Kodak plans $116 million 'catch-up' pay to 10 5/8%, 9¾% noteholders

By Jennifer Chiou

New York, March 15 - Eastman Kodak Co. announced the close of its offer of term loans under a new junior secured priming super-priority debtor-in-possession term loan facility to the holders of its 10 5/8% senior secured notes due March 15, 2019 and 9¾% senior secured notes due March 1, 2018.

The offer expired at 5 p.m. ET on March 14. The original deadline was on Feb. 21.

The offer began on Jan. 24.

According to a company news release, subject to the closing of both facilities, Kodak will make a "catch-up" adequate protection payment on March 22 of roughly $116 million to the holders of record on March 22.

Thereafter, the company will make monthly adequate protection payments to noteholders of in an amount equal to current non-default interest on the notes, the release stated.

As reported, the company offered up to $455 million of new money term loans under the junior DIP facility to the noteholders, and holders had the chance to exchange their notes for up to $375 million of junior term loans under the junior DIP facility.

Holders could subscribe for new money loans on a pro rata basis in an amount up to the principal amount of notes held. Beyond that amount, they could elect to subscribe for any new money loans that were left over if holders subscribed for less than $455 million in total.

Some holders had already committed to fund any leftover new money loans.

Holders subscribing for new money loans were offered the opportunity to exchange notes for junior loans under the junior DIP facility based on the ratable portion of new money loans such holders fund.

Holders participating in the offer committed to becoming lenders under the junior DIP facility.

The release said that the information will notify those whose commitments were accepted.

The offer is subject to the closing of the junior DIP facility, which is subject to several conditions including an amendment of the company's existing DIP facility becoming effective.

Kurtzman Carson Consultants LLC (917 281-4800 or KodakInfo@kccllc.com) was the information agent. Wilmington Trust, NA was the depository agent.

Rochester, N.Y.-based Kodak filed for bankruptcy on Jan. 19, 2012 under Chapter 11 case number 12-10202. It was an imaging technology products and services provider to the photographic and graphic communications markets. Its plan is to become a business-to-business company focused on commercial imaging.

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