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  • kodakbond kodakbond Jan 28, 2013 3:22 PM Flag

    Care to Decipher This News

    Latest News,

    "Kodak will apply 100% of the net cash proceeds from the sale of the patents and 75% of the net cash proceeds from licensing certain patents to repay amounts outstanding under the term loan facility under the existing DIP Credit Agreement. As a result, Kodak expects to pay $418.7 million of such net cash proceeds to repay the existing term loans and to retain $108.3 million of such net cash proceeds, pending closing of the Junior DIP Financing, when the remaining balance outstanding under the existing term loans will be repaid."

    From the above, (100 % of Sale)+ (75 % of Licensing)= $ 418.7 M {1}

    Also from the above, (25 % of Licensing)= $ 108.3 M {2}

    From {2}, Licensing= $ 433.2 M {3}

    Substitute {3} back to {1}, Sale= $ 93.8 M {4}

    So the net cash proceeds of the patents include a fee component of $ 93.8 M {4} and a licensing component of $ 433.2 M {3}?

    Notice that ($ 93.8 M+ $ 433.2 M) is exactly $ 527 M, the announced price of the patent sale.

    And then, (6x $ 433.2 M)= $ 2.60 B, is also Kodak's estimated price of the patents.

    Is this how it meant by Kodak receiving "our price for the patents"?

    Now the important question, does it mean Kodak will be receiving *annually* $ 433.2 M for licensing through IV?

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