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Kodak Agrees to $793 Million in Interim and Exit Financing

Agreement with Centerbridge, GSO, UBS and JPMorgan Sets Kodak's Path to Emergence from Chapter 11 in the First Half of 2013.

November 20, 2012

Eastman Kodak Company has entered into a commitment letter to secure $793 million in Junior Debtor-in-Possession Financing with Centerbridge Partners, L.P., GSO Capital Partners LP, UBS and JPMorgan Chase & Co. to provide the company with additional case financing and establishes the ability to convert a substantial part of the facility into exit financing, enhancing its liquidity and securing a major component of the company's exit capital structure. This financing is a key element in the steps to enable the company to successfully execute its remaining reorganization objectives and emerge from Chapter 11 in the first half of 2013.

Kodak obtained proposals from separate lending consortia in a competitive process conducted recently, following the announcement that the company was seeking such financing.

"The additional liquidity from this financing will enable Kodak to accelerate its momentum as we continue to successfully execute on our reorganization objectives and emerge in the first half of 2013. After receiving significant interest from potential lenders, we reached agreement with Centerbridge Partners, GSO Capital Partners, UBS and JPMorgan, all of whom have proven track records in lending to companies that successfully reorganize," said Antonio M. Perez, chairman and chief executive officer.

"The significance of this agreement for Kodak is that it establishes a clear path for our emergence as a stronger, more focused company. The significance for our customers, partners and suppliers around the world is that it solidifies our ability to continue to serve them, innovate for them and contribute to their success," Perez said. The financing is composed of new term loans of $476 million, as well as term loans of $317 million issued in a dollar-for-dollar exchange for amounts outstanding under the company's pre-petition second lien notes.

The financing is predicated on certain conditions and Kodak's achievement of certain milestones, including the successful completion of the sale of Kodak's digital imaging patent portfolio for no less than $500 million, which the company is confident it will achieve.

The commitment letter also contains provisions allowing for the conversion of up to $567 million of the loans into exit financing provided that Kodak meets certain conditions including the consummation of a Plan of Reorganization by Sept. 30, 2013, the resolution of all of Kodak's UK pension obligations and the completion of all or a portion of the sales of Kodak's Document Imaging and Personalized Imaging businesses.

 

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