<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 26, 2000
FILE NO. 0-19516
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13E-3
RULE 13E-3 TRANSACTION STATEMENT
(Under Section 13(e) of the Securities Exchange Act of 1934)
(Amendment No. 2)
------------------------------------
SUNRISE INTERNATIONAL LEASING CORPORATION
(Name of the Issuer)
SUNRISE INTERNATIONAL LEASING CORPORATION,
PETER J. KING,
THE KING MANAGEMENT CORPORATION,
STEPHEN D. HIGGINS, AS CO-TRUSTEE UNDER THE
WILLIAM B. KING STOCK TRUST UA DATED NOVEMBER 21, 1989 FBO WILLIAM B. KING,
STEPHEN D. HIGGINS, AS CO-TRUSTEE UNDER THE
RUSSELL S. KING STOCK TRUST UA DATED NOVEMBER 11, 1989 FBO
RUSSELL S. KING, AND PETER J. KING, AS SOLE TRUSTEE UNDER
THE VOTING TRUST UA DATED MAY 27, 1998
(Names of the Persons Filing Statement)
------------------------------------
COMMON STOCK, $.01 PAR VALUE
(Title of Class of Securities)
86769K-10-5
(CUSIP Number of Class of Securities)
PETER J. KING
CHIEF EXECUTIVE OFFICER
SUNRISE INTERNATIONAL LEASING CORPORATION
5500 WAYZATA BLVD., SUITE 750
GOLDEN VALLEY, MINNESOTA 55416
612-593-1904
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications on Behalf of Persons Filing Statement)
COPIES TO:
THOMAS R. KING BRUCE A. MACHMEIER
FREDRIKSON & BYRON, P.A. OPPENHEIMER WOLFF & DONNELLY LLP
1100 INTERNATIONAL CENTRE 45 SOUTH SEVENTH STREET
900 SECOND AVENUE SOUTH SUITE 3300
MINNEAPOLIS, MINNESOTA 55402 MINNEAPOLIS, MINNESOTA 55402
This statement is filed in connection with (check the appropriate box):
a. [x] The filing of solicitation materials or an information
statement subject to Regulation 14A (17 CFR 240.14a-1 to
240.14b-1), Regulation 14C (17 CFR 240.14c-1 to 240.14c-101)
or Rule 13e-3(c) (ss. 240.13e-3(c)) under the Securities
Exchange Act of 1934.
b. [ ] The filing of a registration statement under the Securities
Act of 1933.
c. [ ] A tender offer.
d. [ ] None of the above.
<PAGE> 2
Check the following box if the soliciting materials or information statement
referred to in checking box (a) are preliminary copies: [x]
CALCULATION OF FILING FEE
================================================================================
Transaction Valuation Amount of Filing Fee
$14,000,000* $2,800**
================================================================================
* The "Transaction Valuation" amount referred to above is approximately
the sum of (i) the product of 2,481,627 outstanding shares of Common
Stock (excluding 4,154,626 shares owned by King Management and its
affiliates) and $5.25, the cash price per share to be paid in the
merger, plus (ii) cash consideration of up to $792,430 to be paid for
options to purchase 400,116 shares of Common Stock being surrendered in
connection with the merger.
** In accordance with Rule 0-11 under the Securities Exchange Act of 1934,
as amended, the filing fee is determined by multiplying the Transaction
Valuation by 1/50th of 1%.
[x] Check box if any part of the fee is offset as provided by Rule 0-11
(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
Amount Previously Paid: $2,800
Form or Registration No.: Preliminary Proxy Statement on Schedule 14A
Filing Party: Sunrise International Leasing Corporation
Date Filed: March 10, 2000
================================================================================
2
<PAGE> 3
INTRODUCTION
This Amendment No. 2 to Rule 13e-3 Transaction Statement on Schedule
13E-3 ("Statement") is being filed jointly by Sunrise International Leasing
Corporation, a Delaware corporation ("Sunrise"), The King Management
Corporation, a Minnesota corporation ("King Management"), Peter J. King, Chief
Executive Officer and Chairman of the Board of both Sunrise and King Management
("King") Stephen D. Higgins, as co-trustee under the William B. King Stock Trust
UA dated November 21, 1989 FBO William B. King, Stephen D. Higgins, as
co-trustee under the Russell S. King Stock Trust UA dated November 11, 1989 FBO
Russell S. King and Peter J. King, as sole voting trustee under the Voting Trust
UA dated May 27, 1998 in connection with a proposed merger ("Merger") of Sunrise
with and into King Management, with King Management as the surviving entity,
pursuant to an Agreement and Plan of Merger, dated January 31, 2000, between
Sunrise and King Management, as amended (the "Merger Agreement"). The Merger
Agreement and the Merger have already been approved by a special committee of
Sunrise's Board of Directors and Sunrise's Board of Directors. Sunrise's
stockholders will be asked to vote upon the approval of the Merger Agreement at
a Special Meeting of the Stockholders of Sunrise (the "Special Meeting").
This Statement is intended to satisfy the reporting requirements of
Section 13(e) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Concurrently with the filing of this Statement, Sunrise is filing a
an amended preliminary proxy statement (the "Proxy Statement") under Regulation
14A of the Exchange Act pursuant to which the stockholders of Sunrise will be
given notice of, and an opportunity to vote on, the Merger at the Special
Meeting. The Proxy Statement is incorporated herein by reference. Except as
otherwise set forth below, the information set forth in the Proxy Statement,
including all appendices thereto, is hereby expressly incorporated herein by
reference in response to the items of this Schedule 13E-3, and the responses to
each item in this Statement are qualified in their entirety by the information
contained in the Proxy Statement and the appendices thereto. Capitalized terms
used but not defined herein shall have the meanings ascribed to such terms in
the Proxy Statement.
ITEM 1. SUMMARY TERM SHEET.
The information set forth in the Proxy Statement under the captions
"SUMMARY TERM SHEET" and "QUESTIONS AND ANSWERS ABOUT THE SPECIAL
MEETING" is incorporated herein by reference.
ITEM 2. SUBJECT COMPANY INFORMATION.
(a) The information set forth on the cover page of the Proxy
Statement and in the Proxy Statement under the caption
"SUMMARY TERM SHEET - The Companies" is incorporated herein by
reference.
(b) The information set forth in the Proxy Statement under the
caption "INFORMATION CONCERNING THE SPECIAL MEETING - Record
Date and Quorum Requirement" and on the cover page of the
Proxy Statement is incorporated herein by reference.
(c)-(d) The information set forth in the Proxy Statement under
the caption "COMMON STOCK MARKET PRICE AND DIVIDEND
INFORMATION" is incorporated herein by reference.
3
<PAGE> 4
(e) The information set forth in the Proxy Statement under the
caption "SPECIAL FACTORS - Public Offerings and Repurchases of
Common Stock" is incorporated herein by reference.
(f) The information set forth in the Proxy Statement under the
caption "COMMON STOCK PURCHASE INFORMATION" is incorporated
herein by reference.
ITEM 3. IDENTITY AND BACKGROUND OF FILING PERSONS.
