With cash reserves dwindling, The New York Times company is banking on its brand new midtown headquarters to serve as a financial kitty.
The Grey Lady is looking to take out a second mortgage on its 8th Ave. building to bolster its balance sheet. Despite cutting the stock's dividend payout by 75%, the Times closed its third quarter with only $46 million in cash and equivalents, according to the The Daily News. The media company is hurting from a drop in ad sales that has imperiled much of the newspaper industry.
With nearly $700 million in long-term debt, the Times has employed real estate firm Cushman-Wakefield to find a buyer for its eponymous midtown headquarters. Proceeds from the sale would be used to pay off a $400 million credit line that expires in May. The goal is for the Times company to lease the building back from the seller after using the sale price to settle its debts.
