Trust eyes $250 million mandatory exchangeables tied to New York Times

By Wendy Van Sickle

Columbus, Ohio, Dec. 6 – A shareholder group of five banks with a stake in the class A common shares of the New York Times Co. said the newly formed 2017 Mandatory Exchangeable Trust plans to offer $250 million mandatory exchangeable trust securities in a private Rule 144A offering.

The securities will be exchanged for part of shareholders’ respective stake of shares of the New York Times at maturity or prior to maturity upon the occurrence of certain events, according to a Wednesday press release.

Banco Inbursa, SA, Institucion de Banca Multiple, Grupo Financiero Inbursa, Inversora Carso, SA de CV and Control Empresarial de Capitales, SA de CV are the shareholder banks.

The trust is expected to enter into a variable forward purchase agreement with each of the shareholders.

At the closing of the offering, the trust will pay the proceeds to the shareholders, and a portion will be used to purchase U.S. Treasury securities, which will fund quarterly distributions on the securities.

Shortly after the exchange date, expected to be the first scheduled trading day after Dec. 1, 2020, the trust will exchange each trust security for a certain number of shares.

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