Eastman Kodak plans to prepay $395 million of first-lien term loans

By Angela McDaniels

Tacoma, Wash., May 21 – Eastman Kodak Co. plans to prepay its outstanding first-lien term loans in full, according to a company news release.

The company will fund the prepayment with the proceeds of $100 million 5% secured convertible notes due 2021 being sold to funds managed by Southeastern Asset Management, Inc.

Proceeds will also be used for general corporate purposes.

Kodak expects to enter into an amendment to its asset-based revolving credit facility to permit the incurrence of the convertibles.

“This refinancing is a major milestone for the company and supplements the proceeds from the recent packaging sale to completely repay the company’s first-lien term debt of approximately$395 million,” James Continenza, Kodak’s executive chairman, said in the news release.

“It improves the company’s balance sheet, provides additional capital and lowers debt service costs, which will support the realignment of our business and our emphasis on meeting our customer needs.”

The transaction is expected to close during the second quarter of 2019.

Rochester, N.Y.-based Eastman Kodak is a technology company focused on imaging.

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