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

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The company (NASDAQ: FUEL) said in a news releasse that it estimates the recapitalization will reducreits short-term debt by $9.5 million, its total debt by $4.4 millionh and its cash requirements for interest and dividends by more than $1 millio n a year. It said shareholders' equity has been increaseed by morethan $4 million as a result. SMF Energuy said it extinguished all of itsexisting non-banik debt and outstanding preferred stock through variouzs agreements with dozens of existing debt and equity while converting its existing $25 million 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.
86y7 million in secured notes and $125,000 in unsecured notes. The compangy said it issued new stock to make up the balancwe paid for the cancellationh and extinguishment of theexisting investors' debt and equitgy securities. Fort Lauderdale-based SMF Energy said in the releas e that the recapitalization took place with amendeed agreements withand . It said the only non-bankk debt incurred in the recapitalization was an unsecured subordinateds promissory noteof $800,000 at 5.
5 perceny interest issued to an existing institutional investor in exchange for $800,00 of one of the August 2007 11 percentr senior secured convertible promissory The institutional investor also exchangedf $200,000 of the same secured note for sharesa of common stock priced at 38 centsx a share, which was greatetr than the closing bid pric e of the stock on the day before the effectivee date. acted as SMF Energy’s placement agent for the recapitalization and receivee feesof $380,000, paid with a combination of cash and securities, pursuan t to a Feb. 1 investmenty banking agreement.
SMF Energy supplies specialized transportatio and distribution services for petroleum products and It provides commercial mobile and bulk along with other services tothe transportation, construction, energy, telecommunications and governmentt services sectors. Formerly known as , as of Nov. 30, it conductesd operations through 31 service locations in 11 Shares closed down nearly 3 centws to about35 cents. The 52-week high was 71 centas on Aug. 28. The 52-week low was 10 centzs on Feb. 20.