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Crown Central Petroleum Corp. Deal - Lehman Brothers Collection

Crown Central Petroleum Corp.

Company DealCrown Central Petroleum Corporation: 5 3/4% convertible subordinated debentures due December 1, 1993
Transaction TypeConvertible Subordinated Debentures
Deal DescriptionCrown Central Petroleum Corporation used the net proceeds from this transaction, together with funds to be received by the company through the issuance of refinery mortgage notes, to finance the enlargement and modernization of the company's refinery located near Houston, Texas. Short-term borrowing may have been used to supplement the above funds to finance the project and to provide additional working capital. The proceeds from the sale of the debentures, until used, were retained in banks or placed in short-term obligations. The company proposed to install equipment designed to increase the normal average operating capacity of the refinery on a balanced basis from approximately 37,000 barrels to approximately 75,000 barrels per day and concurrently improve its efficiency in terms of operating costs and yields. The project would increase the rated crude oil capacity of the refinery approximately 40,000 barrels per day to a total of approximately 80,000 barrels per day. The plans called for replacing the 36,000 barrels per day crude distillation unit with an 80,000 barrels per day unit, replacing the 17,000 barrels per day Thermofor catalytic reforming unit with a capacity of 11,000 barrels per day fluid catalytic cracking unit, installing an additional catalytic reforming unit with a capacity of 11,000 barrels per day, installing a new alkylation unit having a capacity of 4,200 barrels a day, modifying the alkylation unit to increase its capacity, and installing a 9,500 barrels per day coking unit. The new facilities included product finishing equipment, additional utilities systems, tanks, and other appurtenant facilities required by reason of expansion.
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