Saratoga Investment Corp. (the “Company”) (NYSE: SAR) today
announced that it has priced an underwritten public offering of
$37.5 million in aggregate principal amount of 7.25% unsecured
notes due 2025 (the “Notes”). The Notes will mature on June 30,
2025, and may be redeemed in whole or in part at any time or from
time to time at Saratoga Investment Corp.’s option on or after June
24, 2022. The Notes will bear interest at a rate of 7.25% per year
payable quarterly on February 28, May 31, August 31 and November 30
of each year, beginning August 31, 2020.
The offering is expected to close on June 24,
2020, subject to customary closing conditions. The Company has
granted the underwriters an option to purchase up to an additional
$5.625 million in aggregate principal amount of Notes. The
Notes are expected to be listed on the New York Stock Exchange and
to trade thereon within 30 days of the original issue date under
the trading symbol “SAC”.
The Company has received an investment grade private rating of
“BBB” from Egan-Jones Ratings Company, an independent, unaffiliated
rating agency.
Egan-Jones is a Nationally Recognized
Statistical Rating Organization (NRSRO) and is recognized by the
National Association of Insurance Commissioners (NAIC) as a Credit
Rating Provider (CRP). Egan-Jones is also certified by the European
Securities and Markets Authority (ESMA).
Ladenburg Thalmann & Co. Inc., Janney
Montgomery Scott LLC, BB&T Capital Markets, a division of
BB&T Securities, LLC, B. Riley FBR, Inc. and Compass Point
Research & Trading, LLC, are serving as joint book-running
managers for the offering. Incapital LLC, National Securities
Corporation, a wholly owned subsidiary of National Holdings
Corporation (Nasdaq: NHLD) and Maxim Group LLC are serving as lead
managers for the offering. The Company expects to use the net
proceeds from this offering to make investments
in middle-market companies in accordance with the
Company’s 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.
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 relating to the Notes was filed and has been declared
effective by the Securities and Exchange Commission.
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 Securities and Exchange
Commission’s website at www.sec.gov or from of any of the following
investment banks: Ladenburg Thalmann, Attn: Syndicate
Department, 277 Park Avenue, 26th Floor, New York, NY 10172, or by
e-mailing prospectus@ladenburg.com (telephone number
1-800-573-2541); Janney Montgomery Scott LLC, 1717 Arch Street,
Philadelphia, PA 19103, or by e-mailing prospectus@janney.com (or
calling 215-665-4450); BB&T Capital Markets, a division of
BB&T Securities, LLC, at 901 East Byrd Street, 3rd Floor,
Richmond, VA 23219 Attn: Syndicate Dept. or by e-mailing
prospectusrequests@bbandtcm.com; or B. Riley FBR, Inc., Attn:
Prospectus Department, 1300 17th Street North, Suite 1300,
Arlington, VA 22209 or by e-mailing prospectuses@brileyfbr.com (or
by calling (800) 846-5050). The
preliminary prospectus
supplement dated June 17, 2020, and the accompanying
prospectus dated June 28, 2019, each of which has
been filed with the Securities and Exchange Commission,
contains a description of these matters and other important
information about the Company and should be read carefully before
investing.
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 advisor
focusing on credit-driven strategies. Saratoga Investment
Corp. owns two SBIC-licensed subsidiaries and manages a $500
million collateralized loan obligation (“CLO”) fund. It also
owns 100% of the Class F-R-2, G-R-2 and subordinated notes of the
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” which relate to future events or our
future performance or financial condition. 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 our future performance, taking into account all information
currently available to us. These statements are not guarantees of
future 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 Securities and Exchange Commission. 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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