Sotheby's borrows $250 million under credit facility

By Jennifer Chiou

New York, Oct. 14 - Sotheby's borrowed $250 million under its $300 million long-term senior secured facility with Banc of America, LLC on Friday, according to an 8-K filed Friday with the Securities and Exchange Commission.

The company said that this borrowing was done as a defensive step to ensure additional liquidity in response to the recent turbulence in the global financial markets.

On Oct. 9, prior to this borrowing, Sotheby's said it had cash and cash equivalents of about $290 million. As a result of this borrowing, it now has about $540 million in cash and cash equivalents.

The company added that proceeds from this borrowing will be invested on a short-term basis in Treasury money market funds.

New York-based Sotheby's is an art auction and art-related financing company.

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