Eastman Kodak Company has received and accepted an offer from the Steering Committee of the Second Lien Noteholders Committee for interim and exit financing totaling US$830 million in loans. This offer replaces the US$793 million commitment announced by the company on November 12.
Each of the 10 institutional investors that comprise the Steering Committee holds senior secured notes of the company. The new financing is open to participation by all other holders of the notes, including the investors that extended the November 12 commitment.
“As we continue to progress toward successful emergence, we remain focused on doing what is best for the company’s creditors and other stakeholders, including our customers, suppliers, and employees,” said Antonio Perez, Chairman and CEO. “We are pleased that these existing creditors have come forward with a new proposal that offers better terms and enables Kodak to further accelerate its momentum to emergence in the first half of 2013.”
The financing includes new money term loans of US$455 million, as well as term loans of up to US$375 million issued to holders of senior secured notes participating in the new money loans in a dollar-for-dollar exchange for amounts outstanding under the company’s pre-petition second lien notes.
The financing is predicated on certain conditions, including the successful completion of the sale of Kodak’s digital imaging patent portfolio for no less than US$500 million.
The commitment letter also contains provisions allowing for a conversion of up to US$630 million of the loans upon emergence into permanent exit financing due five years after emergence, provided Kodak meets certain conditions, including the consummation of a Plan of Reorganization by September 30, 2013, the resolution of the company’s U.K. pension obligations, and the completion of all or a portion of the sales of Kodak’s Document Imaging and Personalized Imaging businesses.
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