Sotheby’s auction house is betting big on the latest global art market boom with financial filings showing the house is increasing its borrowing from corporate lenders in order to extend more guarantees to potential consigners. According to an 8-K filing made with the SEC on August 25, Sotheby’s is upping the commitments from lender GE Capital to $850 million from $600 million.
Among the goals listed for the increased borrowing are raising “the maximum permissible amount of net outstanding auction guarantees (.i.e auction guarantees less the impact of related risk and reward sharing arrangements) from $300 million to $600 million.”
