Saratoga Investment Corp
NYSE:SAR
Saratoga Investment Corp
Saratoga Investment Corp. (NYSE: SAR) is a publicly traded business development company (BDC) that provides customized financing solutions for middle market companies located in the United States. The company is headquartered in New York City, New York and currently employs 0 full-time employees. The company went IPO on 2010-08-13. The firm provides customized financing solutions to United States middle-market businesses. The company primarily invests in senior and unitranche leveraged loans and mezzanine debt and, to a lesser extent, equity issued by private United States middle-market companies. Its investment objective is to create risk-adjusted returns by generating current income and long-term capital appreciation from its investments. Its investments generally provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Its portfolio is comprised primarily of investments in leveraged loans issued by middle market companies. The company also invests in mezzanine debt and make equity investments in middle market companies. Its investment activities are externally managed and advised by Saratoga Investment Advisors, LLC.
Saratoga Investment Corp. (NYSE: SAR) is a publicly traded business development company (BDC) that provides customized financing solutions for middle market companies located in the United States. The company is headquartered in New York City, New York and currently employs 0 full-time employees. The company went IPO on 2010-08-13. The firm provides customized financing solutions to United States middle-market businesses. The company primarily invests in senior and unitranche leveraged loans and mezzanine debt and, to a lesser extent, equity issued by private United States middle-market companies. Its investment objective is to create risk-adjusted returns by generating current income and long-term capital appreciation from its investments. Its investments generally provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Its portfolio is comprised primarily of investments in leveraged loans issued by middle market companies. The company also invests in mezzanine debt and make equity investments in middle market companies. Its investment activities are externally managed and advised by Saratoga Investment Advisors, LLC.
NAV Growth: Net asset value (NAV) rose to $413 million, up 0.7% from last quarter and 10.2% year-over-year, showing continued balance sheet strength.
Earnings Improvement: Adjusted net investment income (NII) per share increased to $0.61, up $0.03 sequentially, despite ongoing headwinds from lower interest rates and tight spreads.
Dividend Maintained: The monthly dividend was held steady at $0.25 per share, totaling $0.75 for the quarter and representing an annualized yield of 12.9% based on recent prices.
Strong Credit Quality: Nonaccruals remain extremely low at just 0.4% of cost (versus 3.2% industry average), with only one investment on nonaccrual after restructuring.
Ample Liquidity: Saratoga ended the quarter with $395.6 million in available investment capacity, including $169.6 million in cash.
Originations Outpace Repayments: Net originations reached $17.2 million, with $72.1 million in new investments and a healthy pipeline for Q4.
Competitive Market: Management noted an uptick in M&A activity but also persistent tight lending spreads and strong competition for deals.
