the corresponding period in fiscal 2000. 
After amortization of goodwill and allowance for United States income tax the 
company had a net income before extraordinary items of $0.141 million or 
$0.00 per share in the first six months of fiscal 2001 as compared to a loss 
of $0.879 million or $0.03 per share in the prior year period. FORWARD 
LOOKING STATEMENTS 
-------------------------- 
In the interest of providing ATS shareholders and potential investors with 
information regarding the Corporation, including management's assessment of 
the Corporation's future plans and operations, this presentation contains 
forward-looking information that represents the Corporation's internal 
projections, expectations or beliefs concerning future operating results and 
various components thereof of the Corporation's future economic performance. 
The projections, estimates and beliefs contained in such forward-looking 
statements necessarily involve known and unknown risks and uncertainties 
which may cause the Corporation's actual performance and financial results in 
future periods to differ materially from any estimates or projections of 
future performance or results expressed or implied by such forward-looking 
statements. Accordingly, shareholders and potential investors are cautioned 
that events or circumstances could cause actual results to differ materially 
from those contemplated. 
Companies continue to take advantage of ATS's Application Service Provider 
(ASP) and Business Function Outsourcing (BFO) eSolution business offerings. 
ASP subscription fees and associated revenues from ATS's intellectual 
property delivered on its ASP platform for the first half of fiscal 2001 
increased 127.9 percent to $11.605 million from $5.093 million for the first 
half of fiscal 2000. These revenues comprised 64.9 percent of total revenues 
during the first half of fiscal 2001 as compared to 36.6 percent during the 
first half of fiscal 2000. BFO services generated $1.376 million in revenues 
for the first quarter of fiscal 2001, comprising 7.7 percent of total 
revenues during this period, whereas ATS recorded no BFO revenues during the 
first half of fiscal 2000. 
During the first six months of fiscal 2001 the ATS reoccurring revenue base 
(which includes maintenance, ASP Subscription Fees and BFO Contracts) 
increased 37.0 percent to $7.728 million from $5.642 million for the same 
period in 2000 while professional services revenues increased 66.8 percent to 
$10.332 million from $6.196 million during the same period. As anticipated, 
increased ASP and BFO sales offset reduced license fee revenues as customers 
move to ATS's reoccurring subscription fee business model. License fee 
revenues declined by 57.2 percent to $0.888 million from $2.074 million 
during the same six months of fiscal 2000. 
ATS's ASP centers continue to demonstrate value to new and existing 
customers. Stylus Exploration Inc., of Calgary, moved their business 
information systems to an ATS managed data center. Lyco Energy of Dallas 
entered into an agreement with ATS to utilize the Dallas BFO / ASP center. 
Additionally four non-operated interest companies began using ATS's BFO 
centers, two in Canada and two in the U.S. ATS's e-Solutions allow these 
customers to shift their non-core business functions and information 
technology needs to ATS so they can devote their time and attention to their 
core business functions of oil and gas exploration and production. 
ATS continues to grow its client base by providing the customers with 
business solutions that best fit their requirements, either through 
traditional software licenses, ASP access or BFO services. Traditional 
software licensing in the small business market continues to be strong with 
an additional 36 new clients in North American subscribing to ATS's small 
business solutions. ATS's 400 plus junior and emerging producer clients in 
North America establishes the company as the dominant provider of information 
solutions to this market segment, which is a foundation for future ASP and 
BFO growth. 
During the first half of fiscal year 2001 ATS significantly invested in 
expanding its Dallas operations in order to effectively service its growing 
ASP / BFO client base and further develop its product and service offerings. 
This investment contributed to the 29.7 percent increase in operating 
expenses for the first six months of fiscal 2001 to $12.459 million from 
$9.605 million for the same period in fiscal 2000. 
As an extraordinary item ATS expensed 100 percent of the previously accrued 
expenditures (See Extraordinary Items in the Financial Statements) related to 
the Plan of Arrangement with Petroleum Place, Inc. ATS accrued those charges 
related to the transaction that would have been accounted for as transaction 
costs if the merger had been capable of proceeding. As the Merger Agreement 
expired uncompleted, a result of financial market conditions that prevented 
Petroleum Place from effecting a qualified Initial Public Offering, events 
that were clearly out of the control of management, effective March 31, 2001 
ATS has, as per Canadian Generally Accepted Accounting Principals, expensed 
all related Financial ($396,349 CDN), Accounting ($148,586 CDN), Legal 
($88,168 CDN) and Managerial Expenses ($30,510 CDN) previously accrued. This 
results in a total one-time extraordinary charge of $663,613 CDN. 
Effective October 1, 2000, ATS changed from the deferral method of accounting 
for income tax to the liability method as pronounced by the Canadian 
Institute of Chartered Accountants. No adjustment was required to the 
consolidated financial statements for this change in policy. RESEARCH AND 
DEVELOPMENT INVESTMENT 
----------------------------------- 

