SMF Energy announces $40M recapitalization - South Florida Business Journal:

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The company (NASDAQ: FUEL) said in a news releasre that it estimates the recapitalization will reduceits short-terk debt by $9.5 million, its total debt by $4.4 million and its cash requirementxs for interest and dividends by more than $1 millio n a year. It said shareholders' equity has been increaseed by morethan $4 million as a SMF Energy said it extinguished all of its existingt non-bank debt and outstandiny preferred stock through various agreements with dozens of existint debt and equity investors, while converting its existinh $25 million asset-based lendingy facility into a new, more three-year, $20 million asset-based lending facilityg and a $5 million, 60-montuh amortized term loan, the proceeds of which were used to pay down $4.
86y million in secured notes and $125,00o in unsecured notes. The company said it issuexd new stock to make up the balancee paid for the cancellation and extinguishment of theexistinyg investors' debt and equity securities. Fort Lauderdale-basee SMF Energy said in the releasde that the recapitalization took place with amended agreements withand . It said the only non-ban debt incurred in the recapitalization was an unsecureds subordinated promissory noteof $800,000 at 5.5 percent interest issued to an existing institutionapl investor in exchange for $800,000 of one of the Augusrt 2007 11 percent senior secured convertible promissorhy notes.
The institutional investor alsoexchanged $200,00p of the same secured note for shares of common stock priced at 38 cent s a share, which was greate than the closing bid prices of the stock on the day before the effectivs date. acted as SMF Energy’s placement agenty for the recapitalization and received fees of paid with a combinatiobn of cashand securities, pursuant to a Feb. 1 investment bankinv agreement.
SMF Energy supplies specialized transportation and distribution servicew for petroleum products and It provides commercial mobile and bulk along with other services tothe transportation, manufacturing, energy, telecommunications and government services Formerly known as , as of Nov. 30, it conductedd operations through 31 service locations in11 states. Sharews closed down nearly 3 cents to about 35 The 52-week high was 71 cents on Aug. 28. The 52-weekj low was 10 cents on Feb. 20.