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Getty Images readies loan backing $3.3B buyout by Carlyle Group

An arranger group led by Barclays has set a Wednesday afternoon bank meeting to launch the senior secured financing backing The Carlyle Group’s $3.3 billion buyout of Getty Images, sources said.

The deal, underwritten by Barclays, J.P. Morgan, Credit Suisse, Goldman Sachs, and RBC Capital, includes a $1.7 billion B term loan, sources said.

J.P. Morgan, left head on the accompanying high-yield deal, has been shopping an $800 million unsecured bridge loan over the past week. The issuer expects to replace the bridge with a $750 million high-yield bond deal.

Leverage on the transaction will be 4.4x through the loan and 6.3x through the bonds, sources said.

As reported, the deal would mean a nice return for Getty investors.

Carlyle will acquire a controlling stake in Getty Images, while Getty Images Co-Founder and Chairman Mark Getty and the Getty family will roll substantially all of their ownership interests into the transaction. Getty Images management, including Co-Founder and Chief Executive Officer Jonathan Klein, will also invest significant equity in the company.

Getty tapped the market earlier this year for a $350 million B-1 term loan. The 3.5-year loan is priced at L+375 and was used to back a dividend to the company’s owners. The new loan matures in November 2015, which is inside of the 2016 maturity of the existing institutional loan.

Getty in November 2010 placed a $1.27 billion institutional term loan via Barclays Capital, J.P. Morgan, GE Capital, Bank of America Merrill Lynch, and Goldman Sachs. The deal cleared at 99 and is priced at L+375, with a 1.5% LIBOR floor. – Chris Donnelly

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