Saratoga investment highlights $428M investment capacity and monthly dividend transition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2025
0mins
Source: SeekingAlpha
Management Insights: Saratoga Investment Corp announced a transition to a monthly dividend structure, increasing the quarterly base dividend to $0.25 per share, reflecting a 12.1% annualized yield. The company reported positive net originations and maintained significant liquidity with $428 million in investment capacity.
Financial Performance: The adjusted net investment income (NII) per share for Q4 decreased to $0.56 from $0.90 in the previous quarter, attributed to lower interest rates and asset levels. Despite challenges in capital deployment due to market conditions, management expressed confidence in future growth opportunities and emphasized balance sheet strength.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SAR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SAR
Wall Street analysts forecast SAR stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 22.880
Low
23.00
Averages
24.00
High
25.00
Current: 22.880
Low
23.00
Averages
24.00
High
25.00
About SAR
Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to United States 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. Its investment’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’s portfolio is comprised primarily of investments in leveraged loans issued by middle-market companies. It also invests in mezzanine debt and makes equity investments in middle-market companies. The Company’s investment activities are externally managed and advised by Saratoga Investment Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Cautions About Increasing Risks in Software Lending
S&P Software Index Decline: The S&P Software Index has experienced a significant decline of 22% this year due to the impact of AI.
Software Loan Price Stability: Despite the drop in the software index, the price of software loans has only decreased by approximately 3%.
See More
Saratoga Investment Prices $100M Unsecured Notes Offering
- Bond Offering Size: Saratoga Investment has successfully priced a $100 million offering of 7.50% unsecured notes due February 6, 2031, demonstrating the company's ability to raise capital and proactively manage future funding needs.
- Interest Payment Structure: The notes will accrue interest at an annual rate of 7.50%, with payments starting on May 31, 2026, and occurring quarterly on February 28, May 31, August 31, and November 30, ensuring stable returns for investors.
- Underwriter Purchase Option: The company granted underwriters an option to purchase an additional $15 million of notes, a strategy that not only provides flexible financing options but also allows for potential expansion of the offering in response to strong market demand.
- Listing Plans: The notes are expected to be listed on the NYSE under the symbol “SAV” within 30 days of issuance, which will enhance the company's market visibility and provide liquidity for investors.
See More
Dividend Stocks Gain Favor Amid Market Turbulence
- Investor Preference Shift: Amid market turbulence and uncertainty, many investors are turning to dividend-yielding stocks, which typically have high free cash flows and reward shareholders with substantial dividends, indicating a strong desire for stable income.
- Analyst Rating Overview: Benzinga provides the latest analyst ratings on high-yield stocks, allowing investors to review the latest analyses of their favorite stocks by visiting the Analyst Stock Ratings page, thereby enhancing transparency in investment decisions.
- High-Yield Stock Recommendations: In the financial sector, PennyMac Mortgage Investment Trust (NYSE:PMT), Blue Owl Capital Corp (NYSE:OBDC), and Saratoga Investment Corp (NYSE:SAR) are highlighted as three high-yield stocks, reflecting market confidence in these companies.
- Analyst Accuracy: Benzinga's database enables traders to sort ratings by analyst accuracy, which not only improves investors' understanding of market dynamics but may also influence their investment strategies and choices.
See More
Saratoga Investment Corp. Prices $100 Million Public Offering of Notes
- Bond Offering Size: Saratoga Investment Corp. announced a public offering of $100 million in unsecured notes at a 7.50% interest rate, expected to close on February 6, 2026, which will provide funds to redeem its maturing 4.375% notes, enhancing financial flexibility.
- Interest Rate and Maturity: The new notes will mature in 2031 and can be redeemed in whole or in part at the company's option after February 6, 2028, providing flexible capital management options that help optimize the company's capital structure.
- Investment Rating: The company received a “BBB+” investment-grade rating from Egan-Jones Ratings Company, indicating strong creditworthiness, which may attract more investors and enhance market confidence.
- Underwriter Lineup: With Lucid Capital Markets and Oppenheimer & Co. serving as joint book-running managers, the offering is backed by a strong underwriting team, expected to facilitate the notes' listing on the New York Stock Exchange, thereby increasing the company's market visibility.
See More
SARATOGA INVESTMENT CORP. ANNOUNCES PUBLIC OFFERING OF $100 MILLION IN 7.50% NOTES MATURING IN 2031
Company Announcement: Saratoga Investment Corp. has announced a public offering of $100 million in 7.50% notes.
Maturity Date: The notes are set to mature in 2031.
See More
Saratoga Investment Launches Unsecured Notes Offering with BBB+ Rating
- Offering Launch: Saratoga Investment announced on Thursday the commencement of a registered public offering of unsecured notes, expected to be listed on the New York Stock Exchange within 30 days under the trading symbol 'SAV', providing new financing avenues for future growth.
