Eastman Kodak Announces $200 Million Investment by Southeastern Asset Management

Eastman Kodak Company entered into an agreement to sell $200 million of newly created 5.50% Series A Convertible Preferred Stock to funds managed by Southeastern Asset Management, an employee-owned, global investment management firm.
 
Kodak intends to use the net proceeds of the sale, together with cash on hand, to prepay in full its outstanding second lien term loans.
 
“This transaction improves our capital structure and enhances our financial flexibility,” said Jeff Clarke, Kodak chief executive. “This is an important step forward in Kodak’s return to strength. We are very pleased that Southeastern has committed to make this significant investment and demonstrated its confidence in Kodak’s future.”
 
In connection with the investment, Southeastern Asset Management will have the right to nominate members to Kodak’s board of directors proportional to its shareholding on an as-converted basis.
 
The transaction is expected to close in November and is subject to the satisfaction of customary closing conditions.