Kodak Completes Syndication of $695M (Chapter 11) Exit Term Loans

ROCHESTER, NY—August 1, 2013—Kodak announced that it has completed the syndication of its previously announced $695 million exit and post-emergence term-loan credit facilities. The credit facilities, along with the proceeds from the previously announced rights offering, cash on hand and other financing transactions, will enable Kodak at emergence from Chapter 11 to fund its Plan of Reorganization, and repay its secured creditors under its existing Debtor-in-Possession loan facilities and second lien notes.

The credit facilities are comprised of a $420 million, six-year first lien term loan, and a $275 million, seven-year second lien term loan. The term loans have more favorable pricing and other terms than the existing rollover exit financing commitment, which are expected to result in interest savings of at least $25 million within the first 12 months.

“These new financing commitments demonstrate the financial market’s confidence in our Plan of Reorganization and provide Kodak substantially more advantageous terms than the existing DIP rollover commitment,” said Antonio M. Perez, Kodak Chairman and CEO. “The result will be significant savings for Kodak, as we execute our post-emergence business strategy and generate value for our stakeholders.”

Definitive documentation is expected to be filed with the U.S. Bankruptcy Court for the Southern District of New York in the coming days. The credit facilities are expected to close upon Kodak’s emergence from Chapter 11, subject to certain customary conditions.

Kodak is also in the final stages of completing syndication of an asset-based revolving credit facility that would be effective at emergence.

Affiliates of J.P. Morgan, Barclays and Bank of America Merrill Lynch are serving as joint lead arrangers for the term loans. Lazard is serving as Kodak’s financial advisor and Sullivan & Cromwell LLP as its legal advisor in the arrangement of the financing.

Source: Kodak.