Enron is in talks with its bank group and may make changes to its capital structure in order to resolve issues regarding the long-term liquidity of the company, after a nightmare week in which Enron's common stock price has plummeted and spreads on its debt widened. One banker said it is very likely that Enron will look to change the capital structure of its debt by issuing notes or offering equity. "It would be unusual for an investment-grade company like Enron to have such a large drawn-down credit facility," a banker said, explaining the company may need other sources of capital. It is still uncertain how Enron's situation will affect the sector, she added, though Enron is still an investment grade company and should have no problems tapping the markets.
Enron drew down about $3 billion, the bulk of its available credit lines, in a bid to restore confidence in its financial strength and liquidity, and is believed to be looking to complete a new, multibillion-dollar facility. The present credit facility is led by Citigroup and J.P. Morgan and has been drawn down to offer to redeem commercial paper. Calls to Enron spokesman Mark Palmer were not returned.