Kodak Offers Banks a Claim on Its Assets

From Bloomberg News

Eastman Kodak Co. this week offered banks a claim on its assets in order to borrow $2.7 billion amid increasing concern about its creditworthiness.

Citigroup Inc. has agreed to underwrite the entire loan and will syndicate the deal to other lenders over the next two months, Kodak said. Kodak, which lost its investment-grade ratings on its senior unsecured debt earlier this year, said in July that it would have to provide collateral to attract lenders.

The Rochester, N.Y., company last month reported its third consecutive quarterly loss because of an accelerating decline in film sales.