Getty Images Finalizes Exchange Offer and Major Notes Closing
Getty Images Settles Exchange Offer and Offers Senior Secured Notes
Getty Images Holdings, Inc. (NYSE: GETY) has made significant news by announcing the successful completion of its exchange offer. This transaction involved the exchange of existing unsecured senior notes and the issuance of new secured notes. The details illustrate the strategic maneuvers Getty Images is taking in the financial market, aiming to optimize their debt structure while preparing for future growth and opportunities.
Details of the Exchange Offer
In a recent announcement, Getty Images revealed that it had settled the exchange offer involving its subsidiary, Getty Images, Inc. This offer allowed holders of the existing unsecured 9.750% Senior Notes due 2027 to exchange their old notes for newly issued unsecured 14.000% Senior Notes due 2028. The transition underpins Getty Images’ ongoing efforts to refinance its debt.
As of the settlement date, an impressive $294.686 million worth of old notes were successfully exchanged for new ones. This move signifies confidence in the company's long-term financial health, as only a small portion remains outstanding post-exchange. Such financial engineering aims to provide flexibility for future financing needs.
The Successful Closing of Senior Secured Notes
In conjunction with the exchange offer, Getty Images has also finalized a private offering of $628.4 million in senior secured notes. These notes, carrying an interest rate of 10.500%, are crucial in supporting the company’s financial strategy. This offering not only establishes a reliable funding source but also enhances the company’s capital structure.
The senior secured notes are set to mature in 2030 and come with a first lien security interest, positioning Getty Images favorably for repayment obligations. The proceeds from this offering are earmarked primarily for strategic initiatives, including a significant merger with Shutterstock, which aims to consolidate market positions and resources in a rapidly evolving visual content landscape.
Strategic Use of Proceeds and Merger Plans
The funds raised through the senior secured notes will be pivotal for Getty Images to cover merger-related expenses, particularly $350 million directed towards Shutterstock common stockholders. This merger represents a landmark collaboration in the visual content sector, aiming to create a leading entity combining the strengths of both businesses.
In a strategic move, if the merger does not finalize by a designated date, Getty Images has set provisions for the mandatory redemption of the senior secured notes. This ensures that stakeholders' interests are safeguarded, and the company maintains stringent control over its financial commitments.
About Getty Images
Getty Images, marked by its ticker symbol NYSE: GETY, stands as a global powerhouse in the visual content market. The company offers an expansive array of solutions tailored to meet diverse customer needs, serving a clientele that spans nearly every nation. Its platforms, including Getty Images, iStock, and Unsplash, enable hundreds of thousands of creators to collaborate in producing impactful visual media.
Yearly, Getty Images captures an extensive range of global events, reinforcing its status as a leader in comprehensive media coverage. The company's dedication to fostering creativity is further evident through its innovative use of generative AI, allowing customers to seamlessly create custom visuals while ensuring compliance with usage rights.
For further information and updates, interested parties should visit the Getty Images newsroom.
Contact Information
Investor Relations:
Steven Kanner
Email: Investorrelations@gettyimages.com
Media Inquiries:
Julia Holmes
Email: Julia.Holmes@gettyimages.com
Frequently Asked Questions
What is the amount of the new senior secured notes issued?
The new senior secured notes issued by Getty Images amount to $628.4 million.
When are the new notes due?
The new unsecured notes are due in 2028, while the senior secured notes are due in 2030.
What is the purpose of the exchange offer?
The exchange offer aims to improve Getty Images' debt structure by replacing older unsecured notes with new securities.
How will the proceeds from the senior secured notes be used?
Proceeds will primarily fund merger costs with Shutterstock and refinance specific company debt.
What does the merger with Shutterstock signify for Getty Images?
This merger positions Getty Images to enhance its service offerings in visual content and consolidate its market presence.
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