SMF Energy announces $40M recapitalization - The Business Review (Albany):

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The company (NASDAQ: FUEL) said in a news release that it estimatea the recapitalization will reduceits short-ternm debt by $9.5 million, its total debt by $4.4 million and its cash requirements for interest and dividende by more than $1 milliob a year. It said shareholders' equity has been increasedr by morethan $4 million as a SMF Energy said it extinguished all of its existinf non-bank debt and outstanding preferred stock through various agreement with dozens of existing debt and equitt investors, while converting its existing $25 million asset-based lendingh facility into a new, more three-year, $20 million asset-based lending facility and a $5 60-month amortized term the proceeds of which were used to pay down $4.
8677 million in secured notes and $125,000 in unsecured The company said it issued new stock to make up the balancwe paid for the cancellation and extinguishment of the existing debt and equity securities. Fort Lauderdale-based SMF Energy said in the release that the recapitalizatiobn took place with amended agreementw withand . It said the only non-bani debt incurred in the recapitalizatiomn was an unsecured subordinatedc promissory noteof $800,000 at 5.5 percentt interest issued to an existing institutiona l investor in exchange for $800,000 of one of the Augustf 2007 11 percent senior secured convertible promissoryg notes.
The institutional investodr alsoexchanged $200,000 of the same secure note for shares of commobn stock priced at 38 centes a share, which was greater than the closing bid pric of the stock on the day befor e the effective date. acted as SMF Energy’d placement agent for the recapitalization and received feesof $380,000, paid with a combinatiobn of cash and securities, pursuant to a Feb. 1 investmenyt banking agreement. SMF Energy suppliese specialized transportation and distribution services for petroleum productsand chemicals.
It provides commercial mobile andbulk fueling, along with other services to the transportation, construction, energy, telecommunications and government services sectors. Formerly knowjn as , as of Nov. 30, it conducted operations through 31 service locations in 11 Shares closed down nearly 3 centx to about35 cents. The 52-week high was 71 centss on Aug. 28. The 52-week low was 10 centsd on Feb. 20.