NEW YORK, Dec. 13, 2016 /PRNewswire/ -- Saratoga Investment
Corp. (the "Company") (NYSE: SAR) today announced that it has
priced an underwritten public offering of $65 million in aggregate principal amount of
6.75% unsecured notes due 2023. The notes will mature on
December 30, 2023, and may be
redeemed in whole or in part at any time or from time to time at
Saratoga Investment Corp.'s option on or after December 21, 2019. The notes will bear interest
at a rate of 6.75% per year payable quarterly on March 30, June 30,
September 30 and December 30 of each year, beginning March 30, 2017.
The offering is expected to close on December 21, 2016, subject to customary closing
conditions. The Company has granted the underwriters an option to
purchase up to an additional $9.75
million in aggregate principal amount of notes. The
Notes are expected to be listed on the New York Stock Exchange and
to trade thereon within 30 days of the original issue date under
the trading symbol "SAB".
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSE MKT: LTS), BB&T Capital
Markets, Compass Point and William
Blair are acting as joint book-running managers.
The Company expects to use the net proceeds from this offering
to repay all of the outstanding indebtedness under its 7.50%
fixed-rate notes due 2020, which amounts to $61.8 million, and for general corporate purposes
in accordance with its investment objective and strategies.
Investors are advised to consider carefully the investment
objective, risks and charges and expenses of the Company before
investing.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor will there be any sale of, the
Notes referred to in this press release in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of such state or jurisdiction. A registration
statement relating to these securities was filed and has been
declared effective by the Securities and Exchange Commission.
The offering will be made only by means of a prospectus.
Copies of the prospectus relating to the offering may be obtained
for free by visiting the Securities and Exchange Commission's
website at www.sec.gov or may be obtained from of any of the
following investment banks: Ladenburg Thalmann, Attn: Syndicate
Department, 570 Lexington Avenue, 11th Floor New York, NY 10022, or by emailing
prospectus@ladenburg.com (telephone number 1-800-573-2541);
BB&T Capital Markets at 901 East Byrd Street, 3rd
Floor, Richmond, VA 23219 Attn:
Syndicate Dept. or via email request:
prospectusrequests@bbandtcm.com; Compass Point Research &
Trading, LLC 1055 Thomas Jefferson Street NW, Suite 303
Washington, D.C. 20007, or email
at syndicate@compasspointllc.com; or William Blair & Company, L.L.C., Attention:
Prospectus Department, 222 West Adams Street, Chicago, IL 60606, or by telephone at
1-800-621-0687 or email at prospectus@williamblair.com.
About Saratoga Investment Corp.
Saratoga Investment Corp. is a specialty finance company that
invests primarily in leveraged loans and mezzanine debt issued by
privately owned U.S. middle-market businesses, which the Company
defines as companies having annual EBITDA (earnings before
interest, taxes, depreciation and amortization) of between
$5 million and $50 million, both
through direct lending and through participation in loan
syndicates. Saratoga Investment Corp.'s objective is to generate
current income and, to a lesser extent, capital appreciation from
our investments. Saratoga Investment Corp. has elected to be
regulated as a business development company ("BDC") under the
Investment Company Act of 1940 and is externally-managed by
Saratoga Investment Advisors, LLC, a New
York-based investment firm affiliated with Saratoga
Partners, a middle market private equity investment firm. Within
the BDC, Saratoga Investment Corporation manages both an
SBIC-licensed subsidiary and a Collateralized Loan Obligation (CLO)
fund. The Company believes these diverse funding sources, combined
with a permanent capital base, enable Saratoga Investment Corp. to
offer a broad range of financing solutions.
Forward Looking Statements
Statements included herein may contain "forward-looking
statements". Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of assumptions, risks and uncertainties, which
change over time. Actual results may differ materially from those
anticipated in any forward-looking statements as a result of a
number of factors, including those described from time to time in
filings by the Company with the Securities and Exchange Commission.
Except as required by law, the Company undertakes no duty to update
any forward-looking statement made herein. All forward-looking
statements speak only as of the date of this press release.
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SOURCE Saratoga Investment Corp.