As 2023 came to a close, Salem Media Group revealed that the company, in a move designed to further reduce its debt, agreed to sell its Regnery Publishing arm to Skyhorse Publishing for an undisclosed price. This followed the $30 million sale of Salem Church Products to Gloo LLC in October 2023.
Now, the purveyor of Christian-themed and conservative Talk content that in 2021 relocated to Irving, Tex., is selling its former Ventura County, Calif., headquarters, while entering a sale leaseback agreement.
As first reported on Friday morning by Streamline Publishing’s Radio Ink, Stamford, Conn.-based Siena Lending Group on January 19 confirmed to Salem CFO Evan Masyr and General Counsel Christopher Henderson via electronic correspondence Salem’s decision to sell its building at 4880 Santa Rosa Road in Camarillo, Calif. And, Siena gave its approval to the sale, given its role as a major lender to Salem.
Indeed, Salem is a borrower of Siena, and 100% of the proceeds totaling $6,231,900 will be paid to it by Salem. This will offset a new $26 million three-year asset-based revolving credit facility established between Siena and Salem on Dec. 26, 2023. It marked a return to Siena from Wells Fargo Bank, which happens to have a branch directly across the street from the Camarillo building.
The buyer of the building is Greg Robinson, President of Big Brand Tire Company. Big Brand Tire & Service centers can be found across Arizona, California, Nevada and Colorado.
Salem will not be vacating the building. Instead, it has agreed to a five-year leaseback agreement with Robinson, with annual rent of $500,000. This will ensure the company’s current building use continues.
As Siena agreed to the sale of Salem’s former headquarters, it also said yes to agreements to the Loan and Security Agreement agreed to between Siena and Salem. First, an increase in the Letter of Credit limit was seen, from $1 million to $3 million. Other financial covenants will come into effect following the sale.
Salem has been busily working to whittle down its outstanding debt. As of September 30, 2023, long-term debt stood at $152.61 million, with total liabilities of $339.15 million. Salem’s total assets were valued at $471.3 million.
Meanwhile, a January 19 change for its stock transpired as “SALM” began trading on the OTCQX Best Market. The company voluntarily delisted its shares from Nasdaq; Salem shares have not closed above $1 since the first week of May 2023.
