Saratoga Investment Corp. (NYSE: SAR) has priced an underwritten public offering of $85 million in unsecured notes, with an additional $12.75 million available at the underwriters' discretion. The notes carry an 8% annual yield and mature on August 31, 2031, according to a company statement dated August 18, 2026.
The transaction is structured with quarterly interest payments beginning November 30, 2026, and the company retains the option to redeem the notes in whole or in part starting August 26, 2028. Net proceeds, along with available cash, will be used to fully redeem Saratoga's outstanding 6% notes due 2027.
The offering is expected to close on August 26, 2026, pending customary conditions, and the notes are slated for listing on the New York Stock Exchange under the symbol SAX within 30 days of issuance. Saratoga Investment, regulated as a business development company under the Investment Company Act of 1940, specializes in providing financing solutions to U.S. middle-market businesses.
The notes received an investment-grade private rating of BBB from Egan-Jones Ratings Company, an NRSRO-recognized agency. Joint book-running managers for the deal include Lucid Capital Markets and Oppenheimer & Co. Inc., while lead managers consist of B. Riley Securities, Clear Street, Compass Point Research & Trading, Ladenburg Thalmann & Co. Inc., and Maxim Group. Co-managers are InspereX and William Blair & Company.
