Eastman Kodak (NYSE:KODK) stock is rising steadily today on news of an amended credit agreement. The photography company and its subsidiaries recently announced that they have entered into an agreement with a lender to modify an existing line of credit with lender Kennedy Lewis Investment Management.
It’s important to note that Kodak filed with the U.S. Securities and Exchange Commission (SEC) to modify the agreement on June 30, 2023. However, that information did not become public until today, hence the impressive gains from KODK stock. While it has performed well today, investors may have even more growth to look forward to in the weeks ahead.
Is this the turning point that the company needs to permanently pull into the green and demonstrate sustainable growth? Let’s take a closer look at this recent development.
What’s Happening With KODK Stock
As noted, KODK stock has spent the day trending upward and is set to close out the week on an excellent note. As of this writing, it is up more than 15% for the day and hasn’t run out of momentum yet. While the stock has been gradually rising since the end of June, today’s news has helped it reverse its previous losses.
While it enjoyed a year of overall impressive growth, Kodak hasn’t reported any company-specific growth catalysts in some time. In July 2022, shares popped on news that the company had taken a minority stake in electric vehicle battery producer Wildcat Delivery Technologies. Today’s announcement, though, could easily give KODK stock the jumpstart it needs. While it will procure new funds to help fuel the company’s expansion efforts, it also means there is another catalyst in the near future. According to the 8K filed with the SEC, “the Company expects the funding of the Refinancing Term Loans to occur on or prior to July 21, 2023, subject to the satisfaction of certain conditions on or prior to that date.”
This means that KODK stock is likely to continue rising as that date approaches. All in all, this amended credit agreement puts Kodak in an excellent position to keep growing in the coming months.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
