Saratoga Investment Corp. Closes New $50 Million Senior Secured Revolving Credit Facility with Encina Lender Finance
October 06 2021 - 8:30AM
Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the
Company”), a business development company, today announced that its
wholly-owned subsidiary, Saratoga Investment Funding II LLC (“SIF
II”), an entity formed for purposes of entering into this financing
arrangement, closed a new $50.0 million senior secured credit
facility (the “Facility”) with Encina Lender Finance, LLC
(“Encina”). The Facility will be supported by loans held by SIF II
and pledged to Encina under the terms of the credit agreement.
The Facility closed on October 4, 2021. SIF II
may request an increase in the commitment amount to up to $75.0
million during the first two years. The terms of the Facility
require a minimum drawn amount of $12.5 million at all times during
the first six months, which increases to the greater of $25.0
million or 50% of the commitment amount in effect at any time
thereafter. The term of the Facility is three years.
The interest rate on the borrowings under the Facility is LIBOR
plus 4.0%, with LIBOR having a floor of 0.75%. Concurrently with
the closing of this Facility, all remaining amounts outstanding on
the Company’s existing revolving credit facility with Madison
Capital Funding, LLC were repaid and the facility terminated.
“We are pleased to close this credit facility
with Encina, which provides the Company with a great deal of
flexibility as we assess our needs and seek to optimize our overall
capital structure. Encina has been an excellent partner in this
process, and we appreciate the opportunity to establish this new
relationship with them,” said Christian L. Oberbeck, Chairman and
Chief Executive Officer of Saratoga Investment.
“Encina Lender Finance is pleased that Saratoga
Investment has selected us as a key senior debt capital partner,”
said Luke Graham, Chief Executive Officer of Encina. “The
Company’s management team has a long and distinguished track record
of success, and we look forward to supporting them in achieving
Saratoga Investment’s future goals and objectives.”
About Saratoga Investment
Saratoga Investment is a specialty finance
company that provides customized financing solutions to U.S.
middle-market businesses. The Company invests primarily in senior
and unitranche leveraged loans and mezzanine debt, and, to a lesser
extent, equity to provide financing for change of ownership
transactions, strategic acquisitions, recapitalizations and growth
initiatives in partnership with business owners, management teams
and financial sponsors. Saratoga Investment’s objective is to
create attractive risk-adjusted returns by generating current
income and long-term capital appreciation from its debt and equity
investments. Saratoga Investment has elected to be regulated
as a business development company under the Investment Company Act
of 1940 and is externally-managed by Saratoga Investment Advisors,
LLC, an SEC-registered investment advisor focusing on credit-driven
strategies. Saratoga Investment owns two SBIC-licensed
subsidiaries and manages a $650 million collateralized
loan obligation ("CLO") fund. It also owns 52% of the Class F and
100% of the subordinated notes of the CLO. The Company's diverse
funding sources, combined with a permanent capital base,
enable Saratoga Investment to provide a broad range of
financing solutions.
About Encina Lender Finance
Headquartered in Atlanta, Encina Lender Finance
offers revolving lines of credit and term loans ranging in size
from $10 to $150 million to specialty finance companies (sponsored
and non-sponsored) across a wide range of asset classes including,
but not limited to, asset-based lending, factoring, equipment
leasing, floorplan financing, commercial real estate bridge
lending, tax lien/deed financing, venture debt lending, SMB lending
& merchant cash advance, middle-market private credit,
charged-off debt buyers, rent-to-own consumer leasing, unsecured
consumer lending and specialized student lending. Encina’s
customers use financing proceeds primarily to fund the origination
of new finance contracts and to refinance existing debt, and
Encina’s loans are secured by portfolios of notes, loans and/or
leases. For additional information, please visit Encina’s website
at https://lenderfinance.encinacapital.com.
Forward Looking Statements
Statements included herein contain certain
“forward-looking statements” within the meaning of the federal
securities laws, including statements with regard to the Company’s
Notes offering and the anticipated use of the net proceeds of the
offering. Forward-looking statements can be identified by the use
of forward looking words such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates” or negative versions of those words, other comparable
words or other statements that do not relate to historical or
factual matters. The forward-looking statements are based on our
beliefs, assumptions and expectations of future events and our
future performance, taking into account all information currently
available to us. These statements are not guarantees of future
events, performance, condition or results and involve a number of
risks and uncertainties. Actual results may differ materially from
those in the forward-looking statements as a result of a number of
factors, including but not limited to the impact of the COVID-19
pandemic and the pandemic’s impact on the U.S. and global economy,
as well as those described from time to time in our filings with
the SEC. Any forward-looking statement speaks only as of the date
on which it is made. Saratoga Investment Corp. undertakes no duty
to update any forward-looking statements made herein, whether as a
result of new information, future developments or otherwise, except
as required by law.
Contact: Henri SteenkampSaratoga
Investment Corp.212-906-7800
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