Saratoga Investment Corp. priced an underwritten public offering of $65 million in aggregate principal amount of 6.75% unsecured notes due Dec. 30, 2023.
The notes may be redeemed in whole or in part at any time or from time to time at the company's option on or after Dec. 21, 2019. The notes will bear interest at a rate of 6.75% per year payable quarterly, starting March 30, 2017.
The underwriters were granted an option to purchase up to an additional $9.8 million in aggregate principal amount of notes.
The notes are expected to be listed on the NYSE and to trade within 30 days of the original issue date under the symbol SAB.
The offering is expected to close Dec. 21.
Saratoga Investment expects to use the offering's net proceeds to repay all outstanding debt under its 7.50% fixed-rate notes due 2020, which amounts to $61.8 million. The net proceeds will also be intended for general corporate purposes.
Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, Compass Point and William Blair are the joint book-running managers for the offering.