Rochester, NY—Kodak reached agreements with leading financial institutions J.P. Morgan, Bank of America Merrill Lynch, and Barclays to arrange post-emergence credit facilities of up to $895 million. The financing package will enable Kodak, at emergence, to repay its secured creditors under the current debtor-in-possession loan facilities and finance its exit from Chapter 11.
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.
The financing package will also allow Kodak to meet its 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 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.com