Saratoga Investment Corp Dossier
Qualitative Analysis
Business overview
Saratoga Investment Corp. (NYSE: SAR) is a specialty finance company regulated as an externally managed, non-diversified closed-end business development company (BDC). Founded in 2007 and headquartered in New York, the company specializes in providing customized debt and equity financing solutions to lower middle-market companies in the United States. Saratoga primarily targets businesses with EBITDA of $2 million to $50 million and revenues between $10 million and $150 million, structuring its investments through first-lien and second-lien secured loans, mezzanine debt, and select equity co-investments. The company is externally managed by Saratoga Investment Advisors, LLC.
Research as of 19 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Saratoga transitioned to a monthly dividend payment schedule of $0.25 per share (totaling $0.75 per quarter) while maintaining a quarterly dividend declaration process.
Expected impact: Aims to deliver more consistent and frequent current income to shareholders, enhancing investor appeal and supporting stock valuation.
Secured a new $85 million senior secured revolving credit facility with Valley National Bank (replacing the $65 million Encina facility) and issued $100 million of 7.50% unsecured notes due 2031 to redeem outstanding 4.375% notes due 2026.
Expected impact: Increases borrowing capacity by $20 million, reduces the applicable margin by 150 basis points, extends debt maturities, and enhances overall financing flexibility.
Focusing on rotating the investment portfolio into higher-yielding assets and expanding co-investment opportunities to stabilize earnings and combat yield spread compression.
Expected impact: Aims to offset rising funding costs and elevate net investment income yields while maintaining a disciplined underwriting approach.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Strategic Partnerships
Valley National Bank serves as the sole lead arranger and administrative agent for Saratoga's $85 million revolving credit facility, which expands eligible assets for the borrowing base and lowers the cost of capital.
Terms: Initial facility amount of $85 million with an option to increase borrowing capacity, featuring a maturity extended to 2028 and a 150 basis point reduction in the applicable margin.