Saratoga Investment Corp (NYSE: SAR) has priced an underwritten public offering of $85 million in aggregate principal amount of 8.00% unsecured notes due 2031. The specialty finance firm intends to use the net proceeds from this transaction, along with available cash, to redeem in full its outstanding 6.00% Notes due 2027. The offering is expected to close on August 26, 2026, subject to customary closing conditions.

The new notes carry an investment-grade rating of BBB from Egan-Jones Ratings Company, a Nationally Recognized Statistical Rating Organization (NRSRO). Egan-Jones is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider and is certified by the European Securities and Markets Authority (ESMA). The notes are expected to list on the New York Stock Exchange under the trading symbol SAX within 30 days of the original issue date.

Offering Structure and Management

The offering is being managed by a consortium of financial institutions led by joint book-runners Lucid Capital Markets, LLC and Oppenheimer & Co. Inc. Additional management roles include:

• Lead managers: B. Riley Securities, Inc., Clear Street LLC, Compass Point Research & Trading, LLC, Ladenburg Thalmann & Co. Inc., and Maxim Group, LLC.
• Co-managers: InspereX LLC and William Blair & Company, L.L.C.

A registration statement (File No. 333-292765) relating to the notes was filed with and declared effective by the Securities and Exchange Commission. Investors may obtain the preliminary prospectus supplement dated August 18, 2026, the pricing term sheet dated August 18, 2026, and the accompanying prospectus dated March 11, 2026, from the designated investment banks.

Note Terms and Redemption

The notes will mature on August 31, 2031, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after August 26, 2028. Interest is payable quarterly on February 28, May 31, August 31, and November 30 of each year, beginning November 30, 2026.

The Company has granted the underwriters an option to purchase up to an additional $12.75 million in aggregate principal amount of notes.

Portfolio and Funding Profile

Saratoga provides customized financing solutions to U.S. middle-market businesses, investing primarily in senior and unitranche leveraged loans and mezzanine debt. The company, regulated as a business development company under the Investment Company Act of 1940, is externally managed by Saratoga Investment Advisors, LLC.

The firm’s funding structure includes two active SBIC-licensed subsidiaries. It also manages a $360 million collateralized loan obligation (CLO) fund currently in wind-down and co-manages a joint venture owning a $400 million CLO fund. Saratoga owns 52% of the Class F notes and 100% of the subordinated notes of the CLO, alongside significant interests in the joint venture structure.

B. Riley Securities analyst Sean-Paul Adams has lowered the price target for Saratoga Investment to $22 from the previous $23 while maintaining a Neutral rating on the stock. The adjustment reflects a revised valuation outlook for the company listed on the NYSE under the ticker SAR.

The rating update provides investors with a new benchmark for the stock's potential performance. The Neutral stance suggests that the stock is expected to perform in line with the broader market or sector averages over the near term.