Saratoga Investment Corp. has priced an underwritten public offering of $85 million in aggregate principal amount of 8% unsecured notes due 2031, with proceeds expected to help redeem the company’s outstanding 6% notes due 2027.
The new notes will mature on August 31, 2031, and will pay interest quarterly at an annual rate of 8%, beginning November 30, 2026.
Saratoga expects the offering to close on August 26, subject to customary closing conditions.
The company can redeem the notes in whole or in part beginning August 26, 2028.
Saratoga has also granted the underwriters an option to purchase up to an additional $12.75 million in aggregate principal amount of notes.
The notes are expected to be listed on the New York Stock Exchange under the ticker symbol SAX within 30 days following their original issuance.
Egan-Jones Ratings Company assigned the notes a private investment-grade rating of BBB.
Saratoga plans to combine the net proceeds with available cash to redeem its outstanding 6% notes due 2027 in full.
Saratoga Investment is a business development company focused primarily on senior and unitranche leveraged loans and mezzanine debt for U.S. middle-market companies. It also makes some equity investments and provides financing for ownership changes, acquisitions, recapitalizations and growth initiatives.
Support: Lucid Capital Markets and Oppenheimer are serving as joint book-running managers. B. Riley Securities, Clear Street, Compass Point Research & Trading, Ladenburg Thalmann and Maxim Group are serving as lead managers, while InspereX and William Blair are serving as co-managers.
