Getty Images Delays Interest Payments, Stock Hits 52-Week Low
GETY is trading near its 52-week low of $0.229 (0.9% above the low) on light trading volume (0.4× avg).
Summary
Getty Images announced it will use the 30-day grace period on interest payments due September 1 for its senior unsecured notes, citing evaluation of financing alternatives. The stock fell 5% to $0.23, a 52-week low, and is down 83% year-to-date. The company says it has sufficient cash for the payments and day-to-day obligations, but the delay signals liquidity stress amid $2.1 billion in total debt. This follows the August 31 8-K disclosing the grace period plan and the July 7 Reuters report of lenders organizing over debt sustainability. The company is also seeking shareholder approval for a reverse stock split to regain NYSE compliance. Watch for any announcement of a financing deal or further payment delays within the 30-day window.
At the time of this announcement, GETY was trading at $0.23 on OTC in the Technology sector, with a market capitalization of approximately $97.3M. The 52-week trading range was $0.23 to $3.21. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.