Saratoga Investment Corp. Announces Quarterly Dividend of $0.74 Per Share for the Fiscal Third Quarter Ending November 30, 2024
08 November 2024 - 12:30AM
Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the
Company”), a business development company, today announced that its
Board of Directors has declared a base quarterly dividend of $0.74
per share for the fiscal third quarter ending November 30, 2024,
and an additional special dividend of $0.35 per share fulfilling
our fiscal 2024 distribution requirements. Both dividends are
payable on December 19, 2024, to all stockholders of record at the
close of business on December 4, 2024. “As a result of the
strong overall performance of our portfolio during the fiscal
second and third quarters, the board of directors approved a
dividend of $0.74 per share, equivalent to the highest in our
history, while maintaining industry leading dividend coverage and
yield. Annualizing this dividend rate implies a 12.7% dividend
yield based on Saratoga’s recent stock price of $23.31 per share on
November 5, 2024” said Christian L. Oberbeck, Chairman and Chief
Executive Officer of Saratoga Investment. Mr. Oberbeck
continued, “Additionally, we are pleased to declare an additional
special distribution of $0.35 per share, which was driven by the
substantial overearning of our dividend during the previous fiscal
year. By distributing this dividend at this stage, we have
fulfilled our fiscal 2024 spillover requirements, with new
spillover starting to build commencing March 1, 2024, generated
from our quarterly earnings. We believe the diligent execution of
our strategy, and the highly diversified nature and solid
performance of our portfolio has allowed us to continue delivering
attractive returns to our shareholders via solid and consistent
base dividends, further enhanced with this special distribution.
This dividend strategy provides a cushion against potential adverse
events, including the possible effects of further cuts in interest
rates.”This is the third dividend declared in fiscal year
2025.
Historical Dividend Distributions
Period (Fiscal Year ends Feb 28) |
|
Base Dividend Per Share |
|
Special Dividend Per Share |
|
Total Dividend Per Share |
Fiscal Q3
2025 |
|
$0.74 |
|
$0.35 |
|
$1.09 |
Fiscal Q2
2025 |
|
$0.74 |
|
- |
|
$0.74 |
Fiscal Q1
2025 |
|
$0.74 |
|
- |
|
$0.74 |
Year-to-Date Fiscal 2025(including
pending dividend) |
|
$2.22 |
|
$0.35 |
|
$2.57 |
Fiscal Q4
2024 |
|
$0.73 |
|
- |
|
$0.73 |
Fiscal Q3
2024 |
|
$0.72 |
|
- |
|
$0.72 |
Fiscal Q2
2024 |
|
$0.71 |
|
- |
|
$0.71 |
Fiscal Q1
2023 |
|
$0.70 |
|
- |
|
$0.70 |
Full Year Fiscal 2024 |
|
$2.86 |
|
- |
|
$2.86 |
Fiscal Q4
2023 |
|
$0.69 |
|
- |
|
$0.69 |
Fiscal Q3
2023 |
|
$0.68 |
|
- |
|
$0.68 |
Fiscal Q2
2023 |
|
$0.54 |
|
- |
|
$0.54 |
Fiscal Q1
2023 |
|
$0.53 |
|
- |
|
$0.53 |
Full Year Fiscal 2023 |
|
$2.44 |
|
- |
|
$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 $600 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 10022Henri 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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