New York Times evaluating financing options, including public offerings, private placements

By Jennifer Lanning Drey

Portland, Ore., Dec. 9 - The New York Times Co. is looking at various financing alternatives including public offerings and private placements, Jim Follo, chief financial officer of the New York Times, said during a Tuesday presentation at the UBS Global Media and Communications Conference in New York.

"While the credit markets remain challenging, we expect to secure the financing necessary to meet our maturities when they come due," Follo said.

The New York Times is in discussions with its lenders regarding debt maturing in 2009 and 2010, he said.

The company also continues to evaluate asset sales, he noted during the presentation.

"Although the feasibility of asset sales at this time is uncertain given the current credit market and credit environment, it is incumbent upon us to make sure that we carefully evaluate our properties to determine if they remain a strategic fit given the outlook for the business and their financial performance," he said.

When later presented with a question of whether the controlling family may be interested in selling the business itself, chief executive officer Janet Robinson said, "The family has made it very clear both internally and externally that they have no intention of selling the company. They believe in the capital structure as it exists right now."

Follo also said the New York Times has begun a process to secure financing for up to $225 million in the form of a sale-leaseback for a portion of its existing headquarters.

Proceeds of that transaction will be used to repay existing long-term debt, he said.

Cost savings initiatives and reduced capital spending, coupled with a nearly 75% reduction in the company's fourth quarter dividend, are also expected to help the company decrease debt, Follo said.

The New York Times' debt includes two revolving credit facilities of $400 million, one of which expires in May 2009 and the other in June 2011.

Follo said the company does not intend to replace the facility maturing in 2009 because total borrowings under both of its revolvers are projected to be significantly below $800 million.

Based in New York, the New York Times is a diversified media company.

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