New York Times Raises $250 Million from Carlos Slim

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.

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Full release here.