Tear Sheet: Eastman Kodak Co.

In July 2023, the company refinanced its term loan, extending its contractual maturity to August 2028, although the loan remains subject to a three-month springing maturity prior to the May 2026 mandatory redemption date of the series B and series C preferred stocks. The cash and paid-in-kind interest components on the term loan were also amended to 7.5% and 5.0%, respectively, from 8.5% and 4.0%. While these actions pushed back what was a rapidly approaching maturity, the new capital structure still presents a maturity wall of about $750 million in the first half of 2026, including about $230 million (with accrued dividends) worth of preferred stocks when they come due if not converted. Concerns about the firm?s ability to address

...March 22, 2024 Eastman Kodak Co. (Kodak)'s 2023 term loan refinancing removed a near-term catalyst for bankruptcy, but we continue to view the firm's capital structure as unsustainable. In July 2023, the company refinanced its term loan, extending its contractual maturity to August 2028, although the loan remains subject to a three-month springing maturity prior to the May 2026 mandatory redemption date of the series B and series C preferred stocks. The cash and paid-in- kind interest components on the term loan were also amended to 7.5% and 5.0%, respectively, from 8.5% and 4.0%. While these actions pushed back what was a rapidly approaching maturity, the new capital structure still presents a maturity wall of about $750 million in the first half of 2026, including about $230 million (with accrued dividends) worth of preferred stocks when they come due if not converted. Concerns about the firm's ability to address this maturity wall by refinancing the series B and series C preferred stocks,...

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