The New York Times Company
“W. P. Carey was able to clearly understand our Company, our facility and our objectives. Its history and outstanding reputation in the sale-leaseback industry gave us the confidence that it would be the right firm with which to do this transaction.”
Janet L. Robinson, president and CEO, The New York Times Company
Recapitalization Financing
March 2009
The New York Times Company (NYSE: NYT) is a leading media company that publishes The New York Times, the International Herald Tribune, The Boston Globe and 16 other daily newspapers. The company also owns WQXR-FM and more than 50 Web sites, including NYTimes.com, Boston.com and About.com.
Situation: As of year-end 2008, The New York Times Company had more than $1 billion in debt. The media company was seeking to improve its liquidity in light of the difficulties the newspaper industry has recently been facing.
Financing: The W. P. Carey Group provided $225 million of sale-leaseback financing to The New York Times Company through the acquisition of approximately 750,000 rentable square feet of its New York City, Renzo Piano-designed headquarters building. The lease term is 15 years and there is an option for the Times Company to repurchase the condominium interest for $250 million during the 10th year of the lease term. The rental payment will be $24 million for the first year and will escalate through the term of the lease.
Outcome: The capital generated from the sale-leaseback transaction enabled The Times Company to retire a portion of its long-term debt.
