Kodak and Lenders Finalize Terms of Interim and Exit Financing
Press release from Kodak,
"As part of the agreement, certain terms of the financing have been amended. Kodak now is committed to achieving at least $600 million in cash proceeds through the disposition of any combination of specified non-Commercial Imaging assets, which include its Document Imaging and Personalized Imaging businesses, and trademarks and related rights..... Kodak anticipates closing the financing in mid to late March, subject to the prior approval of the Bankruptcy Court."
I shall guesstimate that, Kodak already has offers total ~$ 600 M for the 2 divisions, but they don't want to sell at that price, which led to the Limited Objection from the Unsecured Creditors for the POR extension. Now Kodak may want to keep part of the 2 divisons with the sale of other assets. But since the financing will close in March, Kodak will bring at least ~$ 600 M of cash proceeds in March.
With (527+ ~600)= ~$ 1.13 B Cash Proceeds, $ 1.05 B Consolidated Cash, ~$ 1 B Equity (from $ 0.167 B Proforma EBITDA), and ~$ 0.84 B Exit Financing,
To Pay for ~$ 1.5 B DIP, Second Lien, plus Interests, and retaining ~$ 0.5 M Cash to Exit BK,
Still has ~$ 1 B Cash and ~$ 1 B Equity to pay for ~$3 B unsecured claims, subject to other minor asset sales, UK pension settlement, and more cash burn.
- The secured bonds of 500 M get paid off in cash
- DIP and exit fi gets paid off in cash
- The 600 Mil division sale resolves one of the two great unknowns the other being the UK pensions.
- Isnt the Net Liabilities subject to compromise actually 2.7 Bil? Every 100 M adds to recovery for bonds
I am surprised to see the 13s/17s trading level after the division sale news. A 50 % recovery for the bonds seems like a very good possibility going forward. I'd love to see a cash+equity offer- 30% cash and then the equity guarantees upside ( in the short term)
All coming to a head in 3 months- I think i will bid for another 1 MM in 13s/17s . Any sellers at at 13 c/ Contact me by PM if u care to.