Research Update: Eastman Kodak 'CCC' ICR Affirmed And Removed From Watch Positive On Flexographic Packaging Divestiture, Outlook Negative

Eastman Kodak Co. announced that the sale of its Flexographic Packaging Division to Montagu Private Equity LLP has closed. The company expects to use the proceeds from the divestiture to repay over $300 million of its first-lien secured term loan due in September 2019 ($395 million outstanding). Following this repayment, Kodak has stated its intention to refinance the remaining outstanding portion of the term loan (approximately $80 million-$90 million). We are affirming our 'CCC' issuer credit rating on Kodak and are removing all of our ratings on the company from CreditWatch, where we placed them with positive implications on Nov. 13, 2018. At the same time, we are lowering our recovery rating on the company's first-lien secured term loan to

...- Eastman Kodak Co. announced that the sale of its Flexographic Packaging Division to Montagu Private Equity LLP has closed. The company expects to use the proceeds from the divestiture to repay over $300 million of its first-lien secured term loan due in September 2019 ($395 million outstanding). - Following this repayment, Kodak has stated its intention to refinance the remaining outstanding portion of the term loan (approximately $80 million-$90 million). - We are affirming our '###' issuer credit rating on Kodak and are removing all of our ratings on the company from CreditWatch, where we placed them with positive implications on Nov. 13, 2018. - At the same time, we are lowering our recovery rating on the company's first-lien secured term loan to 4' from '3' and are affirming the issue-level rating at '###'. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 45%) recovery in the event of a payment default. - The negative outlook on Kodak reflects...

Research Update