Salem Arranges New Loan, Line Of Credit
May 29, 2012 at 3:57 AM (PT)
SALEM COMMUNICATIONS CORP. has arranged a new loan with FIRST CALIFORNIA BANK. The unsecured $10 million loan has a maturity date of JUNE 15th, 2014 and a variable interest rate equal to the greater of 4.25% or the Prime Rate plus 1%.
Payment will be in 23 consecutive monthly interest payments starting SEPTEMBER 15th, seven quarterly consecutive principal payments of $1.25 million, and a final principal and interest payment on the maturity date.
The company also inked a separate binding letter of intent with board member ROLAND S. HINZ for an unsecured revolving line of credit for $6 million, at an interest rate of the lower of 5% or the maximum rate permitted under another line of credit with WELLS FARGO.