New York, NY, United States (4E) – Eastman Kodak Co. agreed to a debt financing deal with three major bank amounting to $ 895mn following its emergence from bankruptcy, a move that may help the struggling company retool its operations and pay back its bondholders.
The three banks, J.P. Morgan Chase & Co., Barclays PLC and Bank of America Corp., will become the arrangers for a new senior secured asset-based revolving credit facility of as much as $ 200mn, and have committed to contribute $ 130mn in that facility. The banks will act as “joint lead arrangers” for senior secured term loans of as much as $ 695mn.
The new debt financing is expected to provide the company better terms than the current rollover exit financing commitment. Kodak CEO Antonio M. Perez said that the new deal, along with the company’s restructuring efforts, will bring a bright long future for Kodak.
On Wednesday, Kodak announced its plan for a $ 406mn rights offering, where the proceeds will be used to repay its creditors.
In January 2012, the Rochester, N.Y.-based Kodak applied for Chapter 11 protection. The company has been trying to sell assets and get rid of unprofitable businesses and focusing on its commercial-imaging segment, which includes manufacturing of motion-picture film and digital printers.
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