Salem Media Group has offered its seven remaining Up to date Christian-formatted radio stations to the Instructional 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 broaden 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 mother or father group of Christian radio networks Air1 and Ok-LOVE — famous in an announcement that it intends to launch Ok-LOVE or Air1 Worship Now programming on these indicators in line with market wants, pending FCC approval. It indicated that it goals to start programming the stations by way of a neighborhood advertising and marketing settlement on Feb. 1.
Additionally on Monday, Salem introduced that it has entered into an promoting and advertising and marketing settlement with EMF for $10 million.
By its Air1 and Ok-LOVE networks, EMF reaches roughly 18 million listeners every week. Its Air1 and Ok-LOVE radio networks have over 1,100 broadcast indicators throughout all 50 states, with international attain by streaming audio.
Salem Media Group’s CCM-formatted radio stations had 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 discuss radio, digital media and e-book/publication publishing. Based on a March 2024 company information, the corporate’s different radio indicators embody 38 Christian instructing and discuss radio stations and 30 information discuss stations.
Salem’s sale of the seven stations got here as a part of a gaggle of strategic transactions geared 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 sequence A most well-liked inventory. Salem additionally issued $40 million in sequence 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 yr.
“As Salem has leaned into its discuss and knowledge programming, we’re honored to hold the torch and preserve Christian music flowing over these frequencies,” mentioned Tom Stultz, EMF’s interim CEO, in an announcement. “These robust stations broaden our protection space and assist us ship on our mission to succeed in extra folks with the gospel of Jesus Christ. We really feel it’s an unimaginable alternative to proceed serving listeners with Christian music in these vital markets.”
Edward G. Atsinger, Salem Media Group’s government chairman/co-founder, mentioned in an announcement, “We’ve made a strategic determination to exit the Up to date Christian Music format with a view 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 means and dedication to creating and distributing the best high quality Christian music content material to its listeners in a optimistic and inspiring manner. I’m assured that their impression on listeners and their communities can 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.