(a)-(c) The information set forth in the Proxy Statement under
the captions "SUMMARY TERM SHEET - The Companies;" "CURRENT
MANAGEMENT OF SUNRISE;" "KING MANAGEMENT;" "SPECIAL FACTORS -
Interests of Certain Persons in the Merger; - Consequences of
the Merger; - Plans for Surviving Company After the Merger"
and "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT" is incorporated herein by reference.
ITEM 4. TERMS OF THE TRANSACTION.
(a) The information set forth in the Proxy Statement and under the
captions "SUMMARY TERM SHEET;" "INFORMATION CONCERNING THE
SPECIAL MEETING - Vote Required;" "SPECIAL FACTORS" and "THE
MERGER AGREEMENT" is incorporated herein by reference and
Appendices A and B to the Proxy Statement are also
incorporated herein by reference.
(c) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET;" "INFORMATION CONCERNING THE
SPECIAL MEETING - Agreement to Facilitate the Merger;"
"SPECIAL FACTORS - Interests of Certain Persons in the
Merger;" "THE MERGER AGREEMENT - The Merger; - Treatment of
Stock Options; - Agreement to Facilitate the Merger" and
"SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERSHIP AND
MANAGEMENT" is incorporated herein by reference and Appendices
A and B to the Proxy Statement are also incorporated herein by
reference.
(d)-(e) The information set forth in the Proxy Statement under
the caption "APPRAISAL RIGHTS" is incorporated herein by
reference and Appendix D to the Proxy Statement is also
incorporated herein by reference.
(f) Not applicable.
ITEM 5. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS AND AGREEMENTS.
(a) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET;" "INFORMATION CONCERNING THE
SPECIAL MEETING - Agreement to Facilitate the Merger;"
"SPECIAL FACTORS - Background of the Merger; - Interests of
Certain Persons in the Merger;" "THE MERGER AGREEMENT -
Agreement to Facilitate the Merger" and "RELATED PARTY
TRANSACTIONS" is incorporated herein by reference and Appendix
B to the Proxy Statement is also incorporated herein by
reference.
4
<PAGE> 5
(b)-(c) The information set forth in the Proxy Statement under
the caption "SPECIAL FACTORS - Background of the Merger" is
incorporated herein by reference.
(e) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - The Merger; - Agreement to
Facilitate the Merger; - Security Ownership of Management; -
Interests of Certain Persons in the Merger;" "INFORMATION
CONCERNING THE SPECIAL MEETING - Agreement to Facilitate the
Merger;" "THE MERGER AGREEMENT;" "SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" and "RELATED PARTY
TRANSACTIONS" is incorporated herein by reference and
Appendices A and B to the Proxy Statement are also
incorporated herein by reference.
ITEM 6. PURPOSES OF THE TRANSACTION AND PLANS OR PROPOSALS.
(b) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Consequences of the Merger" and
"SPECIAL FACTORS - Interests of Certain Persons in the Merger;
- Consequences of the Merger; - Plans for Surviving Company
After the Merger" is incorporated herein by reference.
(c)(1)-(8) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Consequences of the Merger;"
"SPECIAL FACTORS - Interests of Certain Persons in the Merger;
- Consequences of the Merger; - Plans for Surviving Company
After the Merger" and "KING MANAGEMENT" is incorporated herein
by reference.
ITEM 7. PURPOSES, ALTERNATIVES, REASONS AND EFFECTS.
(a)-(d) The information set forth in the Proxy Statement under
the captions "SUMMARY TERM SHEET - Consequences of the Merger;
- Recommendation of the Special Committee and Sunrise's Board
of Directors; Reasons for the Merger; - Interests of Certain
Persons in the Merger; - Material Federal Income Tax
Consequences;" "SPECIAL FACTORS - Background of the Merger; -
Recommendations of the Special Committee and the Board of
Directors; Reasons for the Merger; - King Management's
Purpose; Reasons for and Structure of the Merger; - Benefits
and Detriments of the Merger to Sunrise and Sunrise's
Stockholders; - Interests of Certain Persons in the Merger; -
Consequences of the Merger; - Plans for the Surviving Company
After the Merger; - U.S. Federal Income Tax Consequences" and
"THE MERGER AGREEMENT" is incorporated herein by reference.
5
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ITEM 8. FAIRNESS OF THE TRANSACTION.
(a)-(e) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Fairness Opinion of U.S.
Bancorp Piper Jaffray;" "INFORMATION CONCERNING THE SPECIAL
MEETING - Vote Required; - Agreement to Facilitate the
Merger;" "SPECIAL FACTORS - Background of the Merger; -
Recommendations of the Special Committee and Sunrise's Board
of Directors; Reasons for the Merger; - Opinion of the
Financial Advisor for the Special Committee; - Position of
King Management as to the Fairness of the Merger;" "THE MERGER
AGREEMENT;" "SELECTED HISTORICAL CONSOLIDATED FINANCIAL
INFORMATION;" "FINANCIAL PROJECTIONS;" "COMMON STOCK MARKET
PRICE AND DIVIDEND INFORMATION" and "SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" is incorporated
herein by reference and Appendices B and C to the Proxy
Statement are also incorporated herein by reference.
(f) Not applicable.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
(a)-(c) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Fairness Opinion of U.S.
Bancorp Piper Jaffray;" and "SPECIAL FACTORS - Background of
the Merger; - Recommendations of the Special Committee and
Sunrise's Board of Directors; Reasons for the Merger; -
Opinion of the Financial Advisor for the Special Committee; -
Position of King Management as to the Fairness of the Merger;
Analysis of Financial Advisor to King Management"
is incorporated herein by reference and Appendix C to the
Proxy Statement is also incorporated herein by reference.
ITEM 10. SOURCE AND AMOUNTS OF FUNDS OR OTHER CONSIDERATION.
(a)-(b) The information set forth in the Proxy Statement under
the captions "SUMMARY TERM SHEET - The Merger; - Financing;
Source of Funds;" "SPECIAL FACTORS - Financing; Source of
Funds" and "THE MERGER AGREEMENT" is incorporated herein by
reference.
(c) The information set forth in the Proxy Statement under the
captions "INFORMATION CONCERNING THE SPECIAL MEETING -
Solicitation, Revocation and Use of Proxies" and "SPECIAL
FACTORS - Fees and Expenses" is incorporated herein by
reference.
(d) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Financing; Source of Funds;"
"SPECIAL FACTORS - Financing; Source of Funds" and "THE MERGER
AGREEMENT" is incorporated herein by reference.
ITEM 11. INTEREST IN SECURITIES OF THE SUBJECT COMPANY.
(a) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Interests of Certain Persons in
the Merger;" "SPECIAL FACTORS - Interests of Certain Persons
in the Merger;" "SECURITY OWNERSHIP OF CERTAIN
6
<PAGE> 7
BENEFICIAL OWNERS AND MANAGEMENT" and "COMMON STOCK
PURCHASE INFORMATION" is incorporated herein by reference.
(b) The information set forth in the Proxy Statement under the
caption "COMMON STOCK PURCHASE INFORMATION - Recent
Transactions" is incorporated herein by reference.
