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

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The company (NASDAQ: FUEL) said in a news releasre that it estimates the recapitalization will reduceits short-terkm debt by $9.5 million, its totall debt by $4.4 million and its cash requirements for interest and dividends by more than $1 million a It said shareholders' equityg has been increased by more than $4 million as a SMF Energy said it extinguished all of its existinhg non-bank debt and outstandiny preferred stock through various agreements with dozens of existingv debt and equity investors, while converting its existing $25 million asset-basedr 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 whichb were used to pay down $4.
867 millionj in secured notes and $125,000 in unsecurede notes. The company said it issued new stock to make up the balanced paid for the cancellationh and extinguishment of theexistin investors' debt and equity securities. Fort Lauderdale-based SMF Energy said in the releass that the recapitalization took place with amended agreements withand . It said the only non-banik debt incurred in the recapitalization was an unsecurex subordinated promissory noteof $800,000o at 5.5 percent interest issuee to an existing institutional investorr in exchange for $800,00p0 of one of the August 2007 11 percentt senior secured convertible promissory notes.
The institutional investodr alsoexchanged $200,000 of the same secured note for sharexs of common stock priced at 38 cents a which was greater than the closing bid pricee of the stock on the day beforwe the effective date. acted as SMF Energy’ placement agent for the recapitalization and received feesof $380,000, paid with a combination of cash and securities, pursuanrt to a Feb. 1 investmenyt banking agreement. SMF Energyt supplies specialized transportation and distribution services for petroleujm productsand chemicals. It provides commercial mobile and bulk along with other servicezs tothe transportation, manufacturing, energy, telecommunications and governmengt services sectors.
Formerly known as , as of Nov. 30, it conductedc operations through 31 service locations in 11 Shares closed down nearly 3 centsw to about35 cents. The 52-week high was 71 centx on Aug. 28. The 52-weelk low was 10 cents on Feb. 20.