Souteastern Asset Management (SAM)Did Not Buy A New Position In Kodak (KODK)!
Summary
- SAM converted convert notes and preferreds into 34 million "new" shares just after the $765 million debt announcement and sold them prior to 9/10/2020.
- Prior to 9/10/2020, they had held and additional 14 million old shares.
- They kept the old 14 million shares but these were not a "new" position.
- Kodak shares outstanding went from 75 million to 108 million shares with this transaction.
$KODK Kodak lender Southeastern Asset Management sold 33,922,958 shares through September 10th
BY THEHEADLINEREPORTER ON SEPTEMBER 10, 2020
As the once mighty American industrial icon Kodak struggled with its surprising pivot to Crypto in May of 2019, it turned to a relatively unknown Memphis, Tennessee asset manager for financing to help it execute the shift.
That month, Kodak sold $100 million of 5% convertible notes due 2021 to affiliates of Southeastern Asset Management.
The notes gave Southeastern the right to convert their debt obligation into about 31.5 million shares of Kodak.
By February of 2020, Southeastern had ownership of a total of 47,952,051 shares, which included the shares that would result from conversion of the notes as well as other shares held by Southeastern’s various investment funds, including the Longleaf Partners Small-Cap Fund.
In early August of 2020, following the announcement that Kodak has received preliminary approval of a $765 million government loan, Southeastern converted its notes into common stock.
After the market closed on September 10th, Southeastern disclosed that it owned 14,029,093 shares as of that date.
Analyst's Disclosure: I am/we are short KODK.
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