Business Context and Reporting Period
Company: Saratoga Investment Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: May 18, 2017
Event: Entry into a Material Definitive Agreement (Third Amendment to Senior Secured Revolving Credit Facility).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt balances. It details specific terms of a credit facility amendment:
- Commitment Termination Date: Extended from September 17, 2017, to September 17, 2020.
- Final Maturity Date: Extended from September 17, 2022, to September 17, 2025.
- Base Rate Borrowing Floor: Reduced from 2.25% to 2.0%.
- LIBOR Borrowing Floor: Reduced from 1.25% to 1.00%.
- Commitment Fee Rate: Reduced from 0.75% to 0.50% (applicable when the ratio of advances outstanding to aggregate commitments is ≥ 50%).
Material Changes Versus Prior Period
The primary material change is the restructuring of the senior secured revolving credit facility with Madison Capital Funding LLC. The amendment extends the facility's lifespan by three years and reduces the cost of borrowing through lower interest rate floors and commitment fees.
Guidance, Outlook, and Risks
Management Commentary: The filing states the amendment was entered into to extend maturity dates and reduce borrowing costs. No specific forward-looking guidance on earnings or operations is provided in this document.
Risks and Contingencies: The filing notes that the description of the amendment is qualified in its entirety by reference to the full text of the agreement attached as Exhibit 10.1. No specific new risks are disclosed beyond the standard obligations of the credit facility.
Important Facts for Investor Verification
- Verify the full text of Exhibit 10.1 (Amendment No. 3) to understand all covenants and conditions not summarized in the 8-K.
- Confirm the current utilization rate of the credit facility to determine if the reduced 0.50% commitment fee applies immediately.
- Review the company's most recent 10-Q or 10-K for total outstanding debt and liquidity positions, as this 8-K does not provide aggregate financial figures.