Kodak investors tender $20 million 7¼% senior notes in excess of limit

By Devika Patel

Knoxville, Tenn., March 10 - Eastman Kodak Co. said approximately $220 million of its $500 million in 7¼% senior notes due 2013 were validly tendered as part of the company's cash tender offer for $200 million of the notes that began Feb. 3 and expired at 11:59 p.m. ET on March 9.

Because the amount tendered exceeds the maximum tender amount, the notes were subject to proration and Kodak accepted only $200 million of the notes. Settlement is expected to occur promptly.

The company is paying $950 per $1,000 of notes for notes tendered by 5 p.m. ET on Feb. 11, the early tender deadline. It is paying $910 per $1,000 of notes for notes tendered after that deadline. Accrued interest will be paid up to but excluding the settlement date.

Kodak already said it was making the offer because of recently improved conditions in the debt markets that may allow it to extend the maturity of existing debt and improve its capital structure.

The company is financing the offer using proceeds from a placement of $500 million of 9¾% senior secured notes due 2018 and cash on hand.

Citi (800 558-3745 or 212 723-6106) is the dealer manager for the offer. Bank of New York Mellon is the depositary, and Georgeson, Inc. (800 248-7605 or 212 440-9800) is the information agent.

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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