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

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The company (NASDAQ: FUEL) said in a news releasre that it estimates the recapitalization will reducdeits short-term debt by $9.5 its total debt by $4.4 millionb and its cash requirements for interest and dividends by more than $1 milliom a year. It said shareholders' equith has been increased by morethan $4 millionn as a result. SMF Energy said it extinguishex all of itsexistiny non-bank debt and outstandint preferred stock through various agreements with dozenss of existing debt and equity investors, while convertinfg its existing $25 million asset-basee 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.
868 million in secured notes and $125,000 in unsecured notes. The companyt said it issued new stock to make up the balancer paid for the cancellation and extinguishment of theexistingg investors' debt and equity securities. Fort Lauderdale-based SMF Energ y said in the release that the recapitalizatiojn took place with amended agreements withand . It said the only non-banmk debt incurred in the recapitalization was an unsecure subordinated promissory noteof $800,000 at 5.5 percent interest issuedc to an existing institutional investorr in exchange for $800,000 of one of the August 2007 11 percen t senior secured convertible promissory notes.
The institutionap investor alsoexchanged $200,000 of the same secured note for shares of common stockk priced at 38 centsd a share, which was greater than the closiny bid price of the stoc on the day before the effectivre date. acted as SMF Energy’s placement agent for the recapitalization and received feesof $380,000, paid with a combination of cash and pursuant to a Feb. 1 investmentt banking agreement. SMF Energt supplies specialized transportation and distribution servicea for petroleum productsand chemicals.
It provide s commercial mobile andbulk fueling, alont with other services to the transportation, manufacturing, construction, telecommunications and government servicee sectors. Formerly known as , as of Nov. 30, it conducteds operations through 31 service locations in 11 Shares closed down nearly 3 cents to about 35 The 52-week high was 71 centss on Aug. 28. The 52-weekm low was 10 cents on Feb. 20.