Eastman Kodak to issue 29.9M shares as part of notes conversion

Eastman Kodak disclosed this morning that on July 29, it received conversion notices from holders of the company's 5% secured convertible notes due 2021 exercising their rights to convert an aggregate of $95M of principal amount of the notes into shares of the common stock. The notes were issued pursuant to a purchase agreement, dated as of May 20, 2019, by and among the company, Longleaf Partners Small-Cap Fund, C2W Partners Master Fund Limited and Deseret Mutual Pension Trust. Under the terms of the notes, the conversion date is July 29, 2020, and the company is obligated to deliver an aggregate of 29,922,956 shares of common stock to the holders within five trading days after the conversion date. Eastman Kodak expects to issue the conversion shares on August 3. Giving effect to the issuance, the company will have 75,494,534 issued and outstanding shares of common stock. Eastman Kodak does not plan to exercise its right to pay the $5.6M of accumulated interest on the converted notes in additional shares of stock and, instead, plans to make such payment in cash. Shares of Eastman Kodak are down 17%, or $3.63, to $18.22 in morning trading.