NEW YORK, May 28, 2019 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced that its Board of Directors has declared an increased quarterly dividend of $0.55 per share for the fiscal quarter ended May 31, 2019, payable on June 27, 2019, to all stockholders of record at the close of business on June 13, 2019.
This increase is the nineteenth sequential increase to the Company’s quarterly dividends. Total dividends declared for the fiscal years ended February 28, 2019 and 2018 were $2.10 per share and $1.94 per share, respectively. The Company paid a quarterly dividend of $0.54 per share for the quarter ended February 28, 2019, $0.53 per share for the quarter ended November 30, 2018, $0.52 per share for the quarter ended August 31, 2018, and $0.51 per share for the quarter ended May 31, 2018. Throughout fiscal year 2018, the Company paid a quarterly dividend of $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.
“Saratoga investment has been able to consistently generate strong investment income and increased net asset value over the long-term, despite credit market volatility,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. “This has given us the ability to continue to grow our dividend payments, delivering nearly five years of increased quarterly dividends. This sets us strongly apart from most others in the BDC industry, underscoring the value created from our high quality management team, ample available liquidity, disciplined credit analysis and robust investment sourcing pipeline.”
Strong financial performance has enabled Saratoga Investment to increase regular quarterly dividends each of the past nineteen quarters from $0.18 per share for the third quarter of fiscal 2015 to $0.55 per share for this first quarter of fiscal 2020.
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 $500 million collateralized loan obligation (“CLO”) fund. It also owns 100% of the Class F-R-2, G-R-2 and 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.