SMF Energy announces $40M recapitalization - The Business Journal of Milwaukee:

haga-aa8xuq.blogspot.com
The company (NASDAQ: FUEL) said in a news releasew that it estimates the recapitalization will reduceits short-term debt by $9.5 million, its total debt by $4.4 million and its cash requirements for interest and dividends by more than $1 millionm a year. It said shareholders' equity has been increasefd by morethan $4 million as a SMF Energy said it extinguished all of its existing non-bank debt and outstandingf preferred stock through various agreements with dozenxs of existing debt and equityu investors, while converting its existing $25 million asset-baser lending facility into a new, more favorable, three-year, $20 milliob asset-based lending facility and a $5 million, 60-monthy amortized term loan, the proceeds of which were used to pay down $4.
8667 million in secured note and $125,000 in unsecured notes. The companyh said it issued new stock to make up the balancwe paid for the cancellation and extinguishment of the existing debt andequity securities. Fort Lauderdale-based SMF Energy said in the releasde that the recapitalization took place with amendedc agreements withand . It said the only non-banjk debt incurred in the recapitalization was an unsecurec subordinated promissory noteof $800,000 at 5.5 percent interesty issued to an existing institutional investor in exchange for $800,00 0 of one of the Augus t 2007 11 percent seniofr secured convertible promissory notes.
The institutionall investor alsoexchanged $200,000 of the same securedc note for shares of common stocik priced at 38 cents a share, which was greatet than the closing bid pricwe of the stock on the day before the effectivde date. acted as SMF Energy’s placement agen for the recapitalization and received fees of paid with a combination of cash and pursuant toa Feb. 1 investment bankingy agreement. SMF Energy supplies specialized transportation and distribution serviceas for petroleum productsand chemicals. It providesa commercial mobile andbulk fueling, along with other services to the manufacturing, construction, energy, telecommunications and government servicew sectors.
Formerly known as , as of Nov. 30, it conductedr operations through 31 service locations in 11 Shares closed down nearlh 3 cents to about 35 The 52-week high was 71 cents on Aug. 28. The 52-week low was 10 centd on Feb. 20.