Exhibit 99.1
SUBJECT TO APPLICABLE CONFIDENTIALITY AGREEMENTS AND FRE 408
STRICTLY CONFIDENTIAL | 18 JANUARY 2012 |
EASTMANKODAK COMPANY
Exhibit A: MNPI Package for Certain Second Lien Noteholders
Disclaimer
This presentation includes material non-public information, including projections and other forward-looking information. Kodak management has prepared this material based upon available information and internal projections. Estimates contained herein are provided for discussion purposes only and are not intended as statements of fact or assurances of future events or future results.
The information disclosed in this presentation and in our discussion should be treated as confidential information under the terms of all applicable confidentiality agreements.
2
MNPI Disclosure to Certain Second Lien Noteholders
The following Material Non-Public Information is being provided by Eastman Kodak Company (the “Company”) pursuant to confidentiality agreements entered into with certain holders of the Company’s 9.75% Senior Secured Notes due 2018 and 10.625% Senior Secured Notes due 2019 (the “Second Lien Notes”)
— | The Company and certain subsidiaries are preparing to file for chapter 11 in the Southern District of New York as soon as Thursday, January 19, 2012 |
— preliminary summary of selected terms of the Company’s proposed $950 million debtor-in-possession financing (“DIP Facility”) follows on page 3
— Page 4 includes a summary of certain terms of the Intercreditor Agreement(1) as well as related terms of the proposed DIP Facility
The First Lien Cap as defined in the Intercreditor Agreement was $969 million as of September 30, 2011 and based upon preliminary, unaudited results for the quarter ended December 31, 2011 is currently estimated to have been $874 million at that date
??Section 5.02 of the Intercreditor Agreement provides for consents, waivers and other agreements by the Second Lien Creditors in respect of the DIP Financing if the amount of the DIP Financing does not exceed the First Lien Cap plus $100 million
??Draft pro forma 13 week cashflow projections for the Company and its US subsidiaries as of January 17, 2012 follow on page 5
??284 Partners, LLC performed an independent valuation of the Company’s digital imaging patent portfolio as of January 13, 2012, arriving at a valuation of $2.2 to $2.6 billion
??The Company intends to retain Dominic DiNapoli, Vice Chairman of FTI Consulting, as Chief
Restructuring Officer under terms which are acceptable to the administrative agent of the proposed DIP facility
(1) Intercreditor Agreement, Dated as of March 5, 2010 among Citicorp USA, Inc., as First Lien Representative, The Bank of New York Mellon, as Second Lien Representative, Eastman Kodak Company and the Other Grantors Named Herein
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SUBJECT TO APPLICABLE CONFIDENTIALITY AGREEMENTS AND FRE 408
