STOCK TITAN

Saratoga Investment Corp. Resets its Existing CLO Upsized to $600 million

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Saratoga Investment Corp. (NYSE:SAR) announced a successful reset and upsizing of its CLO 2013-1, lifting total assets to $600 million from $500 million. This reset involves various classes of notes, with key details including:

  • A-1-R-3: $330M, Aaa rating, L+132 coupon
  • A-2-R-3: $60M, Aaa rating, L+165 coupon
  • B-FL-R-3: $55M, Aa2 rating, L+180 coupon

The anticipated closing is set for February 26, 2021, while the legal final date is April 20, 2033. Note that these securities have not been registered under the Securities Act of 1933.

Positive
  • Upsizing of CLO 2013-1 from $500 million to $600 million enhances financial flexibility.
  • Strong ratings for several classes of notes, indicating lower risk for investors.
Negative
  • None.

NEW YORK, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced pricing of its reset of the existing Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”). In addition and as part of the reset, the Saratoga CLO has also been upsized to approximately $600 million from its prior $500 million in assets.

The transaction is structured as follows:

 
Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga Investment Corp.)
Class Par Amount Expected Ratings
(Moody's)
Coupon
A-1-R-3 $330M Aaa L+132
A-2-R-3 $60M Aaa L+165
B-FL-R-3 $55M Aa2 L+180
B-FXD-R-3 $11M Aa2 2.5372%
C-FL-R-3 $23.5M A2 L+240
C-FXD-R-3 $6.5M A2 3.3103%
D-R-3 $36M Baa3 L+400
E-R-3 $25.5M Ba3 L+750
F-R-3 16.5M   L+1000
Subordinated Notes $103.75M    

The non-call period expires on February 26, 2022, the reinvestment period expires on April 22, 2024, and the legal final date is April 20, 2033.

The anticipated closing date is February 26, 2021.

Saratoga Investment will own 100% of the F-R-3 and Subordinated Notes on the closing date.

The Notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Saratoga Investment Corp.

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 private credit and equity-driven strategies.  Saratoga Investment owns two SBIC-licensed subsidiaries and manages the Saratoga CLO.  It also owns 100% of the Class F-R-2, G-R-2 and Subordinated Notes of the existing Saratoga CLO, and will own 100% of the Class F-R-3 and Subordinated Notes of the Saratoga CLO upsized to $600 million on the closing date.  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


FAQ

What is the CLO 2013-1 reset by Saratoga Investment Corp.?

Saratoga Investment Corp. announced the reset and upsizing of CLO 2013-1 to $600 million, enhancing its financial position.

When is the anticipated closing date for the CLO 2013-1 reset?

The anticipated closing date for the CLO 2013-1 reset is February 26, 2021.

What classes of notes are included in the Saratoga CLO 2013-1?

Classes include A-1-R-3, A-2-R-3, B-FL-R-3, among others, with varying amounts and ratings.

What are the expected ratings for the Saratoga CLO notes?

The expected ratings include Aaa for A-1-R-3, Aaa for A-2-R-3, and Aa2 for B-FL-R-3.

What is the legal final date for the Saratoga CLO 2013-1?

The legal final date for the Saratoga CLO 2013-1 is April 20, 2033.

SARATOGA INVESTMENT CORP. NEW

NYSE:SAR

SAR Rankings

SAR Latest News

SAR Stock Data

357.25M
11.65M
15.6%
15.82%
0.96%
Asset Management
Financial Services
Link
United States of America
NEW YORK