Exhibit 99.(c)(2)
April 7, 2000 CONFIDENTIAL
Materials Prepared for Discussion
[Crown Logo] Crown Central Petroleum Corporation
SOURCE: CSFB Independent Committee Presentation, April 7, 2000
CONFIDENTIAL 1
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Crown Central Petroleum Corporation
Table of Contents
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Review of Process Since January 2000 Board Meeting
Review Proposals
CONFIDENTIAL 1
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Crown Central Petroleum Corporation
Review of Process Since January 2000 Board Meeting
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January 26 CSFB met with independent Board of Directors and was
directed to pursue the following:
Pursue corporate transaction with Rosemore.
Explore the acquisition of Independent
Marketer.
Pursue sale of wholesale assets to Pipeline and
Terminal Company.
Explore the possibility of refinancing high
yield debt with mortgage financing.
January to CSFB has sent information to Rosemore's advisors, held
February numerous calls, meetings and data room/site visits.
February Pipeline and Terminal Company remains interested in
wholesale. Recently submitted mark-up of purchase and
sale agreement. Currently being reviewed by McGuire,
Woods, Battle & Boothe and CSFB.
February 11 CSFB met with Independent Marketer and two members of
the Independent Board of Directors to explore merger
possibility.
o Independent Marketer reviewed its business and
discussed synergies.
February 15 Discussed Crown's cost cutting estimates with Rosemore's
advisors.
February 18 Update call with Independent Board of Directors to review
process.
CONFIDENTIAL 2
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Crown Central Petroleum Corporation
Review of Process Since January 2000 Board Meeting
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February 22 Received indication from Rosemore's advisors of potential
offer.
Independent Marketer's advisors relayed Independent
Marketer's continued interest if Crown could control
Newco, Debt would not be triggered and refineries could
be sold.
February 27 Met with Rosemore's advisors.
Specifically told Rosemore's advisors that verbal
indication of value was not adequate and asked to receive
Rosemore's approval to make an acquisition proposal to
Independent Marketer.
February 29 At the request of Rosemore and under the Confidentiality
Agreement (C.A.) Crown executed with Independent
Marketer, CSFB provided information on Independent
Marketer to Rosemore advisors.
March 6 Received offer of $8.35 per share in cash from Rosemore.
Verbally received indication that Rosemore would not
approve a Independent Marketer transaction.
March 8 Received conditional offer from privately owned Olympic
Resources Limited. Olympic currently unwilling to provide
information on its company or financing.
March 9 Received offer of $9.20 per share in cash from Apex Oil.
Offer contingent on due diligence, refinancing of long-
term debt and ability to terminate transaction at will.
Still negotiating C.A. with Apex.
CONFIDENTIAL 3
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Crown Central Petroleum Corporation
Review of Process Since January Board Meeting (Cont'd)
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March 14 Discussed with Board Status of Process:
Status of Rosemore and Apex Offer
Revised Value of Crown
March 15 Non-U.S. Oil Company, who signed a C.A. on February 14th,
submitted a tentative offer to purchase Crown at price
above current offer.
Conditioned on 45-60 days of due diligence
CSFB asked Non-U.S. Oil Company to enter Data Room
quickly to start work and that 45 days was too long of a
due diligence period.
Non-U.S. Oil Company's primary interest appears to
be retail and real estate
March 22 CSFB informed Non-U.S. Oil Company that they need to
start due diligence by Friday, March 24 to be in a
position to be competitive.
Week of Apex still unwilling to sign C.A. and unwilling or unable
March 13th to have advisor Bear Stearns meet with CSFB to discuss
and 20th proposal.
March 24 Sent letter to Rosemore, Apex and Non-U.S. Oil Company
to send in best and final offers for Crown on Wednesday,
March 29th at 4:30p.m.
CONFIDENTIAL 4
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Crown Central Petroleum Corporation
Review of Process Since January Board Meeting (Cont'd)
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March 27 Received call from Non-U.S. Oil Company.
Non-U.S. Oil Company plans to meet with its Board later
this week to receive approval to spend money on due
diligence.
Still see value in $10 range but need 5 weeks to conclude
due diligence.
March 29 Received offer of $9.35 per share in cash from Rosemore.
Apex reconfirmed its $9.20 all cash offer and proposed
two additional alternatives. Proposed a stock for stock
offer that would value Crown at $10.00 per share and also
proposed a private placement of 3.5 to 4.5 mm shares at
$9.50 per share. Both additional offers include shortfall
distribution provisions. Two of the Apex offers are
subject to additional due diligence and all three offers
are contingent on refinancing Crown's High Yield debt.
