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

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The company (NASDAQ: FUEL) said in a news releasew that it estimates the recapitalization will reducesits short-term debt by $9.5 million, its total debt by $4.4 millionj and its cash requirement s for interest and dividends by more than $1 million a It said shareholders' equit has been increased by more than $4 million as a SMF Energy said it extinguished all of its existingt non-bank debt and outstanding preferrecd stock through various agreements with dozens of existing debt and equit y investors, while converting its existing $25 million asset-bases lending facility into a new, more favorable, three-year, $20 millionj asset-based lending facility and a $5 60-month amortized term loan, the proceeds of whichu were used to pay down $4.
8667 million in secured notes and $125,000 in unsecuredf notes. The company said it issuedr new stock to make up the balance paid for the cancellationn and extinguishment of the existing debt andequity securities. Fort Lauderdale-based SMF Energ y said in the release that the recapitalization took plac e with amended agreements withand . It said the only non-bankl debt incurred in the recapitalization was an unsecuredx subordinated promissory noteof $800,000 at 5.
5 percenr interest issued to an existing institutionalo investor in exchange for $800,000 of one of the Augusgt 2007 11 percent seniorr secured convertible promissory The institutional investor also exchanged $200,000 of the same securede note for shares of common stocmk priced at 38 cent s a share, which was greater than the closing bid price of the stoc on the day before the effectiver date. acted as SMF Energy’s placementf agent for the recapitalization and received feesof $380,000, paid with a combinatioh of cash and securities, pursuant to a Feb. 1 investmenf banking agreement.
SMF Energy supplies specialized transportation and distributionb services for petroleum productsand chemicals. It provide commercial mobile andbulk fueling, along with other serviced to the transportation, manufacturing, construction, telecommunications and government services sectors. Formerly knowjn as , as of Nov. 30, it conducterd operations through 31 service locationsd in11 states. Shares closed down nearly 3 centzs to about35 cents. The 52-week high was 71 centa on Aug. 28. The 52-week low was 10 cents on Feb. 20.