ITEM 12. THE SOLICITATION OR RECOMMENDATION.
(d) The information set forth in the Proxy Statement under the
captions "QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING;"
"INFORMATION CONCERNING THE SPECIAL MEETING" and "THE MERGER
AGREEMENT" is incorporated herein by reference.
(e) The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Recommendation of the Special
Committee and Sunrise's Board of Directors; Reasons for the
Merger;" "INFORMATION CONCERNING THE SPECIAL MEETING -
Solicitation, Revocation and Use of Proxies;" and "SPECIAL
FACTORS - Background of the Merger; - Recommendations of the
Special Committee and the Board of Directors; Reasons for the
Merger; - King Management's Purpose; Reasons for and
Structure of the Merger; - Position of King Management as to
Fairness of the Merger" is incorporated herein by reference.
ITEM 13. FINANCIAL STATEMENTS.
(a) The information set forth in the Proxy Statement under the
captions "SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA" and
"DOCUMENTS INCORPORATED BY REFERENCE" is incorporated herein
by reference.
(b) The information set forth in the Proxy Statement under the
caption "PRO FORMA FINANCIAL INFORMATION" is incorporated
herein by reference.
ITEM 14. PERSONS/ASSETS, RETAINED, EMPLOYED, COMPENSATED OR USED.
(a)and(b) The information set forth in the Proxy Statement under
the caption "INFORMATION CONCERNING THE SPECIAL MEETING -
Solicitation, Revocation and Use of Proxies" is incorporated
herein by reference.
ITEM 15. ADDITIONAL INFORMATION.
The information set forth in the Proxy Statement under the
captions "SUMMARY TERM SHEET - Stockholder Lawsuit Challenging
the Merger;" "FINANCIAL PROJECTIONS" and "SPECIAL FACTORS -
Stockholder Lawsuit Challenging the Merger" is incorporated
herein by reference.
7
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ITEM 16. EXHIBITS.
(a) Preliminary Proxy Statement, including all appendices thereto,
and related Notice of Special Meeting of Stockholders, as
amended (incorporated herein by reference to the Preliminary
Proxy Statement, as amended, filed concurrently with this
Statement).
(b) Letter dated April 27, 2000 from LaSalle Bank N.A. relating to
loan commitment.
(c)(1) Fairness Opinions of U.S. Bancorp Piper Jaffray (incorporated
herein by reference to Appendix C to the Proxy Statement filed
as Exhibit (a) to this Statement).
(c)(2) Fairness Opinion Presentation to the Special Committee of the
Board of Directors of Sunrise prepared and presented by U.S.
Bancorp Piper Jaffray dated January 27, 2000 (filed herewith).
(c)(3) Report of Greene Holcomb & Fisher LLC dated September 7, 1999.
(c)(4) Report of Greene Holcomb & Fisher LLC dated April 20, 2000.
(d)(1) Agreement and Plan of Merger, dated January 31, 2000, between
Sunrise and King Management, as amended on May 25, 2000
(incorporated herein by reference to Appendix A to the Proxy
Statement filed on Exhibit (a) to this Statement.
(d)(2) Agreement to Facilitate Merger, dated January 31, 2000, by
and among King Management, Peter J. King, Stephen D. Higgins,
as trustee under each of the William B. King Stock Trust UA
Dated November 21, 1989 FBO William B. King and the Russell S.
King Stock Trust UA Dated November 11, 1989 FBO Russell S.
King, and Stephen D. Higgins, as sole trustee under each of
the Separate Trust FBO William B. King UA Dated April 28,
1995, the Separate Trust FBO Russell S. King UA Dated April
28, 1995, the GST Trust FBO William B. King UA Dated April 28,
1995 and the GST Trust FBO Russell S. King UA Dated April 28,
1995 (incorporated herein by reference to Exhibit 2.2 to
Sunrise's Current Report on Form 8-K filed with the SEC on
February 3, 2000).
(d)(3) Voting Trust Agreement dated May 27, 1998 among Peter J.
King, The King Management Corporation, the William B. King
Stock Trust, the Russell S. King Stock Trust and the Peter J.
King 1996 Grantor Retained Annuity Trust (incorporated herein
by reference to Exhibit 1 contained in Amendment No. 5 to
Schedule 13D dated May 28, 1998 filed by Peter J. King (File
No. 5-42174)).
(f) Statement of Appraisal Rights and Procedures (incorporated
herein by reference to Appendix D to the Proxy Statement filed
as Exhibit (a) to this Statement).
(g) None.
8
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SIGNATURE
After due inquiry and to the best of our knowledge and belief, we certify
that the information set forth in this statement is true, complete and correct.
SUNRISE INTERNATIONAL LEASING CORPORATION
By /s/ Peter J. King
--------------------------------------
Peter J. King
Chief Executive Officer
THE KING MANAGEMENT CORPORATION
By /s/ Peter J. King
--------------------------------------
Peter J. King
Chief Executive Officer
/s/ Peter J. King
-----------------------------------------
Peter J. King
THE WILLIAM B. KING STOCK TRUST UA
DATED NOVEMBER 21, 1989 FOR THE
BENEFIT OF WILLIAM B. KING
/s/ Stephen D. Higgins
-----------------------------------------
Stephen D. Higgins
Co-Trustee
/s/ William B. King
-----------------------------------------
William B. King
Co-Trustee
THE RUSSELL S. KING STOCK TRUST UA
DATED NOVEMBER 11, 1989 FOR THE
BENEFIT OF RUSSELL S. KING
/s/ Stephen D. Higgins
-----------------------------------------
Stephen D. Higgins
Co-Trustee
/s/ Russell S. King
-----------------------------------------
Russell S. King
Co-Trustee
9
<PAGE> 10
VOTING TRUST UA DATED MAY 27, 1998
/s/ Peter J. King
-----------------------------------------
Peter J. King
Sole Voting Trustee
Dated: May 24, 2000
10
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EXHIBIT INDEX
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
EXHIBIT NUMBER DESCRIPTION OF EXHIBIT FILING METHOD
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
(a) Preliminary Proxy Statement, including all Incorporated herein by reference to the
appendices thereto, and related Notice of Preliminary Proxy Statement, as amended,
Special Meeting of Stockholder, as amended filed concurrently with this Statement
- ----------------------------------------------------------------------------------------------------------------------
(b) Letter dated April 27, 2000 from LaSalle Filed herewith
Bank N.A. relating to loan commitment.
- ----------------------------------------------------------------------------------------------------------------------
(c)(1) Fairness Opinions of U.S. Bancorp Piper Incorporated herein by reference to
Jaffray Appendix C to the Proxy Statement
filed as Exhibit (a) to this Statement
- ----------------------------------------------------------------------------------------------------------------------
(c)(2) Fairness Opinion Presentation to the Special Filed herewith
Committee of the Board of Directors of
Sunrise prepared and presented by U.S.
Bancorp Piper Jaffray dated January 27, 2000
- ----------------------------------------------------------------------------------------------------------------------
(c)(3) Report of Greene Holcomb & Fisher LLC Filed herewith
dated September 7, 1999.
