Kodak 2014 Annual Report Download - page 67

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NOTE 8: SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Debt and related maturities and interest rates were as follows at December 31, 2014 and 2013:
Annual maturities of debt outstanding at December 31, 2014, were as follows:
On September 3, 2013, the Company entered into (i) a Senior Secured First Lien Term Credit Agreement (the “First Lien Term Credit Agreement”) with the lenders party
thereto (the “First Lien Lenders”), JPMorgan Chase Bank, N.A. as administrative agent, and J.P. Morgan Securities LLC, Barclays Bank PLC, and Merrill Lynch, Pierce,
Fenner & Smith Inc. as joint lead arrangers and joint bookrunners, and (ii) a Senior Secured Second Lien Term Credit Agreement (the “Second Lien Term Credit Agreement,”
and together with the First Lien Term Credit Agreement, the “Term Credit Agreements”), with the lenders party thereto (the “Second Lien Lenders,” and together with the
First Lien Lenders, the “Term Credit Lenders”), Barclays Bank PLC as administrative agent, and J.P. Morgan Securities LLC, Barclays Bank PLC and Merrill Lynch, Pierce,
Fenner & Smith Inc. as joint lead arrangers and joint bookrunners. Additionally, the Company and its U.S. subsidiaries (the “Subsidiary Guarantors”) entered into an Asset
Based Revolving Credit Agreement (the “ABL Credit Agreement” and together with the Term Credit Agreements, the “Credit Agreements”)
with the lenders party thereto (the
“ABL Lenders” and together with the First Lien Lenders and the Second Lien Lenders, the “Lenders”) and Bank of America N.A. as administrative agent and collateral agent,
Barclays Bank PLC as syndication agent and Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays Bank PLC and J.P. Morgan Securities LLC as joint lead arrangers and joint
bookrunners. Pursuant to the terms of the Credit Agreements, the Term Credit Lenders provided the Company with term loan facilities in an aggregate principal amount of
$695 million, consisting of $420 million of first-lien term loans (the “First Lien Loans”) and $275 million of second-lien term loans (the “Second Lien Loans”). Net proceeds
from the Term Credit Agreements were $664 million ($695 million aggregate principal less $15 million stated discount and $16 million in debt transaction costs). The ABL
Lenders will make available asset-based revolving loans in an amount of up to $200 million (the “ABL Loans”). The maturity date of the loans made under the Term Credit
Agreements is the earlier to occur of (i) September 3, 2019 (in case of First Lien Loans) or September 3, 2020 (in case of Second Lien Loans) and (ii) the acceleration of such
loans due to an event of default (as defined in the Term Credit Agreements). The maturity date of the loans made under the ABL Credit Agreement is the earlier to occur of
(i) September 3, 2018 and (ii) the date of termination of the commitments in accordance with the terms of the ABL Credit Agreement. The ABL Credit Agreement also
provides for the issuance of letters of credit of up to a sublimit of $150 million. The Company has issued approximately $123 million of letters of credit under the ABL Credit
Agreement as of December 31, 2014. Under the ABL Loan’s borrowing base calculation, the Company had approximately $29 million of Borrowing Base Availability (as
defined in the ABL Credit Agreement) and Excess Availability (as defined in the ABL Credit Agreement) of $44 million under the revolving credit facility as of December 31,
2014. Availability is subject to the borrowing base calculation, reserves and other limitations.
(in million)
As of
December 31,
2014
As of
December 31,
2013
Country
Type
Maturity
Weighted
-
Average
Effective
Interest Rate
Carrying Value
Carrying
Value
Current portion:
U.S.
Term note
2015
7.54
%
$
4
$
4
U.S. Credit line 2015
2.42
%
1
-
5
4
Non
-
current portion:
U.S.
Term note
2019
7.54
%
403
406
U.S. Term note 2020
11.01
%
269
268
672
674
$
677
$
678
(in millions)
Carrying
Value
Maturity
Value
2015
$
5
$
5
2016
4
4
2017
4
4
2018
4
4
2019
390
397
2020 and thereafter
270
275
Total
$
677
$
689
64