Prior to initiating new R & D projects ATS investigates the marketplace and 
strives to have its new product development initiatives endorsed by industry 
representatives to ensure market viability. The majority of ATS's new product 
R & D initiatives are backed by customers either by; 1) customer co-funded 
development projects (for example, the Horizon project with the Bank of 
America and the TAAMS project with the Bureau of Indian Affairs, or 2) the 
on-going maintenance revenue stream and User Group involvement through 
in-kind contributions (for example, the TEAM project). This approach allows 
ATS to continue to maintain its commitment to the expansion and improvement 
of its product and service offerings to its existing and new customers with 
leading edge technology that will have a positive impact on ATS's customers' 
bottom line. 
As part of ATS's growth plan ATS invested $2.528 million in R & D (14.1 
percent of revenues) for the first half of fiscal 2001 as compared to $2.125 
million (15.3 percent of gross revenues) for the same period in 2000. New 
product R & D initiatives include the TEAM product, a web-based tracking 
system for oil and gas well administration, which comprised 9.0 percent of 
expensed R & D for the half. Enhancements to the Horizon product, a financial 
accounting system originally created for the Bank of America, which will be 
introduced into the broader petroleum marketplace later this year, comprised 
30.4 percent of expensed R & D for the half. As announced, one Texas-based 
producer has already contracted to have Horizon implemented, a positive 
confirmation of ATS's investment in this highly awaited solution. 
Additionally the Preview product, an asset management system with successful 
installs currently in progress, comprised 4.4 percent of R & D for the half. 
It is noted that ATS has continued with its policy of fully expensing these 
long-term investments rather than capitalizing these investments for future 
amortization. The balance of R & D dollars, approximately 56.2 percent, was 
invested in association with products that generate existing maintenance and 
enhancement revenue ensuring that these products remain current and continue 
to meet the needs of ATS's growing customer base. ENRON MUTUAL MARKETING 
AGREEMENT 
-------------------------------- 

