Kodak Agrees to $793 Million in Interim and Exit Financing

  Kodak Agrees to $793 Million in Interim and Exit Financing

Agreement with Centerbridge, GSO, UBS and JPMorgan Sets Kodak’s Path to
Emergence from Chapter 11 in the First Half of 2013

Business Wire

ROCHESTER, N.Y. -- November 12, 2012

Eastman Kodak Company announced today that it has entered into a commitment
letter to secure $793 million in Junior Debtor-in-Possession Financing with
Centerbridge Partners, L.P., GSO Capital Partners LP, UBS and JPMorgan Chase &
Co. to provide the company with additional case financing and establishes the
ability to convert a substantial part of the facility into exit financing,
enhancing its liquidity and securing a major component of the company’s exit
capital structure. This financing is a key element in the steps to enable the
company to successfully execute its remaining reorganization objectives and
emerge from Chapter 11 in the first half of 2013.

Kodak obtained proposals from separate lending consortia in a competitive
process conducted recently, following the announcement that the company was
seeking such financing.

“The additional liquidity from this financing will enable Kodak to accelerate
its momentum as we continue to successfully execute on our reorganization
objectives and emerge in the first half of 2013. After receiving significant
interest from potential lenders, we reached agreement with Centerbridge
Partners, GSO Capital Partners, UBS and JPMorgan, all of whom have proven
track records in lending to companies that successfully reorganize,” said
Antonio M. Perez, Chairman and Chief Executive Officer.

“The significance of this agreement for Kodak is that it establishes a clear
path for our emergence as a stronger, more focused company. The significance
for our customers, partners and suppliers around the world is that it
solidifies our ability to continue to serve them, innovate for them and
contribute to their success,” Perez said.

The financing is composed of new term loans of $476 million, as well as term
loans of $317 million issued in a dollar-for-dollar exchange for amounts
outstanding under the company’s pre-petition second lien notes. The financing
is predicated on certain conditions and Kodak’s achievement of certain
milestones, including the successful completion of the sale of Kodak’s digital
imaging patent portfolio for no less than $500 million, which the company is
confident it will achieve.

The commitment letter also contains provisions allowing for the conversion of
up to $567 million of the loans into exit financing provided that Kodak meets
certain conditions including the consummation of a Plan of Reorganization by
September 30, 2013, the resolution of all of Kodak’s UK pension obligations
and the completion of all or a portion of the sales of Kodak’s Document
Imaging and Personalized Imaging businesses.

The financing is subject to completion of definitive financing documentation
and Bankruptcy Court approval at a hearing in December which will be scheduled
in the near future.

CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

This document includes "forward-looking statements" as that term is defined
under the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements concerning the Company's plans, objectives,
goals, strategies, future events, future revenue or performance, capital
expenditures, financing needs, plans or business trends, and other information
that is not historical information. When used in this document, the words
"estimates," "expects," "anticipates," "projects," "plans," "intends,"
"believes," "forecasts," or future or conditional verbs, such as "will,"
"should," "could," or "may," and variations of such words or similar
expressions are intended to identify forward-looking statements. All
forward-looking statements, including, without limitation, management's
examination of historical operating trends and data are based upon the
Company's expectations and various assumptions. Future events or results may
differ from those anticipated or expressed in these forward-looking
statements. Important factors that could cause actual events or results to
differ materially from these forward-looking statements include, among others,
the risks and uncertainties described under the heading "Risk Factors" in the
Company's most recent annual report on Form 10-K under Item 1A of Part 1, in
the Company's most recent quarterly report on Form 10-Q under Item 1A of Part
II and those described in filings made by the Company with the U.S. Bankruptcy
Court for the Southern District of New York and in other filings the Company
makes with the SEC from time to time, as well as the following: the ability of
the Company to continue as a going concern, the Company's ability to obtain
Bankruptcy Court approval with respect to motions in the chapter 11 cases, the
ability of the Company and its subsidiaries to prosecute, develop and
consummate one or more plans of reorganization with respect to the chapter 11
cases, Bankruptcy Court rulings in the chapter 11 cases and the outcome of the
cases in general, the length of time the Company will operate under the
chapter 11 cases, risks associated with third party motions in the chapter 11
cases, which may interfere with the Company's ability to develop and
consummate one or more plans of reorganization once such plans are developed,
the potential adverse effects of the chapter 11 proceedings on the Company's
liquidity, results of operations, brand or business prospects, the ability to
execute the Company's business and restructuring plan, increased legal costs
related to the Bankruptcy Filing and other litigation, our ability to raise
sufficient proceeds from the sale of non-core assets and the monetization of
our digital imaging patent portfolios within our plan, the Company's ability
to generate or raise cash and maintain a cash balance sufficient to fund
continued investments, capital needs, restructuring payments and service its
debt and financing arrangements; the Company's ability to manage contracts
that are critical to its operation, to obtain and maintain appropriate terms
with customers, suppliers and service providers, to maintain product
reliability and quality, to effectively anticipate technology trends and
develop and market new products, solutions and technologies, to retain key
executives, managers and employees, our ability to successfully license and
enforce our intellectual property rights and the ability of the Company's
non-U.S. subsidiaries to continue to operate their businesses in the normal
course and without court supervision. There may be other factors that may
cause the Company's actual results to differ materially from the
forward-looking statements. All forward-looking statements attributable to the
Company or persons acting on its behalf apply only as of the date of this
document and are expressly qualified in their entirety by the cautionary
statements included in this report. The Company undertakes no obligation to
update or revise forward-looking statements to reflect events or circumstances
that arise after the date made or to reflect the occurrence of unanticipated
events.

Contact:

Media:
Kodak,
Christopher Veronda, +1 585-724-2622,
christopher.veronda@kodak.com
Krista Gleason, +1 585-724-5952,
krista.gleason@kodak.com
 
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