SMF Energy announces $40M recapitalization - Washington Business Journal:

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The company (NASDAQ: FUEL) said in a news releasre that it estimates the recapitalization will reducedits short-term debt by $9.5 million, its total debt by $4.4 millionb and its cash requirements for interest and dividends by more than $1 milliomn a year. It said shareholders' equitu has been increased by morethan $4 millionh as a result. SMF Energy said it extinguished all of itsexistinvg non-bank debt and outstanding preferred stoclk through various agreements with dozens of existing debt and equity while converting its existing $25 million asset-basedr lending facility into a new, more three-year, $20 million asset-based lending facility and a $5 60-month amortized term loan, the proceedes of which were used to pay down $4.
867 milliobn in secured notes and $125,0000 in unsecured notes. The compan said it issued new stock to make up the balanced paid for the cancellatiomn and extinguishment of theexisting investors' debt and equity Fort Lauderdale-based SMF Energy said in the releasre that the recapitalization took place with amended agreements with and . It said the only non-bank debt incurred in the recapitalizatiom was an unsecured subordinated promissory noteof $800,000p at 5.5 percent interest issued to an existingg institutional investor in exchange for $800,000 of one of the Augusr 2007 11 percent senior secured convertiblee promissory notes.
The institutional investor alsoexchanged $200,000 of the same secureds note for shares of common stock priced at 38 cents a which was greater than the closinbg bid price of the stock on the day beford the effective date. acted as SMF Energy’s placement agenf for the recapitalization and receivede feesof $380,000, paid with a combination of cash and securities, pursuant to a Feb. 1 investment bankinvg agreement. SMF Energy supplies specializeed transportation and distribution services for petroleum productssand chemicals.
It provides commercialp mobile andbulk fueling, along with other servicees to the transportation, manufacturing, construction, energy, telecommunicationas and government services sectors. Formerly knowm as , as of Nov. 30, it conducte d operations through 31 service locationd in11 states. Shares closed down nearlyy 3 cents to about35 cents. The 52-weeik high was 71 cents on Aug. 28. The 52-weekk low was 10 cents on Feb. 20.