The New York Times borrows almost a quarter billion dollars

In these parlous economic times, the old grey lady 'The New York Times' announced that it is going to borrow us$225 million against its new headquarters, designed by the well known architect Renzo Piano. A state of the art glass building of 52 floors had made news around the world by daredevils who climbed its ventian blind like slats to the building's pinnacle. It now comes to light that the NYT owns 58 per cent of the building or some 1,5 million square feet, and the developer Forest City Ratner owns the rest. Lately S&P have lowered the credit worthiness of the NYT, and a revolving line of credit is coming to its term. So, given the downturn in the print medium, the old grey lady is strapped for cash. In consequent, since it has its money tied up in the building, to easy its cash flow, the NYT is borrowing almost a quarter billion dollars against this asset. And this very well may be the first step towards increasing debt against its headquarters.