Saratoga Investment Corp. Resets its Existing CLO Upsized to $600 million
February 16 2021 - 4:00PM
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 $600 million from its prior $500
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) |
Coupon |
A-1-R-3 |
$330M |
Aaa |
L+132 |
A-2-R-3 |
$60M |
Aaa |
L+165 |
B-FL-R-3 |
$55M |
Aa2 |
L+180 |
B-FXD-R-3 |
$11M |
Aa2 |
2.5372% |
C-FL-R-3 |
$23.5M |
A2 |
L+240 |
C-FXD-R-3 |
$6.5M |
A2 |
3.3103% |
D-R-3 |
$36M |
Baa3 |
L+400 |
E-R-3 |
$25.5M |
Ba3 |
L+750 |
F-R-3 |
16.5M |
|
L+1000 |
Subordinated Notes |
$103.75M |
|
|
The non-call period expires on February 26,
2022, the reinvestment period expires on April 22, 2024, and
the legal final date is April 20, 2033.
The anticipated closing date is February
26, 2021.
Saratoga Investment will own 100% of the
F-R-3 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 Corp.
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 two
SBIC-licensed subsidiaries and manages the Saratoga CLO. It
also owns 100% of the Class F-R-2, G-R-2 and Subordinated Notes of
the existing Saratoga CLO, and will own 100% of the Class F-R-3 and
Subordinated Notes of the Saratoga CLO upsized to $600
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 Statements
This 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 Steenkamp Saratoga Investment Corp.
212-906-7800
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