Times Co. OK's $250m loan from Slim

The New York Times Co. said yesterday it had reached an agreement with the Mexican billionaire Carlos Slim Helu for a $250 million loan intended to help the newspaper company finance its businesses.

Under the terms of the deal, Slim, who already owns 6.9 percent of the Times Co., would invest $250 million in the form of six-year notes with warrants that are convertible into common shares, the company said.

The deal comes as the Times Co. looks to raise money amid flagging ad sales and approaching deadlines to pay back $1.1 billion in debt in the next few years.

The Times Co., parent company of The Boston Globe, will use the proceeds to refinance its existing debt. One of its two $400 million revolving credit lines is set to expire in May.

"This agreement provides us with increased financial flexibility to continue to execute on our long-term strategy," Janet L. Robinson, chief executive of the Times Co., said.

The company has also put its stake in the Boston Red Sox up for sale and said last year that it would borrow as much as $225 million against its headquarters.

Slim will receive no representation on the company's board or any shares with special voting rights like those of the Sulzberger family, which controls the company.

NEW YORK TIMES