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December 8, 2008
Cash-Strapped New York Times Wants to Borrow Against Its HQ: Anyone Want to Lend It $225 Million?
MediaMemo
by Peter Kafka
The New York Times is running low on cash but has a $400 million debt payment due next spring. How to foot the bill? Raise money anywhere it can.
Last month, the Times cut its dividend, a move that could save it up to $100 million a year. Now the paper is looking to borrow against its new Manhattan headquarters. It has hired a real estate firm to raise up to $225 million using the value of the building as collateral. The company is looking at either a sale-leaseback or a mortgage, reports…the New York Times (NYT).
The Times doesn’t actually own the entire structure–it owns 58 percent, and Bruce Ratner’s Forest City Ratner owns the remainder–but the value of the Times’s share has been previously estimated in the $850 million to $1 billion range. It’s not clear whether the Times now thinks the building is worth much, much less than it did a year ago, or if it’s not looking to borrow against the total value of its property.
More coverage...
The New York Times, Times Co. to Borrow Against Building
NoLandGrab: We're guessing The Times won't be turning to cash-strapped business partner Forest City Ratner for the money.
Posted by eric at December 8, 2008 11:54 AM