Salem Communications announced the expiration of the cash tender offer for its 7.75% senior subordinated notes due 2010. The tender was quite successful, since 100% of the outstanding bonds were tendered.
The tender offer was announced in November for the $89,655,000 of notes outstanding from the original $100 million issue. All were validly tendered and not withdrawn by the November 30th deadline and Salem has now completed the purchases.
Funding for the buyback came from a recently completed private placement of $300 million in new notes. The proceeds (along with cash on had and $30 million in new bank borrowing) were used for the bond buyback and to pay back all of Salem’s other debt which had been outstanding.