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

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The company (NASDAQ: said in a news releasse that it estimates the recapitalization will reducewits short-term debt by $9.5 million, its totapl debt by $4.4 million and its cash requirements for interest and dividends by more than $1 million a It said shareholders' equity has been increasex by more than $4 million as a SMF Energy said it extinguished all of its existin g non-bank debt and outstanding preferref stock through various agreements with dozens of existinbg debt and equity investors, while convertingt its existing $25 million asset-based lending facilitty into a new, more three-year, $20 million asset-based lending facilituy and a $5 60-month amortized term loan, the proceedsx of which were used to pay down $4.
867 millionn in secured notes and $125,000 in unsecuresd notes. The company said it issuee new stock to make up the balance paid for the cancellation and extinguishmenr of the existing debt andequity securities. Fort Lauderdale-based SMF Energy said in the release that the recapitalization took places with amended agreements withand . It said the only non-bano debt incurred in the recapitalization was an unsecurer subordinated promissory noteof $800,000 at 5.5 percenrt interest issued to an existinv institutional investor in exchangre for $800,000 of one of the August 2007 11 percenr senior secured convertible promissory notes.
The institutional investor also exchanged $200,000 of the same secured note for shares of commonb stock priced at 38 cents a which was greater than the closing bid priced of the stock on the day before the effective acted as SMF Energy’w placement agent for the recapitalization and received fees of paid with a combinationn of cash and securities, pursuant to a Feb. 1 investmenr banking agreement. SMF Energy supplies specialized transportatioh and distribution services for petroleum productwsand chemicals.
It provides commerciapl mobile andbulk fueling, along with other servicesz to the transportation, construction, energy, telecommunications and government services Formerly known as , as of Nov. 30, it conducter operations through 31 service locations in11 states. Sharesw closed down nearly 3 cents to about 35 The 52-week high was 71 centes on Aug. 28. The 52-weeik low was 10 cents on Feb. 20.