Apex has not yet received a commitment for such
refinancing.
March 30 Discussed with Board status of process:
Status of Rosemore and Apex Offers
Reviewed Value of Crown
CSFB contacted Apex's counsel to review offer. CSFB
requested a higher cash offer with no conditions. Novelly
still unwilling to sign a C.A.
March 31 Discussed status of process with Board.
April 6 Received call from Apex. Willing to sign C.A. with
standstill, but conditional on a guaranteed 30 day due
diligence period.
CONFIDENTIAL 5
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Crown Central Petroleum Corporation
Valuation of Crown
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(Dollars in Millions)
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DISCOUNTED COMPARABLE COMPARABLE
CASH FLOW/(1)/ ACQUISITION COMPANIES
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Pasadena $ 70 - $ 87 $ 60 - $ 80 $ 67 - $ 85
Tyler 30 - 38 30 - 40 25 - 35
Retail 132 - 158 130 - 140 130 - 145
Wholesale 18 - 20 10 - 15 15 - 20
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Total Operating Segments $ 250 - $ 303 $ 230 - $ 275 $ 237 - $285
Less Corporate Overhead (111) - (129) (111) - (129) (111) - (129)
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Total Enterprise Value $ 139 - $ 174 $ 119 - $ 146 $ 126 - $156
Plus NPV of NOL (Base Case) 31 - 33 31 - 33 31 - 33
Corporate Adj. (12/31/99)/(2)/ (117) (117) (117)
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Equity Value $ 53 - $ 90 $ 33 - $ 62 $ 40 - $ 72
Per Share Value/(3)/ $ 5.30 - $ 9.00 $ 3.30 - $ 6.20 $ 4.00 - $ 7.20
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(1) Represents Base Case.
(2) Total Debt less Cash and Equivalents.
(3) Assumes 4.8 million Class A and 5.2 million Class B shares
outstanding as of January, 2000.
CONFIDENTIAL 6
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Crown Central Petroleum Corporation
Discounted Cash Flow Analysis of Crown
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(Dollars in Millions)
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DOWNSIDE BASE UPSIDE
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Pasadena/(1)/ $ 54 - $ 69 $ 70 - $ 87 $ 75 - $ 90
Tyler/(1)/ 23 - 30 30 - 38 36 - 43
Retail/(2)/ 103 - 123 132 - 158 140 - 170
Wholesale/(3)/ 15 - 16 18 - 20 19 - 21
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Total Operating Segments $ 195 - $238 $ 250 - $303 $ 270 - $ 324
Less Corporate Overhead/(4)/ (111) - (124) (111) - (129) (118) - (138)
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Total Enterprise Value $ 84 - $114 $ 139 - $174 $ 152 - $186
Plus NPV of NOL 33 - 35 31 - 33 36 - 38
Corporate Adjustments (12/31)/(5)/ (117) (117) (117)
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Equity Value $ 0 - $ 32 $ 53 - $ 90 $ 71 - $107
Value Per Share/(6)/ $ 0 - $ 3.20 $5.30 - $ 9.00 $ 7.10 - $ 10.70
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(1) Low end based on 12% discount rate and 5.0x EBITDA terminal value;
High end based on 11% discount rate and 6.0x EBITDA terminal value.
(2) Low end based on 11% discount rate and 6.0x EBITDA terminal value;
High end based on 10% discount rate and 7.0x EBITDA terminal value.
(3) Low end based on 12% discount rate and 3.0x EBITDA terminal value;
High end based on 11% discount rate and 3.5x EBITDA terminal value.
(4) Low end based on 11% discount rate and 4.0x EBITDA terminal value;
High end based on 10% discount rate and 5.0x EBITDA terminal value.
(5) Total debt less cash and equivalents.
(6) Assumes 4.8 million Class A and 5.2 million Class B shares
outstanding as of January 2000.
CONFIDENTIAL 7
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Crown Central Petroleum Corporation
Discounted Cash Flow Analysis - Assumptions
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Valued Crown as of 1/1/2000. Assumed 2000 Plan for all cases, 2.5%
inflation post 2000 and Statoil Agreement to end in October 2000.
