Image Credit: Salem Media Group
Salem Media Group offers its staying modern Christian music radio stations to the Educational Media Foundation for $80 million.
Salem Media Group has actually offered its 7 staying modern Christian music radio stations to the Educational Media Foundation (EMF) for $80 million. The business verified the news on Monday (December 30).
The contract is still pending approval from the FCC and will include or broaden EMF shows in 7 U.S. markets. Stations consist of 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 objective to release its K-LOVE or Air1 Worship Now configuring on the freshly gotten stations based upon market requirements and pending FCC approval. The company showed its objective to start configuring those stations through a regional marketing arrangement on February 1.
“As Salem has actually leaned into its talk and info programs, we are honored to suffer and keep Christian music streaming over these frequencies,” stated Tom Stultz, EMF's interim CEO. “These strong stations broaden our protection location and assist us provide on our objective to reach more individuals with the gospel of Jesus Christ. We feel it is an amazing chance to continue serving listeners with Christian music in these essential markets.”
“We have actually made a tactical choice to leave the modern Christian music format in order to settle all of Salem's long-lasting financial obligation,” included Edward G. Atsinger, Salem Media Group's executive chairman and co-founder. “We might not be more thrilled that the purchaser is EMF. EMF has actually shown over several years a special capability and commitment to producing and dispersing the greatest quality Christian music material to its listeners in a favorable and motivating method. I am positive that their effect on listeners and their neighborhoods will be exceptionally efficient.”
Salem Media Group likewise revealed its going into a $10 million marketing and advertising arrangement with EMF. EMF presently reaches roughly 18 million listeners weekly through its Air1 and K-LOVE Christian networks. Both networks have more than 1,100 broadcast signals throughout the United States, with extra international reach by means of streaming radio.
The sale of all 7 of Salem's staying modern Christian stations comes as part of a selection of tactical deals created to settle the business's monetary security. To that end, the business redeemed all $159.4 million in impressive senior protected notes at 7.125% due 2028 for $104 million in money and $24 million in subordinated unsecured promissory notes.
By the middle of next year, the notes are because of be exchanged for Series A chose stock. The business likewise provided $40 million in Series B convertible favored stock to the WaterStone Foundation, with profits utilized to money Salem's financial obligation redeemed. Salem likewise extended its revolver credit line with Siena Lending Group for a year starting on December 23.
