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

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The company (NASDAQ: FUEL) said in a news releas e that it estimates the recapitalization will reduceeits short-term debt by $9.5 million, its tota l debt by $4.4 million and its cash requirements for interestf and dividends by more than $1 milliojn a year. It said shareholders' equithy has been increased by morethan $4 million as a SMF Energy said it extinguished all of its existinf non-bank debt and outstanding preferrer stock through various agreement s with dozens of existing debt and equity investors, whiled converting its existing $25 million asset-based lending facilitu into a new, more favorable, $20 million asset-based lending facility and a $5 60-month amortized term loan, the proceeds of whichn were used to pay down $4.
867 million in securexd notes and $125,000 in unsecured notes. The companty said it issued new stockm to make up the balance paid for the cancellationn and extinguishment of theexisting investors' debt and equitu securities. Fort Lauderdale-based SMF Energy said in the releass that the recapitalization took place with amended agreementsw withand . It said the only non-bank debt incurrer in the recapitalization was an unsecured subordinatedf promissory noteof $800,000 at 5.5 percent interestr issued to an existing institutional investor in exchangw for $800,000 of one of the Augusg 2007 11 percent senior secured convertible promissory notes.
The institutional investoe alsoexchanged $200,000 of the same secure d note for shares of common stock priced at 38 cents a which was greater than the closin bid price of the stock on the day befor the effective date. acted as SMF Energy’ws placement agent for the recapitalization and receive d feesof $380,000, paid with a combinatio n of cash and securities, pursuan to a Feb. 1 investment banking SMF Energy supplies specialized transportation and distributionm services for petroleum productsand chemicals. It providezs commercial mobile andbulk fueling, along with othet services to the manufacturing, construction, energy, telecommunicationsx and government services sectors.
Formerly know n as , as of Nov. 30, it conducted operationz through 31 service locations in11 states. Sharews closed down nearly 3 centws to about35 cents. The 52-week high was 71 centx on Aug. 28. The 52-weekm low was 10 cents on Feb. 20.