On March 20, 2001 ATS was pleased to announce it's mutual marketing agreement 
partnership with Enron North America to provide outsourcing of accounting and 
administrative functions to Canadian and U.S. producers. The partnership 
combines Enron's commodity, asset management and financial services with 
ATS's outsourcing capabilities for back-office processing and information 
technology, providing producers with the ability to source any service from 
wellhead to burnertip connection in one transaction. Enron and ATS provide 
services to effectively aggregate, market, schedule and account for the 
producer's supply stream, while at the same time reduce their need for costly 
corporate infrastructure needs. Within the Enron partnership ATS offers the 
trained personnel and facilities to perform administration and accounting 
duties, such as joint venture, revenue and production accounting, transaction 
processing, expenditure authorization, tax payments, royalty payments and 
regulatory filings. The client benefits of outsourcing these back-office 
responsibilities to ATS include higher productivity, increased flexibility 
and lower administrative costs for the producers. It is anticipated that the 
partnership will provide limited growth for ATS during Fiscal 2001; however, 
the relationship positions ATS for significant revenue and earnings growth 
potential in fiscal 2002 and beyond. SEGMENTED FINANCIAL SUMMARY 
--------------------------- 
The company has significant operations in two geographic locations, Canada 
and the United States. Comparative segmented financial information is 
summarized as follows: 6 Mnths Ended March 31, 2001 
----------------------------------------- 
 It is noted that the Canadian Division is charged with one hundred percent 
of the amortization of historical Application Software and Goodwill 
investments. Accordingly, the bottom line for the Canadian division is 
reduced by one hundred percent of these non-cash accounting charges. Under 
the proposed Canadian Institute of Chartered Accountants (CICA) Emerging 
Issues Committee Exposure Draft on Business Combinations - Accounting for 
Goodwill, the practice of the amortization of Application Software and 
Goodwill would be discontinued with these investment values maintained on the 
Balance Sheet subject to annual value impairment reviews. Should the value be 
impaired then the company would write down the fixed asset value of the 
Purchased Application Software and Goodwill investments by the impairment 
reduction. 
Once implemented this pronouncement will put Canadian Companies on par with 
United States Reporting Issuers. When implemented this revised practice will 
enable ATS to more appropriately report Canadian and United States segmented 
financial results. 
ATS's decline in the Canadian revenues and increase in US revenues coincides 
with studies conducted by major research firms such as Giga, Forrester, IDC 
and others. The decrease in Canadian revenues is reflective of a mature 
marketplace for enterprise software and delayed customer expenditures 
associated with a recognized need for a new business model. Conversely the 
increased US revenues are directly attributable to acceptance of the ASP and 
BFO as desired business models in the US marketplace. Canadian companies have 
been slower to accept these business models and lag the United States 
marketplace by approximately 18-20 months in most sectors according to the 
above referenced research firms. This lag period is believed to be ending for 
most Canadian sectors and ATS is beginning to gain ASP and BFO. ATS 
anticipated this trend and planned its investments accordingly. Consequently 
we anticipate growth in ATS's Canadian operational reoccurring revenues as 
the Canadian industry adopts the ASP / BFO business model, similar to ATS's 
US operations. CORPORATE ACTIVITIES 
-------------------- 

March 6, 2001 ATS appointed of Mr. John A. Brussa, a partner with the firm of 
Burnet, Duckworth & Palmer, to the Company's Board of Directors. Mr. Brussa 
received his LL.B. in 1981 from the University of Windsor and graduated as a 
gold medallist. He was called to the Bar in 1982 and is presently a partner 
with the firm of Burnet, Duckworth & Palmer in Calgary, Alberta, Canada. Mr. 
Brussa's practice focuses on resource taxation, corporate reorganizations, 
cross border and international transactions and financings. Mr. Brussa is 
presently a director of several companies in the oil and gas industry. 
As of March 31, 2001 ATS announced that the plans to amalgamate ATS and The 
Petroleum Place, Inc. ("PPI") were terminated. Pursuant to the Amended and 
Restated Agreement and Plan of Arrangement among ATS, PPI and certain 
shareholders of ATS (the "Merger Agreement"), PPI was required complete an 
initial public offering. As of March 31, 2001 PPI did not complete an initial 
public offering and therefore the Merger Agreement between the two companies 
expired. 
On March 20, 2001 ATS announced, associated with the Enron Producer One 
Marketing Agreement, the issuance of three million warrants to Enron North 
America. Two million warrants are exercisable at a price of $0.85 CDN for a 
period of 18 months after the issue date with one million warrants 
exercisable at a price of $1.10 CDN for a period of 24 months after the issue 
date. SUBSEQUENT EVENTS 
the company's most recent annual financial statements. SOURCE Applied 
Terravision Systems Inc.

