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Kodak Obtains $830 Million Debtor-in-Possession Loan Commitment

November 29, 2012

Eastman Kodak Co. (EKDKQ:US), the bankrupt photography pioneer, obtained commitments for an $830 million exit 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 yesterday. 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.

To contact the reporter on this story: Krista Giovacco in New York at

To contact the editor responsible for this story: Faris Khan at

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