Saratoga Investment Corp. Resets its Existing CLO Upsized to $500 million
December 04 2018 - 8:00AM
Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the
Company”), a business development company, today announced pricing
of its reset of the existing Saratoga Investment Corp. CLO 2013-1,
Ltd. (“Saratoga CLO”). In addition and as part of the reset, the
Saratoga CLO has also been upsized to approximately $500 million
from its prior $300 million in assets.
The transaction is structured as follows:
|
Saratoga Investment
Corp. CLO 2013-1, Ltd. (Saratoga Investment Corp.) |
Class |
Par Amount |
Expected Ratings
(Moody's/Fitch) |
Coupon |
A-1FL-R-2 |
$255M |
Aaa/AAA |
L+125 |
A-1FXD-R-2 |
$25M |
Aaa/AAA |
4.19% |
A-2-R-2 |
$40M |
Aaa |
L+175 |
B-R-2 |
$59.5M |
Aa2 |
L+230 |
C-R-2 |
$22.5M |
A2 |
L+275 |
D-R-2 |
$31M |
Baa3 |
L+375 |
E-1-R-2 |
$27M |
Ba3 |
L+587* |
E-2-R-2 (Interest Only) |
$27M |
|
0.00%** |
F-R-2 |
$2.5M |
B3 |
L+875 |
G-R-2 |
$7.5M |
|
L+1000 |
Subordinated Notes |
$69.5M |
|
|
* The Class E-1-R-2 coupon will step up to L+800 in
January 2022** The Class E-2-R-2 (Interest Only) coupon will step
up to 2.00% in January 2022
The non-call period expires on January 20, 2020, the
reinvestment period expires on January 20, 2021, and the legal
final date is January 20, 2030.
The anticipated closing date is December 14, 2018.
Saratoga Investment will own 100% of the F-R-2, G-R-2 and
Subordinated Notes on the closing date.
The Notes have not been registered under the Securities Act of
1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.
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 private credit and
equity-driven strategies. Saratoga Investment owns an
SBIC-licensed subsidiary and manages the Saratoga CLO. It
also owns 100% of the Class F-R and Subordinated Notes of the
existing Saratoga CLO, and will own 100% of the Class F-R-2, G-R-2
and Subordinated Notes of the Saratoga CLO upsized to $500 million
on the closing date. The Company’s diverse funding sources,
combined with a permanent capital base, enable Saratoga Investment
to provide a broad range of financing solutions.
Forward Looking StatementsThis press release
contains certain forward-looking statements. These forward-looking
statements are subject to risks and uncertainties and other factors
enumerated in this press release and the filings Saratoga
Investment makes with the SEC. Saratoga Investment undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Contact: Henri SteenkampSaratoga
Investment Corp.212-906-7800
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