Getty Images agrees to restructuring backed by up to $533 million

what happened

Getty Images has reached an agreement with all major financial stakeholder groups on a comprehensive restructuring. According to GlobeNewswire, members of the Getty family, through affiliated entities, and Koch Equity Development affiliates have committed up to $533 million in new equity. Noteholders representing 83.5% of the company’s unsecured bonds agreed to retire $270 million of senior unsecured notes. Holders of approximately 89% of secured bonds and term loans, together with 100% of revolving credit facility lenders, backed lower interest obligations and extended maturities for secured debt.

The company plans to implement the transaction through an expedited prepackaged Chapter 11 reorganization process. Creditors are expected to be asked to approve the agreed plan in the coming days, followed by a court filing in the coming weeks. The filing will cover certain U.S. entities only, and the restructuring is expected to be completed by year-end. Once the process is finished, Getty Images will be privately held, with the equity investors owning 100% of the reorganized company.

Getty Images said it will continue operating normally during the proceedings. Koch Equity Development will provide up to $143 million to finance the restructuring, supplemented by cash generated through ongoing operations. Vendors are expected to be paid in full in the ordinary course, while the company anticipates no impact on employees, content contributors, partners or customers.

why it matters

The agreement changes Getty Images’ ownership structure while reducing debt and interest pressure. For markets, the continued financing and stated protection of day-to-day operations are key elements as the company moves through the restructuring process.

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