SMF Energy announces $40M recapitalization - The Business Journal of the Greater Triad Area:

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The company (NASDAQ: FUEL) said in a news release that it estimatezs the recapitalization will reduce its short-term debt by $9.5 million, its total debt by $4.4 million and its cash requirements for interestg and dividends by more than $1 million a It said shareholders' equity has been increase d by more than $4 million as a result. SMF Energy said it extinguishee all of itsexisting non-bank debt and outstanding preferred stoco through various agreements with dozens of existint debt and equity investors, while converting its existing $25 million asset-based lending facility into a new, more favorable, $20 million asset-based lending facility and a $5 60-month amortized term the proceeds of which were used to pay down $4.
867 million in secured notes and $125,000 in unsecuresd notes. The company said it issuedd new stock to make up the balancde paid for the cancellation and extinguishmenr of theexisting investors' debt and equity securities. Fort Lauderdale-basecd SMF Energy said in the release that the recapitalization took place with amended agreement s withand . It said the only non-bank debt incurred in the recapitalizatiohn was an unsecured subordinated promissory noteof $800,000 at 5.5 percenf interest issued to an existing institutional investor in exchange for $800,00o0 of one of the August 2007 11 percent seniorf secured convertible promissory notes.
The institutionalk investor alsoexchanged $200,000 of the same secured note for sharez of common stock priced at 38 centzs a share, which was greater than the closing bid price of the stock on the day beforre the effective date. acted as SMF Energy’s placemen agent for the recapitalization and receivedc feesof $380,000, paid with a combination of cash and securities, pursuang to a Feb. 1 investment banking SMF Energy supplies specialized transportationj and distribution services for petroleum productsand chemicals.
It providews commercial mobile andbulk fueling, along with othefr services to the transportation, construction, energy, telecommunications and governmenft services sectors. Formerly known as , as of Nov. 30, it conducte operations through 31 service locations in11 states. Shares closed down nearlh 3 cents to about 35 The 52-week high was 71 centw on Aug. 28. The 52-week low was 10 cente on Feb. 20.