Salem Media extends forbearance period through Nov. 3

By Wendy Van Sickle

Columbus, Ohio, Sept. 29 – Salem Media Group, Inc. entered into amendments to its credit agreement with Wells Fargo Bank, NA as administrative agent and an amendment to its forbearance agreement on Thursday, according to 8-K filings with the Securities and Exchange Commission.

The current forbearance agreement was extended through and including Nov. 3.

Additionally, the credit agreement was amended to require the company and its subsidiary borrowers to maintain availability of at least $1 million at all times from Aug. 7 to Nov. 3 and $5 million at all times from Nov. 3 and thereafter.

The original agreement was entered May 19, 2017.

The forbearance pertains to certain specified events of default under the agreement, including the failure to maintain a fixed-charge coverage ratio of at least 1x during the quarter ended June 30, as previously reported.

The previous amendments associated with the Aug. 7 forbearance reduced facility commitments to $25 million, increased the margin over SOFR to 400 basis points and replaced the fixed-charge coverage ratio with a requirement to maintain $1 million of availability under the agreement.

The most recent prior amendment extended the forbearance period to Sept. 29 and reduced the cash and cash equivalents required for certain permitted dispositions to 75% during the forbearance period from 100%.

Salem is a multimedia company based in Camarillo, Calif., that specializes in Christian and conservative content.

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