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  1. #1 Schadenfreude [NYT in big trouble] 
    An Adversary of Linda #'s
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    The New York Times, scrambling to stay in business, has accepted a $250 million investment from Mexican billionaire Carlos Slim Helú: Under the terms of the deal, Mr. Slim, who already owns 6.9 percent of the Times 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.

    A reader who is an expert in corporate finance writes:

    .....this is a CLASSIC instance of corporate desperation..."last chance finance"...richly deserved....


    Apparently the New York Times Corp. has accepted an offer from Mexican billionaire Carlos Slim to put $250 million into the company. But, man...are the terms onerous!...It's a debenture carrying BOTH a 14% coupon --- junk bond territory ---- AND warrants for 18% of the company, the third largest share...exercisable at a DISCOUNT to Friday's closing price!!...the warrants are in the money NOW!....it gets worse...they cut their dividend in November by 75%...reducing the Sulzbergers' income dramatically...and the new $250 million probably isn't close to enough for their liquidity needs...so they will probably do a $225 million sale/leaseback of the Times office building!...in combination.....this is a CLASSIC instance of corporate desperation..."last chance finance"...richly deserved....

    PAUL adds: John should be commended for not calling this post "Slim Pickings." I'm hardly an expert in corporate finance or the newspaper industry. But I know that the Times is a pillar of left-liberalism, so I'm skeptical that it will be permitted to disappear.


    http://www.powerlineblog.com/archive.../01/022610.php
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  2. #2  
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    There's a better AP article here.
    "Because we're a great nation, our challenges seem complex; it will always be this way. But as long as we remember our first principals and believe in ourselves, the future will always be ours." -Reagan
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  3. #3  
    HR Corporate Scum patriot45's Avatar
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    Turn page 1 for english! :D

    : “Grow your own dope. Plant a liberal.”
    ” Obummercare, 20 percent of the time it works everytime.
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