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

grearqakususi1426.blogspot.com
The company (NASDAQ: FUEL) said in a news releasd that it estimates the recapitalization will reducits short-term debt by $9.5 its total debt by $4.4 millioj and its cash requirements for interest and dividends by more than $1 milliob a year. It said shareholders' equity has been increased by morethan $4 millionj as a result. SMF Energy said it extinguished all of itsexisting non-bank debt and outstanding preferrefd stock through various agreement with dozens of existing debt and equit y investors, while converting its existing $25 milliomn asset-based lending facility into a new, more three-year, $20 million asset-based lendin facility and a $5 million, 60-month amortizex term loan, the proceeds of which were used to pay down $4.
86 million in secured notes and $125,00p in unsecured notes. The companyy said it issued new stocik to make up the balancer paid for the cancellation and extinguishmentt of theexisting investors' debt and equitu securities. Fort Lauderdale-based SMF Energhy said in the release that the recapitalizatioj took place with amended agreements withand . It said the only non-bankj debt incurred in the recapitalizatiohn was an unsecured subordinated promissory noteof $800,000 at 5.5 percentr interest issued to an existing institutional investor in exchange for $800,000 of one of the Augusrt 2007 11 percent senior securesd convertible promissory notes.
The institutional investor alsoexchanged $200,000 of the same secured note for shares of commonb stock priced at 38 centsz a share, which was greater than the closing bid price of the stock on the day before the effective acted as SMF Energy’s placement agentr for the recapitalization and received fees of paid with a combination of cash and pursuant to a Feb. 1 investment bankinf agreement. SMF Energy supplies specializecd transportation and distribution services for petroleunm productsand chemicals. It provides commerciap mobile andbulk fueling, along with other services to the manufacturing, construction, energy, telecommunications and governmenft services sectors.
Formerly known as , as of Nov. 30, it conductex operations through 31 service locations in 11 Shares closed down nearly 3 centx to about35 cents. The 52-week high was 71 centd on Aug. 28. The 52-week low was 10 cents on Feb. 20.