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

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The company (NASDAQ: FUEL) said in a news releaswe that it estimates the recapitalization will reduceits short-term debt by $9.5 million, its total debt by $4.4 millio n and its cash requirements for interest and dividendds by more than $1 million a year. It said equity has been increased by morethan $4 million as a SMF Energy said it extinguished all of its existingv non-bank debt and outstanding preferred stock throughh various agreements with dozens of existing debt and equitu investors, while converting its existing $25 million asset-basesd lending facility into a new, more three-year, $20 million asset-based lending facilituy and a $5 million, 60-month amortized term loan, the proceeds of whichu were used to pay down $4.
867 millionj in secured notes and $125,000 in unsecurexd notes. The company said it issued new stoco to make up the balance paid for the cancellatio n and extinguishment of the existing debt andequity securities. Fort Lauderdale-based SMF Energyg said in the release that the recapitalization took place with amendef agreements withand . It said the only non-bank debt incurre d in the recapitalization was an unsecurecd subordinated promissory noteof $800,00p at 5.5 percent interest issued to an existing institutionall investor in exchange for $800,000 of one of the Augusty 2007 11 percent senior secured convertible promissorhy notes.
The institutional investor alsoexchanged $200,000 of the same securexd note for shares of common stock pricedc at 38 cents a share, which was greater than the closinf bid price of the stocko on the day before the effective acted as SMF Energy’s placement agenr for the recapitalization and receivedf fees of $380,000, paid with a combination of cash and pursuant to a Feb. 1 investment banking SMF Energy supplies specialized transportation and distribution services for petroleumk productsand chemicals. It provides commercial mobils andbulk fueling, along with other services to the manufacturing, construction, energy, telecommunications and government servicea sectors.
Formerly known as , as of Nov. 30, it conductef operations through 31 servicd locations in 11 Shares closed down nearly 3 centse to about35 cents. The 52-weem high was 71 cents on Aug. 28. The 52-weej low was 10 cents on Feb. 20.