Saratoga Investment Corp. (the “Company”) (NYSE: SAR) today
announced that it has priced an underwritten public offering of
$50.0 million in aggregate principal amount of 8.50% unsecured
notes due 2028 (the “Notes”).
The Notes will mature on April 15, 2028, and may
be redeemed in whole or in part at any time or from time to time at
the Company’s option on or after April 14, 2025. The Notes will
bear interest at a rate of 8.50% per year payable quarterly on
February 28, May 31, August 31, and November 30 of each year,
beginning May 31, 2023.
The offering is expected to close on April 14,
2023, subject to customary closing conditions. The Company has
granted the underwriters an option to purchase up to an additional
$7.5 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 “SAZ”.
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., B. Riley
Securities, Inc., and Oppenheimer & Co. Inc. are serving as
joint book-running managers for this offering. Compass Point
Research & Trading, LLC, InspereX LLC, Janney Montgomery Scott
LLC and William Blair & Company, L.L.C. are serving as lead
managers for this offering. Hovde Group, LLC and Maxim Group LLC
are serving as co-managers for this offering. The Company intends
to use the net proceeds from this offering to repay a portion of
outstanding indebtedness under its senior secured revolving credit
facility, make investments in middle-market companies in
accordance with the Company’s investment objective and strategies
(including investments made through Saratoga Investment Corp. SBIC
III LP) 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 April 11,
2023, and the accompanying prospectus dated March 13,
2023, each of which has been filed with
the Securities and Exchange Commission (the
“SEC”), contains 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. 333-269186) 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 of any of the following investment
banks: Ladenburg Thalmann, Attn: Syndicate Department, 640
Fifth Avenue, 4th Floor, New York, NY 10019 (telephone number
1-800-573-2541), or by e-mailing prospectus@ladenburg.com; B. Riley
Securities, Inc., 299 Park Avenue, 21st Floor, New York, NY
10171 by emailing at prospectuses@brileyfin.com; and Oppenheimer
& Co. Inc., Attn: Syndicate Prospectus Department, 85 Broad
Street, New York, NY 10004 or by e-mailing at
FixedIncomeProspectus@opco.com.
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 three SBIC-licensed subsidiaries, manages a $650 million
collateralized loan obligation (“CLO”) fund and co-manages a joint
venture (“JV”) fund that owns a $400 million collateralized loan
obligation (“JV CLO”) fund. It also owns 52% of the Class F
and 100% of the subordinated notes of the CLO, 87.5% of both the
unsecured loans and membership interests of the JV and 87.5% of the
Class E notes of the JV 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 an economic downturn and its
impact on the ability of our portfolio companies to operate and the
investment opportunities available to us; interest rate volatility;
the impact of supply chain constraints; labor shortages; and the
elevated levels of inflation, 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 Steenkamp Saratoga Investment
Corp. 212-906-7800
Saratoga Investment (NYSE:SAR)
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