Saratoga Investment Corp. Announces Closing of Public Offering of $75 Million 4.35% Notes Due 2027
January 19 2022 - 4:05PM
Saratoga Investment Corp. (NYSE: SAR) (the “Company”) today
announced that it has closed a public offering of
$75.0 million aggregate principal amount of its 4.35% notes
due 2027 (the “Notes”), which resulted in net proceeds to the
Company of approximately $72.7 million, based on a public
offering price of 99.317% of par, after deducting the underwriting
discount and the estimated offering expenses payable by the
Company. This results in the Notes having a yield-to-maturity
of approximately 4.50%.
The Notes will mature on February 28,
2027, and may be redeemed in whole or in part at the Company’s
option at any time prior to November 28, 2026, at par plus a
“make-whole” premium, and thereafter at par. The Notes will bear
interest at a rate of 4.35% per year payable semi-annually on
February 28 and August 28 of each year, beginning August 28,
2022.
Raymond James & Associates, Inc. served
as sole book-running manager for the offering. Compass Point
Research & Trading, LLC, Hovde Group, LLC, Ladenburg
Thalmann & Co. Inc., Maxim Group LLC and Oppenheimer &
Co. Inc. acted as co-managers for the offering. The Company intends
to use the net proceeds from the offering to make investments
in middle-market companies (including investments made
through its SBIC subsidiaries) in accordance with its investment
objective and strategies and for general corporate purposes.
Investors are advised to consider carefully the
investment objective, risks and charges and expenses of the Company
before investing. The preliminary prospectus supplement
dated January 13, 2022 and the
accompanying prospectus dated July 7,
2021, each of which has been filed with the
Securities and Exchange Commission (the “SEC”), contain a
description of these matters and other important information about
the Company and should be read carefully before
investing.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy, nor will there be
any sale of the Notes referred to in this press release, in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under
the securities laws of such state or jurisdiction. A registration
statement (File No. 333-256366) relating to the Notes was
filed and has been declared effective by the SEC.
This offering is being made solely by
means of a written prospectus forming part of the effective
registration statement and a related preliminary prospectus
supplement, which may be obtained for free by visiting the SEC’s
website at www.sec.gov or from Raymond James &
Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida
33716, email: prospectus@raymondjames.com or by calling
800-248-8863.
About Saratoga Investment
Corp.
Saratoga Investment Corp. 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 Corp.’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 Corp. 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 adviser
focusing on credit-driven strategies. Saratoga Investment
Corp. owns two SBIC-licensed subsidiaries and manages a $650
million collateralized loan obligation (the “Saratoga CLO”)
fund. It also owns 52% of the Class F and 100% of the
subordinated notes of the Saratoga CLO. The Company’s diverse
funding sources, combined with a permanent capital base, enable
Saratoga Investment Corp. to provide a broad range of financing
solutions.
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.
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Contact: Henri
Steenkamp Saratoga Investment Corp. 212-906-7800 |
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