Times Co. may borrow against building

The New York Times Co., facing a $400 million debt repayment in May, may borrow as much as $225 million against its Manhattan headquarters.

The third-largest US newspaper publisher hired commercial real estate firm Cushman & Wakefield Inc. to help obtain financing through a mortgage or a sale-leaseback agreement, spokeswoman Catherine Mathis confirmed in an e-mail.

The Times Co., which finished the third quarter with $46 million in cash and equivalents, must refinance or repay a $400 million credit line that expires in May.

The company has about $366.3 million remaining under a second credit agreement that becomes payable in June 2011.

To make up for declining advertising sales, the publisher of the namesake newspaper and The Boston Globe, slashed its dividend by almost three-fourths last month and has also eliminated jobs. The company has $672.5 million in long-term debt.

The Times Co. reported the plans for its building yesterday, citing chief financial officer James Follo.