Kodak 2009 Annual Report Download - page 51

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In addition to the Amended Credit Agreement, the Company has other committed and uncommitted lines of credit as of December
31, 2009 totaling $11 million and $156 million, respectively. These lines primarily support operational and borrowing needs of the
Company’s subsidiaries, which include term loans, overdraft coverage, revolving credit lines, letters of credit, bank guarantees and
vendor financing programs. Interest rates and other terms of borrowing under these lines of credit vary from country to country,
depending on local market conditions. As of December 31, 2009, usage under these lines was approximately $58 million, with $0
reflected in Short-term borrowings and current portion of long-term debt on the accompanying Consolidated Statement of Financial
Position, and the balance supporting non-debt related obligations.
On February 10, 2010, the Borrowers, together with the Guarantors, further amended the Amended Credit Agreement with the
Lenders and Citicorp USA, Inc., as agent, in order to allow the Company to incur additional permitted senior debt of up to $200
million aggregate principal amount, and debt that refinances existing debt and permitted senior debt so long as the refinancing debt
meets certain requirements. In connection with the amendment, the Company reduced the commitments of its non-extending
lenders by approximately $125 million. This change did not reduce the maximum borrowing availability of $500 million under the
Amended Credit Agreement.
See Note 8, “Short-Term Borrowings and Long-Term Debt,” for liens, restrictive covenants, and events of default under the Amended
Credit Agreement.
Tender Offer on Senior Notes Due 2013
On February 3, 2010, the Company issued a tender offer to purchase up to $100 million of its outstanding 7.25% Senior Notes due
2013 (the “2013 Notes”) for an amount in cash equal to 91% of the principal amount of the 2013 Notes, plus accrued and unpaid
interest. The tender offer expires on March 4, 2010 unless extended or earlier terminated. A purchase price in cash equal to 95% of
the principal amount of the 2013 Notes was offered for notes tendered before an early termination date of February 11, 2010. The
Company’s obligation to pay for the 2013 Notes in the tender offer is subject to the satisfaction or waiver of a number of conditions,
included the raising of not less than $100 million of second lien debt on terms reasonably satisfactory to it in order to finance the
tender offer. The tender offer is not contingent upon the tender of any minimum principal amount of 2013 Notes. The Company
reserves the right to increase the maximum tender amount of $100 million, subject to compliance with applicable law.
Credit Quality
Moody's and Standard & Poor’s (“S&P”) ratings for the Company, including their outlooks, as of the filing date of this Form 10-K are
as follows:
Senior Most
Corporate Secured Unsecured Recent
Rating Rating Rating Outlook Update
Moody's B3 NR Caa1 Stable February 19, 2010
S&P B- NR CCC Stable February 11, 2010
On February 19, 2010, Moody’s revised its rating outlook on the Company from negative to stable, and affirmed its B3 corporate
rating and Caa1 senior unsecured rating.
On February 11, 2010, S&P revised its B- rating outlook on the Company to stable from negative. All ratings on the Company,
including the B- Corporate Rating, were affirmed.
The Company does not have any rating downgrade triggers that would accelerate the maturity dates of its debt. However, the
Company could be required to increase the dollar amount of its letters of credit or provide other financial support up to an additional
$54 million at the current credit ratings. As of the filing date of this Form 10-K, the Company has not been requested to materially
increase its letters of credit or other financial support. Downgrades in the Company’s credit rating or disruptions in the capital
markets could impact borrowing costs and the nature of its funding alternatives.