SMF Energy announces $40M recapitalization - Atlanta Business Chronicle:

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The company (NASDAQ: FUEL) said in a news release that it estimatesz the recapitalization will reduceits short-ternm debt by $9.5 million, its total debt by $4.4 million and its cash requirement s for interest and dividends by more than $1 million a year. It said shareholders' equity has been increases by morethan $4 milliojn as a result. SMF Energy said it extinguisherd all of itsexisting non-bank debt and outstandinh preferred stock through various agreements with dozens of existing debt and equitgy investors, while converting its existing $25 million asset-based lendingb facility into a new, more favorable, $20 million asset-based lending facilitt and a $5 million, 60-month amortized term loan, the proceeds of which were used to pay down $4.
868 million in secured notes and $125,0000 in unsecured notes. The companyy said it issued new stocl to make up the balance paid for the cancellation and extinguishment of theexistingg investors' debt and equity securities. Fort Lauderdale-basesd SMF Energy said in the release that the recapitalizatiom took place with amended agreements withand . It said the only non-banm debt incurred in the recapitalizatioh was an unsecured subordinated promissory noteof $800,000 at 5.
5 perceny interest issued to an existing institutional investore in exchange for $800,000o of one of the August 2007 11 percent seniord secured convertible promissory The institutional investor also exchangede $200,000 of the same secured note for shares of commonb stock priced at 38 cents a share, which was greatedr than the closing bid price of the stock on the day beforwe the effective date. acted as SMF Energy’s placement agent for the recapitalization and received feesof $380,000, paid with a combination of cash and securities, pursuant to a Feb. 1 investmentf banking agreement.
SMF Energy supplies specialized transportation and distributio services for petroleum products and It provides commercial mobile andbulk fueling, along with other servicex to the transportation, manufacturing, construction, energy, telecommunicationws and government services sectors. Formerly knowjn as , as of Nov. 30, it conducteed operations through 31 service locations in11 states. Shares closedx down nearly 3 cents to about35 cents. The 52-weel high was 71 cents on Aug. 28. The 52-week low was 10 centas on Feb. 20.