Hellman & Friedman, with $380 Mln Dividend from Getty Images, Makes Back Nearly All of its Money


Are dividend recaps bad? David Toll, Buyouts’ editor-in-charge, says dividends are usually good for lenders, sponsors and even management teams.

Hellman & Friedman obviously likes them. It’s getting another dividend that will help the San Francisco-based buyout shop make back nearly all of its investment in Getty Images

Seattle-based Getty Images is launching a $275 million term loan today that will be used to pay a special dividend of about $380 million, according to Moody’s Investors Services. Standard & Poor’s Ratings Services says Getty will use proceeds from the loan, along with $115 million in cash, to fund a roughly $379 million distribution to its shareholders.

Getty Images distributes still imagery, video and multimedia products. The company produced revenues of about $945 million through the 12 months ended December 2011, Moody’s says. In 2008, Hellman & Friedman acquired Getty Images in a deal valued at $2.4 billion. A trust representing certain Getty family members is also a shareholder, Moody’s says.

Hellman & Friedman invested up to $941.3 million equity in Getty as part of the buyout, according to SEC filings.

The $380 million dividend is the second time Hellman & Friedman will get paid. In late 2010, Getty paid out a $496 million dividend to its sponsors. In all, it looks like Hellman & Friedman has made back most of its investment in Getty Images.

Calls to Getty and Hellman were not returned.

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more? Get your FREE trial to Buyouts! Or subscribe now!