Bloomberg’s Katya Kazakina jumps on the 8-k filing from Sotheby’s showing the firm has added $200m to its $600m credit facility with GE to accommodate the Taubman collection.
Taubman accounts for $500m. Sotheby’s active and growing finance arm also uses the $600m facility to make loans against art works. So it was only a matter of time before the auction house announced it would restock with financial ammunition:
“They need to have this money in order to compete in the contemporary market against Christie’s,” said Emmanuel Di Donna, whose gallery on Manhattan’s Upper East Side specializes in modern and postwar art. “A lot of sellers expect guarantees.”
Sotheby’s Gains $200 Million More for Guarantees as Sales Loom (Bloomberg Business)