By Wendy Van Sickle
Columbus, Ohio, April 11 – Saratoga Investment Corp. priced $50 million of 8.5% five-year $25-par notes (Egan-Jones: BBB+) at par on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
There is a 30-day greenshoe for up to $7.5 million.
The notes are callable in whole or in part on or after April 14, 2025 at par.
Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc. and Oppenheimer & Co. Inc. are joint bookrunning managers, and Compass Point Research & Trading, LLC, InspereX LLC, Janney Montgomery Scott LLC and William Blair & Co., LLC are lead managers for the offering.
The notes are expected to be listed on the New York Stock Exchange and to trade under the symbol “SAZ.”
Proceeds will be used to repay outstanding debt under the Encina credit facility, to make investments in middle-market companies (including those made through SBIC III LP) and for general corporate purposes. Pending such use, proceeds will be used to invest in short-term debt securities.
As of April 10, the Jan. 27, 2026-maturing Encina credit facility had an outstanding balance of $65 million.
The specialty finance company is based in New York.
| Issuer: | Saratoga Investment Corp.
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million for up to 30 days
|
| Issue: | Notes
|
| Maturity: | April 15, 2028
|
| Bookrunners: | Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc. and Oppenheimer & Co.
|
| Lead managers: | Compass Point Research & Trading, LLC, InspereX LLC, Janney Montgomery Scott LLC and William Blair & Co., LLC
|
| Co-managers: | Hovde Group, LLC and Maxim Group LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Eversheds Sutherland (US) LLP
|
| Counsel to underwriters: | Blank Rome LLP
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| Coupon: | 8.5%
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| Price: | Par of $25
|
| Yield: | 8.5%
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| Call option: | In whole or in part on or after April 14, 2025 at par
|
| Announcement date: | April 11
|
| Settlement date: | April 14
|
| Rating: | Egan-Jones: BBB+
|
| Listing: | NYSE: SAZ
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| Cusip: | 80349A869
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