Saratoga Investment Corp. Prices Public Offering of $85.0 Million 8.00% Notes Due 2031
Rhea-AI Summary
Saratoga Investment (NYSE:SAR) priced an underwritten public offering of $85 million aggregate principal amount of 8.00% unsecured notes due 2031. The offering is expected to close on August 26, 2026, with an over-allotment option for an additional $12.75 million of notes.
The notes, expected to list on the NYSE under the symbol "SAX" within 30 days of issuance, mature on August 31, 2031, and are callable at the company’s option on or after August 26, 2028. They pay 8.00% annual interest quarterly starting November 30, 2026. According to Saratoga Investment, net proceeds and available cash are expected to redeem its outstanding 6.00% notes due 2027. Egan-Jones Ratings Company assigned an investment grade private rating of BBB.
Positive
- $85 million 8.00% unsecured notes due 2031 priced
- Underwriters granted option for additional $12.75 million notes
- Notes expected to list on NYSE under symbol SAX
- Net proceeds expected to redeem outstanding 6.00% notes due 2027
- Egan-Jones assigned investment grade private rating of BBB
Negative
- New notes carry 8.00% coupon versus redeemed notes at 6.00%
- Issuance of up to $97.75 million in unsecured notes increases gross debt outstanding
News Explained
The priced $85 million gross note offering, which remains subject to closing, equals 294.6 days of the operating cash outflow reported for the quarter ended
Sources and calculations
- Saratoga Investment Corp. Prices Public Offering of $85.0 Million 8.00% Notes Due 2031 (2026-08-18)
- Saratoga Investment fiscal first-quarter 2027 fundamentals (2026-05-31)
- Offering gross vs quarterly operating cash outflow, in days of cash use $85,000,000 / ($25,965,895 / 90) = [object Object]
Key Figures
Previous Offering Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Notes offering | Positive | -0.3% | Priced $100 million notes with BBB+ rating and proceeds for redeeming 2026 notes |
| Jan 29 | Offering announcement | Positive | +1.5% | Announced registered notes offering, BBB+ rating, and redemption of 2026 notes |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The two tag-matched offering events showed mixed reactions, ranging from -0.25% to +1.54%, with one divergence and one alignment.
Key Terms
underwritten public offering financial
unsecured notes financial
investment grade financial
nrsro regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, NY, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (the “Company”) (NYSE: SAR) today announced that it has priced an underwritten public offering of
The Notes will mature on August 31, 2031, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after August 26, 2028. The Notes will bear interest at a rate of
The Company has granted the underwriters an option to purchase up to an additional
The Company has received an investment grade private 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).
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. The Company expects to use the net proceeds from this offering and available cash to redeem in full the Company’s outstanding
Investors are advised to consider carefully the investment objective, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement dated August 18, 2026, the pricing term sheet dated August 18, 2026, and the accompanying prospectus dated March 11, 2026, each of which has been filed with the Securities and Exchange Commission (the “SEC”), contains a description of these matters and other important information about the Company and should be read carefully 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 (File No. 333-292765) relating to the Notes was filed and has been declared effective by the SEC.
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 for free by visiting the SEC’s website at www.sec.gov or from 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.
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. The Company’s objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments. The Company 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. The Company 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
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; the elevated levels of inflation; and the impact of geopolitical conditions on our portfolio companies and opportunities available to us, 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. The Company 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
