Eastman Kodak Company (NYSE:EK)? plans to raise about $1.1 billion in the near future. About $700 million will come from the company internally as part of a debt refinancing. Kohlberg Kravis Roberts & Co., the investment firm that trades on the New York Stock Exchange as KKR Financial Holdings LLC (NYSE:KFN)? will also invest $400 million into Kodak.
Kokak will also issue $300 million in new convertible notes due around 2017. The interest rate will range from 10-10.5% per year. KKR will buy warrants to purchase about 53 million shares in Kodak. There are about 268 million Kodak shares outstanding. This means KKR will have about a 16.5% ownership in Kodak. Kodak’s $575 million of convertible bonds due in 2033 rose 2.5% to $0.98 on the dollar. This is the highest level since April 2008.
The $700 million senior secured notes that Kodak plans to raise will go towards retiring their 2033 convertible bonds. George Fisher, former Chairman of Kodak is a senior adviser at KKR. KKR was started in 1976 and is one of the biggest private equity companies in the world. They control about $50 billion in assets. Kodak was founded by Geroge Eastman around 1880.
“We believe KKR’s investment is a validation of our strategy and our team,” stated Kodak Chairman and CEO Antonio M. Perez in a press release. “KKR has a long, successful record of working with, and investing in, companies with significant value-creation potential. We look forward to working with the KKR team to accelerate the growth of our portfolio of high-margin annuity businesses.”
Kodak has built up a couple of new printers. The new all-in-one printers are called the ESP 3250 and the ESP 5250 (above). Both of these printers run on Kodak’s Kodacolor technology which allows them to use cheap ink. Apparently this allows consumers to have up to $110 per year on ink. Three-color cartridges for these printers cost $15 and the black ink cartridge costs $10.
The ESP 3250
Costs: $130
Includes: multifunction card reader and 1.5″ LCD
The ESP 5250
Costs: $170
Includes: WiFi, multifunction card reader, and 2.4″ LCD
The Kodak Zi8 will be arriving on the shelves just in time for back-to-school. The Zi8 has 1080p recording, face tracking, image stabilization, 2.5″ LCD display, SD card slot, YouTube uploading, and Facebook support. The Zi8 will be available in colors such as blue, red, and black. The price tag is roughly $180. This would be a great way for your kids to begin their hobby as an amateur videographer.
Eastman Kodak Company (NYSE:EK) stated today that anyone that does not order $5 per year worth of pictures will see them get deleted from the online Kodak Gallery service.
The company decided to change its terms of service to add that detail today. People that are storing less than 2GB of photos are required to spend at least $4.99 and those storing over 2GB are expected to spend $19.99 per year. “Failure to meet this requirement may result in your photos being deleted from the Gallery,” stated Kodak.
People that use the Kodak Gallery can check how many days they have left to make an order within the My Account section of the Kodak Gallery.
Eastman Kodak Company (NYSE:EK) has introduced the EasyShare Z915 with 10 megapixels and a 10x image stabilized optical lens. Kodak has Smart Capture and supports AA batteries. The camera has a 2.5″ rear LCD and SD/SDHC card slots. The camera colors available are red, blue, black, and gray. It’ll be available in April for $199.95.
“The new Z915 is a versatile camera that’s ideal for families on the go, making it ideal for consumers who want more zoom but don’t want a bulky camera,” stated John Blake, GM of Digital Capture and Devices and VP of Eastman Kodak Company. “With its combination of Smart Capture and high zoom with optical image stabilization, the Z915 stands out in a fast-growing product category, and delivers great performance to consumers who are looking for new ways to advance their digital photography experience.”
