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Kodak, Major Financial Institutions Agree to Arrange Exit Financing Package

Friday, June 21, 2013

Press release from the issuing company

Debt financing of up to $895 million to be arranged by J.P. Morgan, Bank of America Merrill Lynch and Barclays; Combination of financing and rights offering to provide company with strong, stable capital structure

ROCHESTER, N.Y. - Eastman Kodak Company today announced that it has reached agreements with leading financial institutions J.P. Morgan, Bank of America Merrill Lynch, and Barclays to arrange new post-emergence credit facilities of up to $895 million.

Affiliates of J.P. Morgan, Barclays and Bank of America Merrill Lynch will serve as Joint Lead Arrangers for senior secured term loans of up to $695 million. In addition to this term financing, affiliates of Bank of America Merrill Lynch, Barclays and J.P. Morgan will act as Joint Lead Arrangers for a new senior secured asset-based revolving credit facility of up to $200 million, and have committed to provide $130 million of this facility, subject to the satisfaction of certain conditions.

This comprehensive financing package will enable Kodak, at emergence, to repay its secured creditors under the current senior and junior Debtor-in-Possession loan facilities, finance its exit from Chapter 11, and meet the company’s post-emergence working capital and liquidity needs. The proposed term loan financing is expected to provide the company with more favorable terms compared to the existing rollover exit financing commitment.

“The new financing, combined with other recent significant milestones in our restructuring – including the rights offering, Amended Plan of Reorganization, and Eastman Business Park settlement – will position Kodak for a bright long-term future,” said Antonio M. Perez, Kodak’s Chairman and Chief Executive Officer.

The financing agreements are subject to conditions, including, among others, approval by the Bankruptcy Court, completion of definitive financing documentation, and a successful syndication in the loan markets.

Kodak also will file an Amended Disclosure Statement with the Bankruptcy Court in the coming days, which will include, among other things, provisions pertaining to the previously announced Rights Offering Agreement and financing agreements. The Disclosure Statement is subject to approval by the Court.

 

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