GlobeNewswire Inc | Feb 16, 2021 04:00PM EST

February 16, 2021

NEW YORK, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Saratoga Investment Corp.(NYSE:SAR) (Saratoga Investment or the Company), a business development company, today announced pricing of its reset of the existingSaratoga Investment Corp.CLO 2013-1, Ltd. (Saratoga CLO). In addition and as part of the reset, the Saratoga CLO has also been upsized to approximately$600 millionfrom its prior$500 millionin assets.

The transaction is structured as follows:

Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga Investment Corp.)Class Par Amount Expected Ratings Coupon (Moody's)A-1-R-3 $330M Aaa L+132A-2-R-3 $60M Aaa L+165B-FL-R-3 $55M Aa2 L+180B-FXD-R-3 $11M Aa2 2.5372%C-FL-R-3 $23.5M A2 L+240C-FXD-R-3 $6.5M A2 3.3103%D-R-3 $36M Baa3 L+400E-R-3 $25.5M Ba3 L+750F-R-3 16.5M L+1000Subordinated Notes $103.75M

The non-call period expires onFebruary 26, 2022, the reinvestment period expires onApril 22, 2024, and the legal final date isApril 20, 2033.

The anticipated closing date isFebruary 26, 2021.

Saratoga Investmentwill own 100% of the F-R-3 and Subordinated Notes on the closing date.

The Notes have not been registered under the Securities Act of 1933 and may not be offered or sold inthe United Statesabsent registration or an applicable exemption from registration requirements.

About Saratoga Investment Corp.

Saratoga Investmentis 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 Investments objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments.Saratoga Investmenthas elected to be regulated as a business development company under the Investment Company Act of 1940 and is externally-managed bySaratoga Investment Advisors, LLC, anSEC-registered investment advisor focusing on private credit and equity-driven strategies.Saratoga Investmentowns two SBIC-licensed subsidiaries and manages the Saratoga CLO. It also owns 100% of the Class F-R-2, G-R-2 and Subordinated Notes of the existing Saratoga CLO, and will own 100% of the Class F-R-3 and Subordinated Notes of the Saratoga CLO upsized to$600 millionon the closing date. The Companys diverse funding sources, combined with a permanent capital base, enableSaratoga Investmentto 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 filingsSaratoga Investmentmakes with theSEC.Saratoga Investmentundertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ContactHenri Steenkamp Saratoga Investment Corp. 212-906-7800