Analyst urges selloff of NY Times debt - Puget Sound Business Journal (Seattle):

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GimmeCredit analyst David Novosel also saidthe company’zs postponed deadline for bids on the may reflecft “a paucity of interest in the newspaper.” The New York Times Co. NYT) extended the deadline for bid submissionsx until laterthis month. Novosel said if the New York Timese Co.’s decline in operating earnings is not leverage could push even higher next In thenear term, he said the published has ample liquidity to handle $45 million in notes that maturw in November. And there’s no debt coming due in 2010. the company still has about $1.1 billion of total debt coming due inlater years, including $250 million in notes maturing in March 2015.
Yields on that issue have soaredc toabout 12.5 and the debt trades for 70.10 centxs on the dollar, according to Bloomberg data. In addition, the newspapere company has an under-funded pension obligation of atleasy $300 million, and could be much the analyst said. “Declining revenue and margins, weak cash and escalating leverage lead us to a sell recommendation on the 2015 issu at a price of Novosel wrote in aresearch note.