Eastman Kodak is announcing a number of financial transactions that provides access to new capital, deal with debt and strengthen Kodak’s ability to invest in strategic growth opportunities.
In a financial filing and press release Monday, the company said that, together, the transactions provide up to $310 million to invest in growth opportunites in Kodak’s core businesses of print and advanced materials and chemicals.
Those investments include a $100 million commitment from Grand Oaks Capital, an investment firm that was started by Paychex founder and philanthropist Tom Golisano.
Golisano said "Grand Oaks Capital is excited about the long-term future of Kodak. We are very confident in the company’s leadership, vision and new growth opportunities and are proud to be investing in a global company headquartered in Rochester, New York.”
Kodak is also getting an initial $225 million loan plus a commitment for up to an additional $50 million loan from Kennedy Lewis Investment Management. Kennedy Lewis has also purchased one million shares of Kodak stock and bought some of its debt.
As a result, Kennedy Lewis will have the right to nominate one person to Kodak’s board of directors; Grand Oaks Capital will also be able to nominate one person to the Kodak board becasue of its investment.
With proceeds from the transactions, Kodak also has repurchased one million shares of preferred stock, that was due to mature in November, from funds managed by Southeastern Asset Management.
“Over the past two years, we have taken a number of significant steps to strengthen our financial position,” said Jim Continenza, Kodak’s executive chairman and CEO. “Financing secured through Kennedy Lewis and investments made by Grand Oaks Capital and funds managed by Southeastern Asset Management represent the next step in our strategy for returning the company to growth and help position us to invest in expanding our core businesses in print and advanced materials and chemicals.”
Kodak also announced Monday, in a financial filing, that it has signed a new three-year contract with Continenza which provides a $1 million annual base salary plus incentives.