Research Update: Eastman Kodak Co. Outlook Revised To Stable From Negative On New Capital Structure; Ratings Affirmed

Eastman Kodak Co.'s (Kodak) has issued $350 million of new financing, consisting of an unrated $225 million term 5-year loan, $25 million secured note, and $100 million of series C convertible preferred stock. Additionally, Kodak redeemed $100 million of its series A convertible preferred stock at par and exchanged the remaining into new series B convertible preferred stock. The firm's new capital structure resulted in an extension of maturities and reduced interest and dividend payments, which has improved cash flow. We are revising our outlook to stable from negative and affirming our 'CCC+' issuer credit rating, reflecting our view that while the firm's capital structure remains unsustainable without substantial improvement in operating performance, it has no clear near-term catalysts for

...- Eastman Kodak Co.'s (Kodak) has issued $350 million of new financing, consisting of an unrated $225 million term 5-year loan, $25 million secured note, and $100 million of series C convertible preferred stock. - Additionally, Kodak redeemed $100 million of its series A convertible preferred stock at par and exchanged the remaining into new series B convertible preferred stock. - The firm's new capital structure resulted in an extension of maturities and reduced interest and dividend payments, which has improved cash flow. - We are revising our outlook to stable from negative and affirming our '###+' issuer credit rating, reflecting our view that while the firm's capital structure remains unsustainable without substantial improvement in operating performance, it has no clear near-term catalysts for default within 24 months. - We are also revising our liquidity assessment to adequate from less than adequate given the modest cash balances. - The stable outlook reflects that the company will...

Research Update