Getty Images $1.045 billion credit facility pricing reverse flexed to Libor plus 400 bps

By Sara Rosenberg

New York, June 24 - Getty Images Inc. lowered pricing on its entire $1.045 billion senior secured credit facility (BB) to Libor plus 400 basis points from Libor plus 425 bps, according to a market source.

In addition, a step down in pricing was added to the term loan, under which the spread can drop to Libor plus 375 bps when leverage is less than 2.25 times, the source said.

Lastly, the original issue discount on the term loan was reduced to 97½ from 97, the source added.

The credit facility still has a 3.25% Libor floor.

Tranching on the deal is comprised of a $75 million five-year revolver that has a 50 bps commitment fee and a $970 million seven-year term loan.

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

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.

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.

Recommitments from lenders towards the credit facility are due on Wednesday.

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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