By Kevin McCauley
The New York Times Co. is paying off its $250M loan from Mexican billionaire Carlos Slim three and half years early, a move that saves the company $39M in annual interest.
On Aug. 15, the Times will pay $279M to cover the notes and unpaid/accrued interest. The notes carry a 14 percent interest rate and are due Jan. 15, 2012.
Janet Robinson, CEO of NYTC, says her company’s strengthened cash position and focused efforts enable it to pay the notes ahead of schedule.
She thanked Slim’s Inmobiliaria Carso and Banco Inbursa for providing financing “during a volatile time in the U.S. economy and in our industry.”
Slim’s companies hold warrants to purchase 15.9M NYTC shares at $6.36 each. That stock current trades at $9.06. Shares traded in the range of $7.06 to $11.72 during the past year.
Slim and his interests currently own a 6.9 percent stake in the NYTC. |