Kodak obtains improved financing deal

By  - 11/28/2012 9:48:55 PM

Eastman Kodak Co. Wednesday evening said it has accepted an $830 million financing offer from a group of bondholders that replaces a $793 million package announced Nov. 12.

As with the earlier commitment, the new financing is contingent on the sale of Kodak’s digital imaging patent portfolio for no less than $500 million.

The new offer came from 10 institutional investors that make up the steering committee of the Second Lien Noteholders Committee, Kodak said. Each holds senior secured notes. All other holders of the notes, including the investors that extended the Nov. 12 package, will be able to participate in the new commitment.

"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 (from Chapter 11) in the first half of 2013,” said Antonio Perez, chairman and CEO. “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."

The new offer also contains provisions allowing for a conversion of up to $630 million of the loans upon Kodak's emergence from bankruptcy into permanent exit financing due five years after emergence. To obtain this financing, Kodak would need to finalize a reorganization plan by Sept. 30,  2013, resolve its U.K. pension obligations, and complete at least a portion of the sales of its Document Imaging and Personalized Imaging businesses.

The new financing commitment announced Wednesday is subject to Bankruptcy Court approval.

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