5-29-2012
Salem entered into a binding letter of intent with board member Roland Hinz for up to $6 million. The revolving line of credit is unsecured. And, according to an SEC filing the money may be used to repurchase a portion of Salem?s outstanding senior secured notes. The Salem board concluded terms of the line of credit with Hinz were more favorable to Salem as compared to terms of lines of credit available from unaffiliated third parties. Salem also entered into a new business loan agreement with First California bank. The loan is an unsecured, ten million dollar, fixed-term loan with a maturity date of June 15, 2014.
