Getty Images ups term B to $1.9 billion, flexes to Libor plus 350 bps

By Sara Rosenberg

New York, Sept. 27 - Getty Images Inc. increased its seven-year covenant-light term loan B to $1.9 billion from $1.7 billion and decreased pricing to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, according to sources.

In addition, a step-down was added to Libor plus 325 bps when total leverage is less than 5.3 times, sources said.

The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

The company's now $2.05 billion senior secured credit facility, up from $1.85 billion, also includes a $150 million five-year revolver that has a leverage covenant when more than 20% is drawn.

Recommitments are due by 10 a.m. ET on Friday and allocations are expected next week, sources continued.

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, 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.

As a result of the term loan B upsizing, the bond deal was downsized to $550 million from $750 million, sources added.

Closing on the buyout is targeted for mid-October.

Total leverage is 6.3 times.

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

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