/CONTACT: This release and more information are available at www.atsi.com or 
contact the following: Applied Terravision Systems Inc.: Robert W. Tretiak, 
President & Chief Executive Officer, 403-218-8301, btretiak@atsi.com; Warren 
Coles, Chief Financial Officer & Treasurer, 403-218-8340, wcoles@atsi.com/ 
09:00 EDT 

Saudi Gas Proj Consortia Seen Selected 2H May -Sources
By Dyala Sabbagh
Of DOW JONES NEWSWIRES

05/02/2001
Dow Jones Energy Service 
(Copyright (c) 2001, Dow Jones & Company, Inc.) 

DUBAI -(Dow Jones)- Consortium leaders and members for the three core gas 
ventures on offer in Saudi Arabia are expected to be announced in the second 
half of May, sources familiar with the negotiating process have told Dow 
Jones Newswires. 
As previously reported, the Saudi Arabian committee negotiating with 
international oil companies, or IOCs, on the so called Gas Initiative, 
recently submitted its proposals for consortium leaders to the kingdom's 
Supreme Petroleum Council for approval.
Saudi Arabia invited international oil companies in October 1998 to 
participate in proposals for downstream gas projects and upstream gas 
enhancement. A series of meetings between the negotiating committee and 
shortlisted IOC's have taken place in the past year. 
Royal Dutch/Shell Group (RD), BP Amoco PLC (BP), Exxon Mobil (XOM), Chevron 
(CHV), TotalFinaElf (TOT) and ENI SpA (E) have been shortlisted for core 
venture number one, the $15 billion South Ghawar Area Development. Exxon, 
Shell and BP have been dubbed as the frontrunners with ExxonMobil seen as the 
strongest contender. 
For core venture two, the Red Sea Development, Enron Corp. (ENE) and 
Occidental Petroleum Corp. (OXY) are bidding jointly and Exxon Mobil, 
TotalfinaElf, Marathon Oil Canada Inc. (T.M), Shell and Conoco Inc. (COCA) 
have also been listed. Among these, TotalfinaElf and Shell are seen as strong 
possibilities. 
For core venture three, the Shaybah area, TotalFinaElf, Conoco, Phillips 
Petroleum (P), Enron & Occidental, Exxon Mobil, Shell and Marathon Oil have 
been listed. Conoco and TotalfinaElf are said to be frontrunners here. Role 
Of Consortium Leaders Still Unclear 

Sources have said some companies currently under consideration will be struck 
off the list in the final selection. 
Consortium leaders are expected to be responsible for directing further 
detailed negotiations on the projects at hand, such as pricing and finance. 
They are also likely to get the largest stake in any project as well as 
operatorship. 
But the IOCs are still in the dark as to what their exact roles will be in 
the event they are selected, industry sources said. 
Still, despite lacking a comprehensive framework, some deals are expected to 
be initialed this year. And once sealed, IOCs are also expected to start 
talking to local companies about contracting out participation on parts of 
the projects. 
The three ventures have a combined value of about $25 billion with each one 
having on average eight individual components. How these components will be 
dealt with or allocated is also as yet undetermined. 
Saudi Arabia has about 2.5 billion cubic feet of gas a day in its system 
currently and will have about 4 bcf/day by 2003. 
By 2025, it will need an estimated 14 bcf/day to meet its own consumption 
requirements and for possible export. 
By Dyala Sabbagh, Dow Jones Newswires; 9714 3314260; 
dyala.sabbagh@dowjones.com

Corporate Bond Alert: WorldCom, Household Finance, AIG to Sell
2001-05-02 09:16 (New York)


     New York, May 2 (Bloomberg) -- Following is a description of
corporate and other bond sales expected in the U.S. in coming
days, weeks and months:

