Message-ID: <377152.1075840905583.JavaMail.evans@thyme>
Date: Thu, 15 Mar 2001 21:12:00 -0800 (PST)
From: richard.lydecker@enron.com
To: john.lavorato@enron.com, louise.kitchen@enron.com, brian.redmond@enron.com, 
	wes.colwell@enron.com
Subject: Hanover
Cc: shirley.hudler@enron.com, gordon.mckillop@enron.com, hope.vargas@enron.com, 
	l'sheryl.hudson@enron.com
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Hanover's stock price closed at $35.26 today.  As recently as March 5 it was at $40.50.  Pricing for the secondary offering this afternoon was set at $35.15.  Net of the 4% spread, sellers receive $33.74 per share.  JEDI's net proceeds on 1,173,344 shares sold is $41.2 million (ENA 60% share is $24.7 million).

Although ENA's Hanover position is hedged in raptor, the put price of the costless collar is $34.875.  The unhedged loss is $800 thousand.

JEDI's share of the overallotment is 289,500.  The full overallotment was allocated.  Whether the underwriters' exercise their option is dependent on stock performance for the 30-day option period.

JEDI's remaining 4.3 million Hanover shares are subject to a 120-day lockup.