Salem Media Group has initiated a new financial maneuver by securing a $26.0 million asset-based revolving credit facility. This new 3-year agreement with Siena Lending Group replaces the previous arrangement with Wells Fargo Bank.
The company’s assets, including accounts receivable, inventory, selected real estate, deposit, and securities accounts, have been offered as collateral with a first-priority lien. Additionally, Salem and its subsidiaries provide a second-priority lien on nearly all other assets to secure the obligations of the new revolving facility.
The new credit move comes as Salem makes several changes in the name of managing finances and obligations. In Q4, the group divested its Church Products division and is in the process of selling Regnery Publishing to Skyhorse Publishing.
Salem’s third quarter results for 2023 saw a 4.2% decrease in broadcast revenue, which fell to $48.97 million from the previous $51.14 million. The company’s total revenue also decreased to $63.5 million, down from $66.86 million.
The decline in broadcast revenue year-over-year was primarily attributed to the lack of political advertising, which had boosted previous figures. Both national and local spot advertising revenues saw significant drops, with national spots decreasing nearly 18% and local spots over 6%. Network revenue experienced a double-digit percentage fall. Digital revenue, often a strong area for Salem, also decreased by 4.5% this past quarter.
Despite this, the newly lighter Salem remains optimistic about returning to double-digit growth in digital revenue in the upcoming quarter.
