Research Update: Eastman Kodak Co. Upgraded To 'CCC+' On Improved Liquidity Stemming From Sale Of Convertible Notes; Outlook Stable

Eastman Kodak Co., a technology company focused on commercial printing and imaging, has issued and closed its sale of $100 million 5% senior secured convertible notes to Southeastern Asset Management. Concurrent with the closing, Kodak has repaid the approximately $83 million remaining on its outstanding senior secured first-lien term loan facility. This repayment eliminates Kodak's sizable near-term debt maturity and alleviates immediate liquidity constraints. We are raising our issuer credit rating on Kodak to 'CCC+', with a stable outlook, from 'CCC', with a negative outlook, reflecting our view that there is no longer a clear catalyst for default within the next 12 months. We are discontinuing our rating on the repaid term loan. Our stable outlook reflects our expectation that

...- Eastman Kodak Co., a technology company focused on commercial printing and imaging, has issued and closed its sale of $100 million 5% senior secured convertible notes to Southeastern Asset Management. - Concurrent with the closing, Kodak has repaid the approximately $83 million remaining on its outstanding senior secured first-lien term loan facility. - This repayment eliminates Kodak's sizable near-term debt maturity and alleviates immediate liquidity constraints. - We are raising our issuer credit rating on Kodak to '###+', with a stable outlook, from '###', with a negative outlook, reflecting our view that there is no longer a clear catalyst for default within the next 12 months. - We are discontinuing our rating on the repaid term loan. - Our stable outlook reflects our expectation that Kodak will have sufficient liquidity to meet its financial obligations over the next 12 months, in spite of our forecast for negative EBITDA and free cash flow for 2019....

Research Update