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

7/01 Marlin Water Trust II, Marlin Water Capital Corp. II $475,000,000
6.31% Senior Secured Notes; and i515,000,000 6.19% Senior
Secured Notes
657. During the Class Period, JP Morgan was also one of the principal lending banks to
Enron, acting with CitiGroup as a lead bank on Enron's main credit facilities, loaning over a billion
dollars to Enron, while helping to syndicate over $4 billion in bank loans to Enron or related entities.
For instance:
DATE TRANSACTION
5/98 $500 million loan to JEDI
8/98 $1 billion credit line to back up Enron commercial paper
8/98 $1 billion loan to finance purchase of Brazilian electricity
distribution company
11/98 $250 million Enron credit line
8/01 $3 billion credit line to back up Enron commercial paper
11/01 $1 billion secured Enron credit line
658. JP Morgan's $1 billion and $3 billion commercial paper back-up credit facilities for
Enron were extremely significant. They enabled Enron to stay liquid by helping Enron maintain its
access to the commercial paper market where it could borrow billions to finance day-to-day
operations, while JP Morgan pocketed huge commitment fees on the back-up credit line.
659. In addition, JP Morgan helped arrange approximately $1.5 billion in loans (loaning
part of the money and syndicating the rest) to help Enron finance the illicit Sequoia, Choctaw,
Cherokee and Cheyenne SPE/partnerships and the JEDI partnerships, essential and integral parts of
Enron's scheme to conceal its true debt level by moving billions of dollars of debt off its books and
onto the books of SPEs it secretly controlled, while improperly recognizing millions of dollars of
profits on transactions with those SPEs.
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