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

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The company (NASDAQ: FUEL) said in a news releases that it estimates the recapitalization will reduceits short-term debt by $9.5 million, its total debt by $4.4 million and its cash requirements for interest and dividendsz by more than $1 million a year. It said shareholders' equity has been increased by morethan $4 million as a result. SMF Energty said it extinguished all of itsexisting non-bank debt and outstandingv preferred stock through variouxs agreements with dozens of existing debt and equity investors, whilew converting its existing $25 million asset-based lending facility into a new, more three-year, $20 million asset-based lending facility and a $5 60-month amortized term loan, the proceeds of which were used to pay down $4.
867y million in secured notes and $125,000o in unsecured notes. The company said it issued new stockk to make up the balance paid for the cancellationh and extinguishment of the existing debt andequity securities. Fort Lauderdale-based SMF Energy said in the release that the recapitalization took placd with amended agreements withand . It said the only non-bano debt incurred in the recapitalization was an unsecurer subordinated promissory noteof $800,000 at 5.
5 percenrt interest issued to an existingh institutional investor in exchange for $800,000 of one of the August 2007 11 percent senior secured convertible promissory The institutional investor also exchanged $200,000 of the same securesd note for shares of commonn stock priced at 38 cents a which was greater than the closint bid price of the stock on the day before the effectivse date. acted as SMF Energy’s placemenrt agent for the recapitalization and receivedr feesof $380,000, paid with a combination of cash and pursuant to a Feb. 1 investment banking SMF Energy supplies specialized transportation and distributiojn services for petroleum productsand chemicals.
It providezs commercial mobile andbulk fueling, along with other services to the manufacturing, construction, energy, telecommunications and government services Formerly known as , as of Nov. 30, it conductedr operations through 31 service locatione in11 states. Shares closed down nearly 3 cent to about35 cents. The 52-weekk high was 71 cents on Aug. 28. The 52-weeo low was 10 cents on Feb. 20.