NYT to mortgage office to avert cash crisis
The New York Times said on Monday it will borrow as much as $225 million against its new headquarters building due to tightening credit and dwindling profits.india Updated: Dec 08, 2008 21:56 IST
The New York Times said on Monday it will borrow as much as $225 million against its new headquarters building due to tightening credit and dwindling profits.
The Times owns 58 per cent of the glistening 52-story tower on Eighth Avenue in Manhattan designed by architect Renzo Piano, with the rest owned by developer Forest City Ratner. The Times' portion of the building is not presently mortgaged.
The media company has retained real estate firm Cushman & Wakefield to act as agent to secure financing, the newspaper reported, citing its chief financial officer James Follo.
The Times has two revolving lines of credit, each maxing out at $400 million, and one of them is set to expire in May, it said.
Finding a replacement would prove difficult under current economic conditions and what the newspaper described as the company's "worsening finances."
Standard & Poor's recently downgraded its credit rating on the Times Company to below investment grade, and Moody's Investors Service said it was considering doing the same, reported the paper.
Times Company stock has lost more than half its value this year.