Saratoga Investment Corp. closes $85 million 8.00% note offering to retire 2027 debt
NEW YORK, August 26. An $85.0 million offering of 8.00% Notes due 2031 closed Wednesday at Saratoga Investment Corp. (NYSE: SAR), the company disclosed in an 8-K filed with the Securities and Exchange Commission. Net proceeds came to approximately $82,043,750. The company said it intends to apply those proceeds, along with available cash, to redeem in full the outstanding 6.00% Notes due 2027, which trade on the New York Stock Exchange under the ticker SAT.
Key takeaways
- Saratoga Investment Corp. (NYSE: SAR) closed an $85.0 million offering of 8.00% Notes due 2031 on Wednesday, disclosed in an 8-K filed with the SEC.
- Net proceeds of approximately $82,043,750 will be used, along with available cash, to redeem in full the outstanding 6.00% Notes due 2027 (NYSE: SAT).
- The 8.00% Notes pay interest quarterly, mature August 31, 2031, and are callable at par plus accrued interest on or after August 26, 2028.
- The notes are direct unsecured obligations ranking pari passu with existing and future unsecured unsubordinated debt, priced at 100% of par.
- Underwriters received a discount of $2,656,250 and the company estimated additional offering expenses of approximately $300,000.
NEW YORK, August 26. An $85.0 million offering of 8.00% Notes due 2031 closed Wednesday at Saratoga Investment Corp. (NYSE: SAR), the company disclosed in an 8-K filed with the Securities and Exchange Commission. Net proceeds came to approximately $82,043,750. The company said it intends to apply those proceeds, along with available cash, to redeem in full the outstanding 6.00% Notes due 2027, which trade on the New York Stock Exchange under the ticker SAT.
The transaction formalized through an Eighteenth Supplemental Indenture between Saratoga and U.S. Bank Trust Company, National Association, as trustee, acting as successor in interest to U.S. Bank National Association. That agreement builds on a base indenture dated May 10, 2013.
Underwriters received a discount of $2,656,250. The company estimated additional offering expenses of approximately $300,000, the filing shows.
Note terms
The 8.00% Notes pay interest quarterly: February 28, May 31, August 31, and November 30, beginning November 30, 2026. They mature August 31, 2031. Callable from 2028. On or after August 26 of that year, Saratoga may redeem them in whole or in part at par plus accrued and unpaid interest.
The public offering price was 100% of par.
Capital structure position
The new notes are direct unsecured obligations of Saratoga Investment Corp. and rank pari passu with its existing and future unsecured unsubordinated debt. They stand senior to any future obligations the company expressly subordinates to them. They are effectively subordinated to all secured indebtedness and structurally subordinated to obligations of Saratoga's subsidiaries, including special purpose vehicle financing credit facilities with Live Oak Banking Company and Valley National Bank, and debentures guaranteed by the U.S. Small Business Administration, the 8-K states.
The indenture also requires Saratoga to comply with applicable provisions of the Investment Company Act of 1940 and to provide financial information to note holders and the trustee if the company stops filing under the Securities Exchange Act of 1934.
The offering was made under shelf registration statement Form N-2, file number 333-292765, using a preliminary prospectus supplement and a final prospectus supplement both dated August 18, 2026.
Saratoga Investment Corp. is incorporated in Maryland and headquartered at 535 Madison Avenue in New York. Common stock trades under SAR on the NYSE. The 8.125% Notes due 2027 trade under SAY, also on the New York Stock Exchange.