NY Times Building Deal Brings in $225 Million

Photograph by wallyg on Flickr

The NY Times announced it raised $225 million in cash from the "sale-leaseback of part of its headquarters building, one in a series of moves to pay down its debts and increase its cash cushion during a drastic slump for the newspaper industry."

W. P. Carey made the purchase and apparently both W.P. Carey and the NY Times Co. expect the Times to buy back the building in 10 years (plus interest). The Times article about the move also notes how the NY Times Co. suspended dividends and borrowed $250 million from Mexican media mogul Carlos Slim. The Business Insider writes, "This transaction does not improve the NYT Company's long-term value. It simply converts an asset (the building) into cash and a long-term liability (the leaseback). This buys the company more time to restructure its business, but it doesn't increase the company's net worth. It also doesn't amount to a long-term plan."

Last December, the Times announced it would take a loan out on its new building. The Times owns 58% of the 1.5 million square foot tower, which cost over $600 million.

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By Jen Chung in News on March 9, 2009 10:20 AM

Comments [rss]

VAlice

The NYT made a decision to stop reporting the news and instead present opinion pieces. In doing so they lost their reputation. Here in AZ the local paper has done the same is almost out of business even though the city had grown over the past several years. If the net is the issue, the paper could charge for their internet edition as the WSJ does. People will pay for quality regardless of its format. The NYT bet that their liberal reporting would attract more business. It was rught decision for them to take some installment loans. It did not and now they will pass on.

NannyState

That $398 million note is due in May. Tick. tock. eh, Mr Sulzberger?

Zyskandar A. Jaimot

The question is not how much the NYSlimes got for part of the building - the question is when will the NYSlimes default on its lease buyback and go banlrupt/kaput???