Getty Images to go private in restructuring deal
Getty Images has secured backing from its major investors and lenders for a restructuring that will reduce debt, bring in fresh capital and take the company private, reports a Qazinform News Agency correspondent.
Under the agreement, affiliates of the Getty family and Koch Equity Development have committed up to $533 million in new equity. They will own the reorganized company upon completion.
Bondholders representing 83.5% of unsecured bonds have agreed to retire $270 million in senior unsecured notes. Most secured creditors and all revolving credit lenders support lower interest obligations and extended debt maturities.
“This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead,” chairman Mark Getty said.
The company plans to implement the agreement through a prepackaged Chapter 11 bankruptcy reorganisation involving certain U.S. entities. The process is intended to address legal liabilities unrelated to its operations and is expected to finish by year-end.
Koch Equity Development will provide up to $143 million in financing to support the restructuring, alongside cash generated by ongoing operations.
Getty Images said business would continue normally, with no anticipated impact on employees, contributors, partners or customers. Vendors are expected to be paid in full in the ordinary course of business.
Earlier, Qazinform News Agency reported that Getty Images announced a multi-year agreement with OpenAI to integrate its licensed visual content into ChatGPT’s search and discovery features.