NEW YORK, Dec. 30, 2011 /PRNewswire/ -- Saratoga Investment Corp. (NYSE: SAR), a business development company (the "Company"), announced today the form in which the dividend declared by the Company's board of directors on November 15, 2011, will be paid and the results of its shareholders' elections relating to the dividend. The dividend of $3.00 per share is payable on December 30, 2011, to shareholders of record as of November 25, 2011. Shareholders had until December 22, 2011, to elect whether to receive the dividend in cash (up to an aggregate maximum cash amount of approximately $2.0 million, or approximately 20% of the total dividend paid) or in shares of common stock. Due to the original terms of the dividend, shareholders who elected to receive cash will receive a combination of cash and common stock.
The dividend will consist of approximately $2.0 million in cash and 600,000 shares of common stock, or approximately 18.3% of the Company's outstanding shares prior to the dividend. The amount of cash elected to be received was greater than the cash limit of 20% of the aggregate dividend amount, therefore resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.12 per share, which equaled the average of the volume weighted average trading price per share of the Company's common stock on December 20, 21 and 22, 2011.
Shareholders who elected to receive the dividend solely in shares of common stock and shareholders who did not make an election will receive approximately 0.23 shares of common stock for each share of common stock they owned on the record date of November 25, 2011. Holders of approximately 66.1% of the Company's common stock elected to receive only stock or did not make an election.Shareholders electing to receive the dividend in all cash will receive cash in the amount of $1.77 per share, or approximately 59% of the $3.00 dividend, and 0.094 shares of common stock, or approximately 41% of the total dividend for each share of common stock they owned on the record date of November 25, 2011. Cash in lieu of fractional shares will be issued, if applicable. Shareholders who hold their shares through a bank, broker or nominee and have questions regarding the dividend should contact their bank, broker or nominee directly.