Kodak 2013 Annual Report Download - page 87

Table of Contents
NOTE 11: SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Debt and related maturities and interest rates were as follows at December 31, 2013 and 2012:
On February 1, 2013, Kodak entered into a series of agreements under which it received approximately $530 million of proceeds, net of
withholding taxes, a portion of which was paid by intellectual property licensees and a portion of which was paid by the acquirers of Kodak’s
digital imaging patent portfolio. Approximately $419 million of the proceeds were used to prepay the term loan under the Original Senior
Debtor-in-Possession (“DIP”) Credit Agreement. The Company paid the remaining outstanding term loan balance, in full, upon entering into
the Junior DIP Credit Agreement. Kodak recognized a loss on early extinguishment of debt of the term loan of approximately $6 million in the
first quarter of 2013.
On March 22, 2013, the Company and certain subsidiary guarantors entered into a Debtor-in-Possession Loan Agreement (the “Junior DIP
Credit Agreement”) with the lenders signatory thereto. Pursuant to the terms of the Junior DIP Credit Agreement, the lenders provided the
Company with term loan facilities in an aggregate principal amount of approximately $848 million consisting of approximately $473 million of
new money term loans (the “New Money Loans”), comprised of approximately $455 million original principal and approximately $18 million
of additional paid-in-kind of fees, and $375 million of junior term loans (the “Junior Loans”). Upon issuance of the New Money Loans, Kodak
received net proceeds of approximately $450 million ($455 million original principal less 1% stated discount). The Junior Loans were issued in
exchange for the same principal amount of a combination of the 2018 secured term notes and the 2019 secured term notes (collectively the
“Second Lien Notes”) pursuant to an offer by the Company to holders of the outstanding Second Lien Notes. The maturity date of the loans
made under the Junior DIP Credit Agreement was the earliest to occur of (i) September 30, 2013, (ii) the effective date of the Company’s plan
of reorganization and (iii) the acceleration of such loans.
On the Effective Date, in accordance with provisions in the Plan, the Company made payments totaling $1,221 million to repay, in full, the
Second Lien Notes and the Junior DIP Credit Agreement. The payments for discharge of existing debt also consisted of $5 million in exit fees.
In addition, $683 million of debt classified as liabilities subject to compromise was discharged pursuant to the Plan.
The carrying value of the 2017 Convertible Senior Notes was increased during the quarter ended June 30, 2012 to reflect the stated principal
amount of the notes. When the notes were initially issued, $107 million of the principal amount of the debt was allocated to reflect the equity
component of the notes. The remaining carrying value of the debt was originally being accreted to the $400 million
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Successor
Predecessor
As of
December 31, 2013
As of
December 31, 2012
(in million)
Country
Type
Maturity
Weighted
-
Average Effective
Interest Rate
Carrying Value
Carrying Value
Current portion:
U.S.
Term note
2014
7.89
%
$
4
$
—
U.S.
Original Senior
DIP Credit
Agreement
2013
8.63
%
—
659
Germany
Term note
2013
6.16
%
—
38
Brazil
Term note
2013
19.80
%
—
2
4
699
Non
-
current portion:
U.S.
Term note
2019
7.89
%
406
—
U.S.
Term note
2020
11.27
%
268
—
U.S.
Secured term note
2018
10.11
%
—
493
U.S.
Secured term note
2019
10.87
%
—
247
674
740
Liabilities subject to compromise:
U.S.
Term note
2013
6.16
%
—
20
U.S.
Term note
2013
7.25
%
—
250
U.S.
Convertible
2017
12.75
%
—
400
U.S.
Term note
2018
9.95
%
—
3
U.S.
Term note
2021
9.20
%
—
10
—
683
$
678
$
2,122