- ----------------------------------------------------------------------------------------------------------------------
(c)(4) Report of Greene Holcomb & Fisher LLC Filed herewith
dated April 20, 2000.
- ----------------------------------------------------------------------------------------------------------------------
(d)(1) Agreement and Plan of Merger, dated January Incorporated herein by reference to
31, 2000, between Sunrise and King Appendix A to the Proxy Statement
Management, as amended on May 25, 2000 filed as Exhibit (a) to this Statement.
- ----------------------------------------------------------------------------------------------------------------------
(d)(2) Agreement to Facilitate Merger, dated Incorporated herein by reference to
January 31, 2000, by and among King Exhibit 2.2 to Sunrise's Current
Management, Peter J. King, Stephen D. Report on Form 8-K filed with the SEC
Higgins, as trustee under each of the on February 3, 2000
William B. King Stock Trust UA Dated November
21, 1989 FBO William B. King and the Russell
S. King Stock Trust UA Dated November 11,
1989 FBO Russell S. King, and Stephen D.
Higgins, as sole trustee under each of the
Separate Trust FBO William B. King UA Dated
April 28, 1995, the Separate Trust FBO
Russell S. King UA Dated April 28, 1995, the
GST Trust FBO William B. King UA Dated April
28, 1995 and the GST Trust FBO Russell S.
King UA Dated April 28, 1995
- ----------------------------------------------------------------------------------------------------------------------
(d)(3) Voting Trust Agreement dated May 27, 1998 Incorporated herein by reference to
among Peter J. King, The King Management Exhibit 1 contained in Amendment No. 5 to
Corporation, the William B. King Stock Schedule 13D dated May 28, 1998 filed
Trust, the Russell S. King Stock Trust and by Peter J. King (File No. 5-42174)
the Peter J. King 1996 Grantor Retained
Annuity Trust
- ----------------------------------------------------------------------------------------------------------------------
(f) Statement of Appraisal Rights and Procedures Incorporated herein by reference to
Appendix D to the Proxy Statement
filed as Exhibit (a) to this Statement.
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 1
EXHIBIT (c)(3)
================================================================================
PROJECT SILK
VALUATION SUMMARY
SEPTEMBER 7, 1999
GREENE HOLCOMB & FISHER
================================================================================
<PAGE> 2
PROJECT SILK
================================================================================
TABLE OF CONTENTS
SECTION
-------
BID ANALYSIS I
GOING PRIVATE TRANSACTIONS II
DISCOUNTED CASH FLOW III
PUBLIC LEASING COMPANIES IV
WINTHROP TRANSACTION V
STOCK CHARTS VI
================================================================================
<PAGE> 3
================================================================================
BID ANALYSIS
================================================================================
<PAGE> 4
PROJECT SILK
================================================================================
BID ANALYSIS
- -- GH&F recommends an initial bid of $5.25 per share for the 3,262,378
outstanding shares and options of Sunrise International Leasing Corporation
that are not currently owned by Peter King. At this bid price, Sunrise
shareholders would receive a 23.5% premium over the current stock price of
4 1/4, a 21.8% premium over the price one week ago of 4 5/16, and a 29.3%
premium over the price one month ago of 4 1/16, which is comparable to
other going private transactions in the past eighteen months.
- -- Assumes current stock price at 4 1/4.
<TABLE>
<CAPTION>
COMPANY
TOTAL COMPANY VALUE/
PURCHASE VALUE/ OPERATING PREMIUM
PRICE REVENUES INCOME P/E PRICE/BOOK PAID
================= ================ ================= ================= ================ =================
<S> <C> <C> <C> <C> <C> <C>
Sunrise @ 5 1/4 $17.1M 1.5 8.4 10.7 1.1 23.5%
- ------------------------ ----------------- ---------------- ----------------- ----------------- ---------------- -----------------
Public Comps NA 2.1 9.8 11.3 1.2 N/A
- ------------------------ ----------------- ---------------- ----------------- ----------------- ---------------- -----------------
====================================================================================================================================
</TABLE>
<PAGE> 5
================================================================================
GOING PRIVATE TRANSACTIONS
================================================================================
<PAGE> 6
PROJECT SILK
================================================================================
GOING PRIVATE TRANSACTIONS
GH&F reviewed a list of transactions in which the acquiror owned 50% or more of
the target prior to the transaction. We limited the list to all transactions
with a total purchase price under $100 million and eliminated real estate deals
and any transactions with negative premiums. Ten deals were analyzed for
premiums paid one day prior to announcement, one week prior to announcement, and
one month prior to announcement. A summary of the results follows below:
<TABLE>
<CAPTION>
PREMIUM 1 PREMIUM 1 PREMIUM 4
DAY PRIOR TO WEEK PRIOR TO WEEKS PRIOR TO
ANNOUNCEMENT ANNOUNCEMENT ANNOUNCEMENT
DATE DATE DATE
===================== ====================== ======================
<S> <C> <C> <C>
Mean 24.4% 31.1% 33.5%
---------------------------- --------------------- ---------------------- ----------------------
Median 23.3% 23.2% 27.6%
---------------------------- --------------------- ---------------------- ----------------------
Sunrise @ 5 1/4 23.5% 21.8% 29.3%
============================ ===================== ====================== ======================
</TABLE>
<PAGE> 7
PROJECT SILK
GOING PRIVATE TRANSACTIONS
ACQUIROR OWNED>50% PRIOR TO TRANSACTION
DEAL VALUE - LESS THAN $100 MILLION
1/1/98 to 8/10/99
<TABLE>
<CAPTION>
Target Target
Net Operating Company Company
Value of Sales Income Value/ Value/
Date Date Transaction LTM LTM Total Operating
Announced Uncon. Target Name Acquiror Name ($ mil) ($mil) ($mil) Sales Income
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
01/22/99 06/11/99 Treadco Inc Arkansas Best Corp 22.7 176.9 1.1 0.4 57.3
12/03/98 04/08/99 Banner Aerospace Inc Fairchild Corp 82.4 286.0 13.0 1.3 29.3
11/12/98 05/14/99 Aquila Gas Pipeline Corp UtiliCorp United Inc 43.2 983.6 24.7 0.5 18.5
