Carlos Slim has loaned the New York Times (NYT) $250 million. This further lessens the immediate cash crisis and should give the company another year or so of breathing room. As we expected, however, the money was breathtakingly expensive.
Two of Slim's companies now own $250 million of NYT Senior Unsecured Notes paying annual interest of 14% ($35 million a year). In addition, Slim gets warrants on 16 million shares of Class A common stock, which equates to just over 10% of the company. (Class A shares are for the hoi polloi. The Class B shareholders, including the Sulzbergers, still control the company).
See you in another year when these clowns go down.