Saratoga Investment prices $20.08M in additional 8% notes due 2031

Saratoga Investment Corp. (NYSE: SAR) priced an underwritten public offering of $20.08 million in aggregate principal amount of 8.00% unsecured notes due 2031 (NYSE: SAX), according to a company statement.

The notes represent a further issuance in the same series as $85 million in notes initially issued on Aug. 26, 2026, and $12.75 million issued on Sept. 2, 2026. Upon closing, the total outstanding aggregate principal amount of the 8.00% unsecured notes due 2031 will reach $117,830,325, assuming underwriters do not exercise their over-allotment option. Underwriters have been granted an option to purchase up to an additional $3 million in aggregate principal amount.

The notes will mature on Aug. 31, 2031, and may be redeemed in whole or in part at the company's option on or after Aug. 26, 2028. Interest will be paid quarterly at 8.00% per year on Feb. 28, May 31, Aug. 31, and Nov. 30 of each year, beginning Nov. 30, 2026.

The offering was expected to close on Sept. 24, 2026, subject to customary closing conditions. Lucid Capital Markets, LLC and Oppenheimer & Co. Inc. are serving as joint book-running managers.

The company said it intends to use net proceeds to repay a portion of outstanding indebtedness under a special purpose vehicle financing credit facility with Valley National Bank.

Egan-Jones Ratings Company assigned the notes a private investment-grade rating of "BBB."

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