Ladies and gentlemen, thank you for standing by, and welcome to the Eastman Kodak Q4 2020 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker for today, Paul Dils. You may begin.

Thank you, and good afternoon, everyone. I am Paul Dils, Eastman Kodak Company's Chief Tax Officer and Director of Investor Relations. Welcome to Kodak's Fourth Quarter and Full Year 2020 Earnings Call. At 4:15 p.m. this afternoon, Kodak filed its 2020 Form 10-K and issued its release on financial results for the fourth quarter and full year 2020. You may access the presentation and the webcast for today's call on our Investors Center at investor.kodak.com. During today's call, we will be making certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon Kodak's expectations and various assumptions. Future events or results may differ from those anticipated or expressed in the forward-looking statements. Important factors that could cause actual events or results to differ materially from these forward-looking statements include, among others, the risks, uncertainties and other factors described in more detail in Kodak's filings with the U.S. Securities and Exchange Commission from time to time. There may be other factors that may cause Kodak's actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to Kodak or persons acting on its behalf apply only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements included or referenced in this presentation. Kodak undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. In addition, the release just issued and the presentation provided contains certain measures that are deemed non-GAAP measures. Reconciliations to the most directly comparable GAAP measures have been provided with the release and within the presentation on our website in our investors center at investor.kodak.com. Speakers on today's call are Jim Continenza, Kodak's Executive Chairman; and David Bullwinkle, Chief Financial Officer of Kodak. We will not be holding a formal Q&A during today's call. As always, the Investor Relations team is available for follow-up. I will now turn the call over to Jim.

Welcome, everyone, and thank you for joining the fourth quarter investor call for Kodak. Beginning on Slide 4 fourth quarter results continue to be impacted by COVID-19. As the pandemic continues to present challenges for the company around the world, the company was able to mitigate some of its impact through cost savings, including furloughs and pay reductions. Dave will provide more detail on the company's results shortly. Key Kodak achievements for 2020. Ended 2020 with $196 million of cash and cash equivalents. Generated cash in third and fourth quarter for 2020. Again, as I keep saying, we're going to continue to focus on free cash flow. We're going to grow our way out of this, not cut our way out of it. Reduction in net debt by $368 million compared with March of 2019. #1 priority was to maintain the safety of our employees and our customers during this pandemic. Continue to invest in our business. Again, we won innovation awards in print and digital packaging business. The customer-first model, the One Kodak model, this approach is clearly paying off for us. Materially fixed our balance sheet and financial foundation. We've been talking about that for a couple of years. Let's fix the foundation. Let's get hold of our debt. Let's find a path forward. Let's recapitalize and then raise growth capital as we find our path. Those have been the steps over the last couple of years, and we're proud to say that we're heading in the right direction. Turning to Slide 5. We recently announced exciting news that reflects the beginning of Kodak's next chapter. On March 1, Kodak announced a series of financial transactions that provide access to new capital, addressing maturing obligations and strengthening the company's ability to invest in strategic growth opportunities in print,…

Thanks, Jim, and good afternoon. Before I get into the details for the quarter, I would like to comment on a series of important financing transactions that occurred in the first quarter of 2021. As Jim mentioned, on March 1, we announced a series of financial transactions that provide access to new capital, address maturing obligations and strengthen the company's ability to invest in strategic growth opportunities in our core businesses. First, Kodak entered into financing agreements with Kennedy Lewis Investment Management. Kennedy Lewis has provided Kodak with an initial $225 million term loan and a commitment to provide delayed draw term loans of up to an additional $50 million, which may be drawn on or before February 26, 2023. The term loans mature in 5 years and bear interest comprised of 8.5% payable in cash quarterly and 4% PIK interest. The company has also issued Kennedy Lewis $25 million of 5% unsecured convertible promissory notes due May 28, 2026. The convertible notes bear 5% PIK interest with a conversion price of $10 per share and have a mandatory conversion option by the company if the share price equals or exceeds $14.50 for 45 of 60 trading days. Additionally, Kennedy Lewis has purchased 1 million shares of the company's common stock at a purchase price of $10 per share. As part of the agreement, Kennedy Lewis will have the right, subject to certain conditions, for 3 years or until they hold less than 50% of the initial principal amount of the term loans, to nominate one person to be elected to the company's Board of Directors. With the proceeds from these transactions, Kodak repurchased 1 million shares of the company's 5.5% Series A convertible preferred stock due to mature on November 15, 2021, from funds managed by Southeastern Asset Management…

Thank you, Dave. In summary, with a stronger capital structure and financial position, our 2021 priorities for Kodak include: continue to focus on organizing our business around our customers; accelerating our restructuring efforts and generating free cash flow; continue to invest in our strategic growth opportunities in print, advanced materials, chemicals and new initiatives, utilizing our technologies and extensive experience in all of these areas. Sorry. Excuse me. Before we conclude the call, Dave, is there anything else you'd like for listeners?

Yes, Jim. Earlier this evening, Kodak filed 2 shelf registration statements following the filing of the 2020 Form 10-K. These replaced 2 existing shelf registrations that have been withdrawn. Under one of the new registration statements, the company will have the flexibility to issue and sell up to $500 million of securities, which is approximately $350 million less than the previous registration statement. The second new registration statement registers the resale of common stock issuable under the new convertible securities issued on February 26 as well as the outstanding common stock previously registered and the 1 million shares of common stock issued on February 26. The shelf registration statement relating to the Series A preferred stock and the common stock issuable upon its conversion has been withdrawn as the Series A preferred stock has been retired. The new registration statements will not become effective until any necessary SEC review has been completed. Thanks, Jim.

Thank you, Dave, and thank you to the listeners for attending the call and for your continued interest in Eastman Kodak. This concludes our call for today. Have a great week.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.