Kodak offers DIP term loans to holders of 10 5/8% notes, 9¾% notes

By Angela McDaniels

Tacoma, Wash., Jan. 24 - Eastman Kodak Co. is offering term loans under a new junior secured priming superpriority debtor-in-possession term loan facility to the holders of its 10 5/8% senior secured notes due March 15, 2019 and 9¾% senior secured notes due March 1, 2018, according to a company news release.

The company is offering up to $455 million of new money term loans under the junior DIP facility to the noteholders, and holders can exchange their notes for up to $375 million of junior term loans under the junior DIP facility.

Holders can subscribe for new money loans on a pro rata basis in an amount up to the principal amount of notes held. Beyond that amount, they may elect to subscribe for any new money loans that are left over if holders subscribe for less than $455 million in total. Some holders have already committed to fund any leftover new money loans.

Holders subscribing for new money loans will be offered the opportunity to exchange notes for junior loans under the junior DIP facility based on the ratable portion of new money loans such holders fund.

The offer will expire at 5 p.m. ET on Feb. 21.

Holders participating in the offer will commit to becoming lenders under the junior DIP facility.

The offer is subject to the closing of the junior DIP facility, which is subject to several conditions including an amendment of the company's existing DIP facility becoming effective.

Kodak said it currently expects the junior DIP facility to close on Feb. 28. Accordingly, it expects to notify noteholders of their allocated amounts of new money loans and junior loans by Feb. 25, and the holders will have to fund their loans and tender their notes for exchange on Feb. 26.

Kurtzman Carson Consultants LLC (917 281-4800 or KodakInfo@kccllc.com) is the information agent. Wilmington Trust, NA is the depository agent.

Rochester, N.Y.-based Kodak filed for bankruptcy on Jan. 19, 2012 under Chapter 11 case number 12-10202. It was an imaging technology products and services provider to the photographic and graphic communications markets. Its plan is to become a business-to-business company focused on commercial imaging.

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