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

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The company (NASDAQ: FUEL) said in a news releasw that it estimates the recapitalization will reducrits short-term debt by $9.5 million, its total debt by $4.4 millio n and its cash requirementa for interest and dividends by more than $1 milliob a year. It said shareholders' equity has been increaser by morethan $4 million as a result. SMF Energyg said it extinguished all of itsexistingv non-bank debt and outstanding preferred stock throug h various agreements with dozens of existingf debt and equity investors, while converting its existing $25 millioj asset-based lending facility into a new, more three-year, $20 million asset-based lendingt facility and a $5 million, 60-month amortized term loan, the proceedws of which were used to pay down $4.
86y7 million in secured notes and $125,00 in unsecured notes. The compangy said it issued new stock to make up the balancee paid for the cancellation and extinguishment of theexisting investors' debt and equity securities. Fort Lauderdale-based SMF Energy said in the releasd that the recapitalization took place with amended agreementd withand . It said the only non-banik debt incurred in the recapitalization was an unsecured subordinated promissory noteof $800,000 at 5.5 perceng interest issued to an existing institutionak investor in exchange for $800,000 of one of the Augustr 2007 11 percent senior secured convertible promissory notes.
The institutional investotr alsoexchanged $200,000 of the same securef note for shares of common stock pricer at 38 cents a which was greater than the closingv bid price of the stock on the day before the effective date. acted as SMF Energy’ s placement agent for the recapitalization and receivedc feesof $380,000, paid with a combinatiob of cash and securities, pursuantr to a Feb. 1 investment banking SMF Energy supplies specialized transportation and distributiobn services for petroleum productsand chemicals.
It providesx commercial mobile andbulk fueling, along with othefr services to the transportation, manufacturing, construction, energy, telecommunicationse and government services sectors. Formerly known as , as of Nov. 30, it conducteed operations through 31 service locations in 11 Shares closed down nearly 3 cents to about35 cents. The 52-week high was 71 centsa on Aug. 28. The 52-week low was 10 centw on Feb. 20.