Salem Communications to start roadshow Tuesday for $300 million seven-year second-lien notes

By Paul A. Harris

St. Louis, Nov. 16 - Salem Communications Corp. will begin a roadshow on Tuesday for its $300 million offering of seven-year senior secured second-lien notes (expected ratings B2/B), according to an informed source.

The deal is set to price early in the Nov. 23 week.

Bank of America Merrill Lynch and Barclays Capital Inc. are joint bookrunners for the notes, which are being marketed via Rule 144A with registration rights and Regulation S. ING and Houlihan Lokey are co-managers.

The notes come with four years of call protection.

Proceeds, together with a new $30 million senior secured credit facility and up to approximately $27 million of cash on hand, will be used to repay the company's existing credit facilities and its 7¾% senior subordinated notes due 2010.

Salem Communications is a Camarillo, Calif.-based radio broadcaster of Christian- and family content.

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