Saratoga(US:SAR)2026-01-07 21:05Assets and Management - Assets Under Management (AUM) increased to $1.016 billion, a 5.8% rise from $960.1 million year-over-year and a 2.1% increase from the previous quarter[7]. - The fair value of Saratoga Investment's portfolio was $1.016 billion, excluding $169.6 million in cash and cash equivalents, invested in 46 portfolio companies and other financial instruments[11]. - Total assets increased to $1,196,961,951 as of November 30, 2025, compared to $1,191,543,857 on February 28, 2025, reflecting a growth of approximately 0.4%[27]. - Total investments at fair value rose to $1,015,950,344, up from $978,077,750, indicating an increase of about 3.9%[27]. Investment Income - Net Investment Income (NII) per share rose to $0.61, reflecting a $0.03 increase from the previous quarter, but down from $0.90 year-over-year[3]. - Total Investment Income for the quarter was $31.6 million, a decrease of 11.8% from $35.9 million in the same quarter last year, but an increase of 3.3% from $30.6 million last quarter[7]. - Net investment income for the three months ended November 30, 2025, was $9,786,386, a decrease of 21.3% from $12,435,655 in the same period of 2024[30]. - For the nine months ended November 30, 2025, net investment income totaled $29,009,151, down from $44,968,058 in 2024, a decrease of approximately 35.6%[38]. Dividends - Dividends declared for the quarter were $0.75 per share, up from $0.74 per share in the same quarter last year[3]. - Saratoga Investment declared a base quarterly dividend of $0.75 per share for the fourth quarter of fiscal 2026, with three monthly dividends of $0.25 per share[14]. Debt and Financing - The company entered into a new credit agreement with Valley National Bank for $85.0 million, with an initial draw of $32.5 million to repay existing debt[10]. - The company maintained a cash position of $169.6 million, down from $200.8 million last quarter, but still significant for future investments[5]. - Total liabilities decreased to $783,755,039 as of November 30, 2025, down from $798,878,389, a decline of about 1.9%[27]. - Interest and debt financing expenses decreased to $36,735,463 for the nine months ended November 30, 2025, compared to $39,135,022 in the previous year, a reduction of approximately 6.1%[33]. Portfolio Composition - The overall portfolio composition consisted of 83.9% first lien term loans, 0.8% second lien term loans, and 1.6% unsecured loans[11]. - The weighted average current yield on the portfolio was 9.7%, with 10.4% on first lien term loans and 15.6% on second lien term loans[11]. - The weighted average interest rate on the core BDC portfolio decreased to 10.6%, down from 11.3% last quarter and 11.8% year-over-year[7]. Shareholder Actions - The company purchased 1,035,203 shares of common stock at an average price of $22.05, totaling approximately $22.8 million under its Share Repurchase Plan[19]. - Saratoga Investment has sold 8,591,915 shares for gross proceeds of $227.2 million at an average price of $26.37 since the start of its equity distribution agreement[15]. - The company has $136.0 million in undrawn SBA debentures available from its existing SBIC III license[15]. Performance Metrics - Return on Equity (ROE) for the last twelve months was 9.7%, up from 9.2% year-over-year, and quarterly ROE was 13.5%[4]. - The net increase in net assets resulting from operations for the nine months ended November 30, 2025, was $39,217,382, compared to $28,763,019 in the same period of 2024, representing a growth of 36.5%[33]. - The asset coverage ratio improved to 168.4% from 162.9%, indicating a stronger asset base relative to liabilities[28]. - The net investment income yield for the three months ended November 30, 2025, was 9.5%, down from 13.3% in 2024, indicating a decrease of 28.6%[36].