Salem Arranges New Loan, Line Of Credit

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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.

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