                         Investment Grade

     WORLDCOM INC., the No. 2 U.S. long-distance company, is
preparing to raise as much as $8 billion in the bond market in
what would be the biggest debt sale by a U.S. company this year.
Clinton, Mississippi-based WorldCom picked Salomon Smith Barney
and J.P. Morgan Chase & Co. to manage the bond sale, which will be
denominated in dollars, euros, and possibly pounds sterling,
people familiar with the matter said. The dollar portion is to be
sold in three parts, with maturities of three, 10, and 30 years.
Banc of America Securities is expected to help manage the sale of
these notes. WorldCom also plans to sell seven-year euro-
denominated notes. Banc of America and ABN Amro Inc. are expected
to help manage the sale of that debt. Presentations to investors
are scheduled this week in Europe and next week in the U.S., and
an investor call is set for Monday. Moody's Investors Service
rates WorldCom's existing bonds ``A3,'' and Standard & Poor's
rates them ``BBB+.'' (Updated: May 2. Company news:
{WCOM US <Equity> <GO>}).

     HOUSEHOLD FINANCE CORP., a unit of Household International
Inc., the second-largest U.S. consumer-loan company, plan to sell
$1.5 billion of 10-year notes this week, said people familiar with
the matter. Deutsche Banc Alex. Brown, J.P. Morgan Chase, and
Salomon Smith Barney are arranging the sale, the people said.
Prospect Heights, Illinois-based Household Finance's existing debt
is rated ``A2'' at Moody's and ``A'' at S&P.  (Updated May 2.
Company news:
{HI2 US <Equity> CN <GO>}).

     AIG SUNAMERICA GLOBAL FINANCE, a division of the second-
biggest financial services company, plans to sell $1 billion of
global bonds as soon as this week, said a syndicate official at
Merrill Lynch & Co., one of the investment banks managing the
sale. The parent company, American International Group Inc., will
sell the bonds in two dollar-denominated portions through its
subsidiary, Merrill Lynch said. Further details on the size and
maturity of the bonds weren't available.  Merrill Lynch and UBS
Warburg are the lead managers of the sale, the banker said. S&P
and Moody's each give AIG top triple-`A' credit ratings. (Updated
May 2. Company news:
{AIG US <Equity> CN <GO>}).

     CIT GROUP INC., a commercial and consumer financing company
with more than $50 billion in assets, is preparing to sell global
bonds denominated in multiple currencies, said people familiar
with the matter. New York-based CIT has picked Deutsche Bank Alex.
Brown and Lehman Brothers Inc. to manage the sale, the people
said. The sale will launch following presentations to investors
this week in the U.S. and Europe, and the bonds are expected to
consist of U.S. dollar and Euro tranches in global format and
benchmark size. Maturities are expected to be short to
intermediate. Moody's Investors Service rates CIT's existing bonds
``A1,'' and Standard & Poor's rates them ``A+.'' (Updated April
30. Company news:
{CIT US <Equity> CN <GO>}).

     AMERICAN ELECTRIC POWER CO., owner of utilities in the U.S.
and Europe, will sell $1 billion in global notes, said bankers
involved in the sale. The bonds will likely be sold in two parts,
with a large bond of intermediate maturity and a shorter-dated
security. Credit Suisse First Boston, Merrill Lynch & Co., and UBS
Warburg LLC are to manage the sale. Last month, AEP filed with the
Securities and Exchange Commission to sell as much as $1.5 billion
of unsecured notes for general purposes. S&P rates AEP's debt ``A-
,'' while Moody's rates the utility's bonds ``Baa1.'' (Updated
April 25. Company news:
{AEP US <Equity> CN <GO>}).

     EXELON CORP., the power producer formed by the merger of Peco
Energy Co. and Unicom Corp., plans to sell $500 million worth of
10-year notes next week, according to Credit Suisse First Boston,
which is arranging the sale along with Salomon Smith Barney. The
proposed senior notes are rated ``Baa2'' at Moody's and ``BBB+''
at S&P. (Updated May 1. Company news:
{EXC US <Equity> CN <GO>}).

