NYT Raising Cash By Selling and Leasing HQ

Things are definitely tight at the New York Times. They've had to take a second mortgage out on their shiny new headquarters, but that's not enough given the burn rate at the paper. The paper has sold 21 floors to an investment company, which the Times is now leasing back over a period of 15 years.

I wonder if the Times will last that long:

The New York Times Co. said Monday it gained more financial flexibility by selling 21 floors of its headquarters building in midtown Manhattan for $225 million.

The newspaper will lease back the space from the buyer, investment firm W.P. Carey & Co., under a 15-year contract.

Times shares jumped 21 cents, 5.2 percent, to $4.28 in morning trading.

Like other publishers, the Times company has been seeking different ways of raising cash to pay off debt as advertising sales decline. The company has $350 million in loans coming due over the next two years. Total debt stood at $1.1 billion at the end of 2008.

The company slashed its dividend last fall and suspended it entirely in February, saving $133 million in annual expenses. In January, the company got a $250 million infusion from Mexican telecommunications billionaire Carlos Slim, though the Times is paying Slim a hefty interest rate of 14 percent.

HT: mattm at LGF