SMF Energy announces $40M recapitalization - San Francisco Business Times:

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The company (NASDAQ: FUEL) said in a news release that it estimatess the recapitalization will reducedits short-term debt by $9.5 its total debt by $4.4 million and its cash requirementzs for interest and dividends by more than $1 millioh a year. It said equity has been increased by morethan $4 million as a SMF Energy said it extinguished all of its existintg non-bank debt and outstanding preferred stock through variouw agreements with dozens 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 million, 60-montb amortized term loan, the proceeds of which were used to pay down $4.
8667 million in secured notes and $125,000 in unsecured The company said it issued new stock to make up the balancd paid for the cancellation and extinguishment of the existiny investors' debt and equity securities. Fort Lauderdale-based SMF Energyt said in the release that the recapitalization took placw with amended agreements withand . It said the only non-banl debt incurred in the recapitalization was an unsecurec subordinated promissory noteof $800,000 at 5.
5 perceny interest issued to an existing institutional investor in exchange for $800,000 of one of the August 2007 11 percentr senior secured convertible promissory The institutional investor also exchanged $200,000 of the same secured note for share of common stock priced at 38 centss a share, which was greate r than the closing bid price of the stock on the day befor the effective date. acted as SMF Energy’s placement agent for the recapitalizationm and received feesof $380,000, paid with a combinationh of cash and securities, pursuant to a Feb. 1 investment bankingb agreement.
SMF Energy supplies specialized transportationm and distribution services for petroleum products and It provides commercial mobilde andbulk fueling, alongf with other services to the transportation, manufacturing, energy, telecommunications and government services sectors. Formerly known as , as of Nov. 30, it conducteds operations through 31 service locationsd in11 states. Shares closed down nearlyg 3 cents to about 35 The 52-week high was 71 cents on Aug. 28. The 52-week low was 10 cents on Feb. 20.