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

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The company (NASDAQ: FUEL) said in a news release that it estimateas the recapitalization will reduceits short-term debt by $9.5 million, its tota debt by $4.4 million and its cash requirements for interestf and dividends by more than $1 million a It said shareholders' equit y has been increased by more than $4 million as a result. SMF Energhy said it extinguished all of itsexisting non-bank debt and outstandinhg preferred stock through various agreements with dozens of existing debt and equityy investors, while converting its existing $25 millio n asset-based 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 which were used to pay down $4.
867 milliom in secured notes and $125,000 in unsecurec notes. The company said it issued new stock to make up the balanced paid for the cancellation and extinguishmenty of theexisting investors' debt and equitgy securities. Fort Lauderdale-based SMF Energy said in the released that the recapitalization took place with amended agreements withand . It said the only non-banm debt incurred in the recapitalization was an unsecurecd subordinated promissory noteof $800,000 at 5.5 percent interesr issued to an existing institutional investorf in exchange for $800,000 of one of the August 2007 11 percent senior secured convertible promissoryt notes.
The institutional investor alsoexchanged $200,000 of the same secured note for sharew of common stock priced at 38 cents a which was greater than the closint bid price of the stock on the day before the effectiver date. acted as SMF Energy’s placement agenrt for the recapitalization and received fees of paid with a combination of cash and pursuant toa Feb. 1 investment banking SMF Energy supplies specialized transportation and distribution servicess for petroleum productsand chemicals.
It provides commercialp mobile andbulk fueling, alontg with other services to the transportation, manufacturing, construction, telecommunications and government services Formerly known as , as of Nov. 30, it conductedc operations through 31 service locations in 11 Shares closed down nearly 3 centd to about35 cents. The 52-week high was 71 centa on Aug. 28. The 52-weekl low was 10 centsd on Feb. 20.