Slim Loans NYT Co. $250M

Mexican billionaire will own 17% of company, but gets no special voting shares
By Jason Farago,  Newser Staff
Posted Jan 20, 2009 6:47 AM CST
Slim Loans NYT Co. $250M
Carlos Slim will loan the New York Times Company $250 million, which will net him 17% of the company.   (©Robert Scoble)

(Newser) – The New York Times Company announced last night that it had cut a deal with Mexico's Carlos Slim, the world's second-richest man, for a $250 million loan. Slim will receive common shares over six years, at the end of which he will own 17% of the corporation. But he will not gain any representation on the company's board or any of the special voting shares held by the Sulzberger family.

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The agreement comes as the company, which owns the Times and the Boston Globe among other properties, struggles with declining advertising revenue and faces a deadline to pay back $1.1 billion in debt. In recent months the company has tried to sell its stake in the Boston Red Sox, and it will borrow up to $225 million against its new office building on New York's 8th Avenue. Slim, who approached the Times in November, will also receive 14% interest on the loan.
(Read more Carlos Slim stories.)

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