NY Times gets $250M infusion
Mexican billionaire's businesses will provide money to help the newspaper refinance its existing debt.
(CNN) -- The New York Times company said Monday it was getting $250 million in financing from companies controlled by Mexican billionaire Carlos Slim Helu, with the money to be used to refinance existing debt.
"This agreement provides us with increased financial flexibility to continue to execute on our long-term strategy," said Janet L. Robinson, president and CEO of the Times company.
"We continue to explore other financing initiatives and are focused on reducing our total debt through the cash we generate from our businesses and the decisive steps we have taken to reduce costs, lower capital spending, decrease our dividend and rebalance our portfolio of assets," Robinson added.
The Times will get the financing under an agreement with Banco Inbursa, S.A., and Inmobiliaria Carso, with $125 million coming from each company, according to the Times statement. Slim and members of his family are the main shareholders of Grupo Financiero Inbursa (GPFO.Y), which is the parent company of Banco Inbursa.
The family also owns Inmobiliaria Carso, which currently holds 6.9% of the Times company's Class A shares.
"We are very pleased to expand our strong relationship with The New York Times Company," said Arturo Elias, director of Inmobiliaria Carso. "We believe that with the strength of The New York Times brand, its national and international reach, its potential for digital expansion and most of all, its world-class news and information, the company will continue to be a leader in the media industry."
The Times, the "Great Gray Lady" of American journalism, reported a 20% decline in November ad revenues and saw overall numbers for the month down nearly 14%. Its stock has declined over the past year from about $15 a share to $6.41 at the end of last week.