Mexican Millionaire Bails Out the New York Times
It has been confirmed that the Mexican millionaire, Carlos Slim will be lending the New York times $250 million in an attempt to refinance their existing debt. The company will be paying 14% interest on this loan which will in turn increase the millionaires share from 6.9% to 17% in the future.
The deal will be split amongst Slims companies Banco Inbursa and Inmobiliaria Carso each paying half of the $250m. The agreement between Carlos Slim and the NY Times was that the loan would be converted into 15.9m Class A shares over 6 years, which equates to $6.35 per share.
Carlos Slim will not receive any shares with special voting rights which will allow him to take any control of the company. This also includes not having any representation on the companys board.
The chief executive of the NY Times, Janet L Robinson stated that this agreement will give them the financial freedom they need to pursue their long term goals and strategies. She also stated that the money received from the agreement will be primarily used to refinance existing debt.
The NY Times currently needs $400m to pay off a debt that matures in May 2009. A further $100m in bonds are due later on in the year and $250m due in 2010. In an attempt to raise money they are trying to sell their shares in the Boston Red Sox baseball team and arranging a leaseback agreement with their new headquarters which is located in New York.
Carlos Slim, the Mexican millionaire has investments in a broad range of companies ranging from construction, insurance, mining to retail. Along with owning a mixed portfolio of companies it was a good investment on his behalf to increase his share in the company.
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[...] new york times" has accepted a large cash infusion by a mexicaan millionaire : see : http://www.marketingnews.co.uk/2009/01/mexican-millionaire-bails-out-the-ny-time/ Quote: Mexican Millionaire Bails Out the New York Times Posted on 22 January 2009 Tags: Financial [...]