NEW YORK, Nov. 15, 2022 (GLOBE NEWSWIRE) — Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced that its Board of Directors has declared a quarterly dividend of $0.68 per share for the fiscal third quarter ended November 30, 2022, substantially increased from $0.54 per share in the prior fiscal second quarter. This dividend is payable on January 4, 2023, to all stockholders of record at the close of business on December 15, 2022.
“Our strong portfolio performance, healthy credit profile, robust deal pipeline, and ongoing asset growth are key attributes of our track record of delivering consistent financial performance and supports our goal of paying attractive, increasing quarterly dividends and providing leading risk-adjusted, accretive returns for our shareholders over the long-term,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment.
“This record 26% dividend increase reflects much of the significantly positive effects on earnings of our 95% floating rate loan asset portfolio and our largely fixed rate liabilities driving increased spread and overall portfolio yield as many lagging impacts from loan rate resets, exceeding LIBOR and SOFR floors, and costs of recent capital raises flow through. For reference, closing 3-month LIBOR was 3.1% at our last August 31, 2022 quarter-end, and is approximately 49% higher at around 4.63% currently.”
This is the third dividend declared in fiscal year 2023, following the previously declared quarterly dividend of $0.54 per share for the quarter ended August 31, 2022 and $0.53 per share for the quarter ended May 31, 2022. The Company previously declared in fiscal 2022 a quarterly dividend of $0.53 per share for both the quarters ended February 28, 2022 and November 30, 2021, $0.52 per share for the quarter ended August 31, 2021, $0.44 per share for the quarter ended May 31, 2021 and $0.43 per share for the quarter ended February 28, 2021. During fiscal year 2021, the Company declared a quarterly dividend of $0.42 per share for the quarter ended November 30, 2020, $0.41 per share for the quarter ended August 31, 2020 and $0.40 per share for the quarter ended May 31, 2020.
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 owns three SBIC-licensed subsidiaries and manages a $650 million collateralized loan obligation (“CLO”) and 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 Statements
Statements 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 the impact of the COVID-19 pandemic and the pandemic’s impact on the U.S. and global economy, as well as 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.
Contact: Henri Steenkamp
Saratoga Investment Corp.