Dec. 8 (Bloomberg) -- New York Times Co., facing a $400 million debt repayment in May, may borrow as much as $225 million against its Manhattan headquarters.

The third-largest U.S. newspaper publisher hired commercial real-estate firm Cushman & Wakefield Inc. to help obtain financing through a mortgage or a sale-leaseback agreement, spokeswoman Catherine Mathis confirmed today in an e-mail.

New York Times, which finished the third quarter with $46 million in cash and equivalents, must refinance or repay a $400 million credit line that expires in May. The company has about $366.3 million remaining under a second credit agreement that becomes payable in June 2011.

To make up for declining advertising sales, the publisher of the namesake newspaper and Boston Globe, slashed its dividend by almost three-fourths last month and has also eliminated jobs. The company has $672.5 million in long-term debt.

The New York Times reported the plans for its building yesterday, citing Chief Financial Officer James Follo.

The company moved its corporate offices and flagship newspaper into the 52-story tower, designed by Renzo Piano, in June 2007. The Eighth Avenue building, west of Times Square, is jointly owned with Forest City Ratner Cos.

Shareholders Firebrand Partners and Harbinger Capital Partners have pressured the company this year to invest more in Internet properties, sell or mortgage the skyscraper and sell stakes in professional sports teams and regional newspapers. The hedge funds dropped their proxy challenge fight after the company offered them two board seats.

New York Times rose 21 cents, or 2.8 percent, to $7.85 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 55 percent this year.

To contact the reporter on this story: Sarah Rabil in New York at srabil@bloomberg.net

Last Updated: December 8, 2008 17:16 EST