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Photo Credit: Salem Media Group
Salem Media Group sells its remaining contemporary Christian music radio stations to the Educational Media Foundation for $80 million.Salem Media Group has sold its seven remaining contemporary Christian music radio stations to the Educational Media Foundation (EMF) for $80 million. The company confirmed the news on Monday (December 30).
The agreement is still pending approval from the FCC and will add or expand EMF programming in seven U.S. markets. Stations include KLTY-FM in Arlington, TX; WFSH-FM in Athens, GA; WFHM-FM in Cleveland, OH; KFSH-FM in La Mirada, CA; KKFS-FM in Lincoln, CA; KBIQ-FM in Manitou Springs, CO; and KFIS-FM in Scappoose, OR.
EMF voiced its intention to launch its K-LOVE or Air1 Worship Now programming on the newly acquired stations based on market needs and pending FCC approval. The organization indicated its aim to begin programming those stations through a local marketing agreement on February 1.
“As Salem has leaned into its talk and information programming, we are honored to carry the torch and keep Christian music flowing over these frequencies,” said Tom Stultz, EMF’s interim CEO. “These strong stations expand our coverage area and help us deliver on our mission to reach more people with the gospel of Jesus Christ. We feel it is an incredible opportunity to continue serving listeners with Christian music in these important markets.”
“We have made a strategic decision to exit the contemporary Christian music format in order to pay off all of Salem’s long-term debt,” added Edward G. Atsinger, Salem Media Group’s executive chairman and co-founder. “We could not be more delighted that the buyer is EMF. EMF has demonstrated over many years a unique ability and dedication to creating and distributing the highest quality Christian music content to its listeners in a positive and encouraging way. I am confident that their impact on listeners and their communities will be incredibly effective.”
Salem Media Group also announced its entering a $10 million advertising and marketing agreement with EMF. EMF currently reaches approximately 18 million listeners each week through its Air1 and K-LOVE Christian networks. Both networks have over 1,100 broadcast signals across the United States, with additional global reach via streaming radio.The sale of all seven of Salem’s remaining contemporary Christian stations comes as part of an assortment of strategic transactions designed to settle the company’s financial security. To that end, the company repurchased all $159.4 million in outstanding senior secured notes at 7.125% due 2028 for $104 million in cash and $24 million in subordinated unsecured promissory notes.
By the middle of next year, the notes are due to be exchanged for Series A preferred stock. The company also issued $40 million in Series B convertible preferred stock to the WaterStone Foundation, with proceeds used to fund Salem’s debt repurchase. Salem also extended its revolver line of credit with Siena Lending Group for a year beginning on December 23.
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