Downside Case Base Case Upside Case
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Refining Refining Refining
. $2.68 in 2000 (Crown Plan) . $2.73 in 2000 (Crown Plan with . CSFB's estimates for Gulf Coast
- Also represents a 3 year average adjusted margins) Margin ($/BBL)
. .5% growth 2001-2004 1% growth 2001 - 2004 $2.68 in 2000 (Crown Plan)
$3.00 in 2001
$3.45 in 2002
$2.96 in 2003
$2.86 in 2004
Retail Retail Retail
. 10.6 cpg gasoline margin in . 10.6 cpg gasoline margin in . 10.6 cpg gasoline margin in
2000 (Crown Plan) 2000 (Crown Plan) 2000 (Crown Plan)
Negative 1.5% growth in 2001 - 1% growth in 2001 - 2004 2% growth in 2001 - 2004
2004
. 3% p.a. gasoline volume growth . 3% p.a. gasoline volume growth . 3% p.a. gasoline volume growth
. 3% p.a. merchandise sales . 3.5% p.a. merchandise sales . 5% p.a. merchandise sales growth
growth growth
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CONFIDENTIAL 8
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Crown Central Petroleum Corporation
Summary Comparable Acquisition Analysis
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(Dollars in Millions)
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PARAMETER DATA MULTIPLE RANGE ENTERPRISE VALUE REFERENCE RANGE
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Pasadena
1999 EBITDA $(20.4) 4.0x - 5.0x NM - NM
3Y Avg. EBITDA $ 9.4 4.0x - 5.0x $37.6 - $47.0 ---------------
1999 Capacity (MB/D) 100 $700 - $1,000 $70.0 - $100.0 $60 - $80
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Tyler
1999 EBITDA $ (1.0) 3.0x - 4.0x NM - NM
3Y Avg. EBITDA $ 1.9 3.0x - 4.0x $5.7 - $7.6 ---------------
1999 Capacity (MB/D) 52 $600 - $900 $31.2 - $46.8 $30 - $40
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Retail
1999 EBITDA $ 15.9 6.0x - 7.0x $95.4 - $111.3
3Y Avg. EBITDA $ 22.0 6.0x - 7.0x $132.0 - $154.0
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Number of Stations 331 $450,000 - $500,000 $148.9 - $165.5 $130 - $140
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Wholesale (Colonial/Plantation)
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Total Capacity (MMBBL) 1.18 $9.0 - $15.0 $10.6 - $17.7 $10 - $15
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Less Corporate Overhead (111) - $(129)
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Enterprise Value Reference Range $119 - $146
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Plus NPV of NOL (Base Case) $31 - $33
Corporate Adjustments (12/31) $(117)
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Equity Value Reference Range $33 - $62
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Per Share Value Reference Range $3.30 - $6.20
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CONFIDENTIAL 9
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Crown Central Petroleum Corporation
Selected Comparable Acquisitions
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Refining Comparable Acquisitions
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PURCHASE PRICE/
PURCHASE NELSON NELSON ----------------------------------------
DATE BUYER SELLER PRICE (MM) CAPACITY COMPLEXITY CAPACITY CAPACITY NELSON CAPACITY EBITDA
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6/99 Frontier Oil Equilon $170 109,000 10.6 1,155 1,560 $147 NA
7/98 Clark USA BP-Lima $175 170,000 7.2 1,224 1,029 $143 NA
5/98 Valero Mobil-Paulsboro $228 155,000 11.2 1,736 1,471 $131 3.0x
3/97 Valero Basis Petroleum $285 260,100 11.4 2,965 1,096 $ 96 4.7x
8/89 Crown Central La Gloria Oil & Gas $ 71 55,000 8.5 468 1,291 $150 3.5x
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Retail Comparable Acquisitions
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PURCHASE PRICE/
PURCHASE -------------------------
DATE BUYER SELLER PRICE (MM) STORE COUNT LOCATION STORE COUNT EBITDA
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12/99 Tosco Exxon Mobil $860 1,740 Northeast $494 5.7x
12/99 Ultramar Diamond Various (1) $ 59 217 Southeast $271 NA
5/99 Clark USA Apollo $255 671 Midwest $380 6.5x
7/98 E-Z Serve Corp. EBC Texas Acquisition Corp. $106 494 LA, FL, GA, AL, NC, TX $215 NA
2/96 Tosco Corp. Circle K $900 2,387 Southeast/West $377 6.6x
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(1) Figures represent aggregate numbers for both transactions of 1999.
