You need to upgrade your Flash Player
-$0.12 (-2.91%)
06:48PM (15 mins delay)
Sep 17, 2009 - 1:15 PM EDT
Eastman Kodak Company (EK) announced its 2009 results will be at the low end of its prior guidance, and said it plans to raise 700 million dollars to strengthen its financial position. 400 million of that will come from investment vehicles managed by private equity giant Kohlberg Kravis & Roberts. The investment by KKR vehicles will take the form of senior secured notes due 2017 that will pay interest of between 10 and 10.5 percent in cash plus additional paid-in-kind interest. KKR will also receive warrants to purchase up to 53 million Kodak shares at an exercise price based on a formula but no greater than 5 dollars and 50 cents per share. Kodak shares fell 12 and a half percent to 5.84 in early trading Thursday on the news. KKR has not announced which investment vehicles will be making the Kodak investment. The private equity firm manages private funds as well as two vehicles which are publicly traded. Those are KKR Financial (KFN) on the New York Stock Exchange, and KKR Private Equity Investors (KPEQF) on the Euronext Amsterdam exchange. Last month, KKR announced it received consent from unitholders of KKR Private Equity Investors to complete a transaction which will combine the fund with the parent KKR company, where the fund would receive a 30% stake in the equity of the combined business. Shares of KKR Private Equity Investors were trading about 3 percent higher in Europe Thursday morning, while shares of KKR Financial were down slightly in New York. And also raising capital is Synovus Financial (SNV), with a 600 million dollar offering. Synovus announced it priced the offering of 150 million shares at 4 dollars each. Synovus said the offering proceeds will qualify as tangible common equity and Tier 1 regulatory capital. Shares were down over 8 and a half percent in early trading Thursday. For MarketNewsVideo.com, I'm Michael Phillips.Source: Market News Video (Sep 17, 2009 - 1:15 PM EDT)
© 2009 UpDown. All Rights Reserved.
Make a suggestion for this page
Data powered by QuoteMedia (Terms of Use). Data delayed 15 minutes unless otherwise indicated.
