Report: N.Y. Times Talking To Slim About Investment
January 19, 2009 at 5:48 AM (PT)
The WALL STREET JOURNAL is reporting that Mexican billionaire CARLOS SLIM HELU is talking to the NEW YORK TIMES CO. about taking an additional stake in the embattled media company in a loan-like stock arrangement. The JOURNAL report suggests that the TIMES is considering issuing preferred stock to SLIM, who owns 6.4% of the company, in exchange for capital, which would be paid back through dividends while carrying no voting rights. Other investors may also be courted with similar deals, according to the report, with HARBINGER CAPITAL PARTNERS named as a possible suitor.
The TIMES CO. has about $46 million in cash and $1.1 billion in debt at the end of SEPTEMBER, with a $400 million credit facility expiring in MAY and not due to be replaced, $250 million in notes due in 2010, and a $400 million credit facility due in 2011; it will also look to raise up to $225 million by selling and leasing back the company's new headquarters building in MANHATTAN. It is also looking to sell its 17.5% stake in the BOSTON RED SOX, FENWAY PARK, and NEW ENGLAND SPORTS NETWORK (NESN) and is reportedly also ready to sell the BOSTON GLOBE.
A special board meeting is planned for next week at the TIMES, reports the JOURNAL. The TIMES CO. owns Classical WQXR/NEW YORK.