NEW YORK, Oct 06, 2021 (GLOBE NEWSWIRE) – Saratoga Investment Corp. (NYSE: SAR) (âSaratoga Investmentâ or âthe Companyâ), a business development company, today announced that its wholly owned subsidiary, Saratoga Investment Funding II LLC (âSIF IIâ), an incorporated entity for the purpose of entering into this financing agreement, entered into a new $ 50.0 million senior secured credit facility (the âFacilityâ) with Encina Lender Finance, LLC (âEncinaâ). The Facility will be supported by loans held by SIF II and pledged to Encina under the terms of the credit agreement.
The Facility closed on October 4, 2021. SIF II may request an increase in the amount of the commitment up to $ 75.0 million in the first two years. The terms of the facility require a minimum drawdown of $ 12.5 million at any time during the first six months, which increases to the greater of $ 25.0 million or 50% of the amount of the commitment. force at any time thereafter. The duration of the Facility is three years. The interest rate on borrowings under the facility is LIBOR plus 4.0%, with LIBOR having a floor of 0.75%. Concurrent with the closing of this facility, all outstanding amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the facility was terminated.
âWe are delighted to enter into this credit facility with Encina, which provides the Company with great flexibility as we assess our needs and seek to optimize our overall capital structure. Encina has been a great partner in this process, and we appreciate the opportunity to establish this new relationship with them, âsaid Christian L. Oberbeck, President and CEO of Saratoga Investment.
âEncina Lender Finance is delighted that Saratoga Investment has chosen us as its principal debt capital partner,â said Luke Graham, Chairman and CEO of Encina. âThe Company’s management team has a long and successful reputation for success, and we look forward to supporting them in achieving Saratoga Investment’s future goals and objectives. “
About Saratoga Investment
Saratoga Investment is a specialty finance company that provides personalized finance solutions to mid-market US companies. The Company invests primarily in senior and unitranche leveraged loans and mezzanine debt and, to a lesser extent, equity to finance change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Saratoga Investment’s goal is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its investments in debt and equities. Saratoga Investment elected to be regulated as a business development company under the Investment Companies Act of 1940 and is managed externally by Saratoga Investment Advisors, LLC, an investment adviser registered with the SEC se focusing on credit-oriented strategies. Saratoga Investment has two SBIC approved subsidiaries and manages a $ 650 million secured loan bond (âCLOâ) fund. He also holds 52% of the class F and 100% of the CLO subordinated notes. The Company’s various sources of financing, combined with a permanent capital base, allow Saratoga Investment to offer a wide range of financing solutions.
About Encina Lender Finance
Atlanta-based Encina Lender Finance offers revolving lines of credit and term loans ranging from $ 10 million to $ 150 million to specialist finance companies (sponsored and non-sponsored) across a wide range of asset classes including , but not limited to, asset base loan, factoring, equipment leasing, floor plan financing, commercial real estate bridging loan, tax lien / deed financing, subprime debt lending, SME loan and merchant cash advance, private middle market credit, debt buyers written off, rent-to-own consumer leasing, unsecured consumer loans and specialist student loans. Encina’s clients use the financing proceeds primarily to finance the creation of new financing contracts and to refinance existing debt, and Encina’s loans are secured by portfolios of notes, loans and / or leases. For more information, please visit Encina’s website at https://lenderfinance.encinacapital.com.
The statements included herein contain certain “forward-looking statements” within the meaning of federal securities laws, including statements regarding the offering of Company Notes and the intended use of the net proceeds of the Offering. Forward-looking statements can be identified by the use of forward-looking words such as “prospect”, “belief”, “expects”, “possible”, “continuing”, “could”, “will”, “should”, “Research”, “approximately”, “predicted”, “intends”, “foresees”, “estimates”, “anticipates” or negative versions of these words, other comparable words or other statements which do not relate to historical or factual matters. Forward-looking statements are based on our beliefs, assumptions and expectations regarding future events and our future performance, taking into account all information currently available to us. These statements do not constitute guarantees of future events, performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those of forward-looking statements due to a number of factors, including, but not limited to, the impact of the COVID-19 pandemic and the impact of the pandemic on the economy, as well as those described from time to time in our filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. Saratoga Investment Corp. assumes no obligation to update any forward-looking statements contained herein, whether as a result of new information, future developments or otherwise, except as required by law.
Contact: Henri Steenkamp Saratoga Investment Corp. 212-906-7800
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