Eastman Kodak To Raise Capital Through Senior Secured Notes
Eastman Kodak Co. (best known for its imaging and photographic materials and equipment) announced yesterday that it intends to raise up to US$700M through the sale of senior secured notes due in 2017. Private equity fund KKR & Co. has already committed to purchase US$400M of the debt offering.
However, Eastman Kodak’s stock price plummeted 11.23% to US$5.93 at the close of trade yesterday. Before KKR & Co.’s offer, investors were concerned about Eastman Kodak’s ability to fund the buyback without depleting cash revenues, however concerns now focus on the dilution of shareholder’s equity.
