NEW YORK, Oct. 03, 2022 (GLOBE NEWSWIRE) — Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced that it has priced a $400 million CLO called Saratoga Investment Corp Senior Loan Fund 2022-1 Ltd. (“SLF 2022”) on September 30, 2022. SLF 2022 is a wholly owned subsidiary of Saratoga Senior Loan Fund I JV LLC (“SLF JV”), and under joint control and co-managed by Saratoga Investment and TJHA JV I LLC (“TJHA”). SLF JV was formed on October 26, 2021 for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.
| The transaction is structured as follows:
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| Saratoga Investment Corp. Senior Loan Fund 2022-1 Ltd. (Saratoga Senior Loan Fund I JV LLC) | |||
| Class | Par Amount | Expected Ratings
(Moody’s) |
Coupon |
| A-1 | $240M | Aaa | SOFR+175 |
| A-2 | $16M | Aaa | SOFR+260 |
| B | $48M | Aa | SOFR+350 |
| C | $20M | A3 | SOFR+400 |
| D | $24M | BBB- | SOFR+661 |
| E | $14M | Ba3 | SOFR+855 |
| Subordinated Notes | $40.1M | NR | |
The non-call period expires in April 2025 on the Class A-1, A-2, B and C Notes, and expires in October 2024 on the Class D and E Notes. The reinvestment period expires in October 2025, and the legal final date is in October 2033.
The anticipated closing date is October 28, 2022.
Saratoga Investment will own 87.5% of the E Notes and SLF JV will own 100% of the Subordinated Notes on the closing date. Saratoga Investment owns 87.5% of the unsecured loans and the membership interests of the SLF JV.
The Notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
“We are pleased to have completed the financing of this new $400 million CLO together with our joint venture partners, especially in these challenging capital markets conditions in which interest rate volatility and uncertain economic prospects have disrupted credit markets, resulting in both a significant reduction in the number of CLOs being completed, as well as many attractive secondary loans offered for sale under face value,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. “This will bring our total CLO assets, either managed or co-managed by Saratoga, to over $1 billion. We remain confident in our experienced management team, high underwriting standards and ability to maintain quality and investment performance over the long-term. This CLO investment and successful financing continues to expand the breadth and diversity of our investment base and funding sources.”
