Getty Images to go private in $533M deal with Getty family, Koch unit
What's the deal? Getty Images has secured a commitment of up to $533 million in new equity from members of the Getty family and Koch Equity Development (KED)Dealroom has a profile for this one. Try Dealroom → as part of a comprehensive restructuring. The two investors, together the "Equity Investors," will own 100% of the reorganised company once it emerges from the process.
Why now? The deal anchors a restructuring support agreement reached with all major financial stakeholder groups to strengthen the balance sheet. Noteholders representing 83.5% of unsecured bonds agreed to retire $270 million of senior unsecured notes, while secured lenders agreed to cut interest obligations and extend maturities.
How it works: Getty Images plans to solicit approval of a reorganisation plan in the coming days, then file a prepackaged Chapter 11 process within weeks. The company says there will be no impact on operations, employees, contributors, partners, customers, or vendors.
What's the endgame? Getty Images, the OTC-listed visual content marketplace, will become privately held on emergence. "This equity investment will provide Getty Images with a firm financial foundation and greater flexibility to continue investing in its employees, customers, contributors, and future growth," said Mike Harris, co-head of KED.
What could go wrong? The transaction depends on court approval of the prepackaged plan. A requisite majority of creditors has committed to vote in favour, but the process must still clear Chapter 11.
Chief executive officer Craig Peters framed the move around stability. "Their commitment to achieving this transaction and an enhanced balance sheet will enable us to accelerate investment into the business and better position Getty Images for long-term success," he said.
The signal: At $533 million, this is among the largest bankruptcy-linked equity commitments in US media, ranking in the top 1% of comparable deals. It shows that even distressed, debt-heavy content businesses can attract deep-pocketed backers willing to take them private rather than let them sink.
Read more: Getty Images · The Hollywood Reporter · GlobeNewswire
Image credit: Wonderlane