     INTERNATIONAL FLAVORS & FRAGRANCES INC., a maker of products
that enhance food and perfumes, said is preparing to privately
sell $500 million of five-year notes. Proceeds will pay off
shorter-term debt taken on from the company's November acquisition
of rival Bush Boake Allen Inc., International Flavors said in a
release issued by Market News Publishing Inc. Salomon Smith Barney
is arranging the sale. Presentations to investors are scheduled to
conclude today. New York-based International Flavors & Fragrances'
existing debt carries investment-grade ratings of ``A3'' at
Moody's and ``BBB+'' at S&P. (Updated May 1. Company news:
{IFF US <Equity> CN <GO>)}.

     WASHINGTON MUTUAL INC., the largest U.S. savings and loan, is
to sell $500 million of three-year floating-rate senior notes on
May 14, the company said in a release issued by Business Wire.
Seattle-based Washington Mutual said the sale is part of a newly
established $15 billion global bank note program. Merrill Lynch &
Co. is arranging the sale of the notes, which are rated ``A2'' by
Moody's and ``A-'' at S&P.  (Updated April 30. Company news:
{WM US <Equity> CN <GO>)}.

     INTERNATIONAL MULTIFOODS CORP., which distributes food to
restaurants, theaters, and other businesses, plans to sell $200
million to $250 million of bonds, said people familiar with the
sale. CIBC World Markets is arranging the sale, the people said.
Minnetonka, Minnesota-based International Multifoods' existing
debt carries investment-grade ratings of ``Baa3'' at Moody's and
``BBB-'' at S&P. (Updated April 11. Company news:
{IMC US <Equity> CN <GO>}).

     ENRON CORP., the largest energy trader, plans to raise money
by selling credit-linked notes in several currencies, according to
Salomon Smith Barney, which will manage the sale with UBS Warburg.
The sale will follow presentations to investors in Europe and will
consist of issues of intermediate maturities. Investors usually
regard notes maturing in five to seven years to be intermediate
maturities. Salomon declined to provide details on the size or
timing of the sale. Credit-linked notes are typically backed by
assets owned by the issuer, and payments on the notes are linked
to the creditworthiness of those assets. Houston-based Enron's
credit is rated  ``BBB+'' at S&P and ``Baa1'' at Moody's. (Updated
May 2. Company news:
{ENE US <Equity> CN <GO>}).

                            Junk Bonds

     PRIMEDIA INC., the publisher of Seventeen, New York, and
Modern Bride magazines, is to sell $350 million of high-yield
bonds, said people familiar with the matter. New York-based
Primedia, which is partly owned by buyout firm Kohlberg Kravis
Roberts & Co., picked Salomon Smith Barney, J.P. Morgan Chase, and
Banc of America to manage the sale, the people said. The 10-year
notes are expected to price this week, they said. Proceeds will go
to pay off bank loans, and also to repurchase existing notes with
a 10.25 percent interest rate, according to a Moody's report.
Moody's rates the senior notes ``Ba3,'' while S&P rates the
company's credit ''BB-'', each three notches below investment
grade. (Updated May 1. Company news:
{PRM US <Equity> CN <GO>}).

     DEL MONTE FOODS CO., the largest U.S. producer of canned
fruits and vegetables, plans to sell $275 million of senior
subordinated 10-year notes. The company said in a release issued
by Business Wire that it will use proceeds from the sale to
repurchase notes due in 2006 and 2007. Del Monte also said it will
enter into an amended credit agreement containing a six-year
revolving credit facility of $325 million and a seven-year term
loan of $415 million. The company will use those funds to repay
its existing credit facility. San Francisco-based Del Monte chose
Bank of America, J.P. Morgan Chase, and Deutsche Banc Alex. Brown
to arrange the loans, bankers familiar with the sale said. Moody's
rates Del Monte's 12 1/4 percent notes due 2007 ``B3,'' and S&P
rates them ``B-''. (Updated April 30. Company news:
{DLM US <Equity> CN <GO>}).

