Facing declining profits and tight credit, the New York Times is looking to raise $225 million by borrowing against the 58% share the company holds in its new Renzo Piano-designed skyscraper in Times Square, the paper reports. The Times hopes to either take out a mortgage on the 52-story building completed last year or arrange a sale-leaseback deal.
The Times recently saw its credit rating slip below investment grade and faces the expiration of one of its two revolving lines of credit, each with a cap of $400 million. The Times says it has debt on the two combined of about that amount. The paper's share of the building currently is unmortgaged and investors see it as an untapped resource.