New York Times Co. Completes Sell-Leaseback On HQ Building
The struggling New York Times Co. announced this morning that it has completed a sell-leaseback deal on 21 floors of its 52-story nearly-brand-new Manhattan headquarters.
The Times Co. will receive $225 million from W.P. Carey & Co. and will pay the company $24 million per year -- a number that will rise as the lease continues -- to rent back the floors. (Should it be inferred from the price that $557 million would get you the entire building? Probably not, as different floors have different values -- the total number is probably higher -- but it's likely not too far off.)
The Times Co. said it would use the money to pay off debt. The company was forced to take a 14-percent, $250 million loan in January from Mexican billionaire Carlos Slim Helu.
The Times Co. has watched its stock lose 75 percent of its value over the past year. It is trading today at about $4.22 per share.
March 9, 2009; 10:08 AM ET
Categories: The Ticker | Tags: New York Times Co.
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Posted by: mharwick | March 10, 2009 5:35 PM | Report abuse
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