Eastman Kodak Co. (fka EKDKQ)

[LGL8054]

Kodak financing. The photography pioneer’s transaction includes $455 million in new
money and $375 million in term portions issued to senior creditors.

Bloomberg Brief
Kodak Obtains $830 Million
Financing Commitment
Eastman Kodak Co., the bankrupt
photography pioneer, obtained commitments
for an $830 million financing,
trumping a previous offer of $793
million.
The transaction, offered by the second-
lien noteholder committee, includes
$455 million in new money and $375
million in term portions issued to senior
creditors, the company said in a regulatory
filing. The financing is contingent
on Rochester, New York-based Kodak’s
sale of its digital imaging patents for at
least $500 million.
A $255 million first-lien slice will pay
interest at 9.5 percentage points more
than the London interbank offered rate
with a 1 percent minimum on the lending
benchmark, according to the filing.
A $200 million first-out portion pays
interest at 11 percentage points more
than Libor with a 1 percent minimum. A
$375 million second-lien piece will pay
interest at 12 percentage points more
than Libor with a 1 percent minimum.
Proceeds of the debt will refinance outstanding
debtor-in-possession loans and
support the company’s working capital
requirements, according to the filing.
As much as $630 million may be rolled
over to five-year debt upon emergence
from Chapter 11 if certain conditions are
met, according to the company.
Kodak received another financing
offer from a group of lenders including
Centerbridge Capital Partners, GSO
Capital Partners, UBS AG and JPMorgan
Chase & Co. earlier this month.
Kodak filed for bankruptcy protection in
January, listing $5.1 billion in assets and
$6.75 billion in debt. The company plans
to exit bankruptcy in the first half of 2013.
– Krista Giovacco Bloomberg Brief



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