Salem Media Group — a United States-based broadcaster specializing in Christian and conservative content with 117 stations across 38 markets, plus national syndication through the Salem Radio Network and a portfolio of digital publishing platforms — has pledged additional real estate to support its asset-based lending agreement, raising new questions about the company’s financial footing.
The company announced on July 28 that it had entered into a third amendment to its loan and security agreement with Siena Lending Group. The amendment adds more real property, owned by Salem Radio Properties, to the pool of collateral securing the facility, thereby increasing the company’s borrowing base and enabling it to access additional credit.
This is the third amendment to the facility since it was first established in December 2023, suggesting the original terms were either inadequate for the company’s liquidity needs or that Salem is responding to ongoing financial pressure.
Debt overhaul in late 2024
In March this year, Salem Media agreed to sell its remaining radio stations and digital assets in Honolulu to an entity called Malama Media Group, which plans to maintain the stations’ current formats.
The company also undertook a major restructuring in December 2024, repurchasing all of its US$159.4 million in 7.125% senior secured notes due 2028. That repurchase was funded by issuing $40 million in convertible preferred stock and finalizing the sale of seven radio stations to the Educational Media Foundation for approximately $90 million.
The preferred stock was acquired by The Christian Community Foundation (operating as WaterStone), a donor-advised fund supporting Christian media initiatives. The agreement gave WaterStone a stake in Salem’s future, with an eye toward stabilizing the business and supporting digital expansion.
The company framed the restructuring as a substantial strengthening of its balance sheet. “By removing our senior secured debt, we have eliminated significant ongoing interest expense and created new flexibility to invest in our future,” said CEO David Santrella at the time.
A cautionary tale for global broadcasters
Despite this move, Salem reported an 11.8% year-over-year revenue decline in Q1 2025 and a net loss of US$7.1 million. The station divestments reduced its revenue base, and ad revenue has remained under pressure in a challenging market.
The company retained its revolving asset-based credit line with Siena, which now plays a central role in its short-term financing.
Salem’s story reflects a broader trend in U.S. commercial radio, where companies are being forced to reconsider traditional capital structures amid declining spot revenue and growing digital competition. For international broadcasters, it highlights the importance of long-term capital planning as market dynamics shift and high-interest debt becomes increasingly difficult to service.
Although Salem has framed its recent financial maneuvers as a strategic realignment, its continued reliance on credit and repeated amendments suggest that the organization is still navigating instability.
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