Saratoga Investment Corp. Prices Public Offering of $37.5 Million 7.25% Notes Due 2025

NEW YORK, NY , June 17, 2020 (GLOBE NEWSWIRE) -- 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.