SMG Sells Seven CCM Stations, Restructures Balance Sheet

In a significant restructuring of its financial landscape, Salem Media Group (SMG) has repurchased all $159.4 million of its outstanding 7.125% Senior Secured Notes due 2028 at a discounted rate, issued $40 million in convertible preferred stock, and reached an agreement to sell seven of its radio stations for $90 million.

Salem CEO David Santrella highlighted the transformative effect of these transactions: "This comprehensive restructuring not only eliminates nearly all of our outstanding debt but also positions us for future growth with a stronger balance sheet and capital structure," he said.

The repurchased 2028 Notes, totaling $159.4 million, were bought back for $104 million in cash and $24 million in subordinated unsecured promissory notes. Following the repurchase, these notes were cancelled, and all obligations under the related indenture were discharged.