Kodak Completes Syndication of $695 Million Exit Term Loans

Kodak Completes Syndication of $695 Million Exit Term Loans

New financing offers Kodak substantially better terms and significant interest savings compared to its existing rollover exit term loan facilities

ROCHESTER, N.Y.--(BUSINESS WIRE)-- Kodak today announced that it has completed the syndication of its previously announced $695 million exit and post-emergence term-loan credit facilities. The credit facilities, along with the proceeds from the previously announced rights offering, cash on hand and other financing transactions, will enable Kodak at emergence from Chapter 11 to fund its Plan of Reorganization, and repay its secured creditors under its existing Debtor-in-Possession loan facilities and second lien notes.

The credit facilities are comprised of a $420 million, six-year first lien term loan, and a $275 million, seven-year second lien term loan. The term loans have more favorable pricing and other terms than the existing rollover exit financing commitment, which are expected to result in interest savings of at least $25 million within the first 12 months.

"These new financing commitments demonstrate the financial market's confidence in our Plan of Reorganization and provide Kodak substantially more advantageous terms than the existing DIP rollover commitment," said Antonio M. Perez, Kodak Chairman and Chief Executive Officer. "The result will be significant savings for Kodak, as we execute our post-emergence business strategy and generate value for our stakeholders."

Definitive documentation is expected to be filed with the U.S. Bankruptcy Court for the Southern District of New York in the coming days. The credit facilities are expected to close upon Kodak's emergence from Chapter 11, subject to certain customary conditions.

Kodak is also in the final stages of completing syndication of an asset-based revolving credit facility that would be effective at emergence.

Affiliates of J.P. Morgan, Barclays and Bank of America Merrill Lynch are serving as joint lead arrangers for the term loans. Lazard is serving as Kodak's financial advisor and Sullivan & Cromwell LLP as its legal advisor in the arrangement of the financing.

OTHER INFORMATION

This press release is not, and shall not be, considered to be a solicitation of votes on a Chapter 11 plan of reorganization.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This document includes "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company's plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, financing needs, business trends, and other information that is not historical information. When used in this document, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "predicts," "forecasts," or future or conditional verbs, such as "will," "should," "could," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, management's examination of historical operating trends and data are based upon the Company's expectations and various assumptions. Future events or results may differ from those anticipated or expressed in these forward-looking statements. Important factors that could cause actual events or results to differ materially from these forward-looking statements include, among others, the risks and uncertainties described in more detail in this report on Form 10-Q for the quarter ended March 30, 2013 under the headings "Business," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources" and those described in filings made by the Company with the U.S. Bankruptcy Court for the Southern District of New York and in other filings the Company makes with the SEC from time to time, as well as the following: the Company's ability to successfully emerge from Chapter 11 as a profitable sustainable company; the ability of the Company and its subsidiaries to secure approval of and consummate one or more plans of reorganization with respect to the Chapter 11 cases; the Company's ability to improve its operating structure, financial results and profitability; the ability of the Company to achieve cash forecasts, financial projections, and projected growth; our ability to raise sufficient proceeds from the sale of businesses and non-core assets; the businesses the Company expects to emerge from Chapter 11; the ability of the Company to discontinue certain businesses or operations; the ability of the Company to continue as a going concern; the Company's ability to comply with the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) covenants in its debtor-in-possession credit agreements; our ability to obtain additional financing; the potential adverse effects of the Chapter 11 proceedings on the Company's liquidity, results of operations, brand or business prospects; the outcome of our intellectual property patent litigation matters; the Company's ability to generate or raise cash and maintain a cash balance sufficient to comply with the minimum liquidity covenants in its debtor-in-possession credit agreements and to fund continued investments, capital needs, restructuring payments and service its debt; our ability to fairly resolve legacy liabilities; the resolution of claims against the Company; our ability to retain key executives, managers and employees; our ability to maintain product reliability and quality and growth in relevant markets; our ability to effectively anticipate technology trends and develop and market new products, solutions and technologies; and the impact of the global economic environment on the Company. There may be other factors that may cause the Company's actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document and are expressly qualified in their entirety by the cautionary statements included in this document. The Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

Media:
Kodak
Christopher Veronda, +1 585-724-2622
christopher.veronda@kodak.com

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS:

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