Times Co. to borrow against building - International Herald Tribune

The New York Times Company plans to borrow up to $225 million against its mid-Manhattan headquarters building, to ease a potential cash flow squeeze as the company grapples with tighter credit and shrinking profits.

Burn, baby, burn.

The company has retained Cushman & Wakefield, the real estate firm, to act as its agent to secure financing, either in the form of a mortgage or a sale-leaseback arrangement, said James Follo, the Times Company’s chief financial officer.

The company has two revolving lines of credit, each with a ceiling of $400 million, roughly the amount outstanding on the two combined. One of those lines is set to expire in May, and finding a replacement would be difficult given the economic climate and the company’s worsening finances. Analysts have said for months that selling or borrowing against assets would be the company’s best option for averting a cash flow problem next year.

Good luck finding a subprime mortgage in this credit market, Pinchy. Even if you get it, I don’t want to speculate how high your interest rate will be, but it won’t be pretty.

Then again, Soros may ride to your rescue and buy your building, if he thinks your usefulness can be preserved until the 2010 elections. The downturn won’t last forever, and someone will be willing to pay a good price for prime Manhattan office space some ways down the line. The newspaper business, not so much. You hacks were already doomed, your bias and dishonesty are just speeding the end.

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