E A S T M A N K O D A K C O M P A N Y S T R I C T L Y C O N F I D E N T I A L
Preliminary Summary of Selected Terms of Proposed DIP Facility
BORROWER | ?Eastman Kodak Company and Kodak Canada | |
ARRANGER | ?Citigroup Global Markets Inc. | |
TOTAL FACILITY SIZE | ?Up to $950mm | |
?$250mm (fully available upon entry of the interim funding order) | ||
?U.S. Facility: $225mm | ||
ABL FACILITY SIZE | ?Canadian Facility: $25mm | |
?LC Subfacility: $200mm | ||
?Up to $700mm | ||
TERM LOAN FACILITY | ?Interim Funding: $450mm | |
SIZE | ?Final Funding: Up to $250mm | |
ABL COLLATERAL | ?First priority security interest in cash and cash collateral (incl. any investments of such cash, but excl. proceeds of term loan collateral), deposit accounts, inventory, M&E, AR and all related contracts, contract rights, documents, instruments or other evidences of indebtedness, payment intangibles, letter-of-credit rights and other supporting obligations and other claims or causes of action to the extent they include cash and cash collateral (incl. any investments of such cash), deposit accounts, inventory, M&E and AR | |
?Junior priority security interest in the term loan collateral | ||
TERM LOAN | ?First priority security interest in all assets not included in ABL collateral | |
COLLATERAL | ?Junior priority security interest in the ABL collateral | |
MATURITY | ?18 months, with certain customary termination provisions |
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SUBJECT TO APPLICABLE CONFIDENTIALITY AGREEMENTS AND FRE 408
E A S T M A N K O D A K C O M P A N Y S T R I C T L Y C O N F I D E N T I A L
Selected Terms of Intercreditor Agreement & Related Terms of Proposed DIP Facility
INTERCREDITOR | ||||||||
REQUIREMENT | PROPOSED DIP | |||||||
SECTION 5.02. FINANCING MATTERS | n | ??Aggregate | | n | ?? The | | ||
SECTION 5.04. ADEQUATE PROTECTION | n | ??Second Lien | | n | ??Holders of | |
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SUBJECT TO APPLICABLE CONFIDENTIALITY AGREEMENTS AND FRE 408
E A S T M A N K O D A K C O M P A N Y S T R I C T L Y C O N F I D E N T I A L
Draft Pro Forma U.S. 13 Week Cash Flow Projections (as of 1/17/12)
($ in millions)
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Projected | Projected | Projected | Projected | Projected | Projected | Projected | Projected | Projected | Projected | Projected | Projected | Projected | ||||||||||||||||||||||||||||||||||||||||||||
Pre?Petition | Post?Petition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Week | Week Ended | Week | Week | Week | Week | Week | Week | Week | Week | Week | Week | Week | Total | |||||||||||||||||||||||||||||||||||||||||||
01/13/12 | 01/20/12 | 01/27/12 | 02/03/12 | 02/10/12 | 02/17/12 | 02/24/12 | 03/02/12 | 03/09/12 | 03/16/12 | 03/23/12 | 03/30/12 | 04/06/12 | ||||||||||||||||||||||||||||||||||||||||||||
CASH RECEIPTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Receipts | $ | 35.0 |
