Carestream Announces Recapitalization to Strengthen Financial Foundation and Position the Business for Long-Term Success

ROCHESTER, N.Y., April 25, 2022 – Carestream Health (“Carestream” or the “Company”) today announced that the Company has entered into a recapitalization agreement with lenders holding more than 50.1% and 85.9% of its first and second lien debt, respectively. The recapitalization transaction will significantly strengthen the Company’s balance sheet and position the business for continued success. Under the terms of the agreement, Carestream will eliminate approximately $220 million in debt to support the continued execution of its strategy.

“Over the last few years, we have successfully completed our restructuring initiatives, met our cost savings goals and continued to drive improved profitability across the business while creating a culture that motivates employees and supports the kind of performance Carestream is capable of delivering,” said David C. Westgate, Chairman, President and CEO of Carestream. “With the support of our lenders, we are taking this positive and strategic step forward to recapitalize our balance sheet and increase our flexibility, as we navigate a dynamic market and position the business for long-term success. We are excited about our future prospects and remain dedicated to delivering high-quality products and services to our customers and look forward to supporting their needs for many years to come.”

As part of the transaction, Carestream’s lenders are exchanging debt for the Company’s equity and will become the new owners of the Company.

Mr. Westgate continued, “Given the significant support we have already received from a substantial majority of our lenders, we are confident in our ability to implement the recapitalization agreement quickly and efficiently. We appreciate their support and believe this agreement highlights their confidence in our future. We also thank our customers and partners for their continued support, and our outstanding team for their focus and dedication.”

Advisors

Kirkland & Ellis LLP is serving as the Company’s legal counsel and Houlihan Lokey Capital, Inc. is serving as its financial advisor.

Akin Gump Strauss Hauer & Feld LLP and GLC Advisors & Co. are serving as legal counsel and financial advisor, respectively, to a crossover group of the Company’s first lien and second lien secured lenders.