Sotheby’s is lending it to lenders to pay $ 300m to its owners, led by businessman Patrick Drahi, after a return on profits due to price cuts and resignations during the epidemic.
The real estate broker, which Drahi agreed to buy in 2019 for $ 3.7bn, is planning to raise the money on loans set up by banks including Goldman Sachs, according to documents reviewed by the Financial Times.
The segment is the second in six months, coming on top of another $ 165m distribution in November. Drahi BidFair USA owns 94% of Sotheby’s.
With lending funds held by the US Federal Reserve, there has been a so-called interest rate called return on financial institutions and other owners, who borrow money. great pay from the companies that acquired it.
Sotheby has benefited from recent developments in the global stock market and told potential lenders Wednesday that he expects to report a profit of between $ 13m and $ 15m in the three months to the end of March, compared to the same quarter loss last year.
The real estate broker made a profit of $ 39.1m for the whole of 2020, compared to the loss of $ 71.2m in 2019, a year that includes significant revenues related to its sale in Drahi. The company also said it had significantly reduced the epidemic, claiming $ 98m in cash from a small refund and deducted from its annual report.
Mr. Sotheby did not immediately respond to a request for comment.
International art sales fell 22% in 2020 to $ 50.1bn, according to Art Basel and UBS. The healing power will be tested this week as Sotheby’s and his friend Christie capture their two-year-old and modern art.
The retailers offer one of the best deals on competitive applications, and are some of the most visible in the industry.
Among the many stars sold by Sotheby’s Wednesday is a portrait of Claude Monet “The Water-Repellent Pool”, who masterminded between 1917 and 1919 and has changed hands several times, including Sotheby’s in 2004. The auction house is expected to take $ 40m or more.
Drahi, a maker of telecommunications companies, born in Morocco and a citizen of France, Israel and Portugal, is known to use credit to make difficult deals, including acquiring Sotheby’s.
Researchers at S&P Global’s stock exchange found the November issue of Sotheby as an example of a “financial principle” that works.
It is not yet known what interest the company will have to pay on its $ 300m salary. Calling potential creditors was held Wednesday afternoon to determine the value.
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