| $ | 32.9 |
| $ | 38.0 |
| $ | 34.8 |
| $ | 31.5 |
| $ | 31.5 |
| $ | 26.0 |
| $ | 26.3 |
| $ | 33.6 |
| $ | 33.6 |
| $ | 33.6 |
| $ | 47.0 |
| $ | 30.2 |
| $ | 434.1 |
| ||||||||||||||
Net Intercompany Trade Receipts |
| ? |
|
| 35.0 ? ? |
|
| ? |
|
| 35.0 ? ? |
|
| ? |
|
| 35.0 ? ? 105.0 |
| ||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Receipts |
| ? |
|
| 0.4 ? ? 3.?4 ? ? ? 45.?4 ? |
|
| 49.3 |
| |||||||||||||||||||||||||||||||||||||||||||||||
Total Receipts | $ | 35.0 |
| $ | 32.9 |
| $ | 38.4 |
| $ | 69.8 |
| $ | 31.5 |
| $ | 31.5 |
| $ | 29.4 |
| $ | 61.3 |
| $ | 33.6 |
| $ | 33.6 |
| $ | 33.6 |
| $ | 127.4 |
| $ | 30.2 |
| $ | 588.4 |
| ||||||||||||||
CASH DISBURSEMENTS: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Disbursements |
| (33.8 | ) |
| (31.8 | ) |
| (67.8 | ) |
| (32.7 | ) |
| (31.1 | ) |
| (31.1 | ) |
| (24.7 | ) |
| (37.2 | ) |
| (34.2 | ) |
| (34.2 | ) |
| (32.8 | ) |
| (35.5 | ) |
| (15.2 | ) |
| (442.2 | ) | ||||||||||||||
Payroll/Benefits |
| (14.5 | ) |
| (21.9 | ) |
| (3.2 | ) |
| (32.5 | ) |
| (3.4 | ) |
| (28.5 | ) |
| (2.8 | ) |
| (31.2 | ) |
| (3.0 | ) |
| (27.7 | ) |
| (3.0 | ) |
| (27.7 | ) |
| (5.9 | ) |
| (205.2 | ) | ||||||||||||||
(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Disbursements |
| (9.0 | ) |
| (13.0 | ) |
| (12.3 | ) |
| ? | (4.6) |
| (9.6 | ) |
| (4.6 | ) |
| (12.3 | ) |
| (4.8 | ) |
| (9.8 | ) |
| (4.8 | ) |
| (12.3 | ) |
| (97.2 | )? | ||||||||||||||||||||
Total Disbursements | $ | (57.3 | ) | $ | (66.7 | ) | $ | (71.0 | ) | $ | (77.5 | ) | $ | (39.1 | ) | $ | (69.3 | ) | $ | (32.2 | ) | $ | (80.7 | ) | $ | (42.0 | ) | $ | (71.7 | ) | $ | (40.5 | ) | $ | (75.5 | ) | $ | (21.0 | ) | $ | (744.6 | ) | ||||||||||||||
Net Cash Flow, bef. Debt, and Restructuring | $ | (22.3 | ) | $ | (33.8 | ) | $ | (32.6 | ) | $ | (7.7 | ) | $ | (7.6 | ) | $ | (37.8 | ) | $ | (2.8 | ) | $ | (19.4 | ) | $ | (8.3 | ) | $ | (38.1 | ) | $ | (6.9 | ) | $ | 51.9 |
| $ | 9.1 |
| $ | (156.2 | ) | ||||||||||||||
Cumulative | $ | (22.3 | ) | $ | (56.0 | ) | $ | (88.7 | ) | $ | (96.4 | ) | $ | (104.0 | ) | $ | (141.8 | ) | $ | (144.6 | ) | $ | (164.0 | ) | $ | (172.3 | ) | $ | (210.4 | ) | $ | (217.3 | ) | $ | (165.3 | ) | $ | (156.2 | ) | $ | (156.2 | ) | ||||||||||||||
RESTRUCTURING/DIP RELATED | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Related, Fees and Interest Expense |
| (7.8 | ) |
| (52.2 | ) |
| (28.4 | ) |
| (29.8 | ) |
| (29.8 | ) |
| (49.0 | ) |
| (4.1 | ) |
| (0.?4 | ) |
| (6.1 | )?(0.6) |
| ? | (207.9) | ||||||||||||||||||||||||||
Total Restructuring/Interest Related | $ | (7.8 | ) | $ | (52.2 | ) | $ | (28.4 | ) | $ | (29.8 | ) | $ | (29.8 | ) | $ | (49.0 | ) | $ | (4.1 | ) | $ |
|
| $ |
|
| $ | ? | (0.4) | $ | (6.?1 | ) | $ |
|
| $ | (0.6 | ) | $ | ? | (207.9) | ||||||||||||||
Net Cash Flow, before Draw (Repay) | $ | (30.1 | ) | $ | (85.9 | ) | $ | (61.0 | ) | $ | (37.5 | ) | $ | (37.4 | ) | $ | (86.7 | ) | $ | (6.8 | ) | $ | (19.4 | ) | $ | (8.3 | ) | $ | (38.5 | ) | $ | (13.0 | ) | $ | 51.9 |
