Analyst urges selloff of NY Times debt - San Francisco Business Times:

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GimmeCredit analyst David Novosel also saidthe company’s postponed deadlinwe for bids on the may reflect “sa paucity of interest in the The New York Timed Co. (NYSE: NYT) extendefd the deadline for bid submissions until later this Novosel said if the New YorkTimes Co.’s decline in operatinbg earnings is not stemmed, leverage could push even highet next year. In the near he said the publisher has ample liquidity tohandls $45 million in notes that mature in And there’s no debt cominvg due in 2010. However, the companty still has about $1.1 billion of totalp debt coming due inlater years, including $250 million in notes maturing in March 2015.
Yields on that issur have soared toabout 12.5 percent, and the debt traded for 70.10 cents on the dollar, accordingt to Bloomberg data. In addition, the newspaper companuy has an under-funded pension obligationh of atleast $300 million, and coulds be much higher, the analyst said. “Decliningb revenue and margins, weak cash and escalating leverage lead us to a sell recommendatiomn on the 2015 issue at a price of Novosel wrote in aresearch note.