PrintJanuary 20, 2009
NYT gets no boost from deal with Mexican billionaire
The deal the New York Times struck with Mexican billionaire Carlos Slim has done nothing for its share price. The stock closed down 50 cents today, closing at $5.91. That's understandable: the company is paying a whopping 14% interest rate, 11% in cash, and 3% in additional bonds. The debt also carries with it warrants (an option to buy stock at a set price, that has not been disclosed as far as I can see) that could increase Slim's stake in the company to 17% if exercised.
The company reports that it is putting up its interest in the Boston Red Sox for sale. The company is running out of assets to strip off. Meanwhile, $400 million in debt comes due this May and must be refinanced. The $250 will help, and borrowing against its interest in its Manhattan office building should enable it to meet that deadline. But further debt comes due, and the company already ahs to pay 14% and sweeten its new debt with warrants.
Tick tock, tick tock.
Meanwhile, the company is cutting expense accounts. Wait until you read what Maureen Dowd expects reimbursement for.
Hat tip: Ed Lasky
