SAR Adds ﹩20.08 Million to 8.00% Notes Due 2031
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Saratoga Investment Corp. (SAR) announced on September 23, 2026, that it priced an additional ﹩20.08 million of 8.00% unsecured notes due August 31, 2031. The underwriters may purchase up to another ﹩3 million.
The add-on will form one series with the ﹩85 million issued on August 26 and the ﹩12.75 million issued on September 2. Without the new over-allotment option, the combined principal amount will be approximately ﹩117.83 million. Interest is payable quarterly, and Saratoga may redeem the notes beginning August 26, 2028.
Saratoga expects the offering to close September 24 and plans to use the net proceeds to repay part of its Valley National Bank special-purpose-vehicle financing facility.
For shareholders, the transaction extends the company’s 2031 funding and can reduce bank-facility borrowings, but it also locks in an 8.00% unsecured funding cost. The effect on earnings and dividend support will depend on the cost of the debt repaid and the income produced by the assets financed with the remaining capital.
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This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.