     ALLIANT TECHSYSTEMS INC., a maker of munitions and missile
systems, plans to privately sell $250 million of 10-year senior
subordinated notes, the company said in a release issued by
PRNewswire. Minneapolis-based Alliant said it expects to sell the
debt ``in the next few weeks,'' and proceeds will go to pay off
existing debt. Alliant's existing bonds are rated ``B1'' at
Moody's and ``BB-'' at S&P. (Updated April 30. Company news:
{ATK US <Equity> CN <GO>)}.

     CALLON PETROLEUM CO., a Gulf Coast oil and gas producer,
plans to sell $225 million of seven-year senior notes, the company
said in a Business Wire statement. Funds will go to repay debt
maturing in 2002 and 2004, borrowings under a credit line, and for
day-to-day spending, Callon said. Neither Moody's nor S&P have
rated Natchez, Missouri-based Callon's credit. J.P. Morgan Chase
is expected to manage the sale, according to investors familiar
with the sale. (Updated April 26. Company news:
{CPE US <Equity> CN <GO>}).

     RADIO ONE INC. plans to sell $300 million of 10-year senior
subordinated notes to refinance some of the radio broadcaster's
outstanding debt. Banc of America and Credit Suisse First Boston
are arranging the sale. Radio One's existing notes carry ratings
of ``B3'' from Moody's and ``B-'' from S&P, each five notches
below investment grade. (Updated April 26. Company news:
{ROIA US <Equity> CN <GO>}.

    PLAYTEX PRODUCTS INC., the maker of Baby Magic lotions and
Banana Boat sun lotion, plans to sell $350 million of junk bonds
and is taking out $625 million in loans to refinance debt, said
bankers familiar with the matter. Westport, Connecticut-based
Playtex chose Credit Suisse First Boston to arrange the loans and
manage the bond sale, the bankers said. The debt will refinance
all of Playtex's outstanding loans and two existing bonds.
Yesterday, Playtex received enough orders from investors to
complete a $325 million term loan before a lenders meeting
scheduled for today in New York. Playtex had to renegotiate its
bank agreements at the end of last year because of falling
profits. The company agreed to pay higher interest rates that
would cut this year's earnings by 2 cents a share to get lenders
to relax financial covenants. (Updated May 2. Company news:
{PYX US <Equity> CN <GO>}).

     IMC GLOBAL INC., one of the largest fertilizer companies,
plans to sell as much as $1 billion of high-yield bond and loans,
said people familiar with the matter. Lake Forest, Illinois-based
IMC may sell about $500 million bonds and the same amount in loans
through Goldman Sachs and J.P. Morgan Chase, the people said.
IMC's senior unsecured debt is rated ``Baa3'' by Moody's and ``BBB-
'' by S&P. Both ratings are the lowest on the investment-grade
scales and are under review for a possible cut, the rating
companies said in recent commentaries. (Updated April 19. Company
news:
{IGL US <Equity> CN <GO>}).

     U.S. INDUSTRIES INC., a maker of Jacuzzi-brand baths and
other household products, may restructure its $550 million bond
sale, after delaying selling the bonds last month as planned, said
people familiar with the matter. The company originally was to
sell 10-year senior subordinated notes at proposed yields of about
12.25 percent, the people said. Details of the revised sale
weren't immediately available, though investors said it might
include some junior subordinated debt. Iselin, New Jersey-based
U.S. Industries is privately selling bonds through Deutsche Bank
AG and Credit Suisse First Boston to pay off existing debt. The
company is also raising $700 million in bank loans, provided it
can find buyers for the bonds. U.S. Industries has already lined
up institutional investors for a $275 million term loan that forms
part of the credit agreement. S&P rates the proposed senior
subordinated bonds ``B+.'' (Updated April 24. Company news:
{USI US <Equity> CN <GO>}).

--Terence Flanagan and Jennifer Ryan in the New York newsroom
(212) 893-5662, or at tflanagan@bloomberg.net/bw


PG&E Has 1st-Qtr Loss Because of Power-Buying Costs (Update2)

     (Adds company comment in fourth paragraph, operating profit
by segment beginning in ninth paragraph. For more on California's
power crisis, see {EXTRA <GO>}.)

