DOW JONES NEWSWIRES
Sotheby's Inc. (BID) announced a new three-year credit line,
which will be $50 million bigger than planned because of strong
lender interest, in a move the auctioneer said gives it more
flexibility.
The deal comes as the art auction house's sales have tumbled.
The industry has been struggling to secure enough top material to
entice bidders as the economic downturn is forcing them to rely
heavily on individuals to sell art for personal reasons.
The $200 million credit line, arranged by General Electric Co.'s
(GE) finance arm and HSBC Holdings PLC (HBC), will carry an
interest rate of at least 6%. Sotheby's President and Chief
Executive Bill Ruprecht called the financing "a very positive
development." The company's current line, with Bank of America
Corp. (BAC), was to mature in a year.
Sotheby's shares closed Monday at $15.86 and were inactive
premarket. The stock is up 78% this year.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com