Carlos Slim, widely known as the second richest person in the world, is a big fan of The New York Times. Or rather, what the Times can do for his wallet. That’s why he’s upping his stake in the company.
By the end of 2014, Slim is expected to exercise stock warrants that he obtained in 2009 via a $250 million loan to the paper. If he does, Slim will double his stake in the Times to as much as 19 percent. Slim, who owns eight percent of Times stock, is currently the company’s second largest stock owner.
Not that Slim needs the warrants. As Bloomberg News notes, his deal with the Times has been great for him already:
Even leaving out the warrants, Slim has booked a profit from his loan to the newspaper. The Times paid Slim back in 2011, including a 12 percent premium for early payment. The loan’s annual interest rate of 14 percent was the highest the company had paid on debt dating back to at least 1995.