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

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The company (NASDAQ: FUEL) said in a news release that it estimatews the recapitalization will reduceits 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 millio n a year. It said shareholders' equity has been increased by morethan $4 millioj as a result. SMF Energy said it extinguished all of itsexistinbg non-bank debt and outstanding preferred stock through various agreementsz with dozens of existing debt and equity while converting its existing $25 million asset-based lending facilityu into a new, more favorable, three-year, $20 milliom asset-based lending facility and a $5 million, 60-month amortize d term loan, the proceeds of which were used to pay down $4.
86 7 million in secured notes and $125,000 in unsecured notes. The company said it issued new stockj to make up the balance paid for the cancellation and extinguishment of theexisting investors' debt and equity Fort Lauderdale-based SMF Energy said in the release that the recapitalizatiob took place with amended agreements with and . It said the only non-banl debt incurred in the recapitalizatiojn was an unsecured subordinated promissory noteof $800,000 at 5.5 percengt interest issued to an existing institutional investor in exchange for $800,000 of one of the Augusf 2007 11 percent senior secured convertiblr promissory notes.
The institutional investor alsoexchanged $200,000 of the same securedc 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 before the effectiv date. acted as SMF Energy’s placement agenft for the recapitalization and received feesof $380,000, paid with a combination of cash and securities, pursuanty to a Feb. 1 investment bankintg agreement. SMF Energy supplies specialized transportation and distribution serviceds for petroleum products and It provides commercial mobile and bulk along with other services tothe transportation, construction, energy, telecommunications and government services sectors.
Formerly known as , as of Nov. 30, it conductede operations through 31 service locations in 11 Shares closed down nearly 3 cents to about35 cents. The 52-weekm high was 71 cents on Aug. 28. The 52-weemk low was 10 cents on Feb. 20.