Getty Images plans to go private after debt restructuring deal

what happened

Newsmetry API reported that Getty Images reached an agreement with key stakeholders on a balance-sheet restructuring. The plan includes $533 million in new equity from Koch Equity Development and members of the Getty family, after which the company will become privately held and pursue a Chapter 11 bankruptcy filing.

Bondholders representing 83.5% of Getty’s unsecured notes agreed to reduce debt through the retirement of $270 million in outstanding unsecured notes. Holders of about 89% of the company’s secured bonds and term loans, together with 100% of revolving credit facility lenders, agreed to lower interest obligations and extend maturities on secured debt.

Koch Equity Development and the investing members of the Getty family will own 100% of the reorganized company. Getty plans to seek approval for the plan and begin a prepackaged Chapter 11 process in the coming weeks. The required majority of creditors has committed to support it, with completion targeted by year-end. Getty is expected to continue normal operations, backed by as much as $143 million in financing from Koch.

why it matters

The agreement would replace Getty Images’ current ownership with a private structure and reduce its debt burden. The restructuring also sets new terms for secured lenders and provides financing intended to support operations during the bankruptcy process.

instruments