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Salem Communications wraps tender offer, consent bid for all 7¾% notes
By Susanna Moon
Chicago, Dec. 15 - Salem Communications Corp. announced the expiration of the cash tender offer and consent solicitation for any and all of the $89,655,000 principal amount of 7¾% senior subordinated notes due 2010 of wholly owned subsidiary Salem Communications Holding Corp.
The offer expired as of 11:59 p.m. ET on Dec. 14.
Salem said on Dec. 1 that investors had tendered all $89,655,000 principal amount of the notes as of 5 p.m. ET on Nov. 30, the consent payment deadline. Salem purchased the notes on Dec. 1.
As previously noted, funding for the purchase came from the private placement of $300 million principal amount of its 9 5/8% senior secured second-lien notes due 2016, along with borrowings under a new $30 million senior secured credit facility and $28 million of cash on hand.
Holders who tendered their notes and provided their consents to the proposed amendments to the indenture governing the notes by the consent payment deadline were to receive par, including a consent payment of $30.00 per note, plus any accrued interest up to the payment date.
Salem said on May 11, 2009 that it needed to refinance 2010 maturities or face default.
The company previously warned that it might be difficult for it to refinance its pending debt maturities in 2010 because of the current economic and capital market conditions and the continuing decline in radio revenues.
At the time, the company said that if it was unable to refinance this debt, it would be in default under its credit facility and 7¾% notes.
Banc of America Securities LLC (888 292-0070 or collect 980 388-9217) and Houlihan Lokey (collect 212 497-7864) are joint dealer managers and solicitation agents.
Global Bondholder Services Corp. (866 470-4500 or collect 212 430-3774) is the information agent.
Salem Communications is a Camarillo, Calif.-based commercial radio broadcasting company.
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