NEW YORK, Nov. 27, 2018 (GLOBE NEWSWIRE) — Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced that its Board of Directors has declared an increased quarterly dividend of $0.53 per share for the fiscal quarter ended November 30, 2018, payable on January 2, 2019, to all stockholders of record at the close of business on December 17, 2018.
This increase is the seventeenth sequential increase to the Company’s quarterly dividends. The Company paid a quarterly dividend of $0.52 per share for the quarter ended August 31, 2018, and $0.51 per share for the quarter ended May 31, 2018, as well as regularly throughout fiscal year 2018, including $0.50 per share for the quarter ended February 28, 2018, $0.49 per share for the quarter ended November 30, 2017, $0.48 per share for the quarter ended August 31, 2017, and $0.47 per share for the quarter ended May 31, 2017. These steady increases represent total dividends declared of $1.94 per share for the previous fiscal period ending February 28, 2018, and $1.56 per share declared since year-end.
“We have continued to consistently grow the size and quality of our asset base, which has enabled us to generate increased investment income and net asset value over time,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. “We are very proud of our continued ability to steadily increase our quarterly dividend, an accomplishment that sets us apart from our BDC competition. We have accomplished this for more than four years and it underscores the value of our high quality management team, ample liquidity and access to capital, disciplined credit analysis and robust investment pipeline.”
Strong financial performance has enabled Saratoga Investment to increase regular quarterly dividends each of the past seventeen quarters from $0.18 per share for the third quarter of fiscal 2015 to $0.53 per share for this third quarter of fiscal 2019.
Shareholders will have the option to receive payment of the dividend in cash, or receive shares of common stock pursuant to the Company’s dividend reinvestment plan (“DRIP”). Saratoga Investment shareholders who hold their shares with a broker must affirmatively instruct their brokers prior to the record date if they prefer to receive this dividend and future dividends in common stock. The number of shares of common stock to be delivered shall be determined by dividing the total dollar amount by 95% of the average of the market prices per share at the close of trading on the ten (10) trading days immediately preceding (and including) the payment date.
About Saratoga Investment
Saratoga Investment 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. Saratoga 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. Saratoga Investment has elected to be regulated as a business development company under the Investment Company Act of 1940 and is externally-managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies. Saratoga Investment owns an SBIC-licensed subsidiary and manages a $300 million collateralized loan obligation (“CLO”) fund. It also owns 100% of the subordinated notes of the CLO. The Company’s diverse funding sources, combined with a permanent capital base, enable Saratoga Investment to provide a broad range of financing solutions.
Forward Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements are subject to risks and uncertainties and other factors enumerated in this press release and the filings Saratoga Investment makes with the SEC. 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: Henri Steenkamp
Saratoga Investment Corp.
212-906-7800
Roland Tomforde
Broadgate Consultants
212-232-2222