New York Times gets $250 mln; Abacus in Kirsh deal; World Racing sells to Vicis; Maudore in new deal

By Kenneth Lim

Boston, Jan. 20 - New York Times Co. raised $250 million through a sale of debt securities to companies controlled by Mexican billionaire Carlos Slim.

Abacus Property Group received a A$24.4 million investment from Kirsh Group and could raise a further A$187 million through a rights offering.

Maudore Minerals Ltd. took in an initial C$589,464 million from a stock placement and is looking to raise more capital within the next two weeks.

World Racing Group, Inc. wrapped up a $3.5 million placement of preferred stock to major shareholder Vicis Capital Master Fund.

New York Times in Slim deal

New York Times Co. placed $250 million of 14.053% senior unsecured notes due 2015 with Banco Inbursa, SA, Institucion de Banca Multiple, Grupo Financiero Inbursa and Inmobiliaria Carso.

The Banco Inbursa companies will take $125 million of the notes, while Inmobiliaria Carso will buy the remaining $125 million. The companies are controlled by Mexican billionaire Carlos Slim.

The investors also will receive warrants for 15.9 million class A shares, exercisable at $6.3572 until January 2015. New York Times common stock (NYSE: NYT) dropped 7.8% or $0.50 to close at $5.91 on Tuesday. The company's market capitalization is $849.8 million.

Based in New York, the New York Times is a diversified media company.

"This agreement provides us with increased financial flexibility to continue to execute on our long-term strategy," New York Times president and chief executive Janet L. Robinson said in a statement. "The proceeds from this transaction will be used to refinance existing debt, including amounts currently borrowed under a revolving credit facility that matures in May 2009. We continue to explore other financing initiatives and are focused on reducing our total debt through the cash we generate from our businesses and the decisive steps we have taken to reduce costs, lower capital spending, decrease our dividend and rebalance our portfolio of assets."

Inmobiliaria Carso director Arturo Elias added: "We are very pleased to expand our strong relationship with the New York Times Co. We believe that with the strength of the New York Times brand, its national and international reach, its potential for digital expansion and most of all, its world-class news and information, the company will continue to be a leader in the media industry."

Abacus raises A$24.4 million

Abacus Property Group raised A$24.4 million from a private placement of its stapled securities with a member of the Kirsh Group.

The company sold about 97.6 million securities at A$0.25 apiece. The securities (ASX: ABP) rose 7.32% or A$0.015 to close at A$0.225 on Tuesday. Abacus has a market capitalization of A$132.4 million.

Following the placement, Kirsh holds a 13.6% stake in Abacus.

Kirsh will also sub-underwrite a planned $187 million rights offer by Abacus. Under the rights offer, Abacus will offer one share at A$0.25 for every one share held. The rights offer will open in February.

Proceeds will be used to reduce leverage and allow Abacus to capitalize on acquisition opportunities in the current market environment.

"We are delighted to welcome the Kirsh Group as a substantial investor in Abacus," Abacus chairman John Thame said in a statement. "The recapitalization of Abacus' balance sheet through the placement and rights issue provides us with covenant headroom and the ability to take advantage of new investment opportunities as they arise in the current economic environment."

Kirsh founder Nathan Kirsh also commented: "We are very pleased to become a substantial investor in Abacus Property Group as part of the expansion of our global property investment activities. Given that Abacus will now be more appropriately capitalized, it provides a far stronger platform to take advantage of the many interesting investment opportunities that we see emerging in Australian commercial property markets."

Maudore raises more funds

Maudore Minerals placed C$589,464 of its common stock in an initial tranche of a non-brokered offering.

The company expects to raise more in a second tranche over the next 10 days.

The first tranche comprised 483,200 common shares at C$1.22 apiece. Maudore common stock (TSX: MAO) closed at C$1.52 on Tuesday, lower by 10.06% or C$0.17.

Maudore has a market capitalization of C$24.3 million.

This is the second recent capital raise by the company, which sold C$1 million of flow-through common shares at C$1.60 per share on Dec. 31.

Proceeds from both deals will be used for the company's exploration program at the Comtois project in Quebec. The company said in a press release that the financing will allow the company to operate at the present drilling rate for all of 2009.

Maudore is a mineral exploration company based in Montreal.

"We expect another substantial amount may be raised in a second tranche of this financing, which should close within 10 days," Maudore president and chief executive Ron Shorr said in the press release.

World Racing completes Vicis deal

World Racing Group raised $3.5 million from a placement of 10% cumulative perpetual series A preferred stock to Vicis Capital.

The company sold 350 preferreds at $10,000 each. Vicis also received 28,500 common shares for each preferred, or 9.975 million common shares in total. Vicis may buy a further $6.5 million of the preferreds.

World Racing Group common stock (OTCBB: WRI) closed unchanged at $0.04 on Tuesday. The company has a market capitalization of $1.3 million.

As a result of the offering, Vicis now owns about 13.8 million World Racing shares, or a 32.5% stake.

Proceeds will be used for working capital.

World Racing is based in Concord, N.C.

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