Moody's gives Salem loans Ba2, B2

Moody's Investors Service said it assigned a Ba2 rating to Salem Communications Corp.'s proposed $25 million priority first-lien senior secured revolver and a B2 rating to the company's proposed $300 million first-lien term loan B.

In addition, Moody's revised the probability of default rating to B3-PD from B2-PD reflecting the proposed all bank debt structure and assigned SGL-2 speculative grade liquidity rating. Moody's affirmed the B2 corporate family rating and the outlook remains stable.

Proceeds from the new credit facility will be used to refinance existing debt instruments including $213.5 million of 9 5/8 % second-lien notes, $22.5 million of subordinated notes including related party loans, revolver advances, and up to $23 million of repurchase premiums.

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