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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