Eastman Kodak Co (NYSE:KODK) shares are trading higher by 2.15% to $5.95 Monday morning on above-average volume. The stock is higher possibly on continued momentum after the company and its subsidiaries on Friday announced they entered into a Term Loan Amendment, modifying their existing credit agreement. The modification to the agreement occurred on June 30.
What Happened?
The amendment involves the company, Term Loan Lenders affiliated with Kennedy Lewis Investment Management LLC and Alter Domus (U.S.) LLC as the administrative agent. The Refinancing Term Loan Lenders have committed to providing the company with $450 million in term loans, which are expected to be funded by July 21.
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The funds will be used for various purposes, including refinancing existing loans, repaying credit facility commitments, and meeting general corporate and working capital needs. The amendment also extends the maturity date, introduces changes to the terms and adjusts the collateral agreement.
The Refinancing Term Loans carry an interest rate of 7.5% per annum, payable in cash, with an additional 5.0% per annum payable in-kind or in cash at the company’s discretion. The loans will be secured by the company’s assets.
As of March 23, Kennedy Lewis and its affiliates own approximately 7.90% of the company’s common stock.
According to data from Benzinga Pro, KODK has a 52-week high of $7.24 and a 52-week low of $2.78.
