Salem Sells 7 CCM’s to EMF
Salem Media Group announced today it has entered into an agreement with Educational Media Foundation (EMF), to sell the their CCM format stations. Those stations are WFSH/Atlanta, WFHM/Cleveland, KBIQ/Colorado Springs, KLTY/Dallas, KFSH/Los Angeles, KFIS/Portland and KKFS/Sacramento.
Regarding the sale, Edward G. Atsinger, the Company’s Executive Chairman and co-founder said, “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. 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.”
EMF will start operating the Stations pursuant to an Affiliation Agreement on or about February 1, 2025.
“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 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.”
Salem Media announced it has entered into a series of transactions pursuant to which it has repurchased all $159.4 million of its outstanding 7.125% Senior Secured Notes due 2028 (the “2028 Notes”) at a $37.1 million discount, including accrued interest, has issued $40 million of a new series of convertible preferred stock, and has agreed to sell seven radio stations and enter into a marketing agreement for total consideration of $90 million.
David Santrella, Salem’s Chief Executive Officer said, “Upon the closing of these three transactions, we will have transformed and significantly improved Salem’s balance sheet and capital structure. With the exception of its revolving line of credit, Salem will have no outstanding debt. Salem will also have the benefit of working with an important new strategic investor that is expected to bring significant new opportunities to the company as well as offer incredible expertise in the area of digital media.” David Santrella added, “As a result of these transactions, our ability to service our national ministry partners and listeners with the important content provided by Salem has been greatly enhanced.”
With FCC approval of the acquisitions, EMF will place K-LOVE or sister network Air1 Worship Now on these signals according to market needs. Currently, EMF reaches approximately 18 million listeners weekly.
In March 2024 EMF purchased Salem stations WFFH/Nashville (94 FM The Fish) and KAIM/Honolulu (95.5 The Fish). The deal also includes Nashville area stations WBOZ/Woodbury, TN (104.9) and WFFI/Kingston Springs, TN (93.7) both simulcast WFFH. Also, earlier this year, Salem sold KKSP/Little Rock (93.3 The Fish) to Tyler, TX based Encouragement Media Group.