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UPDATE 1-New York Times expects to borrow less in 2009
NEW YORK |
NEW YORK Dec 9 (Reuters) - The New York Times Co (NYT.N) is confident it will be able to meet debt obligations and cut its borrowing in 2009, which the newspaper publisher said would be one of its most challenging years.
"In November, the rate of change in advertising revenue declined from what we saw in October. The entertainment, real estate and automotive advertising categories were especially soft," Chief Executive Janet Robinson said in a statement.
The company has no need or intention to fully replacing its $400 million credit facility that expires next year because its total borrowing is projected to be significantly less than $800 million, and currently is about $400 million, she said.
The company added that it has started a process to borrow against its headquarters, via a secure financing of up to $225 million. The proceeds will be used to repay existing long-term debt.
"The building provides a unique opportunity for us to borrow at attractive rates in today's market. We are also looking at various other financing alternatives, including revolvers, public offerings or private placements," she said in a statement.
The New York Times is also talking to its lenders regarding debt that matures in 2009 and 2010, and evaluating its assets, although it sees the feasibility of asset sales right now as "uncertain." (Reporting by Franklin Paul, editing by Maureen Bavdek)
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