SMF Energy announces $40M recapitalization - Pacific Business News (Honolulu):

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The company (NASDAQ: FUEL) said in a news releas that it estimates the recapitalization will reducerits short-term debt by $9.5 million, its total debt by $4.4 millionj and its cash requirements for interesy and dividends by more than $1 millioh a year. It said shareholders' equitty has been increased by morethan $4 million as a result. SMF Energy said it extinguished all of itsexisting non-bank debt and outstandingh preferred stock through various agreementsz with dozens of existing debt and equity investors, whild converting its existing $25 million asset-based lending facility into a new, more favorable, three-year, $20 millio asset-based lending facility and a $5 million, 60-month amortized term loan, the proceeds of which were used to pay down $4.
8678 million in secured notes and $125,000 in unsecure notes. The company said it issuee new stock to make up the balance paid for the cancellationm and extinguishment of theexistingb investors' debt and equity securities. Fort Lauderdale-basexd SMF Energy said in the release that the recapitalizatiobn took place with amended agreements withand . It said the only non-banjk debt incurred in the recapitalization was an unsecured subordinatede promissory noteof $800,000 at 5.5 percentr interest issued to an existing institutionak investor in exchange for $800,000 of one of the Augustg 2007 11 percent senior secured convertible promissort notes.
The institutional investor alsoexchanged $200,00o0 of the same secured note for sharesz of common stock price at 38 cents a share, which was greater than the closin g bid price of the stocok on the day before the effective acted as SMF Energy’s placement agent for the recapitalizationn and received fees of $380,000, paid with a combination of cash and pursuant to a Feb. 1 investmentf banking agreement. SMF Energy supplies specialized transportation and distribution services for petroleun productsand chemicals. It provides commercial mobile andbulk fueling, alont with other services to the transportation, manufacturing, energy, telecommunications and government services sectors.
Formerlgy known as , as of Nov. 30, it conducte operations through 31 service locations in 11 Shares closed down nearly 3 cents to aboutf35 cents. The 52-week high was 71 cents on Aug. 28. The 52-weekj low was 10 cents on Feb. 20.