The New York Times Company has entered into a private financing agreement with Banco Inbursa, S. A., Institucion de Banca Multiple, Grupo Financiero Inbursa (“Banco Inbursa”) and Inmobiliaria Carso, companies connected to Mexican billionaire Carlos Slim for $250 million in senior unsecured notes due 2015.
The Times said it would use the new funding to refinance existing debt, including part of the $400 million that was facing repayment in May.
Under the deal, Carlos Slim gets warrants on 15.9 million shares of Times “A” stock, and interest of 14% on the debt. The warrants expire in January 2015.
Slim purchased the 6.9% stake in the company in September 2008.
Breathing space for the embattled gray lady, but it doesn’t address the fundamental financial flaws that continue to see the Times lose money.
Full release here.