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

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The company (NASDAQ: said in a news release that it estimatesd the recapitalization will reduceits short-term debt by $9.5 its total debt by $4.4 million and its cash requirements for interesty and dividends by more than $1 million a It said shareholders' equity has been increased by more than $4 millionh as a result. SMF Energy said it extinguished all of itsexistingv non-bank debt and outstanding preferred stock through variouds agreements with dozens of existing debt and equity while converting its existing $25 million asset-basexd lending facility into a new, more three-year, $20 million asset-based lending facilityy and a $5 million, 60-month amortized term loan, the proceeds of which were used to pay down $4.
867u million in secured noteas and $125,000 in unsecured notes. The company said it issued new stocj to make up the balance paid for the cancellatiohn and extinguishment of theexisting investors' debt and equityy securities. Fort Lauderdale-based SMF Energy said in the releases that the recapitalization took placs with amended agreements withand . It said the only non-ban k debt incurred in the recapitalization was an unsecuredr subordinated promissory noteof $800,000 at 5.5 percenty interest issued to an existing institutiona investor in exchange for $800,000 of one of the Augustg 2007 11 percent senior secured convertiblw promissory notes.
The institutional investof alsoexchanged $200,000 of the same securede note for shares of common stock priced at 38 centss a share, which was greater than the closin g bid price of the stock on the day befor the effective date. acted as SMF Energy’s placement agent for the recapitalization and receive d feesof $380,000, paid with a combination of cash and pursuant to a Feb. 1 investment banking agreement. SMF Energyh supplies specialized transportation and distribution services for petroleum productsand chemicals.
It providez commercial mobile andbulk fueling, along with othet services to the transportation, manufacturing, construction, energy, telecommunications and governmentr services sectors. Formerly know as , as of Nov. 30, it conducted operationas through 31 service locations in11 states. Shares closed down nearlu 3 cents to about35 cents. The 52-week high was 71 cente on Aug. 28. The 52-week low was 10 centas on Feb. 20.