Salem Communications obtains $150 million credit facility

By Sara Rosenberg

New York, Sept. 29 - Salem Communications Holding Corp. amended and restated its $150 million credit facility. BNY Capital Markets is the administrative agent and arranged the facility.

Other participating institutions include GE Capital, SunTrust Bank, Fleet National Bank, ING Capital, Wells Fargo Foothill, Credit Lyonnais, Credit Suisse First Boston and Union Bank of Switzerland.

The facility consists of a $75 million term loan due September 2009 and a $75 million revolver due March 2010.

The combined facility provides for a maximum total debt leverage ratio of 7.25x.

"We are pleased to have completed this transaction, which provides sufficient capital resources to support the company's continued growth. We are highly appreciative of the strong level of support and commitment that we received from our financial partners," said David A.R. Evans, chief financial officer, in a news release.

As a result of the completion of this credit facility and other factors, the company opted to cancel a contemplated debt offering, which will result in a one-time expense of approximately $0.7 million.

Salem is a Camarillo, Calif. radio broadcaster focused on religious- and family-themed programming.

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