10/21/98 11/30/98 Capital Factors Holdings Inc Union Planters Bk Nat Assoc 22.2 99.4 57.8 7.4 12.8
04/29/98 09/25/98 Group 1 Software Inc COMNET Corp 11.8 59.2 -2.1 1.1 N/A
03/31/98 03/26/99 Thermo Voltek Corp Thermedics(Thermo Electron) 43.9 45.9 1.6 2.0 56.6
03/05/98 05/20/98 XLConnect Solutions Inc Xerox Corp 93.0 134.4 7.4 2.6 47.8
01/20/98 04/16/98 NACT Telecommunications(GST) World Access Inc 53.1 30.0 6.4 4.8 22.6
01/09/98 09/30/98 Wandel & Goltermann Tech Inc Wandel & Goltermann Management 34.2 53.4 -2.5 1.4 N/A
01/08/98 01/30/98 Rayonier Timberlands LP Rayonier Inc 65.8 139.6 86.7 3.5 5.6
<CAPTION>
Premium Premium Premium
1 day 1 week 4 weeks
Equity prior to prior to prior to
Value/ announce- announce- announce-
Date Date Common ment ment ment
Announced Uncon. Target Name Acquiror Name Equity date date date
- ---------------------------------------------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
01/22/99 06/11/99 Treadco Inc Arkansas Best Corp 0.8 38.5 46.9 24.1
12/03/98 04/08/99 Banner Aerospace Inc Fairchild Corp 1.2 25.7 41.9 40.8
11/12/98 05/14/99 Aquila Gas Pipeline Corp UtiliCorp United Inc 1.0 23.1 17.4 68.4
10/21/98 11/30/98 Capital Factors Holdings Inc Union Planters Bk Nat Assoc 2.6 4.5 8.9 2.9
04/29/98 09/25/98 Group 1 Software Inc COMNET Corp 2.1 71.6 61.5 71.6
03/31/98 03/26/99 Thermo Voltek Corp Thermedics(Thermo Electron) 2.5 45.5 60.0 40.0
03/05/98 05/20/98 XLConnect Solutions Inc Xerox Corp 6.4 -11.1 15.1 22.1
01/20/98 04/16/98 NACT Telecommunications(GST) World Access Inc 4.4 12.0 12.5 16.7
01/09/98 09/30/98 Wandel & Goltermann Tech Inc Wandel & Goltermann Management 2.8 23.5 21.1 31.1
01/08/98 01/30/98 Rayonier Timberlands LP Rayonier Inc 2.4 11.2 25.3 17.5
MEAN 24.4 31.1 33.5
MEDIAN 23.3 23.2 27.6
<CAPTION>
Date Date
Announced Uncon. Target Name Acquiror Name Target Business Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
01/22/99 06/11/99 Treadco Inc Arkansas Best Corp Own,operate auto supply stores
12/03/98 04/08/99 Banner Aerospace Inc Fairchild Corp Wholesale aerospace equipment
11/12/98 05/14/99 Aquila Gas Pipeline Corp UtiliCorp United Inc Gas utility
10/21/98 11/30/98 Capital Factors Holdings Inc Union Planters Bk Nat Assoc Pvd short-term bus credit svcs
04/29/98 09/25/98 Group 1 Software Inc COMNET Corp Develop software
03/31/98 03/26/99 Thermo Voltek Corp Thermedics(Thermo Electron) Mnfr electronic components
03/05/98 05/20/98 XLConnect Solutions Inc Xerox Corp Pvd integrated sys design svcs
01/20/98 04/16/98 NACT Telecommunications(GST) World Access Inc Pvd telephone commun svcs
01/09/98 09/30/98 Wandel & Goltermann Tech Inc Wandel & Goltermann Management Mnfr network equipment
01/08/98 01/30/98 Rayonier Timberlands LP Rayonier Inc Own,op timber tracts
</TABLE>
<PAGE> 8
================================================================================
DISCOUNTED CASH FLOW
================================================================================
<PAGE> 9
PROJECT SILK
- --------------------------------------------------------------------------------
DISCOUNTED CASH FLOW ANALYSIS
YEARS ENDING MARCH 31
($ IN MILLIONS)
<TABLE>
<CAPTION>
PROJECTED
====================================================================
2001 2002 2003 2004 2005
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues 111.2 135.7 152.0 155.0 154.3
Earnings Before Taxes 6.9 10.8 11.7 11.4 10.7
Less: Taxes @ 42% (2.9) (4.5) (4.9) (4.8) (4.5)
Net Income 4.0 6.3 6.8 6.6 6.2
======================================================================================================================
Dividend Ability (Equity Requirement) (8.1) 5.0 8.8 9.5 8.7
Terminal Value @ 10x Net Income - - - - 61.8
---------------------------------------------------------------------
Total Cash Flows (8.1) 5.0 8.8 9.5 70.5
=====================================================================
</TABLE>
<TABLE>
<CAPTION>
ASSUMPTIONS
- -------------------------------------------------
SENSITIVITY ANALYSIS
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
42.00% Tax Rate
10 Net Income Multiple NET INCOME MULTIPLE
18.00% Discount Rate 8.0 10.0 12.0
---------------------------------------------------
DISCOUNT 16.0% $35.4 $41.2 $47.1
RATE 18.0% $32.4 $37.9 $43.3
20.0% $29.8 $34.8 $39.8
Net Present Value, 4/1/00
- ---------------------------------------------------------------
NPV of Free Cash Flow 11
NPV of Terminal Value 27
-------------
Total NPV, 4/1/00 38 PER SHARE SENSITIVITY ANALYSIS
--------------------------------------------------------------------
Plus: Cash - NET INCOME MULTIPLE
Less: Debt - 8.0 10.0 12.0
---------------------------------------------------
DISCOUNT 16.0% $4.87 $5.68 $6.49
=============
Equity Value, 4/1/00 38 RATE 18.0% $4.47 $5.21 $5.96
=============
20.0% $4.10 $4.79 $5.47
Shares Outstanding (000) 7,262
Value per Share $5.21
</TABLE>
<PAGE> 10
Discounted Cash Flow Worksheet
($ in millions)
<TABLE>
<CAPTION>
2001 2002 2003 2004 2005
----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Debt 132.8 136.5 130.4 121.7 114.2
Required Equity @ 3:1 44.3 45.5 43.5 40.6 38.1
Previous Equity 32.2 44.3 45.5 43.5 40.6
Net Income 4.0 6.3 6.8 6.6 6.2
Dividend (Requirement) (8.1) 5.0 8.8 9.5 8.7
</TABLE>
<PAGE> 11
================================================================================
PUBLIC LEASING COMPANIES
================================================================================
<PAGE> 12
PROJECT SILK
================================================================================
PUBLIC LEASING COMPANIES
GH&F developed a list of nine public leasing companies that are used to compare
valuation multiples with Sunrise. We evaluated a comprehensive list of public
companies in the equipment leasing and rental industry and eliminated all but
those that appeared to operating in a similar manner to that of Sunrise.
<TABLE>
<CAPTION>
COMPANY
VALUE/
COMPANY OPERATING
VALUE/REVENUES INCOME P/E PRICE/BOOK (1)
---------------------- ---------------------- ---------------------- ---------------------
<S> <C> <C> <C> <C>
Public Comps 2.1X 9.8X 11.3X 1.2X
- --------------------------------------- ---------------------- ---------------------- ---------------------- ---------------------
Sunrise @ 4 1/4 1.4X 7.7X 8.7X .9X
- --------------------------------------- ---------------------- ---------------------- ---------------------- ---------------------
Sunrise @ 5 1/4 1.5X 8.4X 10.7X 1.1X
- --------------------------------------- ---------------------- ---------------------- ---------------------- ---------------------
</TABLE>
(1) Excludes outlier of 14.5.
