By Paul A. Harris
St. Louis, Feb. 24 - Eastman Kodak Co. priced an upsized $500 million issue of 9¾% eight-year senior secured notes (Ba3/B-/BB-) at 97.967 to yield 10 1/8% in a quick-to-market transaction on Wednesday, according to market sources.
The yield printed in the middle of the 10% to 10¼% price talk.
Citigroup Global Markets Inc. and KKR were the managers for the Rule 144A issue, which was upsized from $400 million.
Proceeds will be used to repurchase all $300 million of the company's 10½% senior notes due 2017 and to repurchase a portion of its 7¼% senior notes due 2013.
Kodak is a Rochester, N.Y.-based provider of imaging technology products and services to the photographic and graphic communications markets.
| Issuer: | Eastman Kodak Co.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | March 1, 2018
|
| Securities: | Senior secured notes
|
| Underwriters: | Citigroup Global Markets Inc., KKR
|
| Coupon: | 9¾%
|
| Price: | 97.967
|
| Yield: | 10 1/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 1, 2014, then callable at 104.88
|
| Equity clawback: | 35% at 109.75 until March 1, 2013
|
| Trade date: | Feb. 24
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B-
|
| Fitch: BB-
|
| Distribution: | Rule 144A
|
| Price talk: | 10% to 10¼%
|
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