     San Francisco, May 2 (Bloomberg) -- PG&E Corp., owner of
California's largest electric utility, had a first-quarter loss
after taking a $1.1 billion charge for debts from buying power at
soaring prices it couldn't pass on to customers.
     The loss of $951 million, or $2.62-a-share, compares to net
income of $280 million, or 77 cents, in the year-earlier quarter.
Sales rose 33 percent to $6.68 billion from $5.01 billion.
     PG&E's Pacific Gas & Electric utility filed for bankruptcy
protection last month. PG&E and Edison International, owner of
California's No. 2 utility, have run up more than $14 billion in
debt buying power at prices higher than state regulators will let
utilities charge customers.
     ``Taking this charge does not diminish our conviction that
the utility is entitled under law to recover these costs,'' PG&E
Chief Executive Robert Glynn said in the statement.
     Excluding the power-buying charge and other costs related to
California's energy crisis, profit from operations fell 14 percent
to $243 million, or 67 cents a share, in the first quarter. A year
earlier, PG&E had a $4 million charge for severance costs,
resulting in profit from operations of $284 million, or 78 cents.

                           Hefty Losses

     ``They're being very conservative in these charges,'' because
PG&E probably will receive money to pay off some of the debt,
Credit Suisse First Boston analyst Paul Patterson said. The
charges also include power purchased for PG&E customers by the
California Independent System Operator that PG&E probably won't
have to pay for, he said.
      In the fourth quarter, PG&E took a $4.1 billion charge for
power-buying losses. Chief Financial Officer Peter Darbee said
last month the company probably would have to take more power-
buying charges. The company has estimated its total power-buying
debt at $9 billion.
     California power prices averaged $317.13 a megawatt hour in
the first and fourth quarters, almost 10 times as much as in the
year-earlier quarters.
     Shares of San Francisco-based PG&E were unchanged at $9 in
midday trading. They have fallen 55 percent this year.
     Excluding the charges, profit at Pacific Gas & Electric, a
utility with 13 million customers in northern California, would
have been $192 million, a 16 percent drop from $228 million a year
earlier, PG&E said.
     PG&E's National Energy Group, which generates and trades
electricity on the wholesale market and ships gas by pipeline,
earned $54 million, 3.6 percent less than in the year-earlier
period, the company said. Sales rose 40 percent to $4.2 billion
from $2.8 billion.
     Profit from interstate pipeline operations rose 43 percent to
$20 million, offsetting a 17 percent decline to $35 million in
earnings from energy trading and marketing, the statement said.

     (PG&E will hold a conference call today at 11:30 a.m. San
Francisco time to discuss the company's results. The public can
participate on a listen-only basis through the company's Web site,
http://www.pgecorp.com. To hear a replay, dial (800) 947-3657.)

--Jim Polson in the Princeton newsroom, (609) 279-4106 or
jpolson@bloomberg.net/slb/alp

Enron Vice Chairman Baxter Resigns; No Successor Is Planned
2001-05-02 16:38 (New York)

Houston, May 2 (Bloomberg) -- Enron Corp. Vice Chairman
J. Clifford Baxter, part of the team that built the company's
wholesale energy trading business, resigned after 10 years with
the company to spend more time with his family.
     Enron, the world's largest energy trader, has no immediate
plans to appoint a successor, spokeswoman Karen Denne said.
Baxter, 42 years old, will continue to work for Enron as a
consultant. He was named vice chairman in October.
     Baxter was responsible for strategy, including acquisitions
and divestitures, Denne said. Baxter was named Enron's chief
strategy officer in June 2000. Before that, he was chairman and
chief executive of Enron North America.
     Shares of Houston-based Enron fell $1.91, or 3.1 percent, to
$60.50.

--Margot Habiby in the Dallas newsroom (214) 740-0873, or
mhabiby@bloomberg.net, through the Princeton newsroom
(609) 279-4000/cct