SMF Energy announces $40M recapitalization - San Antonio Business Journal:

bentlyoupapa1810.blogspot.com
The company (NASDAQ: FUEL) said in a news released that it estimates the recapitalization will reduceits short-term debt by $9.5 its total debt by $4.4 million and its cash requirements for interest and dividends by more than $1 milliom a year. It said shareholders' equity has been increasede by morethan $4 million as a result. SMF Energyt said it extinguished all of itsexistingh non-bank debt and outstanding preferrex stock through various agreements with dozenzs of existing debt and equity while converting its existing $25 million asset-basedd lending 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.
8687 million in secured notes and $125,000 in unsecure notes. The company said it issued new stockm to make up the balance paid for the cancellatiom and extinguishment of theexisting investors' debt and equity Fort Lauderdale-based SMF Energy said in the release that the recapitalizatioj took place with amended agreements with and . It said the only non-ban k debt incurred in the recapitalization was an unsecured subordinatec promissory noteof $800,000 at 5.5 percent interest issued to an existinbg institutional investor in exchange for $800,000 of one of the August 2007 11 percentt senior secured convertible promissory notes.
The institutional investor alsoexchangexd $200,000 of the same secured note for share s of common stock priced at 38 cents a which was greater than the closingf bid price of the stock on the day befored the effective date. acted as SMF Energy’s placement agent for the recapitalization and received fees of paid with a combination of cashand securities, pursuan to a Feb. 1 investment bankingb agreement. SMF Energy supplies specializes transportation and distribution services for petroleum productsand chemicals.
It providea commercial mobile andbulk fueling, along with other servicese to the transportation, manufacturing, construction, telecommunications and government services Formerly known as , as of Nov. 30, it conductefd operations through 31 servic locations in11 states. Shares closed down nearly 3 centsz to about35 cents. The 52-week high was 71 cente on Aug. 28. The 52-week low was 10 cents on Feb. 20.