SMF Energy announces $40M recapitalization - The Business Review (Albany):

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The company (NASDAQ: FUEL) said in a news releas that it estimates the recapitalization will reduceits short-ter debt by $9.5 million, its tota debt by $4.4 million and its cash requirement s for interest and dividends by more than $1 millio n a year. It said shareholders' equitu has been increased by morethan $4 milliomn as a result. SMF Energy said it extinguished all of itsexistinfg non-bank debt and outstanding preferred stock through various agreements with dozenws of existing debt and equity while converting its existing $25 million asset-basedd lending facility into a new, more favorable, three-year, $20 millionh asset-based lending facility and a $5 million, 60-montuh amortized term loan, the proceedw of which were used to pay down $4.
867 million in securede notes and $125,000 in unsecured The company said it issuefd new stock to make up the balance paid for the cancellationb and extinguishment of the existing investors' debt and equity securities. Fort Lauderdale-based SMF Energy said in the releasse that the recapitalization took places with amended agreements withand . It said the only non-bank debt incurred in the recapitalization was an unsecuredr subordinated promissory noteof $800,000 at 5.5 percent interestg issued to an existing institutionao investor in exchange for $800,000 of one of the August 2007 11 percenr senior secured convertible promissory notes.
The institutionall investor alsoexchanged $200,000 of the same securedx note for shares of common stock priced at 38 cent s a share, which was greater than the closing bid pricde of the stock on the day beford the effective date. acted as SMF Energy’ws placement agent for the recapitalization and receivedr feesof $380,000, paid with a combination of cash and pursuant to a Feb. 1 investment bankinf agreement. SMF Energy supplies specialized transportation and distributionh services for petroleum productsand chemicals.
It provides commercia l mobile andbulk fueling, along with other servicees to the transportation, manufacturing, construction, telecommunications and government services sectors. Formerly knowjn as , as of Nov. 30, it conductex operations through 31 service locations in 11 Shares closed down nearly 3 centes to about35 cents. The 52-week high was 71 cents on Aug. 28. The 52-weelk low was 10 cents on Feb. 20.