Salem Media Group has announced the $80 million sale of its remaining Contemporary Christian Music stations as part of a series of major financial and strategic transactions. The move brings the end of the broadcaster’s CCM format, commonly under the “Fish” moniker.
Salem has agreed to sell its seven remaining CCM stations to Educational Media Foundation, the owner of K-LOVE and Air1. The stations include Atlanta’s WFSH, Cleveland’s WFHM, Colorado Springs’ KBIQ, Dallas’ KLTY, Los Angeles’ KFSH, Portland’s KFIS, and Sacramento’s KKFS.
The $80 million sale also includes a $10 million marketing agreement, with EMF taking operational control of the stations through an Affiliation Agreement starting February 1, 2025. Salem issued EMF a $72 million senior secured promissory note due 2027 as part of the transaction.
Earlier this year, Salem sold Little Rock’s 93.3 The Fish (KKSP) to Encouragement Media Group for $1.55 million following the March sale of its Nashville and Honolulu Fish signals to EMF for $7 million.
Edward G. Atsinger, Salem’s Executive Chairman and co-founder, commented, “We have made a strategic decision to exit the Contemporary Christian Music format in order to pay off all of Salem’s long-term debt. We could not be more delighted that the buyer is EMF. EMF has demonstrated over many years a unique ability and dedication to creating and distributing the highest quality Christian music content to its listeners in a positive and encouraging way. I am confident that their impact on listeners and their communities will be incredibly effective.”
As another move toward financial security, the company repurchased $159.4 million in outstanding 7.125% Senior Secured Notes due 2028 for $104 million in cash and $24 million in subordinated unsecured promissory notes. These notes will be exchanged for Series A Preferred Stock by mid-2025, carrying initial liquidation preferences of $1,000 per share and accruing quarterly dividends starting at 5%.
Additionally, Salem issued $40 million in Series B Convertible Preferred Stock to WaterStone, a Christian nonprofit foundation. The proceeds were used to fund the debt repurchase. The stock is convertible into Salem’s Class A and B Common Stock, with a cap ensuring WaterStone’s holdings will not exceed 49% of Salem’s issued shares.
The Christian broadcaster also extended its revolving credit facility with Siena Lending Group by one year, enhancing its financial flexibility as it implements these strategic changes.
Salem CEO David Santrella said, “Upon the closing of these transactions, we will have transformed and significantly improved Salem’s balance sheet and capital structure. With the exception of its revolving line of credit, Salem will have no outstanding debt.”
