Kodak Accepts Improved, $830-Million Credit Facility

ROCHESTER, N.Y—Nov. 28, 2012—Eastman Kodak has received and accepted an offer from the Steering Committee of the Second Lien Noteholders Committee for interim and exit financing totaling $830 million in loans. The commitment is superior to, and therefore replaces, the $793 million commitment announced by the company on Nov. 12.

This financing strengthens Kodak’s position to successfully execute its remaining reorganization objectives and emerge from Chapter 11 in the first half of 2013.

Each of the 10 institutional investors that comprise the steering committee holds senior secured notes of the company. The improved financing will be open to participation by all other holders of the notes, including the investors that extended the original 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 M. 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 improved financing commitment provides a longer maturity, lower fees and pricing, and greater liquidity than our previously announced commitment. This is a vote of confidence in the future of our company. We are particularly pleased that the financing allows for participation by all of our pre-petition second lien noteholders in a manner that is cost-effective for the company,” added Perez

The financing includes new money term loans of $455 million, as well as term loans of up to $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. It is predicated on certain conditions, including the successful completion of the sale of Kodak’s digital imaging patent portfolio for no less than $500 million.

The commitment letter also contains provisions allowing for a conversion of up to $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 Sept. 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.

The financing is subject to completion of definitive financing documentation and Bankruptcy Court approval at a hearing that will be scheduled in the near future.

Source: Kodak.