<PAGE> 13
PROJECT SILK
- --------------------------------------------------------------------------------
Comparable Company Analysis
($ in millions except per share)
<TABLE>
<CAPTION>
LTM Gross
Ticker Quarter Gross Margin
Symbol Company Date Revenues Income (%)
- -------------------- ---------------------------- ------------ ---------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Comparable Group
AMPI AMPLICON INC 3/99 $241.9 $71.7 29.6
CAII CAPITAL ASSOCIATES INC 2/99 $254.7 $19.5 7.6
CHLR CHANCELLOR CORP 6/99 $52.1 $3.8 7.4
ELRC ELECTRO RENT CORP 2/99 $287.3 $138.4 48.2
LNCC LINC CAPITAL INC 3/99 $78.3 $43.9 56.0
LSN LEASING SOLUTIONS INC (3) 9/98 $278.8 $58.5 21.0
MFI MICROFINANCIAL INC 3/99 $80.9 $33.6 41.5
TWFC T & W FINANCIAL CORP (4) 6/99 $66.5 $30.4 45.7
UCP UNICAPITAL CORP (5) 3/99 $613.6 $200.1 32.6
MEAN 32.2
MEDIAN 32.6
SUNL SUNRISE INTL LEASING CORP 6/99 $57.2 $10.2 17.8
<CAPTION>
Operating Net
Ticker Operating Margin Net Margin
Symbol Company Income (1) (%) Income (%)
- -------------------- ---------------------------- ------------- ----------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Comparable Group
AMPI AMPLICON INC $53.9 22.3 $20.1 8.3
CAII CAPITAL ASSOCIATES INC $12.7 5.0 $0.8 0.3
CHLR CHANCELLOR CORP ($2.1) NM $1.5 (2) 2.8
ELRC ELECTRO RENT CORP $55.8 19.4 $24.6 8.6
LNCC LINC CAPITAL INC $17.7 22.7 $3.8 4.8
LSN LEASING SOLUTIONS INC (3) $58.5 21.0 $9.0 3.2
MFI MICROFINANCIAL INC $33.6 41.5 $12.8 15.8
TWFC T & W FINANCIAL CORP (4) $30.4 45.7 $8.6 12.9
UCP UNICAPITAL CORP (5) $128.8 21.0 $41.2 6.7
MEAN 24.8 7.1
MEDIAN 21.6 6.7
SUNL SUNRISE INTL LEASING CORP $10.2 17.8 $3.7 6.5
<CAPTION>
8/26/99
Average Stock
Market Daily Stock Price as
Ticker Value Volume Price a % of 52
Symbol Company of Equity (000s) 8/26/99 Week High
- -------------------- --------------------------- --------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
Comparable Group
AMPI AMPLICON INC
CAII CAPITAL ASSOCIATES INC $148.4 3.9 $12.50 72.7%
CHLR CHANCELLOR CORP $15.1 4.8 $2.88 50.0%
ELRC ELECTRO RENT CORP $31.7 33.0 $0.59 57.6%
LNCC LINC CAPITAL INC $305.7 26.5 $12.50 76.9%
LSN LEASING SOLUTIONS INC (3) $29.6 22.2 $5.63 38.1%
MFI MICROFINANCIAL INC $7.1 126.3 $0.88 3.1%
TWFC T & W FINANCIAL CORP (4) $144.2 66.6 $10.81 54.4%
UCP UNICAPITAL CORP (5) $58.9 52.7 $7.00 26.8%
$223.1 214.0 $4.25 30.4%
MEAN
MEDIAN 45.6%
50.0%
SUNL SUNRISE INTL LEASING CORP $30.9 6.7 $4.25 89.5%
<CAPTION>
Ticker 52 Week Price Range
----------------------------
Symbol Company Low High
- -------------------- --------------------------- ------------ -------------
<S> <C> <C> <C>
Comparable Group
AMPI AMPLICON INC
CAII CAPITAL ASSOCIATES INC $8.00 - $17.19
CHLR CHANCELLOR CORP $2.75 - $5.75
ELRC ELECTRO RENT CORP $0.41 - $1.03
LNCC LINC CAPITAL INC $9.00 $16.25
LSN LEASING SOLUTIONS INC (3) $5.19 - $14.75
MFI MICROFINANCIAL INC $0.50 - $28.31
TWFC T & W FINANCIAL CORP (4) $8.94 - $19.88
UCP UNICAPITAL CORP (5) $6.00 - $26.13
$3.88 - $14.00
MEAN
MEDIAN
SUNL SUNRISE INTL LEASING CORP $2.25 - $4.75
</TABLE>
(1) Operating Income is figured after Depreciation and Amortization and before
Interest.
(2) Non-operating income of $4.4 million related to sales of transportation
equipment.
(3) In default on loan covenants.
(4) Net loss of $3.4 million in second quarter ended June 30, 1999 due in part
to higher provision for credit losses.
(5) Debt to tangible net worth of 10.8x to 1 at June 30, 1999.
<PAGE> 14
PROJECT SILK
- --------------------------------------------------------------------------------
Comparable Company Analysis
($ in millions except per share)
<TABLE>
<CAPTION>
P/E Ratios
--------------------------------------------------------
Fiscal Latest 1998 1999
Year Twelve Cal. Cal.
Company End Months Year Year
- -------------------------------------------------- ---------- ---------------- ------------------- -------------------
<S> <C> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC 6/98 7.5 NA NA
CAPITAL ASSOCIATES INC 5/98 18.0 NA NA
CHANCELLOR CORP 12/98 19.8 NA NA
ELECTRO RENT CORP 5/98 12.8 NA NA
LINC CAPITAL INC 12/98 10.2 6.5 3.4
LEASING SOLUTIONS INC (1) 12/97 NA NA NA
MICROFINANCIAL INC 12/98 8.7 7.6 6.3
T & W FINANCIAL CORP (2) 12/98 7.8 NA NA
UNICAPITAL CORP (3) 12/98 5.9 10.6 5.2
MEAN 11.3 8.2 5.0
MEDIAN 9.4 7.6 5.2
SUNRISE INTL LEASING CORP 3/99 8.7 NA NA
<CAPTION>
Market
"Company Value/
"Company Value"/ Tangible
Value"/ Operating Common
Company Revenue Income Equity
- -------------------------------------------------- ------------------ ------------------ -----------------
<S> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC 1.4 6.3 1.0
CAPITAL ASSOCIATES INC 0.7 13.5 0.6
CHANCELLOR CORP 0.9 NM 14.5
ELECTRO RENT CORP 1.6 8.1 2.4
LINC CAPITAL INC 3.8 16.7 0.9
LEASING SOLUTIONS INC (1) 2.2 10.3 0.1
MICROFINANCIAL INC 3.1 7.5 2.1
T & W FINANCIAL CORP (2) 3.2 7.0 1.1
UNICAPITAL CORP (3) 1.9 9.2 1.1
MEAN 2.1 9.8 2.6
MEDIAN 1.9 8.6 1.1
SUNRISE INTL LEASING CORP 1.4 7.7 0.9
<CAPTION>
EPS Estimates (1)
--------------------------------------------------------------------------------------
Date of 1998 1998 1999 1999
EPS EPS Fiscal Cal. Fiscal Cal.
