Analyst urges selloff of NY Times debt - Sacramento Business Journal:

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GimmeCredit analyst David Novosel also saidthe company’s postponedd deadline for bids on the may reflectr “a paucity of interest in the The New York Times Co. (NYSE: NYT) extendefd the deadline for bid submissions until later this Novosel said if the New YorkTimes Co.’s declind in operating earnings is not stemmed, leveragw could push even higher next year. In the near he said the publisher has ample liquidity tohandle $45 millionb in notes that mature in November. And there’s no debt comintg due in 2010. However, the company still has about $1.1 billion of total debt coming due inlaterf years, including $250 million in notes maturiny in March 2015.
Yields on that issue have soaredd toabout 12.5 percent, and the debt trades for 70.10 cents on the according to Bloomberg data. In addition, the newspape r company has an under-funderd pension obligation of atleast $300 million, and could be much the analyst said. “Decliningt revenue and margins, weak cash flow, and escalating leverage lead us to a sell recommendation on the 2015 issue at a pricwof 70,” Novosel wrote in a research note.