| $ | 8.5 |
| $ | (364.2 | ) | ||||||||||||||
Cumulative | $ | (30.1 | ) | $ | (116.0 | ) | $ | (177.0 | ) | $ | (214.5 | ) | $ | (251.9 | ) | $ | (338.6 | ) | $ | (345.5 | ) | $ | (364.9 | ) | $ | (373.2 | ) | $ | (411.7 | ) | $ | (424.6 | ) | $ | (372.7 | ) | $ | (364.2 | ) | $ | (364.2 | ) | ||||||||||||||
DIP Term Loan Draw/(Repay) |
| ? |
|
| 450.0 |
|
| ? |
|
| 250.?0 ? |
| | ? ? ? | |
| 685.0 ? |
| ||||||||||||||||||||||||||||||||||||||
Repayment of Pre?Petition Revolver |
| (0.0 | ) |
| (100.0 | ) |
| ? |
|
| ? |
|
| ? |
|
| ? |
|
| ? |
|
| ?? |
|
| ? |
|
| ? |
|
| (100.?0 | ) | |||||||||||||||||||||||
DIP ABL Draw/(Repay) |
| ? |
|
| ?? |
|
| ? |
|
| (0.0 | ) ? |
| 0.0 ? |
|
| 0.0 |
|
| 0.0 |
|
| (0.0 | ) |
| (0.0 | ) |
| 0.0 |
|
| 0.0 |
| |||||||||||||||||||||||
Net Cash Flow | $ | (30.1 | ) | $ | 264.1 |
| $ | (61.0 | ) | $ | (37.5 | ) | $ | (37.4 | ) | $ | 163.3 |
| $ | (6.8 | ) | $ | (19.4 | ) | $ | (8.3 | ) | $ | (38.5 | ) | $ | (13.0 | ) | $ | 36.9 |
| $ | 8.5 |
| $ | 220.8 |
| ||||||||||||||
Cumulative | $ | (30.1 | ) | $ | 234.0 |
| $ | 173.0 |
| $ | 135.5 |
| $ | 98.1 |
| $ | 261.4 |
| $ | 254.5 |
| $ | 235.1 |
| $ | 226.8 |
| $ | 188.3 |
| $ | 175.4 |
| $ | 212.3 |
| $ | 220.8 |
| $ | 220.8 |
| ||||||||||||||
Beginning Operating Cash Balance | $ | 115.0 |
| $ | 84.9 |
| $ | 349.0 |
| $ | 288.0 |
| $ | 250.5 |
| $ | 213.1 |
| $ | 376.4 |
| $ | 369.6 |
| $ | 350.2 |
| $ | 341.8 |
| $ | 303.3 |
| $ | 290.4 |
| $ | 327.3 |
| $ | 115.0 |
| ||||||||||||||
Ending Operating Cash Balance | $ | 84.9 |
| $ | 349.0 |
| $ | 288.0 |
| $ | 250.5 |
| $ | 213.1 |
| $ | 376.4 |
| $ | 369.6 |
| $ | 350.2 |
| $ | 341.8 |
| $ | 303.3 |
| $ | 290.4 |
| $ | 327.3 |
| $ | 335.9 |
| $ | 335.9 |
| ||||||||||||||
Beginning Pre?Petition Revolver | $ | 100.0 |
| $ | 100.0 |
| $ |
|
| $ |
|
| ?$ |
|
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | 100.? 0 |
| ||||||||||||||
Ending Pre?Petition Revolver | $ | 100.0 |
| $ |
|
| $ | ?$ |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| |||||||||||||||||
Beginning DIP ABL | $ | ? |
| $ |
|
| $ |
|
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? |
| $ | (0.?0 | ) | $ | ? |
| $ | 0.0 |
| $ | ?0.0 |
| $ | 0.0 |
| $ |
|
| $ |
|
| ||||||||||||||
(5) (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending DIP ABL | $ | ? |
| $ |
|
| $ |
|
| $ | ? |
| $ | ? |
| $ | ? |
| $ | ? | (0.0) | $ | ? |
| $ | 0.0 |
| $ | ?0.0 |
| $ | 0.0 |
| $ |
|
| $ | 0.0 |
| $ | ?0.0 |
| ||||||||||||||
Beginning DIP Term Loan | $ | ? |
| $ |
|
| $ | 450.0 |
| $ | 450.?0 |
| $ | 450.0 |
| $ | 450.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 685.0 |
| $ |
|
| ||||||||||||||
Ending DIP Term Loan | $ | ? |
| $ | 450.0 |
| $ | 450.0 |
| $ | 450.0 |
| $ | 450.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 700.0 |
| $ | 685.0 |
| $ | 685.0 |
| $ | 685.0 |
|
6