Eastman Kodak to price $300 million 7.5-year convertibles to yield 7.75%-8.25%, up 17.5%-22.5%

By Rebecca Melvin

New York, Sept. 16 - Eastman Kodak Co. plans to price $300 million of 7.5-year convertible bonds in a Rule 144A offering that was talked to yield 7.75% to 8.25% with an initial conversion premium of 17.5% to 22.5%, according to market sources.

The offering, which has a greenshoe of $45 million of bonds, was seen pricing late Thursday or early Friday.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are joint bookrunners of the deal.

The bonds will be non-callable for five years and then provisionally callable at a 130% pricing hurdle from years five through seven. There are no puts. The issue has standard dividend protection.

Proceeds are earmarked to buy back up to $575 million of existing notes due 2033 in a tender offer that was announced simultaneously with the new issue and for other general corporate purposes.

Eastman Kodak is a Rochester, N.Y.-based provider of imaging technology products and services to the photographic and graphic communications markets.

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