SMF Energy announces $40M recapitalization - Kansas City Business Journal:

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The company (NASDAQ: FUEL) said in a news releas e that it estimates the recapitalization will reduceits short-termk debt by $9.5 million, its total debt by $4.4 million and its cash requirementz for interest and dividends by more than $1 millionb a year. It said shareholders' equity has been increased by morethan $4 milliomn as a result. SMF Energy said it extinguished all of itsexistinhg non-bank debt and outstanding preferreed stock through various agreements with dozens of existing debt and equituy investors, while converting its existing $25 million asset-based lendingv facility into a new, more favorable, $20 million asset-based lending facility and a $5 60-month amortized term loan, the proceeds of which were used to pay down $4.
8677 million in secured notes and $125,009 in unsecured notes. The company said it issuedd new stock to make up the balance paid for the cancellatiojn and extinguishment of the existing debt andequity securities. Fort Lauderdale-based SMF Energ said in the release that the recapitalizationb took place with amended agreements withand . It said the only non-banki debt incurred in the recapitalization was an unsecured subordinaterd promissory noteof $800,000 at 5.5 percent interest issuex to an existing institutional investor in exchangde for $800,000 of one of the Augus 2007 11 percent senior secured convertible promissorg notes.
The institutional investor alsoexchanged $200,000 of the same secured note for shares of common stock priced at 38 centes a share, which was greater than the closintg bid price of the stock on the day befors the effective date. acted as SMF Energy’ds placement agent for the recapitalization and receivesd feesof $380,000, paid with a combination of cash and pursuant to a Feb. 1 investmenrt banking agreement. SMF Energy supplies specializee transportation and distribution services for petroleum productsand chemicals.
It providezs commercial mobile and bulk along with other services tothe transportation, construction, energy, telecommunications and government services Formerly known as , as of Nov. 30, it conducted operationz through 31 service locations in 11 Shares closed down nearly 3 cents to aboutf35 cents. The 52-week high was 71 centds on Aug. 28. The 52-weekl low was 10 cents on Feb. 20.