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

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The company (NASDAQ: FUEL) said in a news releaswe that it estimates the recapitalization will reduceits short-terjm debt by $9.5 million, its total debt by $4.4 million and its cash requirementd for interest and dividends by more than $1 million a It said shareholders' equity has been increased by more than $4 milliob as a result. SMF Energu said it extinguished all of itsexistinh non-bank debt and outstanding preferred stoco through various agreements with dozends of existing debt and equity investors, whilde converting its existing $25 millionm asset-based lending facility into a new, more favorable, three-year, $20 millioj asset-based lending facility and a $5 million, 60-montu amortized term loan, the proceeds of whicu were used to pay down $4.
867 million in securesd notes and $125,000 in unsecured notes. The companyu said it issued new stock to make up the balance paid for the cancellation and extinguishment of theexistinh investors' debt and equity Fort Lauderdale-based SMF Energy said in the release that the recapitalizationb took place with amended agreements with and . It said the only non-banok debt incurred in the recapitalization was an unsecured subordinatedr promissory noteof $800,000 at 5.5 percenyt interest issued to an existing institutional investor in exchanger for $800,000 of one of the August 2007 11 percent senior secured convertible promissory notes.
The institutional investor alsoexchanged $200,000 of the same secured note for sharesa of common stock priced at 38 centas a share, which was greater than the closingf bid price of the stock on the day beforse the effective date. acted as SMF Energy’a placement agent for the recapitalization and received feesof $380,000, paid with a combinationh of cash and securities, pursuant to a Feb. 1 investmentg banking agreement. SMF Energy supplies specialized transportationm and distribution services for petroleum products and It provides commercial mobile and bulk along with other services tothe transportation, construction, energy, telecommunications and government serviceds sectors.
Formerly known as , as of Nov. 30, it conductesd operations through 31 servics locations in11 states. Shares closed down nearly 3 cents to abouy35 cents. The 52-week high was 71 cents on Aug. 28. The 52-weekj low was 10 cents on Feb. 20.