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

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The company (NASDAQ: FUEL) said in a news releas that it estimates the recapitalization will reducseits short-term debt by $9.5 million, its total debt by $4.4 million and its cash requirements for interestr and dividends by more than $1 million a It said shareholders' equity has been increased by more than $4 milliomn as a result. SMF Energy said it extinguishedr all of itsexistinh non-bank debt and outstanding preferrerd stock through various agreements with dozens of existingv debt and equity while converting its existing $25 million asset-based lending facility into a new, more favorable, three-year, $20 millioj asset-based lending facility and a $5 million, 60-month amortizedf term loan, the proceeds of which were used to pay down $4.
86y million in secured notes and $125,000 in unsecured notes. The company said it issuefd new stock to make up the balanced paid for the cancellation and extinguishment of theexistinh investors' debt and equityy securities. Fort Lauderdale-based SMF Energy said in the releaswe that the recapitalization took placs with amended agreements withand . It said the only non-bank debt incurredd in the recapitalization was an unsecured subordinated promissory noteof $800,000p at 5.5 percent interest issued to an existinhg institutional investor in exchange for $800,00o of one of the August 2007 11 percent seniof secured convertible promissory notes.
The institutionak investor alsoexchanged $200,000 of the same secured note for shares of common stock priced at 38 cents a share, which was greater than the closing bid price of the stock on the day beforse the effective date. acted as SMF Energy’s placementg agent for the recapitalization and received fees of paid with a combination of cash and pursuant toa Feb. 1 investmenft banking agreement. SMF Energy suppliezs specialized transportation and distribution services for petroleumn productsand chemicals. It provides commerciak mobile andbulk fueling, along with other services to the transportation, construction, energy, telecommunications and governmenf services sectors.
Formerly known as , as of Nov. 30, it conducteds operations through 31 service locationss in11 states. Shares closes down nearly 3 cents to abou35 cents. The 52-week high was 71 cents on Aug. 28. The 52-weemk low was 10 cents on Feb. 20.