Wholesale Comparable Acquisitions
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PURCHASE STORAGE PURCHASE
PRICE CAPACITY PRICE/
DATE BUYER SELLER LOCATION ($MM) # TERML (MMBBL) CAPACITY
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12/99 Equilon Motiva Clark USA IL, IN, MI, MO, OH, TX, WI $35.0 15 4.32 $ 8.09
12/98 Transmontaigne Sunoco Rensselaer, NY $ 5.4 1 0.51 $10.55
6/98 Transmontaigne ITAPCO Various $32.0 17 3.30 $ 9.70
6/95 International Dunraine Petroleum Fuel & Terml. St. Louis, MO / Granite City, IL $23.2 2 1.20 $19.33
4/95 Giant Industries Texaco Albuquerque, NM $ 1.4 1 0.15 $ 9.33
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CONFIDENTIAL 10
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Crown Central Petroleum Corporation
Summary Comparable Company Analysis
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(Dollars in Millions)
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Parameter Data Multiple Range Enterprise Value REFERENCE RANGE
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Pasadena
2000E EBITDA(1) $ 34.4 3.5x - 4.5x $120.4 - $154.8
1999 EBITDA $(24.0) 4.5x - 5.5x NM - NM
3Y Avg. EBITDA $ 9.4 4.5x - 5.5x $ 42.3 - $51.7 $ 67 - $85
Tyler
2000E EBITDA(1) $ 14.6 3.0x - 4.0x $ 43.8 - $58.4
1999 EBITDA $ (1.0) 3.5x - 4.5x NM - NM
3Y Avg. EBITDA $ 1.9 3.5x - 4.5x $ 6.7 - $8.6 $ 25 - $35
Retail
2000E EBITDA(1) $ 25.6 6.0x - 7.0x $153.6 - $179.2
1999 EBITDA $ 16.4(2) 6.5x - 7.5x $106.6 - $123.0
3Y Avg. EBITDA $ 22.0 6.5x - 7.5x $143.0 - $165.0 $ 130 - $145
Wholesale
2000E EBITDA(1) $ 4.9 3.0x - 4.0x $ 14.7 - $19.6
1999 EBITDA $ 27.6 3.0x - 4.0x NM - NM
3Y Avg. EBITDA $ 7.6 3.0x - 4.0x $ 22.8 - $30.4 $ 15 - $20
Less Corporate Overhead $(111) - $(129)
Enterprise Value Reference Range $126 - $156
Plus NPV of NOL (Base Case) $ 31 - $33
Corporate Adjustments (12/31) $ (117)
Equity Value Reference Range $ 40 - $72
Per Share Value Reference Range $4.00 - $7.20
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(1) Based on Base Case.
(2) Excludes gain from sale of Atlanta retail stores.
CONFIDENTIAL 11
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Crown Central Petroleum Corporation
Selected Comparable Companies
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Refining
(Dollars in Millions, Except Per Share Data)
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AMV/EBITDA MARKET CAPITALIZATION
MARKET ENTERPRISE ---------- -------------------------------------------
COMPANY VALUE ($MM) VALUE ($MM) 2000 2001 2000CF 2001CF 2000NI 2001NI BOOK VALUE
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Giant $ 81.2 $ 306.8 NA NA NA NA 8.5x 8.5x 0.6x
Holly 82.5 141.7 NA NA NA NA NA NA 0.7x
Sunoco 2,335.9 3,277.9 4.5x 3.9x 4.5x 3.9x 9.5x 7.4x 1.6x
Tosco 4,360.5 6,038.7 4.8x 4.3x 5.9x 5.3x 10.4x 8.7x 2.1x
Ultramar Diamond Shamrock 2,084.3 3,533.1 4.9x 4.4x 4.6x 4.1x 9.1x 7.5x 1.4x
Valero Energy 1,780.1 3,370.5 6.0x 4.8x 4.7x 3.9x 9.0x 7.4x 1.6x
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Average 1,787.4 2,778.1 5.1x 4.4x 4.9x 4.3x 9.3x 7.9x 1.3x
Median 1,932.2 3,324.2 4.9x 4.4x 4.7x 4.0x 9.1x 7.5x 1.5x
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Note: Prices as of April 6, 2000. First Call estimates.
Retail
(Dollars in Millions, Except Per Share Data)
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AMV/EBITDA MARKET CAPITALIZATION
MARKET ENTERPRISE ---------- ------------------------------------------
COMPANY VALUE ($MM) VALUE ($MM) 2000 2001 2000CF 2001CF 2000NI 2001NI BOOK VALUE
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Casey's $ 531.1 $ 705.4 6.8x 5.5x 7.9x 6.0x 15.4x 10.9x 1.7x
7-Eleven 1,543.0 4,141.9 9.9x 9.5x 6.7x 6.0x 19.7x 17.0x NM
Pantry 159.6 695.2 5.7x 5.2x 2.3x 2.2x 8.6x 6.5x 1.5x
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Average 744.6 1,847.5 7.5x 6.7x 5.6x 4.7x 14.6x 11.5x 1.6x
Median 531.1 705.4 6.8x 5.5x 6.7x 6.0x 15.4x 10.9x 1.6x
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Note: Prices as of April 6, 2000. First Call estimates.