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Kodak Closes Private Placement of $250 Million 10.625% Senior Secured Notes Due 2019


ROCHESTER, N.Y., -- Eastman Kodak Company (NYSE: EK) today announced the successful completion of its previously announced private placement of $250 million aggregate principal amount of Senior Secured Notes due 2019. The Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to persons other than U.S. persons in reliance upon Regulation S under the Securities Act.

The notes are secured obligations of Kodak and will bear interest at a rate of 10.625% per year.

Kodak intends to use the net proceeds from the offering for general corporate purposes and to repurchase $50 million in currently outstanding debt, including its 7.25% Senior Notes due 2013.

“I am very pleased with the success of this notes offering and with the positive response of the investment community,” said Antoinette McCorvey, Kodak’s Chief Financial Officer. “We are committed to completing Kodak’s transformation into a sustainable, profitable company in 2012, and we have the financial resources necessary to achieve that goal. This action was an opportunistic move on Kodak’s part to take advantage of recent improvements in the high-yield credit market, to provide ourselves with additional financial flexibility, and to reduce near-term debt.”

Kodak Updates Cash Outlook

In conjunction with the action referenced above, Kodak is updating its guidance for 2011 cash balance. Previously, the company forecasted a year-end cash balance of $1.5 billion to $1.6 billion. With the action completed today, the company now expects to end 2011 with a cash balance of $1.7 billion to $1.8 billion.


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