NEW YORK — The New York Times Co. said Monday it had reached an agreement with Mexican billionaire Carlos Slim Helu for a $250 million loan intended to help the newspaper company finance its businesses.
Under the terms of the deal, Slim, who already owns 6.9 percent of the company, would invest $250 million in the form of six-year notes with warrants that are convertible into common shares, the company said in a statement. The notes also carry a 14 percent interest rate, with 11 percent paid in cash and 3 percent in additional bonds.
The deal comes as the Times Co. looks to raise money amid flagging advertising sales and approaching deadlines to pay back $1.1 billion in debt in the next few years.
The company will use the proceeds from the transaction to refinance existing debt. One of its two $400 million revolving credit lines is set to expire in May.
The New York Times; Bloomberg News file photo Carlos Slim Helu
