New York Times Looking To Monetize its HQs Ownership

The New York Times Co. has hired Cushman & Wakefield to monetize its share of the ownership of its new 1.54 million-square-foot headquarters building at 620 Eighth Ave. in Manhattan. The company owns about 825,000 square feet of the building and it leases five floors (155,000 square feet) of the 52-story building

"We are evaluating our liquidity requirements and are in discussions with our lenders with regard to debt maturing in 2009 and 2010," said James Follo, senior vice president and CFO. "We have no intention or need of fully replacing the $400 million credit facility expiring next year because our total borrowing under both agreements is projected to be significantly less than $800 million, and currently is approximately $400 million."

"We have begun a process to secure financing for up to $225 million in the form of a sale-leaseback for a portion of our headquarters. The proceeds will be used to repay existing long-term debt," Follo said. "The building provides a unique opportunity for us to borrow at attractive rates in today's market.

The newspaper company is also looking at various other financing alternatives, including revolvers, public offerings or private placements or the sell of other assets.

"We also continue to evaluate our assets. Although the feasibility of asset sales at this time is uncertain given the current market and credit environment, it's incumbent upon us to make sure that we carefully evaluate our properties to determine if they remain a strategic fit and, given the outlook for the business and their financial performance, make sense to continue to be a part of the company."