Kodak, second-lien noteholders' amended financing package approved

By Lisa Kerner

Charlotte, N.C., March 8 - Eastman Kodak Co.'s amended interim and exit financing package has been approved, according to documents filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, last week Kodak and the steering committee of its second-lien noteholders reached an agreement to amend the terms of a previously announced interim and exit financing package.

The company has received commitments for $455 million in new money loans as part of an $830 million junior debtor-in-possession facility, according to an 8-K filed with the Securities and Exchange Commission.

To the extent that the initial commitment amount equals or exceeds $455 million, the new money commitments will be allocated to each initial participating holder.

At the time of that subscription, each initial participating holder can also elect to provide additional new money commitments in the shortfall amount to the extent that the initial commitment amount is less than $455 million.

In consideration for funding new money loans, each lender will be permitted to roll-up obligations under its second-lien notes, with the total amount of rolled-up loans not to exceed $375 million.

Wilmington Trust NA is the administrative agent of the junior DIP facility.

The facility will mature on the earliest of Sept. 30, 2013, the effective date of Kodak's plan of reorganization to the extent outstanding amounts are not converted into exit term loans, and the acceleration of the loans.

The DIP financing can be converted into a five-year exit facility.

Interest on new money loans will accrue at Libor plus 1,050 basis points, with a 100 bps Libor floor. Interest on roll-up loans will be the same as the non-default rate on the second-lien notes that are subject to roll up.

Kodak said in a prior news release that the amendments give it additional flexibility to successfully execute its reorganization objectives and emerge from Chapter 11 in mid-2013.

The company said it expects to close the financing in mid- to late March, subject to bankruptcy court approval. The commitment expires at 11:59 p.m. ET on April 5.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19, 2012 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 12-10202.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.