NYT Proposes $200M Notes to Repay Debt
NEW YORK (
) --
The New York Times
(NYT) - Get Report
has proposed the issuance of $200 million senior notes due 2016 to help pay back loans from Carlos Slim.
The company intends to use the net proceeds to, among other financial obligations, pay off debt as part of its refinancing strategy.
On October 4, the publishing company announced that it plans to pay back a $250 million loan from billionaire Carlos Slim by 2012, three years ahead of schedule.
>>NY Times to Repay Slim's $250M Loan Early
The company's net debt was $646 million in the third quarter.
Standard & Poor
released a report on Nov. 1 affirming its 'B+' rating on the company.
"The stable rating outlook reflects our expectation that The New York Times will be able to maintain credit measures at current levels," S&P said in its report, "despite the secular decline in print advertising revenues."
The media company recently released its
third quarter financial results
in which it reported a saw a loss of $4.3 million, or 3 cents per diluted share, compared with a loss of $35.6 million, or 25 cents, in the same period a year ago.
The company is pushing for a shift to digital advertising after total advertising revenues fell 1.0% and circulation was down 4.8% in the third quarter.
Weak print ad revenue was offset up by growth in its online segments.
"Online advertising revenue, which rose 15%, continued to grow its share of revenue and made up 27% of the company's total advertising revenues in the third quarter," New York Times president and CEO Janet Robinson said.
As circulation revenue is expected to continue falling and newsprint prices are expected to rise, management expects digital advertising to grow 10%.
Shares are down almost 1% today to around $7.60. The stock is down more than 37% in the past year.
-- Written by Theresa McCabe in Boston.
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