June 20 (Reuters) - Eastman Kodak Co said onThursday that it had reached a $895 million financing deal withthree Wall Street banks that will help fund its rebirth ascommercial imaging business after the former film pioneeremerges from bankruptcy.
Affiliates of JPMorgan Chase & Co, Bank of AmericaCorp and Barclays Plc will be joint leadarrangers for a senior secured term loan package of $695million. The three banks will also arrange an asset-basedrevolving credit facility of $200 million.
Kodak will use the money to pay off loans that funded itsbankruptcy as well as for working capital once it exitsbankruptcy, which is expected later this year.
The loan agreement is contingent on approval from the U.S.Bankruptcy Court in Manhattan, which is overseeing the Chapter11 reorganization of Rochester, New York-based Kodak.
On Wednesday Kodak said it would seek court approval for a$406 million rights offering, selling 34 million shares, or 85percent of the equity in the reorganized company.
Proceeds from the rights offering would go to repay variouscreditors, including more junior second-lien creditors thatwould no longer receive equity in the reorganized company.
Creditors committed to investing in the rights offering areGSO Capital Partners, BlueMountain Capital, George Karfunkel,United Equities Group and Contrarian Capital, Kodak said.
Kodak sought protection from creditors in January 2012because of high pension costs and after falling many yearsbehind rivals in embracing digital technology in its photographybusiness.
The company has since sold a variety of assets.
The case is In re: Eastman Kodak Co, U.S. Bankruptcy Court,Southern District of New York, No. 12-10202.