New York Times raising cash via debt, equity as bidders refuse Boston Globe, Red Sox

31 December 2008

The New York Times has been reported to be moving ahead with plans to raise funds to finance a $400-million revolving credit line that expires in May.

The move is reported to be one that ensures some amount of flexibility in "these difficult markets". Earlier, the Washington Post Company was reported to have filed a similar prospectus in November for possible debt securities.

Simultaneously, two Boston businessmen have denied reports that they were looking at acquiring the The Boston Globe newspaper and a stake in the Red Sox baseball team, both of which are owned by the New York Times Company.

Media reports had quoted some names as prospective suitors for the two properties, which are reported to be on the block to help the New York Times pay off its looming debt obligations that have started to threaten its financial health. Shares of the NYT dropped during trading hours and closed at $7.02 on the New York Stock Exchange, while after hours trading saw them lose another eight per cent to $6.47.

The owner and publisher of The Boston Globe's rival Boston Herald, Patrick Purcell, said that he had neither been approached by potential bidders for The Boston Globe, nor had he contacted the New York Times to discuss acquiring it.

Similarly, former advertising executive Jack Connors also told The Boston Globe that he was not in the running for either of the properties.