Salem Media Group Announces Issuance of Additional 7.125% Senior Notes due 2028 and Completion of Redemption of 6.75% Senior Notes due 2024

Rhea-AI Summary

Salem Media Group, Inc. (NASDAQ: SALM) has completed the redemption of $36.5 million in 6.75% Senior Secured Notes due 2024. The redemption was financed by issuing $44.685 million in new 7.125% Senior Secured Notes due 2028. The transaction is expected to strengthen the company's balance sheet. The new notes were sold to qualified institutional buyers in a private placement and have not been registered under the Securities Act. The company's operations focus on Christian and conservative content through various media platforms.

Positive

• Redemption of $36.5 million in high-interest debt improves balance sheet.
• Issuance of new $44.685 million notes at a lower interest rate enhances financial leverage.

Negative

• None.

Completion of Refinancing Expected to Strengthen Company’s Balance Sheet

IRVING, Texas--(BUSINESS WIRE)-- Salem Media Group, Inc. (NASDAQ: SALM) (the “Company”) announced today that it has completed its previously announced redemption in full of the remaining $36.5 million in outstanding aggregate principal amount of its 6.75% Senior Secured Notes due 2024 (the “2024 Notes”).

The redemption was funded through the issuance by the Company on March 20, 2023 of $44.685 million in additional 7.125% Senior Secured Notes due 2028 of the Company (the “2028 Notes”), a portion of the proceeds of which was used to satisfy and discharge the Indenture relating to the 2024 Notes on March 20, 2023 and to complete the redemption on March 27, 2023.

The additional 2028 Notes and the related guarantees were sold to certain existing holders of the Company’s outstanding 2028 Notes whom the Company believes to be qualified institutional buyers, in a private placement. The additional 2028 Notes and the related guarantees have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act or any state securities laws.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities and shall not constitute an offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Salem Media Group, Inc.

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com, Facebook and Twitter.

Forward-Looking Statements

Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, inflation and other adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem’s reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230324005331/en/

Company Contact:

Evan D. Masyr

Executive Vice President and Chief Financial Officer

(805) 384-4512

evan@salemmedia.com

Source: Salem Media Group, Inc.

FAQ

What did Salem Media Group announce regarding its Senior Secured Notes?

Salem Media Group announced the redemption of $36.5 million in 6.75% Senior Secured Notes due 2024.

How did Salem Media Group fund the redemption of its 2024 Notes?

The redemption was funded through the issuance of $44.685 million in additional 7.125% Senior Secured Notes due 2028.

What impact will the redemption of the 2024 Notes have on Salem's balance sheet?

The redemption is expected to strengthen Salem Media Group's balance sheet by reducing high-interest debt.

Who bought the new 7.125% Senior Secured Notes issued by Salem Media Group?

The new notes were sold to existing holders who are qualified institutional buyers in a private placement.

When did Salem Media Group complete the redemption of the 2024 Notes?

The redemption of the 2024 Notes was completed on March 27, 2023.