"KKR will buy up senior secured notes carrying interest rates as high has 10.5%, which is twice the blended interest rate that Kodak is paying on its current debtload. The firm will also receive warrants to convert the debt into 53 million Kodak shares.....KKR is essentially acting as a lender of last resort, while gaining the potential upside of owning a piece of the company’s equity in the future. It can be a safer bet than the gigantic buy outs that made KKR famous."
This is the case we discussed in class on Monday.
1 comment:
I think his decision about investment is a rational step and he will get many benefits from this investment in the future. He is acting like a rational and intelligent business man.
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