Saratoga Investment Corp. Increases Quarterly Dividend by $0.01, or 1.4%, to $0.71 per Share for the Fiscal Second Quarter Ended August 31, 2023
14 August 2023 - 10:30PM
Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the
Company”), a business development company, today announced that its
Board of Directors has declared a quarterly dividend of $0.71 per
share for the fiscal second quarter ended August 31, 2023, an
increase of $0.01 from $0.70 per share in the prior fiscal first
quarter, and the fourteenth quarterly dividend increase in a row.
This dividend is payable on September 28, 2023, to all stockholders
of record at the close of business on September 14, 2023.
“The impact of the absolute level and continued
increase in interest rates on our largely floating rate assets,
when combined with the growth of our overall portfolio, its
resilient performance and our largely fixed rate liabilities, have
resulted in record earnings,” said Christian L. Oberbeck,
Chairman and Chief Executive Officer of Saratoga Investment.
“Saratoga’s second quarter dividend of 71c per share reflects an
approximately 31% increase year-over-year. Annualizing this
dividend rate, coupled with our last reported record quarterly
adjusted net investment income of $1.08 per share, imply a 10.7%
dividend yield, and importantly, a 16.3% earnings yield based on
Saratoga’s recent stock price of $26.57 per share
on August 11, 2023.”
This is the second dividend declared in fiscal
year 2024. The Company previously declared a quarterly dividend of
$0.70 per share for the quarter ended May 31, 2023. During fiscal
2023 the Company declared a quarterly dividend of $0.69 per share
for the quarter ended February 28, 2023, $0.68 per share for the
quarter ended November 30, 2022, $0.54 per share for the quarter
ended August 31, 2022 and $0.53 per share for the quarter ended May
31, 2022. During fiscals 2022 and 2021 the Company declared a total
dividend of $2.45 per share and $1.23 per share, respectively.
Shareholders will have the option to receive
payment of the dividend in cash or receive shares of common stock
pursuant to the Company’s dividend reinvestment plan (“DRIP”).
Saratoga Investment shareholders who hold their shares with a
broker must affirmatively instruct their brokers prior to the
record date if they prefer to receive this dividend, and future
dividends, in common stock. The number of shares of common
stock to be delivered shall be determined by dividing the total
dollar amount by 95% of the average of the market prices per share
at the close of trading on the ten (10) trading days immediately
preceding (and including) the payment date.
About Saratoga Investment
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 credit-driven
strategies. Saratoga Investment owns three SBIC-licensed
subsidiaries and manages a $650 million collateralized loan
obligation (“CLO”) and 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
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, 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 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 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 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
SteenkampSaratoga Investment Corp.212-906-7800
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