Kodak Alaris completes financial restructuring

• Restructured its balance sheet which substantially reduced the level of debt creating additional capacity to invest in the business
• Renegotiated its revolving credit facility with its banking partner, HSBC — extending its facility to mid-2020 and improving its terms & conditions and covenants
• Exited non-core assets by selling its Harrow, U.K. manufacturing site releasing significant cash resources for future investment

“Our customers, suppliers, creditors and employees have all worked hard and provided great support since Kodak Alaris’ beginning,” said Marc Jourlait, Chief Executive Officer, Kodak Alaris. “This financial transformation gives me great confidence we can deliver value for all our stakeholders as we build upon the solid foundation that underpins Kodak Alaris.”

“We are delighted to announce the completion of these important restructuring programs which substantially strengthens the group’s balance sheet,” added Mark Alflatt, Chief Financial Officer, Kodak Alaris. “This creates financial capacity to support investments in our current business as well as our growth initiatives and the additional capital from the sale of our Harrow site will accelerate Kodak Alaris’ strategic plan as we continue to deliver best-in-class products and services to our clients.”

Specific to this announcement, Kodak Alaris has:

• Worked with its shareholder, Kodak Pension Plan (no. 2), to reduce the level of debt by $575 million via a loan note conversion which leaves the key financial gearing metrics at a more appropriate level — an agreement that communicates strong confidence from its owner. The impact of this is the following:
  • Creates balance sheet capacity to support future growth
  • Improves cash flow substantially for the group over the next few years
  • Reduces the total debt to approximately 2x EBITDA*
• Gained agreement from HSBC to extend the revolving credit facility to June 2020 — further strengthening an important relationship with this key stakeholder and in the process demonstrating a vote of confidence in the business
• Exchanged contracts to sell a vacant, 29-acre site in Harrow, U.K. in March, subsequently disposed of, that previously manufactured a portion of its Colour Negative Paper Finishing operations to a joint-venture partnership. This is an important transaction because:
  • This marks an important step in the transformation of the company that further repositions its portfolio while releasing capital to reinvest in new technology and capability — strengthening Kodak Alaris’ balance sheet.
  • It allows the buyer to substantially redevelop the land to create a shared industrial, commercial and residential location which is a substantial positive for the local community.

About Kodak Alaris

Kodak Alaris is a company that is passionate about using technology to transform organizations and improve people’s lives across the planet. From our document scanners and intelligent state-of-the-art software and services that power some of the world’s largest companies, to our photographic paper production, printing kiosks and suite of consumer apps, we help people capture and connect with the emotional moments that define all our lives. We’re helping unlock the power of digital transformation in our work and in our lives, through expert imaging science and innovation. We work behind the scenes, making the connections, pushing the boundaries of technology and helping consumers to make sense of and exploit the ever-expanding volume of data that is the hallmark of the 21st century.

*EBITDA — Earnings Before Interest, Tax, Depreciation, Amortization