Saratoga Investment Corp. Announces Quarterly Dividend of $0.74 per Share for the Fiscal Second Quarter Ending August 31, 2024
22 August 2024 - 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 $0.74 per
share for the fiscal second quarter ending August 31, 2024, which
represents a 4.2% increase as compared to the $0.71 per share
distributed in the second quarter of last year. This dividend is
payable on September 26, 2024, to all stockholders of record at the
close of business on September 11, 2024.
“The highly diversified nature of our asset
portfolio, the solid overall performance of our investments during
the recent stable interest rate environment, and the current
over-earning of our dividend has allowed us to maintain a strong
dividend for the quarter, with industry leading dividend yield and
dividend coverage,” said Christian L. Oberbeck, Chairman and
Chief Executive Officer of Saratoga Investment. “Saratoga’s
second quarter dividend of $0.74 per share reflects an
approximately 4% increase year-over-year and a 37% increase over
the past two years. Annualizing this dividend rate implies a 13.0%
dividend yield based on Saratoga’s recent stock price
of $22.75 per share on August 20, 2024. Our recent
substantial over-earning of the dividend increases Net Asset Value,
and provides a cushion against any potential adverse events,
including possible cuts in interest rates through the remainder of
2024, and into 2025. We remain prudent and highly selective in
terms of new commitments in this current environment.”
This is the second dividend declared in fiscal
year 2025.
Historical Dividend
Distributions
Period (Fiscal Year ends Feb 28) |
|
Dividend Per
Share |
|
Fiscal
Q2 2025 |
|
$ |
0.74 |
|
Fiscal Q1
2025 |
|
$ |
0.74 |
|
Year-to-Date Fiscal 2025 (including pending
dividend) |
|
$ |
1.48 |
|
Fiscal Q4
2024 |
|
$ |
0.73 |
|
Fiscal Q3
2024 |
|
$ |
0.72 |
|
Fiscal Q2
2024 |
|
$ |
0.71 |
|
Fiscal Q1
2023 |
|
$ |
0.70 |
|
Full Year Fiscal 2024 |
|
$ |
2.86 |
|
Fiscal Q4
2023 |
|
$ |
0.69 |
|
Fiscal Q3
2023 |
|
$ |
0.68 |
|
Fiscal Q2
2023 |
|
$ |
0.54 |
|
Fiscal Q1
2023 |
|
$ |
0.53 |
|
Full Year Fiscal 2023 |
|
$ |
2.44 |
|
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 Corp. owns two active SBIC-licensed subsidiaries,
having surrendered its first license after repaying all debentures
for that fund following the end of its investment period and
subsequent wind-down. Furthermore, it 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 to provide a broad range
of financing solutions.
Forward Looking StatementsStatements 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: changes in the markets in
which the Company invests; changes in the financial, capital, and
lending markets; a rising interest rate environment and its impact
on the Company’s business and its portfolio companies; regulatory
changes; tax treatments; an economic downturn and its impact on the
ability of our portfolio companies to operate and the investment
opportunities available to the Company; the impact of supply chain
constraints and labor shortages on our portfolio companies; and the
elevated levels of inflation and its impact on our portfolio
companies and the industries in which we invest; and 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.
Contacts:Saratoga Investment Corporation535
Madison Avenue, 4th FloorNew York, NY 10022
Henri SteenkampChief Financial OfficerSaratoga Investment
Corp.212-906-7800
Lena CatiThe Equity Group Inc.212-836-9611
/ lcati@equityny.com
Val FerraroThe Equity Group Inc.212-836-9633
/ vferraro@equityny.com
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