Media conglomerate The New York Times Company today said it will raise $225 million through a sale-leaseback transaction for a part of the space at its headquarters in the city.
The entity which owns many leading newspapers like The New York Times, The International Herald Tribune and The Boston Globe, among others, has entered into an sale-leaseback transaction with investment company W P Carey & Co LLC.
The move would help the firm pay back debts and also boost its cash position, as the newspaper industry faces tough times in the wake of the global financial meltdown.
Recently, the firm had borrowed $250 million from Mexican billionaire Carlos Slim Helu. It had also suspended dividend payment.
"The New York Times Company and investment firm W P Carey & Co LLC announced today that they had entered into a sale-leaseback transaction for $225 million for part of the space that the Times Company owns in its New York headquarters," it said in a statement.
According to the firm, the lease term is for a period of 15 years. The New York Times Company has an option to repurchase the condominium interest for $250 million during the tenth year of the lease term.