Company (LTM) (LTM) Year Year Year Year
- ------------------------------------- ------------- ------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC 6/99 $1.67 NA NA NA NA
CAPITAL ASSOCIATES INC 2/99 $0.16 NA NA NA NA
CHANCELLOR CORP 6/99 $0.03 NA NA NA NA
ELECTRO RENT CORP 5/99 $0.98 NA NA NA NA
LINC CAPITAL INC 6/99 $0.55 $0.87 $0.87 $1.64 $1.64
LEASING SOLUTIONS INC (1) 9/98 $1.10 NA NA NA NA
MICROFINANCIAL INC 6/99 $1.25 $1.42 $1.42 $1.71 $1.71
T & W FINANCIAL CORP (2) 6/99 $0.90 NA NA NA NA
UNICAPITAL CORP (3) 6/99 $0.72 $0.40 $0.40 $0.82 $0.82
MEAN
MEDIAN
SUNRISE INTL LEASING CORP 6/99 $0.49 NA NA NA NA
</TABLE>
(1) In default on loan covenants.
(2) Net loss of $3.4 million in second quarter ended June 30, 1999 due in part
to higher provision for credit losses.
(3) Debt to tangible net worth of 10.8x to 1 at June 30, 1999.
<PAGE> 15
PROJECT SILK
- --------------------------------------------------------------------------------
Comparable Company Analysis
($ in millions except per share)
<TABLE>
<CAPTION>
Revenues
Latest ----------------------------------------------------------
Company Year -2 Years -1 Year Latest Year
- -------------------------------- ------------ ------------------ ----------------- -----------------
<S> <C> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC 6/98 $257.2 $299.9 $313.2
CAPITAL ASSOCIATES INC 5/98 $186.7 $227.5 $273.4
CHANCELLOR CORP 12/98 $ 5.5 $ 4.4 $ 26.2
ELECTRO RENT CORP 5/98 $141.1 $150.5 $255.5
LINC CAPITAL INC 12/98 $ 36.1 $ 41.0 $ 71.6
LEASING SOLUTIONS INC (2) 12/97 $ 80.2 $143.9 $220.7
MICROFINANCIAL INC 12/98 $ 55.6 $ 68.2 $ 76.5
T & W FINANCIAL CORP (3) 12/98 $ 19.5 $ 29.3 $ 65.3
UNICAPITAL CORP (4) 12/98 NA NA $510.9
MEAN
MEDIAN
SUNRISE INTL LEASING CORP 3/99 $ 44.8 $ 43.3 $ 49.3
<CAPTION>
Fiscal Yearend
Compound
Revenue %
Growth Rates (1)
(-2 Years to Earnings Per Share
----------------------------------------------------------
Company Latest Year) -2 Years -1 Year Latest Year
- ----------------------------------- ------------------------ ----------------- ------------------ ------------------
<S> <C> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC 10.3 $1.11 $1.35 $1.63
CAPITAL ASSOCIATES INC 21.0 $0.12 $0.14 $0.30
CHANCELLOR CORP 118.1 ($1.32) ($0.18) $0.02
ELECTRO RENT CORP 34.5 $0.88 $0.97 $1.33
LINC CAPITAL INC 40.9 $0.40 $0.73 $0.89
LEASING SOLUTIONS INC (2) 65.9 $0.93 $1.16 $1.60
MICROFINANCIAL INC 17.3 N/A $0.78 $1.21
T & W FINANCIAL CORP (3) 83.0 $1.00 $1.14 $2.00
UNICAPITAL CORP (4) NA NA NA $0.73
MEAN 48.9
MEDIAN 37.7
SUNRISE INTL LEASING CORP 4.9 $0.35 ($0.35) $0.29
</TABLE>
(1) Calculated using three data points.
(2) In default on loan covenants.
(3) Net loss of $3.4 million in second quarter ended June 30, 1999 due in part
to higher provision for credit losses.
(4) Debt to tangible net worth of 10.8x to 1 at June 30, 1999.
<PAGE> 16
PROJECT SILK
- --------------------------------------------------------------------------------
Comparable Company Analysis
($ in millions except per share)
<TABLE>
<CAPTION>
Book Value
--------------------------------------------
FYE Quarterly Recent
Intangible Common Price
Company Assets Equity 8/26/99 x
- ------------------------------------------------------ ------------------- -------------------- ----------------
<S> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC $ 0.0 $149.5 $12.50
CAPITAL ASSOCIATES INC $ 1.7 $ 25.9 $ 2.88
CHANCELLOR CORP $ 7.5 $ 9.7 $ 0.59
ELECTRO RENT CORP $ 63.3 $189.2 $12.50
LINC CAPITAL INC $ 10.7 $ 42.2 $ 5.63
LEASING SOLUTIONS INC (1) $ 0.0 $ 79.3 $ 0.88
MICROFINANCIAL INC $ 8.9 $ 79.2 $10.81
T & W FINANCIAL CORP (2) $ 5.3 $ 60.9 $ 7.00
UNICAPITAL CORP (3) $613.6 $823.0 $ 4.25
SUNRISE INTL LEASING CORP $ 0.5 $ 33.4 $ 4.25
<CAPTION>
Shares
Outstanding Market Long-Term
Company (000s) = Capitalization + Debt +
- -------------------------- -------------------- ----------------------- --------------------
<S> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC 11,869 $148.4 $239.8
CAPITAL ASSOCIATES INC 5,236 $ 15.1 $160.9
CHANCELLOR CORP 53,359 $ 31.7 $ 16.1
ELECTRO RENT CORP 24,457 $305.7 $ 0.0
LINC CAPITAL INC 5,265 $ 29.6 $266.4
LEASING SOLUTIONS INC 8,141 $ 7.1 $641.5
MICROFINANCIAL INC 13,335 $144.2 $117.6
T & W FINANCIAL CORP 8,408 $ 58.9 $173.1
UNICAPITAL CORP 52,505 $223.1 $971.9
SUNRISE INTL LEASING CORP 7,262 $ 30.9 $ 44.1
<CAPTION>
Latest Quarterly Data
------------------------------------------------------------------------
Short-Term Preferred Cash on "Company
Company Debt + Stock - Balance Sheet = Value"
- ------------------------- ------------------- ------------------- ----------------------- -----------------
<S> <C> <C> <C> <C>
COMPARABLE GROUP
AMPLICON INC N/A $0.0 $50.9 $ 337.3
CAPITAL ASSOCIATES INC N/A $0.0 $ 4.0 $ 172.0
CHANCELLOR CORP N/A $0.1 $ 1.2 $ 46.6
ELECTRO RENT CORP $146.7 $0.0 $ 0.9 $ 451.5
LINC CAPITAL INC N/A $0.0 $ 0.1 $ 295.9
LEASING SOLUTIONS INC N/A $0.0 $45.9 $ 602.8
MICROFINANCIAL INC N/A $0.0 $11.4 $ 250.4
T & W FINANCIAL CORP N/A $0.0 $19.9 $ 212.1
UNICAPITAL CORP N/A $0.0 $12.9 $1,182.1
SUNRISE INTL LEASING CORP $4.0 $0.0 $ 0.5 $ 78.5
</TABLE>
(1) In default on loan covenants.
