Saratoga Investment Corp. Announces Exercise and Closing of Underwriters’ Option to Purchase Additional 7.25% Notes Due 2025

NEW YORK, NY, July 06, 2020 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (the “Company”) (NYSE: SAR) today announced that, in connection with its previously disclosed registered public offering of $37.5 million in aggregate principal amount of 7.25% unsecured notes due 2025 (the “Existing Notes”), the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% unsecured notes due 2025 (the “Additional Notes” and together with the Existing Notes, the “Notes”).

The Existing Notes started trading on the New York Stock Exchange on June 30, 2020 under the trading symbol “SAK”, and the Additional Notes will trade with the Existing Notes under the same trading symbol.

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 the Company’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 Company 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. As previously disclosed, the Company expects to use the net proceeds from the offering to make investments in middle-market companies in accordance with the Company’s investment objective and strategies and for general corporate purposes.