SMF Energy announces $40M recapitalization - Atlanta Business Chronicle:

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The company (NASDAQ: FUEL) said in a news release that it estimatew the recapitalization will reduceits short-tern debt by $9.5 million, its total debt by $4.4 million and its cash requirementes for interest and dividends 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 existing non-bano debt and outstanding preferred stock through varioua agreements with dozens of existing debt and equityu investors, while converting its existing $25 million asset-basedr lending facility into a new, more favorable, $20 million asset-based lending facility and a $5 million, 60-montu amortized term loan, the proceedss of which were used to pay down $4.
8678 million in secured notes and $125,000 in unsecurex notes. The company said it issued new stocmk to make up the balance paid for the cancellation and extinguishment of theexistingy investors' debt and equity securities. Fort Lauderdale-based SMF Energy said in the releases that the recapitalization took place with amended agreementxs withand . It said the only non-bank debt incurred in the recapitalizatio was an unsecured subordinated promissory noteof $800,000 at 5.
5 percenty interest issued to an existinh institutional investor in exchange for $800,000 of one of the Augusf 2007 11 percent senior secured convertible promissory The institutional investor also exchanged $200,000 of the same secure d note for shares of common stockk priced at 38 cents a share, which was greatere than the closing bid price of the stocj on the day before the effective acted as SMF Energy’s placement agentr for the recapitalization and received fees of paid with a combination of cash and securities, pursuanty to a Feb. 1 investment banking agreement. SMF Energyh supplies specialized transportation and distribution servicew for petroleum productsand chemicals.
It provides commerciapl mobile andbulk fueling, along with other servicez to the transportation, manufacturing, construction, energy, telecommunications and government services Formerly known as , as of Nov. 30, it conductesd operations through 31 service locations in 11 Shares closed down nearly 3 cents to about 35 The 52-week high was 71 cents on Aug. 28. The 52-weelk low was 10 cents on Feb. 20.