This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Saratoga Investment Corp. Approved For SBIC License









NEW YORK, March 29, 2012 /PRNewswire/ -- Saratoga Investment Corp. (NYSE: SAR), a business development company, today announced that its wholly-owned subsidiary has received a Small Business Investment Company (SBIC) license from the U.S. Small Business Administration (SBA).

An SBIC license allows Saratoga Investment Corp. to drawdown borrowings of up to $150 million over a five-year period that have a term of 10 years at SBA fixed rates, currently below 4% per annum.  Saratoga Investment Corp. will invest this money in middle-market businesses that comply with SBIC regulations.

"SBIC financing provides attractive funding costs and structure with a 10-year term and fixed rates that are generally lower than rates on comparable bank and other debt," said Christian L. Oberbeck, Chief Executive Officer and President of Saratoga Investment Corp. and managing member of Saratoga Investment Advisors, LLC, the external investment adviser to Saratoga Investment Corp.  "It is especially advantageous for Saratoga Investment Corp. because the large size of the SBIC financing relative to our capital base allows for substantial asset growth."

Saratoga Investment Corp. has invested $25 million into the SBIC subsidiary.  This will be fully invested before taking down up to $50 million of available SBIC funds.  In subsequent fundings, Saratoga Investment Corp. plans to invest up to an additional $50 million into the SBIC subsidiary and gain access to the additional $100 million of SBIC leverage.  Assuming full investment, this would result in a $225 million SBIC fund.

"Saratoga Investment Corp. views the SBIC license as a substantial benefit to the company.  SBIC financing, combined with its existing revolving credit facility, provides the capital to allow Saratoga Investment Corp. to more than double assets under management," said Michael J. Grisius, Chief Investment Officer.  Saratoga Investment Corp. recently received from Madison Capital Funding LLC a $45 million, eight-year, senior secured revolving credit facility.

With the SBIC license, Saratoga Investment Corp. has furthered its objective to better serve the U.S. middle market through increased scale and capital availability.

Stock quotes in this article: SAR 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs