By Rebecca Melvin
New York, Sept. 17 - Eastman Kodak Co. priced an upsized $400 million of 7.5-year convertible bonds at par to yield 7.5% with an initial conversion premium of 24.96%, which was at the mid-point of revised talk, according to a syndicate source.
Ahead of final pricing, terms were revised in favor of the issuer to 7.25% to 7.75% for the coupon with a 22.5% to 27.5% initial conversion premium, from an initially talked 7.75% to 8.25% coupon and 17.5% to 22.5% initial conversion premium.
Initially the Rule 144A offering was going to be $300 million in size; and the originally talked $45 million greenshoe was removed at the upsizing.
Kodak is also getting about $400 million of financing from Kohlberg Kravis Roberts & Co. LP.
The convertible offering was priced via joint bookrunners Citigroup Global Markets Inc. and Bank of America-Merrill Lynch, with Morgan Stanley as a joint lead manager.
The bonds are non-callable for five years and then provisionally callable at a 130% pricing hurdle through year seven.
There are no puts, and the issue has standard dividend protection.
Proceeds are earmarked to buy back up to $575 million of Kodak's existing 3.375% convertible notes due 2033 and for other general corporate purposes.
Eastman Kodak is a Rochester, N.Y.-based photography and imaging technology products and services provider.
| Issuer: | Eastman Kodak Co.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Citigroup and Bank of America-Merrill Lynch, with Morgan Stanley as joint lead manager
|
| Amount: | $400 million, upsized from $300 million
|
| Greenshoe: | None
|
| Maturity: | April 1, 2017
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 24.96%
|
| Conversion price: | $7.41
|
| Conversion ratio: | 134.9528
|
| Calls: | Non-callable for five years, provisionally callable through year seven at a 130% price hurdle
|
| Puts: | No puts
|
| Dividend protection: | Yes, standard
|
| Price talk: | Revised to 7.25%-7.50%, up 22.5%-27.5%, from 7.75%-8.25%, up 17.5%-22.5%
|
| Pricing date: | Sept. 17
|
| Distribution: | Rule 144A
|
| Stock symbol: | EK
|
| Stock reference price: | $5.93
|
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