Kodak 2005 Annual Report Download - page 90

88
LONG-TERM DEBT, INCLUDING LINES OF CREDIT
Long-term debt and related maturities and interest rates were as follows at December 31, 2005 and 2004 (in millions):
2005 2004
Weighted-Average Weighted-Average
Country Type Maturity Interest Rate Amount Outstanding Interest Rate Amount Outstanding
U . S . M e d i u m - t e r m 2 0 0 5 — — 2 . 8 4 % * 1 0 0
U . S . M e d i u m - t e r m 2 0 0 5 — — 7. 2 5 % 2 0 0
U.S. Medium-term 2006 6.38% 500 6.38% 500
U.S. Medium-term 2008 3.63% 250 3.63% 249
U.S. Term note 2012 6.63%* 920 — —
Canada Term note 2012 6.52%* 280 — —
U.S. Term notes 2006-2013 6.16% 83 — —
Netherlands Term notes 2006-2013 6.16% 331 — —
U.S. Term note 2013 7.25% 500 7.25% 500
U.S. Term note 2018 9.95% 3 9.95% 3
U.S. Term note 2021 9.20% 10 9.20% 10
U.S. Convertible 2033 3.38% 575 3.38% 575
China Bank loans 2005 — — 5.45% 88
U.S. Notes 2006-2010 5.80% 16 5.08% 20
Other 2 7
3,470 2,252
Current portion of long-term debt (706) (400)
Long-term debt, net of current portion $2,764 $1,852
*Represents debt with a variable interest rate.
Annual maturities (in millions) of long-term debt outstanding at December 31, 2005 are as follows: $706 in 2006, $8 in 2007, $274 in 2008, $35 in
2009, $36 in 2010 and $2,411 in 2011 and beyond.
Secured Credit Facilities
On October 18, 2005 the Company closed on $2.7 billion of Senior Secured Credit Facilities (Secured Credit Facilities) under a new Secured Credit
Agreement (Secured Credit Agreement) and associated Security Agreement and Canadian Security Agreement. The Secured Credit Facilities consist
of a $1.0 billion 5-Year Committed Revolving Credit Facility (5-Year Revolving Credit Facility) expiring October 18, 2010 and $1.7 billion of Term Loan
Facilities (Term Facilities) expiring October 18, 2012.
The 5-Year Revolving Credit Facility can be used by Eastman Kodak Company (U.S. Borrower) for general corporate purposes including the issuance
of letters of credit. Amounts available under the facility can be borrowed, repaid and re-borrowed throughout the term of the facility provided the
Company remains in compliance with covenants contained in the Secured Credit Agreement. At closing, there was no debt outstanding and
approximately $111 million of letters of credit issued under this facility.
Under the Term Facilities, $1.2 billion was borrowed at closing primarily to refi nance debt originally issued under the Company’s previous
$1.225 billion 5-Year Facility to fi nance the acquisition of Creo Inc. on June 15, 2005. The $1.2 billion consists of a $920 million 7-Year Term Loan
to the U.S. Borrower and a $280 million 7-Year Term Loan to Kodak Graphic Communications Canada Company (KGCCC or, the Canadian Borrower).
The remaining $500 million under the Term Facilities is committed by the Lenders and available to the U.S. Borrower, through June 15, 2006. For this
$500 million commitment, a 1.50% annual fee is paid on the unused amount to the Lenders. As of December 31, 2005, $920 million of the 7-Year
Term Loan to the U.S. Borrower and $280 million of the 7-Year Term Loan to the Canadian Borrower were outstanding. In connection with the Secured
Credit Facilities, the Company incurred approximately $57 million of debt issue costs. These costs have been recorded as an asset and are being
amortized over the term of the Secured Credit Facilities.