NEW YORK--(BUSINESS WIRE)--Jan. 19, 2009--The New York Times Company today announced that it had entered into a
private financing agreement with Banco Inbursa, S. A., Institucion de
Banca Multiple, Grupo Financiero Inbursa ("Banco Inbursa") and
Inmobiliaria Carso for an aggregate amount of $250 million ($125 million
each) in senior unsecured notes due 2015 with detachable warrants. The
notes will rank equally and ratably on a senior unsecured basis with all
senior unsecured obligations of The New York Times Company.
"This agreement provides us with increased financial flexibility to
continue to execute on our long-term strategy," said Janet L. Robinson,
president and CEO. "The proceeds from this transaction will be used to
refinance existing debt, including amounts currently borrowed under a
revolving credit facility that matures in May 2009. We continue to
explore other financing initiatives and are focused on reducing our
total debt through the cash we generate from our businesses and the
decisive steps we have taken to reduce costs, lower capital spending,
decrease our dividend and rebalance our portfolio of assets."
"We are very pleased to expand our strong relationship with The New York
Times Company," said Arturo Elias, director of Inmobiliaria Carso. "We
believe that with the strength of The New York Times brand, its national
and international reach, its potential for digital expansion and most of
all, its world-class news and information, the Company will continue to
be a leader in the media industry."
The notes have a coupon of 14.053 percent, of which the Company may
elect to pay 3 percent in kind. The notes are callable beginning three
years from the issue date at 105 percent of par, with subsequent call
prices declining ratably to par.
Banco Inbursa and Inmobiliaria Carso also received detachable warrants
for an aggregate amount of 15.9 million Class A shares (50 percent
each), at a strike price of $6.3572. The warrants expire in January 2015.
Mr. Carlos Slim Helu 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, and are the owners of Inmobiliaria Carso, which
currently holds 6.9 percent of the Times Company's Class A shares.
SunTrust Robinson Humphrey, Inc. was the sole placement agent for this
transaction, and Goldman Sachs advised the Company.
Information relating to these securities will be filed on a Current
Report on Form 8-K with the Securities & Exchange Commission.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those predicted by such forward-looking
statements. These risks and uncertainties include national and local
conditions, as well as competition, that could influence the levels
(rate and volume) of retail, national and classified advertising and
circulation generated by our various markets and material increases in
newsprint prices. They also include other risks detailed from time to
time in the Company's publicly filed documents, including the Company's
Annual Report on Form 10-K for the year ended December 30, 2007 and
Quarterly Report on Form 10-Q for the quarter ended September 28, 2008.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
The New York Times Company (NYSE: NYT), a leading media company with
2007 revenues of $3.2 billion, includes The New York Times, the
International Herald Tribune, The Boston Globe, 16 other daily
newspapers, WQXR-FM and more than 50 Web sites, including NYTimes.com,
Boston.com and About.com. The Company's core purpose is to enhance
society by creating, collecting and distributing high-quality news,
information and entertainment.
This press release can be downloaded from www.nytco.com
CONTACT: The New York Times Company
Catherine J. Mathis, 212-556-1981
Paula Schwartz, 212-556-5224
Source: The New York Times Company