Broke New York Times Forced To Sell Nearly Half Of Its Headquarters
Mar 9, 2009 12 Comments ›› Pat Dollard
NEW YORK (AP) — The New York Times Co. said Monday it gained more financial flexibility by selling 21 of its 50 floors of its headquarters building in midtown Manhattan for $225 million.
The newspaper will lease back the space from the buyer, investment firm W.P. Carey & Co., under a 15-year contract.
Times shares jumped 21 cents, 5.2 percent, to $4.28 in morning trading.
Like other publishers, the Times company has been seeking different ways of raising cash to pay off debt as advertising sales decline. The company has $350 million in loans coming due over the next two years. Total debt stood at $1.1 billion at the end of 2008.
The company slashed its dividend last fall and suspended it entirely in February, saving $133 million in annual expenses. In January, the company got a $250 million infusion from Mexican telecommunications billionaire Carlos Slim, though the Times is paying Slim a hefty interest rate of 14 percent.
Now the Times is trying to sell its 17.8 percent stake in the group that owns the Boston Red Sox. Barclays Capital analyst Hale Holden has estimated that could fetch $140 million to $160 million.
