Enron Corp. - University of California | Office of The President

Enron Continues As Market-Maker of Choice, Says CEO Lay; Transaction
Volume Shows Strength of Core Businesses; Company Draws Down Credit
Facility to Address Investor Concerns
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The company also reported that it has taken action to dispel uncertainty in the
financial community. Specifically, Enron drew on its committed lines of credit to
provide cash liquidity in excess of $1 billion.
"We are making it clear that Enron has the support of its banks and more
than adequate liquidity to assure our customers that we can fulfill our
commitments in the ordinary course of business," said Chief Financial Officer Jeff
McMahon. "This is an important step in our plan to restore investor confidence in
Enron. Additionally, we will update investors over the next several days regarding
our plans to maintain our long-term credit rating."
"We are especially gratified by this strong vote of confidence from both our
customers and banks because that, more than anything, should enable the financial
community to look beyond today's headlines and focus on the inherent value of our
company," said Lay.
383. On 11/1/01, Enron issued a release, stating:
ENRON SECURES COMMITMENTS FOR ADDITIONAL $1 BILLION IN
FINANCING
Enron Corp. announced today that J.P. Morgan (the investment banking arm
of JP Morgan & Co.) and Salomon Smith Barney Inc. (the investment banking arm
of Citigroup Inc.) as co-arrangers have executed commitment letters to provide $1
billion of secured credit lines .... The proceeds will be used to supplement short-term
liquidity and to refinance maturing obligations....
"With more than $1 billion in cash currently on our balance sheet, this
additional credit capacity will further solidify Enron's standing as the leading
market maker in wholesale energy markets," said Kenneth L. Lay, Enron chairman
and CEO. "We very much appreciate the support of two of our longstanding
banking partners, JP Morgan and Citigroup."
"This is yet another step in our efforts to enhance market and investor
confidence," said Jeffrey McMahon, Enron chief financial officer. "We are moving
aggressively to strengthen our balance sheet and maintain our investment grade
credit rating."
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