Getty Images sets June 10 launch for $1.045 billion credit facility

By Sara Rosenberg

New York, June 3 - Getty Images Inc. has scheduled a bank meeting for June 10 to launch its proposed $1.045 billion senior secured credit facility, according to a market source.

Barclays, GE Capital and RBS Securities are the joint bookrunners on the deal, with Barclays and GE acting as co-lead arrangers. GE is the administrative agent.

The facility consists of a $75 million five-year revolver, a $705 million seven-year term loan and a $265 million 40-day delayed-draw, seven-year final maturity, term loan.

The delayed-draw and the funded term loan are basically going to be marketed as a single $970 loan, the source continued.

According to filings with the Securities and Exchange Commission, pricing on all tranches is expected to be Libor plus 450 basis points with a 3.25% Libor floor.

The source, however, said that pricing is still to be determined, but it will be in the Libor plus 400s context. He went on to say that the Libor floor is expected at 3.25%, like the filings said.

Both the revolver and the delayed-draw term loan have a 50 bps commitment fee.

The facility has a $100 million accordion feature.

Financial covenants include a maximum total leverage ratio and a minimum consolidated interest coverage ratio.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC for $34 per share in cash. The transaction is valued at $2.4 billion, including the assumption of existing debt.

Other financing will come from up to $941.3 million in equity.

Completion of the transaction is expected to occur in the second quarter, subject to shareholder approval and other customary closing conditions. The deal is not subject to a financing condition.

A special meeting of shareholders is scheduled to take place on June 20.

Getty Images is a Seattle-based creator and distributor of still imagery, footage and multi-media products, and a provider of other forms of digital content.

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