The New York Times Company to Prepay Notes Held by Inmobiliaria Carso and Banco Inbursa on August 15

The New York Times Company NYT has notified Inmobiliaria Carso, S.A. de C.V. and Banco Inbursa S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa of its election to prepay in full, on August 15, 2011, the $250 million 14.053% notes due January 15, 2015. The Company had earlier announced its intention to repay the notes at the earliest practicable date after January 15, 2012. The estimated prepayment will total approximately $279 million, which includes the principal amount of the notes, all accrued and unpaid interest, and a make-whole premium due in connection with the prepayment. While the Company will incur a $46 million loss on the prepayment in the third quarter, interest expense savings will exceed $39 million annually through January 15, 2015.