(Updated to reflect the deal)
The cash-strapped New York Times Company inked a deal with Mexican billionaire Carlos Slim Helu.
As previously reported, Slim will loan $250 million to The New York Times Company.
The publisher has been exploring options to help its struggling operations amid declining advertising sales.
Clearly it managed to strike a deal that potentially leaves its lender with the largest stake in the company, but with no voting rights or board seat.
If a deal goes through, Slim, ranked the second richest man in the world by Forbes with an estimated fortune of $60 billion, could end up the largest stakeholder in the publisher.
As part of the deal, Slim will receive unsecured notes.
"The notes have a coupon of 14.053 percent, of which the Company may elect to pay 3 percent in kind. The notes are callable beginning three years from the issue date at 105 percent of par, with subsequent call prices declining ratably to par," according to the release. The full release is below.
Slim and his family are the main shareholders in Banco Inbursa and Inmobiliaria Carso, the two entities Slim is doing the financing through.
Once Slim excercises his shares, his holdings would exceed that of the Sulzbergers, who have super-voting rights, but have a 19% stake.
Here's the release:
The New
York Times Company Enters into Agreement with Banco Inbursa and
Inmobiliaria Carso for $250 Million in Senior Unsecured Notes
"This agreement provides us with increased financial flexibility to
continue to execute on our long-term strategy," said
"We are very pleased to expand our strong relationship with The
The notes have a coupon of 14.053 percent, of which the Company may
elect to pay 3 percent in kind. The notes are callable beginning three
years from the issue date at 105 percent of par, with subsequent call
prices declining ratably to par.
Mr. Carlos Slim Helu and members of his family are the main shareholders
of
(Image source: mysharetrading.com)