(2) Net loss of $3.4 million in second quarter ended June 30, 1999 due in part
to higher provision for credit losses.
(3) Debt to tangible net worth of 10.8x to 1 at June 30, 1999.
<PAGE> 17
================================================================================
WINTHROP TRANSACTION
================================================================================
<PAGE> 18
PROJECT SILK
- --------------------------------------------------------------------------------
WINTHROP TRANSACTION
- --------------------------------------------------------------------------------
- -- GH&F reviewed over 200 transactions from the computer leasing and equipment
leasing and rental industries that have occurred over the past four years.
Out of all of the deals that were reviewed including nine completed by
First Sierra Financial, only the acquisition of Winthrop Resources by TCF
Financial Corp. provided data and fit within the industry parameters. We do
not believe that Winthrop was entirely comparable and its acquisition by a
financial institution represented an unusual circumstance as it created a
new strategic platform for the buyer and significantly reduced the seller's
cost of funds. Many deals would have been comparable to the Silk
transaction but no data was available. Other deals provided data but were
not in Silk's industry such as the numerous transactions that have occurred
lately in the aircraft leasing industry.
<TABLE>
<CAPTION>
- ------------------------------- ----------------- ---------------- ----------------- ----------------- ----------------
COMPANY VALUE/
COMPANY VALUE/ OPERATING PREMIUM
REVENUES INCOME P/E PRICE/BOOK PAID
- ------------------------------- ----------------- ---------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
TCF/Winthrop 4.8X 9.5X 20.6X 3.8X 21.7%
- ------------------------------- ----------------- ---------------- ----------------- ----------------- -----------------
Sunrise @ 5 1/4 1.5X 8.4X 10.7X 1.1X 23.5%
- ------------------------------- ----------------- ---------------- ----------------- ----------------- -----------------
</TABLE>
<PAGE> 19
================================================================================
STOCK CHARTS
================================================================================
<PAGE> 20
SUNRISE INTL LEASING CORP
Daily Stock Price/Volume Performance
8/26/99 - 9/02/99
{BAR GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
8/26/99 19.0 4.56 4.19 4.19
8/27/99 4.3 4.38 4.25 4.38
8/30/99 9.9 4.56 4.38 4.38
8/31/99 8.9 4.38 4.19 4.31
9/01/99 2.8 4.31 4.31 4.31
9/02/99 0.4 4.38 4.31 4.31
</TABLE>
<PAGE> 21
SUNRISE INTL LEASING CORP
Daily Stock Price/Volume Performance
8/02/99 - 9/01/99
[BAR GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
8/02/99 2.0 4.13 4.13 4.13
8/09/99 - 4.50 4.06 4.28
8/16/99 5.8 4.13 4.00 4.13
8/17/99 3.0 4.25 4.13 4.13
8/23/99 19.0 4.50 4.13 4.44
8/30/99 9.9 4.56 4.38 4.38
</TABLE>
<PAGE> 22
SUNRISE INTL LEASING CORP
Weekly Stock Price/Volume Performance
8/23/96 - 9/01/99
[BAR GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
8/23/96 65.9 3.75 3.13 3.75
11/22/96 20.4 4.00 3.63 3.81
2/21/97 7.8 4.13 4.00 4.00
5/23/97 37.2 3.88 3.75 3.75
8/22/97 35.8 3.75 3.50 3.56
11/21/97 21.6 3.00 2.75 2.94
2/20/98 162.1 2.88 2.81 2.88
5/22/98 18.7 3.50 3.25 3.38
8/21/98 21.5 3.75 3.25 3.50
11/20/98 52.5 3.75 3.50 3.56
2/19/99 10.3 3.44 3.13 3.31
5/21/99 34.1 4.25 3.63 4.19
8/20/99 20.6 4.25 4.00 4.25
</TABLE>
<PAGE> 23
TARGET COMPANY
ANALYSIS OF TRADING AT VARIOUS PRICES
08/28/98-08/30/99
[BAR GRAPH]
<TABLE>
<CAPTION>
TRADING RANGE VOLUME
<S> <C>
$2.40 to $3.00 0.2
$3.00 to $3.60 0.8
$3.60 to $4.20 1.1
$4.20 to $4.80 0.3
</TABLE>
<PAGE> 24
TARGET COMPANY
ANALYSIS OF TRADING AT VARIOUS PRICES
08/30/96-08/30/99
[BAR GRAPH]
<TABLE>
<CAPTION>
TRADING RANGE VOLUME
<S> <C>
$2.00 to $3.00 1.4
$3.00 to $4.00 5.1
$4.00 to $5.00 1.5
</TABLE>
<PAGE> 25
TARGET COMPANY
ANALYSIS OF TRADING AT VARIOUS PRICES
08/26/94-08/27/99
[BAR GRAPH]
<TABLE>
<CAPTION>
TRADING RANGE VOLUME
<S> <C>
$2.00 to $3.00 2.8
$3.00 to $4.00 8.5
$4.00 to $5.00 2.5
$5.00 to $6.00 1.3
</TABLE>
<PAGE> 1
EXHIBIT (c)(4)
Comparable Company Stock Price Analysis
September 8, 1999 - April 20, 2000
<TABLE>
<CAPTION>
Stock Price Stock Price % Change
9/8/99 4/20/00 Since 9/8/99
----------- ----------- ------------
<S> <C> <C> <C>
Amplicon, Inc. $12.13 $ 9.00 -25.8%
Capital Associates Inc. $ 3.00 $ 0.95 -68.2%
Chancellor Corp. $ 0.65 $ 0.38 -42.3%
Electro Rent Corp. $12.88 $10.00 -22.4%
Linc Capital Inc. $ 5.88 $ 1.13 -80.9%
Leasing Solutions Inc.(1) $ 0.63 $ 0.03 -95.2%
Microfinancial Inc. $10.56 $10.00 -5.3%
Resource America $ 9.63 $ 7.34 -23.7%
T & W Financial Corp.(2) $ 6.75 $ 0.09 -98.6%
Unicapital Corp. $ 3.50 $ 1.88 -46.4%
------------
AVERAGE CHANGE -50.9%
</TABLE>
<TABLE>
<CAPTION>
Stock Price Average Comparable
9/7/99 Change Stock Price
----------- ----------- ------------
<S> <C> <C> <C>
Sunrise Int'l Leasing Corp. $ 4.25 -50.9% $2.09(3)
</TABLE>
(1) Leasing Solutions filed Chapter 11 on November 17, 1999 and was immediately
delisted from the NYSE. Now traded on the Non-OTCBB.
(2) T & W Financial Corp. is in the process of winding down its operations in
anticipation of filing bankruptcy. The stock has not traded on the NASDAQ
exchange since March 23, 2000. Now traded on the Non-OTCBB.
(3) Price of Sunrise stock assuming a 50.9% decline from September 7, 1999, one
day prior to announcement.