It's Official: NYT Gets $250 Million Cash Infusion From Carlos Slim's 'Banco Inbursa'
This story was written by Tameka Kee.
As expected, The New York Times Company (NYSE: NYT) has indeed received a $250 million cash injection from Mexican billionaire Carlos Slim Helu. Reports over the weekend from both the Times and the WSJ said that the deal could close todaybut also that it could possibly collapse under its complexity before anything got done. Under the terms of the deal, NYTCo will use the money to refinance its existing debt. In particular, President and CEO Janet L. Robinson said the proceeds would be used to help cover the $400 million credit facility expiring in May. More to come Release.
Some other details about the deal include:
The notes are priced at 14 percent interest rate, of which the NYTCo may choose to pay 3 percent for an additional issuance. The notes are callable beginning three years.
Slim and members of his family are the main shareholders of Grupo Financiero Inbursa, S.A B. de C.V., which is the parent company of Banco Inbursa. Those two entities own Inmobiliaria Carso, the vehicle through which Slim currently holds 6.9 percent of the NYTCo's Class A shares.
By Tameka Kee