Carlyle's Getty Images Said to Reach Creditor Deal for New Debt

A group of Getty Images Inc. bondholders struck a deal with the company to exchange some of the securities they hold for new senior debt while lending it $100 million of new money, according to three people with knowledge of the matter.

Getty told its creditors late Monday that the bondholder group, which holds a portion of the company’s $550 million unsecured notes due October 2020, agreed to exchange some of the bonds for $150 million at 64 cents on the dollar, said the people, who asked not to be named because the information isn’t public. The new debt will rank on the same level as the company’s $1.9 billion loan, said the people.

The company’s unsecured notes last traded at 30.5 cents on the dollar at 11:40 a.m. in New York, losing 47.75 cents this year, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The company will pay 10.5 percent interest on the new $252.5 million secured notes that mature October 2020, said one of the people.

Getty, which has $2.46 billion in debt, hired Guggenheim Securities LLC in August to explore a debt offering that would seek to raise between $50 million and $100 million, people with knowledge said then. A group of bondholders represented by the investment bank Houlihan Lokey Inc. and law firm Akin Gump Strauss Hauer & Feld LLP have been angling to swap their notes, other people have said.

“We are pleased with the progress we are making in our capital raise process,” according to a statement provided by Julia Holmes, a spokeswoman for Seattle-based Getty.

Randy Whitestone, a spokesman for Carlyle, the private-equity firm that owns Getty, Anthony Lacavaro, a spokesman for Guggenheim, and John Gallagher, a spokesman for Houlihan Lokey, declined to comment. Jeff Mutterperl, a spokesman for Akin Gump, didn’t immediately provide comment. 

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