Saratoga Investment Corp. Announces Offering of Notes and BBB+ Investment Grade Rating from Egan-Jones Ratings Company

Rhea-AI Summary

Saratoga Investment Corp (NYSE: SAR) announced a registered public offering of unsecured notes and that it received a BBB+ investment grade rating from Egan-Jones Ratings Company.

The company intends to use net proceeds and available cash to redeem in full its outstanding 4.375% Notes due 2026. The new Notes are expected to list and trade on the New York Stock Exchange within 30 days under the trading symbol SAV. Lucid Capital Markets and Oppenheimer are joint book-running managers for the offering.

Positive

• Received BBB+ investment grade rating from Egan-Jones
• Plans to redeem 4.375% Notes due 2026 using offering proceeds and cash
• New Notes expected to list and trade on NYSE as SAV within 30 days

Negative

• Issuance of new unsecured Notes will increase consolidated indebtedness until the existing notes are redeemed

News Market Reaction – SAR

+1.54%

1 alert

+1.54% News Effect

On the day this news was published, SAR gained 1.54%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Coupon of notes redeemed: 4.375% Maturity year of notes: 2026 Listing timeline: Within 30 days +1 more

4 metrics

Coupon of notes redeemed 4.375% Outstanding Notes due 2026 to be redeemed with offering proceeds

Maturity year of notes 2026 Existing 4.375% Notes due 2026 targeted for full redemption

Listing timeline Within 30 days New Notes expected to trade on NYSE under symbol “SAV”

Registration file number 333-269186 SEC registration statement for the Notes offering

Market Reality Check

Price: $23.22 Vol: Volume 104,080 is below 2...

normal vol

$23.22 Last Close

Volume Volume 104,080 is below 20-day average 129,784 (relative volume 0.8x) ahead of the notes announcement. normal

Technical Shares at $23.34 are trading below the 200-day MA of $23.87 and about 10.8% under the 52-week high.

Peers on Argus

While SAR slipped 0.34%, close peers were mixed: SCM -1.23%, HQL -1.67%, PSBD -0...

While SAR slipped 0.34%, close peers were mixed: SCM -1.23%, HQL -1.67%, PSBD -0.77%, but MVF and XFLT gained 0.58% and 0.22%, suggesting stock-specific factors around the notes offering and rating.

Historical Context

5 past events · Latest: Jan 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Q3 earnings release	Positive	+1.6%	Stronger NAV, NII per share and ROE versus prior periods and peers.
Dec 16	Earnings call notice	Neutral	+0.8%	Announcement of reporting date and conference call for fiscal Q3 2026.
Dec 11	Quarterly dividend hike	Positive	+0.1%	Declared $0.75 quarterly dividend via three $0.25 monthly payments.
Nov 12	Special dividend	Positive	+1.6%	Special $0.25 dividend to meet fiscal 2025 distribution requirements.
Nov 06	New credit facility	Positive	-0.8%	New $85M credit line with larger size, lower margin and extended maturity.

Pattern Detected

Recent SAR news on earnings, dividends and financing has generally seen modestly positive price reactions, with only the new credit facility drawing a negative move despite seemingly supportive terms.

Recent Company History

Over the last few months, Saratoga reported strong fiscal Q3 2026 results on Jan 7, 2026, with higher NAV and NII per share and a 1.55% next-day gain. The company emphasized shareholder returns via regular and special dividends in Nov–Dec 2025, both followed by small positive moves. A larger, cheaper $85M credit facility on Nov 6, 2025 saw a -0.78% reaction. Today’s unsecured notes offering and BBB+ rating fit into this ongoing balance of funding growth while maintaining distributions.

Market Pulse Summary

This announcement details a new unsecured notes offering, expected to list on the NYSE within 30 day...

Analysis

This announcement details a new unsecured notes offering, expected to list on the NYSE within 30 days under “SAV,” alongside a BBB+ investment grade rating from Egan-Jones. The company plans to use proceeds, plus cash, to redeem its 4.375% Notes due 2026, shifting its debt profile. In the past six months, Saratoga has combined active capital management with dividends and credit facilities, so investors may watch future filings and earnings updates to gauge the impact on leverage and coverage metrics.

Key Terms

registered public offering, unsecured notes, investment grade rating, nationally recognized statistical rating organization (nrsro), +4 more

8 terms

registered public offering financial

"announced the commencement of a registered public offering of unsecured notes"

A registered public offering is when a company files required documents with regulators to sell new shares or bonds to the general public, providing standardized financial and business information for transparency. For investors, it matters because it creates an opportunity to buy newly issued securities while often increasing market liquidity, but it can also dilute existing ownership and affect share price as supply and company funding needs change—think of a bakery baking extra loaves that can satisfy more customers but slightly reduces each owner's slice of the original batch.

unsecured notes financial

"commencement of a registered public offering of unsecured notes (the “Notes”)"

Unsecured notes are loans a company issues to investors that are backed only by the issuer’s promise to pay, not by specific assets like buildings or equipment. Like an IOU without collateral, they usually pay interest but rank below secured creditors if the company fails, so they carry higher risk and often offer higher yields; investors watch them for credit strength, interest payments and recovery prospects in a default.

investment grade rating financial

"it has received an investment grade rating of “BBB+” from Egan-Jones"

An investment grade rating is a score assigned by a credit-rating agency indicating that a bond issuer or debt is considered reasonably safe and likely to repay its obligations. Investors treat it like a safety label—similar to a product receiving a good quality seal—because higher ratings mean lower risk of default, usually lower borrowing costs for the issuer, and greater appeal to conservative investors and large funds.

