Kodak sets timing, talk on exit deal; CeramTec readies launches; Choice Cable joins calendar

By Sara Rosenberg

New York, July 12 - In the primary market on Friday, Eastman Kodak Co. disclosed timing and price talk on its first- and second-lien exit financing facility, CeramTec GmbH came out with meeting dates and structure on its buyout transaction, and Choice Cable emerged with plans to bring a new deal to market.

Kodak details surface

Timing came out on Kodak's $695 million in first- and second-lien term loans as a bank meeting has been scheduled for 1 p.m. ET in New York on Monday, according to a market source.

Also, talk on the $420 million six-year first-lien term loan emerged at Libor plus 475 basis points to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

And, guidance on the $275 million seven-year second-lien term loan was announced at Libor plus 825 bps to 850 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

With the term loans, the company is planning on getting an up to $200 million senior secured asset-based revolver.

Kodak funding exit

Proceeds from Kodak's credit facility will be used to fund distributions to creditors in accordance with the company's plan of reorganization. The new debt will enable the company to repay its secured creditors under current senior and junior debtor-in-possession facilities, finance its exit from Chapter 11 and meet its post-emergence working capital and liquidity needs.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Barclays are the lead banks on the deal.

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

CeramTec on deck

CeramTec set a bank meeting in London on Tuesday and a bank meeting at 10 a.m. ET in New York on Wednesday to launch a €747.5 million credit facility that includes a €100 million revolver and a €647.5 million equivalent euro and U.S. seven-year term loan B, according to a market source.

Deutsche Bank Securities Inc., RBC Capital Markets and UBS Securities LLC are leading the deal.

Proceeds will be used to help fund the €1.49 billion buyout of the company by Cinven from Rockwood Holdings Inc.

Closing is expected in the third quarter, subject to regulatory approvals, including the E.U. Competition Clearance Authority.

CeramTec is a Plochingen, Germany-based producer of high performance advanced ceramics materials and products.

Choice Cable readies deal

Choice Cable will be holding a call on Monday to launch a $170 million credit facility that will be used to refinance existing debt and fund a dividend, according to a market source.

The facility consists of a $15 million revolver, and a $155 million term loan talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal.

Choice Cable is a Puerto Rico-based cable operator.

Technicolor closes

In other news, Technicolor (Tech Finance & Co SCA) completed the refinancing of existing senior secured debt, a news release said, for which the company got a €100 million five-year revolver, an $830 million seven-year term loan B and a €200 million seven-year euro term loan B.

Pricing on the U.S. term loan is Libor plus 600 bps and pricing on the euro term loan is Euribor plus 625 bps, with both having a 1.25% floor, and original issue discount of 97 and hard call protection of 102 in year one and 101 in year two.

During syndication, the U.S. term loan was reduced from a revised size of $835 million but increased from an initial amount of $645 million and pricing firmed at the wide end of the revised Libor plus 575 bps to 600 bps guidance and up from initial talk of Libor plus 475 bps to 500 bps.

Also, the euro term loan was upsized from a revised amount of €175 million but decreased from original talk of €250 million and pricing flexed up from revised talk of Euribor plus 575 bps to 600 bps and initial guidance of Euribor plus 475 bps to 500 bps.

Furthermore, the discounts on both loans widened from revised talk of 98 and initial talk of 99, and the call protection was sweetened from a soft call of 102 for one year then 101 for six months.

Technicolor lead banks

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. led Technicolor's credit facility (B3/B).

Included in the deal is a leverage-based maintenance covenant, which was added in the syndication process.

With the refinancing, the company was originally planning on selling $330 million of senior notes, but that offering was recently pulled.

Technicolor is a technology company focused on the media and entertainment sector.

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