Getty Images launches $1.7 billion term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Sept. 19 - Getty Images Inc. launched on Wednesday its $1.7 billion seven-year covenant-light term loan B with price talk of Libor plus 375 basis points to 400 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The B loan has 101 soft call protection for one year, the source said.

The company's $1.85 billion senior secured credit facility also includes a $150 million five-year revolver that has a leverage covenant when more than 20% is drawn.

Commitments are due on Sept. 28, the source added.

Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds from the credit facility, $750 million of notes and equity will be used to help fund the $3.3 billion purchase of Getty Images by the Carlyle Group and management from Hellman & Friedman.

Closing on the buyout is targeted for mid-October.

Leverage is 4.4 times on a senior secured basis and 6.3 times total.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

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