Within that total, KED committed about $143 million of debtor in possession financing to fund the bankruptcy proceedings. The deal also swaps approximately $100 million that KED and its affiliates hold as debt for equity.
Founder families stepping back in says something about outside appetite. Market Briefs covers these financings free every weekday.
The blueprint calls for the company's $270 million in senior unsecured notes to be taken out. Secured creditors agreed to push out maturities and accept reduced interest, to be implemented through a mix of new notes, term loans, and a revolving credit facility.
Before striking the deal, the company opted not to make an interest payment tied to its unsecured notes maturing on Sept. 1, leveraging the grace period to push forward restructuring talks even though it had enough cash on hand. As Bloomberg had noted earlier, the Getty family was interested in contributing equity as part of those talks. In 1995, Mark Getty - scion of the Getty Oil fortune - teamed up with South African entrepreneur Jonathan Klein to launch the company. Over time, acquisitions and partnerships helped it assemble rights to many of the most recognizable photos anywhere, but multiple ownership changes, a heavy debt load, and customers shifting toward AI generated imagery have weighed on results.
Who funds a rescue round usually ends up controlling the company. Join Market Briefs free and follow it.
