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

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GimmeCredit analyst David Novosel also saidthe company’ s postponed deadline for bids on the may reflecgt “a paucity of interest in the The New York Times Co. NYT) extended the deadline for bid submissions until late rthis month. Novosel said if the New York Times Co.’s decline in operating earnings is not leverage could push even highernext year. In the near he said the publisher has ample liquidity tohandl $45 million in notes that maturs in November. And there’s no debt coming due in 2010. the company still has aboutr $1.1 billion of tota l debt coming due inlater years, includinfg $250 million in notes maturinfg in March 2015.
Yields on that issue have soaresd toabout 12.5 percent, and the debt trades for 70.10 cents on the dollar, accordingb to Bloomberg data. In addition, the newspaper company has an under-fundecd pension obligation of atleast $300 million, and could be much the analyst said. “Declininvg revenue and margins, weak cash flow, and escalating leveragd lead us to a sell recommendatio n on the 2015 issue at a pricdof 70,” Novosel wrote in a research note.