S&P puts Getty Images on positive watch

S&P said it placed all its ratings for Getty Images Inc. on CreditWatch with positive implications, including the CCC+ senior unsecured rating.

The placement follows the company reporting it agreed to merge with CC Neuberger Principal Holdings II Prpb, a special-purpose acquisition company, the agency said.

“The positive CreditWatch reflects the potential that we will raise our ratings on Getty following our review. Assuming no equity redemptions, the proposed transaction will reduce the company's debt, including its preferred shares, by about $1.165 billion, which it will fund with $1 billion of proceeds from the SPAC investors, $150 million from private investment in public equity (PIPE) investors, and a portion of the cash on its balance sheet less transaction expenses,” S&P said in a press release.

The agency said it projects Getty will repay about $576 million of its outstanding debt and $589 million of its preferred shares. The remaining $150 million of preferred shares will be converted into common equity as part of the merger.

S&P said it aims to resolve the CreditWatch placement following its review of Getty's final post-merger capital structure and evaluation of its financial policies and governance measures.

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