Salem Media Group has offered its seven remaining Modern Christian-formatted radio stations to the Academic Media Basis (EMF) for $80 million, the corporate introduced Monday (Dec. 30).
The settlement, which is pending approval from the Federal Communications Fee (FCC), will add or increase EMF programming to seven U.S. markets, with stations together with KLTY-FM in Arlington, Texas; WFSH-FM in Athens, Ga.; WFHM-FM in Cleveland; KFSH-FM in La Mirada, Calif.; KKFS-FM in Lincoln, Calif.; KBIQ-FM in Manitou Springs, Colo.; and KFIS-FM in Scappoose, Oreg.
EMF — the dad or mum group of Christian radio networks Air1 and Okay-LOVE — famous in an announcement that it intends to launch Okay-LOVE or Air1 Worship Now programming on these indicators in keeping with market wants, pending FCC approval. It indicated that it goals to start programming the stations through a neighborhood advertising settlement on Feb. 1.
Additionally on Monday, Salem introduced that it has entered into an promoting and advertising settlement with EMF for $10 million.
By means of its Air1 and Okay-LOVE networks, EMF reaches roughly 18 million listeners every week. Its Air1 and Okay-LOVE radio networks have over 1,100 broadcast indicators throughout all 50 states, with world attain by means of streaming audio.
Salem Media Group’s CCM-formatted radio stations have been mostly operated beneath the nickname “The Fish.” Based as Salem Communications in 1974, the corporate rebranded as Salem Media Group in 2015. It has since grown to turn out to be a multimedia firm with properties together with speak radio, digital media and e book/e-newsletter publishing. In keeping with a March 2024 company information, the corporate’s different radio indicators embrace 38 Christian instructing and speak radio stations and 30 information speak stations.
Salem’s sale of the seven stations got here as a part of a bunch of strategic transactions aimed toward shoring up the corporate’s monetary safety. As a part of this effort, the corporate repurchased all $159.4 million in excellent 7.125% senior secured notes due 2028 for $104 million money and $24 million in subordinated unsecured promissory notes. By midyear 2025, these notes are slated to be exchanged for collection A most well-liked inventory. Salem additionally issued $40 million in collection B convertible most well-liked inventory to the muse WaterStone, with proceeds getting used to fund Salem’s debt repurchase. On Dec. 23, Salem prolonged its revolver line of credit score with Siena Lending Group for one 12 months.
“As Salem has leaned into its speak and data programming, we’re honored to hold the torch and hold Christian music flowing over these frequencies,” mentioned Tom Stultz, EMF’s interim CEO, in an announcement. “These robust stations increase our protection space and assist us ship on our mission to succeed in extra individuals with the gospel of Jesus Christ. We really feel it’s an unimaginable alternative to proceed serving listeners with Christian music in these essential markets.”
Edward G. Atsinger, Salem Media Group’s govt chairman/co-founder, mentioned in an announcement, “Now we have made a strategic resolution to exit the Modern Christian Music format as a way to repay all of Salem’s long-term debt. We couldn’t be extra delighted that the client is EMF. EMF has demonstrated over a few years a singular skill and dedication to creating and distributing the very best high quality Christian music content material to its listeners in a optimistic and inspiring manner. I’m assured that their affect on listeners and their communities might be extremely efficient.”
This isn’t Salem’s first sale to EMF. In March, the corporate offered its stations in Nashville and Honolulu to EMF for $7 million.
