Wednesday, January 21, 2009

New York Times: Rescue Financing 8-K Filed

Most interestingly among the negative covenants listed:
  • Creating liens on any properties
  • Incur additional debt prior to March 2010, if pro forma leverage is higher than 2.75x
  • Engage in sale/leaseback transactions, with up to $225 million carveout for NYT HQ building
  • Merge or consolidate with other assets
  • Transfer or sell assets, with any sales over $10 million have to be used to pay down debt
There is also a 101% change of control put. Sphere: Related Content
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