Saratoga Investment Corp. receives third SBIC approval


NEW YORK, Sept. 29, 2022 (GLOBE NEWSWIRE) — Saratoga Investment Corp. (NYSE: SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced that it has received notification from the Small Business Administration (the “SBA”) that the Company’s application for a Third Small Business Investment Company (“SBIC”) license has been approved.

The new SBIC license will provide up to $175 million of additional long-term capital in the form of SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of SBA debentures outstanding cannot exceed $350.0 million with at least $175.0 million in combined regulatory capital.

“We are excited to continue to grow our relationship with the SBA through a third SBIC license,” said Christian L. Oberbeck, president and CEO of Saratoga Investment. “We look forward to expanding our existing investments in support of the SBA’s mission to provide growth capital to the small businesses that are so important to our economy. Our SBA-backed debentures are a great benefit to our capital structure, further allowing us to provide innovative and cost-effective solutions to the many small and medium-sized businesses we finance. We are grateful to the SBA for their continued support of Saratoga. We continue to build the size and quality of our management team, disciplined credit analysis and a strong investment sourcing pipeline. We will continue to apply consistent investment principles as we deploy the additional capital made available to us with this third SBIC license.

About Saratoga Investments

Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to middle-market US businesses. The Company invests primarily in senior and unitranche leveraged loans and mezzanine debt, and to a lesser extent in equity to fund change of ownership transactions, strategic acquisitions, recapitalizations and capitalization initiatives. growth in partnership with business owners, management teams and financial sponsors. The objective of Saratoga Investment Corp. 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 Companies Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC, an SEC-registered investment adviser that focuses on credit-driven strategies. Saratoga Investment Corp. has two SBIC-licensed subsidiaries and manages a $650 million Secured Loan Obligation (“CLO”) fund and a Joint Venture (“JV”) fund. It also owns 52% of the Class F and 100% of the subordinated notes of the CLO, as well as 87.5% of the unsecured loans and the participations of the members of the JV. The company’s diverse sources of funding, combined with a permanent capital base, allow Saratoga Investment Corp. to provide a wide range of financing solutions.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements about Saratoga Investment’s business and investments, including the benefits of the SBIC license and SBA-guaranteed debentures. Forward-looking statements are statements that are not historical statements and can often be identified by words such as “will”, “believe”, “expect” and similar expressions and variations or negatives of these words . These statements are based on management’s current expectations, assumptions and beliefs. These forward-looking statements are subject to risks and uncertainties and other factors listed in this press release and in Saratoga Investment’s filings with the SEC. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. Saratoga Investment undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Henry Steenkamp
Saratoga Investment Corp.
212-906-7800

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