Saratoga Investment Corp. Prices Offering of Additional $125 Million of 4.375% Notes Due 2026 with a Yield-to-Maturity of App...
16 July 2021 - 5:29AM
Saratoga Investment Corp. (NYSE: SAR) (the “Company”) today
announced that it priced a public offering of an additional
$125 million aggregate principal amount of 4.375% notes due
2026 (the “Notes”) on July 15, 2021. The Notes will be issued at a
price of 101.00% of the aggregate principal amount of the Notes,
resulting in a yield-to-maturity of approximately 4.1%.
Purchasers will be required to pay accrued and
unpaid interest on the Notes from March 10, 2021 up to, but not
including, the date of delivery of the Notes. On August 28, 2021,
the Company will pay this pre-issuance accrued interest on the
Notes to the holders of the Notes as of the applicable record date,
along with interest accrued on the Notes offered hereby from the
date of delivery to such interest payment date.
The Notes will constitute a further issuance of,
have the same terms as, rank equally in right of payment with, and
be fungible and form a single series with the $50 million in
aggregate principal amount of the 4.375% notes due 2026 that the
Company initially issued on March 10, 2021. Upon the issuance of
the Notes, the outstanding aggregate principal amount of the
Company’s 4.375% notes due 2026 will be $175 million.
The Notes will mature on February 28,
2026, and may be redeemed in whole or in part at any time or
from time to time at the Company’s option at par plus a
“make-whole” premium, if applicable. The Notes will bear interest
at a rate of 4.375% per year payable semi-annually on February 28
and August 28 of each year, beginning August 28, 2021.
Raymond James & Associates, Inc. is
serving as sole book-running manager for the offering. B. Riley
Securities, Inc., Compass Point Research & Trading, LLC, Hovde
Group, LLC, Ladenburg Thalmann & Co. Inc. and Maxim Group,
LLC are acting as co-managers for this offering. The Company
intends to use the net proceeds from this offering to redeem all of
its outstanding 6.25% fixed-rate notes due 2025, repay the
outstanding indebtedness under its senior secured revolving credit
facility, make investments in middle-market companies (including
investments made through its SBIC subsidiaries) in accordance with
its investment objective and strategies and for general corporate
purposes.
The closing of the transaction is subject to
customary closing conditions and the Notes are expected to be
delivered on or about July 20, 2021.
Investors are advised to consider carefully the
investment objective, risks and charges and expenses of the Company
before investing. The preliminary prospectus supplement
dated July 15, 2021 and the accompanying prospectus dated July 7,
2021, each of which has been filed with the Securities and Exchange
Commission (the “SEC”), contain 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. 333-256366) 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 Raymond James &
Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida
33716, email: prospectus@raymondjames.com or by calling
800-248-8863.
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 two SBIC-licensed
subsidiaries and manages a $650 million collateralized loan
obligation (the “Saratoga CLO”) fund. It also owns 100% of the
Class F-R-3 and subordinated notes of the Saratoga 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 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.
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Contact: Henri
Steenkamp Saratoga Investment Corp. 212-906-7800 |
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