- Credit Rating Upgrade: The company received a BBB+ independent investment grade rating from Egan-Jones, a nationally recognized statistical rating organization, which is likely to enhance investor confidence and potentially lower financing costs, thereby improving the company's competitive position in the market.
- Clear Use of Proceeds: Saratoga plans to use the net proceeds from this offering, combined with available cash, to fully redeem its outstanding 4.375% notes due in 2026, optimizing its capital structure and reducing interest expenses.
- Positive Market Environment: Amid rising M&A activity, Saratoga Investment reported $395.6 million in liquidity, indicating the company's capability for accretive investments in the current market landscape, further solidifying its position within the industry.
See More
Morgan Stanley Cautions About Increasing Risks in Software Lending
S&P Software Index Decline: The S&P Software Index has experienced a significant decline of 22% this year due to the impact of AI.
Software Loan Price Stability: Despite the drop in the software index, the price of software loans has only decreased by approximately 3%.
See More
Saratoga Investment Prices $100M Unsecured Notes Offering
- Bond Offering Size: Saratoga Investment has successfully priced a $100 million offering of 7.50% unsecured notes due February 6, 2031, demonstrating the company's ability to raise capital and proactively manage future funding needs.
- Interest Payment Structure: The notes will accrue interest at an annual rate of 7.50%, with payments starting on May 31, 2026, and occurring quarterly on February 28, May 31, August 31, and November 30, ensuring stable returns for investors.
- Underwriter Purchase Option: The company granted underwriters an option to purchase an additional $15 million of notes, a strategy that not only provides flexible financing options but also allows for potential expansion of the offering in response to strong market demand.
- Listing Plans: The notes are expected to be listed on the NYSE under the symbol “SAV” within 30 days of issuance, which will enhance the company's market visibility and provide liquidity for investors.
See More
Dividend Stocks Gain Favor Amid Market Turbulence
- Investor Preference Shift: Amid market turbulence and uncertainty, many investors are turning to dividend-yielding stocks, which typically have high free cash flows and reward shareholders with substantial dividends, indicating a strong desire for stable income.
- Analyst Rating Overview: Benzinga provides the latest analyst ratings on high-yield stocks, allowing investors to review the latest analyses of their favorite stocks by visiting the Analyst Stock Ratings page, thereby enhancing transparency in investment decisions.
- High-Yield Stock Recommendations: In the financial sector, PennyMac Mortgage Investment Trust (NYSE:PMT), Blue Owl Capital Corp (NYSE:OBDC), and Saratoga Investment Corp (NYSE:SAR) are highlighted as three high-yield stocks, reflecting market confidence in these companies.
- Analyst Accuracy: Benzinga's database enables traders to sort ratings by analyst accuracy, which not only improves investors' understanding of market dynamics but may also influence their investment strategies and choices.
See More
Saratoga Investment Corp. Prices $100 Million Public Offering of Notes
- Bond Offering Size: Saratoga Investment Corp. announced a public offering of $100 million in unsecured notes at a 7.50% interest rate, expected to close on February 6, 2026, which will provide funds to redeem its maturing 4.375% notes, enhancing financial flexibility.
- Interest Rate and Maturity: The new notes will mature in 2031 and can be redeemed in whole or in part at the company's option after February 6, 2028, providing flexible capital management options that help optimize the company's capital structure.
- Investment Rating: The company received a “BBB+” investment-grade rating from Egan-Jones Ratings Company, indicating strong creditworthiness, which may attract more investors and enhance market confidence.
- Underwriter Lineup: With Lucid Capital Markets and Oppenheimer & Co. serving as joint book-running managers, the offering is backed by a strong underwriting team, expected to facilitate the notes' listing on the New York Stock Exchange, thereby increasing the company's market visibility.
See More
SARATOGA INVESTMENT CORP. ANNOUNCES PUBLIC OFFERING OF $100 MILLION IN 7.50% NOTES MATURING IN 2031
Company Announcement: Saratoga Investment Corp. has announced a public offering of $100 million in 7.50% notes.
Maturity Date: The notes are set to mature in 2031.
See More
Saratoga Investment Launches Unsecured Notes Offering with BBB+ Rating
- Offering Launch: Saratoga Investment announced on Thursday the commencement of a registered public offering of unsecured notes, expected to be listed on the New York Stock Exchange within 30 days under the trading symbol 'SAV', providing new financing avenues for future growth.
- Credit Rating Upgrade: The company received a BBB+ independent investment grade rating from Egan-Jones, a nationally recognized statistical rating organization, which is likely to enhance investor confidence and potentially lower financing costs, thereby improving the company's competitive position in the market.
- Clear Use of Proceeds: Saratoga plans to use the net proceeds from this offering, combined with available cash, to fully redeem its outstanding 4.375% notes due in 2026, optimizing its capital structure and reducing interest expenses.
- Positive Market Environment: Amid rising M&A activity, Saratoga Investment reported $395.6 million in liquidity, indicating the company's capability for accretive investments in the current market landscape, further solidifying its position within the industry.
See More