nationally recognized statistical rating organization (nrsro) regulatory

"Egan-Jones is a Nationally Recognized Statistical Rating Organization (NRSRO)"

A nationally recognized statistical rating organization (NRSRO) is a credit-rating agency formally approved by regulators to provide official assessments of the creditworthiness of issuers and specific debt securities. Think of it as a government-recognized referee who grades how likely a borrower is to repay, and investors use those grades to compare risk, set portfolio rules, and meet regulatory requirements—making the ratings influential for pricing and investment decisions.

credit rating provider (crp) regulatory

"recognized by the NAIC as a Credit Rating Provider (CRP)"

A credit rating provider evaluates and scores how likely a borrower—such as a company or government—is to repay its debt, often using a letter-grade scale. Investors use these independent ratings like a safety inspection or movie review to gauge risk: higher grades usually mean lower chance of default and lower borrowing costs, while lower grades signal higher risk and can affect bond prices, loan terms and portfolio decisions.

european securities and markets authority (esma) regulatory

"Egan-Jones is also certified by the European Securities and Markets Authority (ESMA)"

A European agency that sets rules and supervises markets across the EU to make investing fair, transparent and stable; think of it as a regional referee and rule-maker for financial markets. It matters to investors because its standards influence how securities are traded, how companies report information, and how risks are managed, which affects market confidence, the safety of investments, and cross-border access to markets.

registration statement regulatory

"A registration statement (File No. 333-269186) relating to the Notes was filed"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

prospectus supplement regulatory

"a related preliminary prospectus supplement, which may be obtained from"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. Not financial advice.

NEW YORK, NY, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (the “Company”) (NYSE: SAR) announced the commencement of a registered public offering of unsecured notes (the “Notes”).  The Company also announced that it has received an investment grade rating of “BBB+” from Egan-Jones Ratings Company, an independent, unaffiliated rating agency.

Egan-Jones is a Nationally Recognized Statistical Rating Organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). Egan-Jones is also certified by the European Securities and Markets Authority (ESMA).

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 “SAV”.

Lucid Capital Markets, LLC and Oppenheimer & Co. Inc. are serving as joint book-running managers for this offering. B. Riley Securities, Inc., Clear Street LLC, Compass Point Research & Trading, LLC, Ladenburg Thalmann & Co. Inc., and Maxim Group, LLC are serving as lead managers for this offering. InspereX LLC and William Blair & Company, L.L.C. are serving as co-managers for this offering. Investors are advised to consider carefully the investment objective, risks and charges and expenses of the Company before investing. The Company intends to use the net proceeds from this offering and available cash to redeem in full the Company’s outstanding 4.375% Notes due 2026.

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 (File No. 333-269186) relating to the Notes was filed and has been declared effective by the Securities and Exchange Commission.

This offering is being made solely by means of a written prospectus forming part of the effective registration statement and a related preliminary prospectus supplement, which may be obtained from of any of the following investment banks:  Lucid Capital Markets, LLC, Attn: George Mangione, 570 Lexington Avenue, 40th Floor, New York, NY 10022 (telephone number (646) 362-3098), or by e-mailing GMangione@lucidcm.com; or Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com.

The preliminary prospectus supplement dated January 29, 2026, and the accompanying prospectus dated March 13, 2023, each of which has been filed with the Securities and Exchange Commission, contains a description of these matters and other important information about the Company and should be read carefully before investing.

About Saratoga Investment Corp.

Saratoga Investment Corp. 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 Corp.’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 Corp. has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and is externally managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies.  Saratoga Investment Corp. owns two active SBIC-licensed subsidiaries, having surrendered its first license after repaying all debentures for that fund following the end of its investment period and subsequent wind-down. Furthermore, it manages a $650 million collateralized loan obligation (“CLO”) fund that is in wind-down and co-manages 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-R notes of the JV CLO.  The Company’s diverse funding sources, combined with a permanent capital base, enable Saratoga Investment Corp. 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, including statements with regard to the Company’s Notes offering and the anticipated use of the net proceeds of the offering. 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 an economic downturn or recession and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and the global economy; interest rate volatility, including the uncertainty relating to the interest rate environment; the impact of supply chain constraints; labor shortages; and the elevated levels of inflation, 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.
212-906-7800

FAQ

What did Saratoga (SAR) announce on January 29, 2026 about a notes offering and rating?

Saratoga (NYSE: SAR) announced a registered public offering of unsecured notes and a BBB+ rating. According to the company, Egan-Jones assigned the BBB+ rating and the offering proceeds plus cash will be used to redeem its 4.375% notes due 2026.

How will the proceeds from the SAR notes offering be used by Saratoga?

Proceeds and available cash will be used to redeem Saratoga's outstanding 4.375% Notes due 2026 in full. According to the company, this is the stated purpose; the offering is being made by a registered prospectus and is subject to applicable laws and registration.

What credit rating did Egan-Jones assign to Saratoga (SAR) and why does it matter?

Egan-Jones assigned a BBB+ investment grade rating to Saratoga (SAR). According to the company, the rating is from an NRSRO-recognized provider and could affect investor perception and borrowing costs for the new unsecured notes.

Will Saratoga's new Notes trade on an exchange and under what symbol?

The new unsecured Notes are expected to be listed and trade on the New York Stock Exchange within 30 days under the symbol SAV. According to the company, listing and trading timing is counted from the original issue date.

Who are the lead managers and co-managers for the Saratoga (SAR) notes offering?

Lucid Capital Markets and Oppenheimer are joint book-running managers for the offering, with several firms as lead managers and co-managers. According to the company, B. Riley, Clear Street, Compass Point, Ladenburg Thalmann, Maxim, InspereX and William Blair participate in the syndicate.