EFTA00929752.pdf

From: Jeffrey Epstein <[email protected]> To: "Barrett, Paul S" Subject: Re: Knock Out and NRG bonds Date: Tue, 21 Feb 2012 22:05:36 +0000 ok On Tue, Feb 21, 2012 at 3:20 PM, Barrett, Paul S < > wrote: Our Felcor bonds have done really well with the yield now below 5%. We own $2.3MM face. I would like to get our Ally position up to $SMM (we own $2.9MM face). Therefore I think we should rotate out of the Felcor bonds into the Ally Pfds. We would buy the Ally A Pfds (ytw 9.30%) which are trust preferreds and higher up on the capital structure than our Ally B Pfds. I like have a mix of both. Let me know Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 320 Park Avenue, 14th Floor, New York, NY 10022 (W) (F) NMLS ID# 853441 EFTA00929752 From: jeffrey epstein [mailto:jeeyacationegmail.com] Sent: Tuesday, February 21, 2012 2:54 PM To: Barrett, Paul S Subject: Re: Knock Out and NRG bonds Yes Sony for all the typos .Sent from my iPhone On Feb 21, 2012, at 8:41 AM, "Barrett, Paul S" > wrote: Jeffrey We knocked out on our short BRL put option. We took in $125K 3 weeks ago. Can I buy 1MM of the NRG bonds? Thanks Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 320 Park Avenue, 14th Floor, New York, NY 10022 (W) (F) NMLS IDtt 853441 EFTA00929753 From: Barrett, Paul S Sent: Friday, February 17, 2012 1:53 PM To:'Jeffrey epstein' Cc: Giuffrida, David 3 Subject: To Do - NRG bonds - reiterate OW Jeffrey We should buy SImm of this bond. Ytw 7.625%. Dave Katz reiterates OW in his initiation of a high yield utility monthly. We reiterate our Overweight on NRG credit and update our NRG financial model in advance of earnings. We estimate that the company generated $384 million of EBITDA in 4Q11. We expect NRG will address the lower natural gas price environment and how it will impact, if at all, its timeline to refinance the 2017 notes and the company's shareholder friendly actions (i.e., dividends and share repurchases). We model a pick-up in shareholder friendly activities; this assumption may prove conservative if the company does not refinance the 2017 notes and given that NRG may flex the activities down to help guard cash. Despite these assumptions, and using the current natural gas forward price curve (NGA <CMDTY> <GO> CCRV <GO>), we expect gross recourse debt leverage would increase from 4.2x to 5.3x at the end of 2013, before falling to 4.3x at the end of 2014. We believe NRG Energy is set up to survive an extended period of low power prices. Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 320 Park Avenue, 14th Floor, New York, NY 10022 (W) (F) NMLS ID# 853441 EFTA00929754  This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclosures/email. <Short Circuit.pdf> The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00929755