By: E&P Staff The New York Times Co. has reached agreement with Mexican billionaire Carlos Slim Hel? for a $250 million loan.
The paper reported tonight, "Under the terms of the deal, Mr. Slim, who already owns 6.9 percent of the Times Company, would invest $250 million in the form of six-year notes with warrants that are convertible into common shares, the company said in a statement. The notes also carry a 14 percent interest rate, with 11 percent paid in cash and 3 percent in additional bonds.
"The deal comes as the Times Company looks to raise money amid flagging advertising sales and approaching deadlines to pay back $1.1 billion in debt in the next few years.
"The company will use the proceeds from the transaction to refinance its existing debt. One of its two $400 million revolving credit lines is set to expire in May. The $250 million investment should help free some of the company?s borrowing capacity."
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