NEW YORK, Dec. 27, 2013 /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 October 29, 2013, will be paid and the results of its shareholders' elections relating to the dividend. The dividend of $2.65 per share was payable on December 27, 2013, to shareholders of record as of November 13, 2013. Shareholders had until December 13, 2013, to elect whether to receive the dividend in cash (up to an aggregate maximum cash amount of approximately $2.5 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 $2.5 million in cash and 649,500 shares of common stock, or approximately 13.7% 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 $15.4391 per share, which equaled the average of the volume weighted average trading price per share of the Company's common stock on December 11, 13 and 16, 2013.
Shareholders who elected to receive the dividend solely in shares of common stock and shareholders who did not make an election will receive approximately 0.1716 shares of common stock for each share of common stock they owned on the record date of November 13, 2013. Holders of approximately 69.1% 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 $1.72 per share, or approximately 64.8% of the $2.65 dividend, and .0605 shares of common stock, or approximately 35.2% of the total dividend for each share of common stock they owned on the record date of November 13, 2013. 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.