The New York Times Company (NYSE:NYT) today announced that entities
affiliated with Carlos Slim Helú have exercised in full warrants to
acquire 15,900,000 shares of the company’s Class A common stock at an
exercise price of $6.3572 per share.
The warrants were issued in January 2009 in connection with a financing
transaction in which these entities purchased $250.0 million aggregate
principal amount of the company’s notes. The notes were repaid in full
in 2011. Following the cash exercise of the warrants, Mr. Slim and
entities under his control own approximately 27.8 million Class A
shares, representing approximately 16.8% of the company’s outstanding
common stock.
The company has received cash proceeds of approximately $101.1 million
from the exercise of the warrants and currently intends to use the cash
proceeds to repurchase Class A shares from time to time in open market
transactions as conditions permit. The company currently has an
authorization from its Board of Directors to repurchase Class A shares
for an aggregate repurchase price up to the $101.1 million of exercise
proceeds.
Regarding the share repurchase, Mark Thompson, president and chief
executive officer, said, “We believe a share repurchase program in this
instance is an appropriate use of the cash proceeds we will receive upon
the exercise of the warrants and the issuance of the Class A shares. We
believe it is in the best interests of the company to continue to
maintain a conservative balance sheet and a prudent view on the
allocation of free cash flow, and this one-off repurchase program should
not be viewed as a change of position about our capital allocation
plans."
Except for the historical information contained herein, some of the
statements included in this press release, particularly those regarding
the expected use of proceeds from this exercise, are forward-looking
statements that involve risks and uncertainties, and actual results
could differ materially from those predicted by such forward-looking
statements. These risks and uncertainties include changes in the
business and competitive environment in which the company operates, the
impact of national and local conditions and developments in technology,
each of which could influence the levels (rate and volume) of the
company’s circulation and advertising, the growth of its digital
businesses and the implementation of its strategic initiatives. The
company’s actual results could also be impacted by the other risks
detailed from time to time in its publicly filed documents, including
its Annual Report on Form 10-K for the year ended December 29, 2013. The
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
About The New York Times Company
The
New York Times Company (NYSE:NYT) is a global media
organization dedicated to enhancing society by creating, collecting and
distributing high-quality news and information. The company includes The
New York Times, International New York Times, NYTimes.com, INYT.com and
related properties. It is known globally for excellence in its
journalism, and innovation in its print and digital storytelling and its
business model. Follow news about the company at @NYTimesComm.
This press release can be downloaded from www.nytco.com.
Copyright Business Wire 2015