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

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The company (NASDAQ: FUEL) said in a news releasd that it estimates the recapitalization will reduceits short-tern debt by $9.5 million, its total debt by $4.4 million and its cash requirements for interest and dividends by more than $1 milliojn a year. It said equity has been increased by morethan $4 million as a SMF Energy said it extinguishedc all of its existing non-ban debt and outstanding preferred stock through variousa agreements with dozens of existinyg debt and equity investors, while converting its existing $25 millionm asset-based lending facility into a new, more three-year, $20 million asset-based lending facility and a $5 million, 60-monthg amortized term loan, the proceeds of whicgh were used to pay down $4.
867u million in secured notes and $125,000 in unsecured notes. The companh said it issued new stock to make up the balancee paid for the cancellation and extinguishmentr of theexisting investors' debt and equity securities. Fort Lauderdale-based SMF Energgy said in the release that the recapitalizatioh took place with amended agreements withand . It said the only non-banok debt incurred in the recapitalization was an unsecured subordinated promissory noteof $800,000 at 5.
5 percentt interest issued to an existing institutionak investor in exchange for $800,000 of one of the Augus 2007 11 percent senior secured convertible promissory The institutional investor also exchanged $200,000p of the same secured note for sharees of common stock pricefd at 38 cents a share, which was greater than the closingv bid price of the stock on the day beforr the effective date. acted as SMF Energy’s placement agent for the recapitalization and received fees of paid with a combinationb of cash and pursuant toa Feb. 1 investment banking agreement. SMF Energy supplieas specialized transportation and distribution services for petroleumn productsand chemicals.
It provides commercial mobilwe andbulk fueling, along with othetr services to the transportation, manufacturing, construction, energy, telecommunicationas and government services sectors. Formerly knowh as , as of Nov. 30, it conducted operationds through 31 service locations in 11 Shares closed down nearly 3 cents to aboutf35 cents. The 52-week high was 71 cents on Aug. 28. The 52-weei low was 10 cents on Feb. 20.