Saratoga Investment Corp. Announces Fiscal Third Quarter 2025 Financial Results

Core Insights - Saratoga Investment Corp. reported a sequential increase of 1.1% in adjusted net investment income (NII) per share, reaching $0.90, while the last twelve months (LTM) return on equity (ROE) improved to 9.2% [1][3] - The company achieved strong deployments of $84.5 million, supporting two new platforms and eight existing portfolio companies, although this was offset by significant repayments totaling $160.4 million [1][3] Financial Performance - As of November 30, 2024, assets under management (AUM) decreased to $960.1 million, down 13.8% year-over-year and 7.7% from the previous quarter [2][6] - Net asset value (NAV) increased to $374.9 million, up from $359.6 million a year ago and $372.1 million from the previous quarter [2][6] - Total investment income for the quarter was $35.9 million, a decrease of 1.3% year-over-year and a decline of 16.6% from the previous quarter [2][7] - The company declared a quarterly dividend of $0.74 per share, along with a special dividend of $0.35, resulting in a total dividend of $1.09 per share for the quarter [2][14] Investment Activity - The company originated $84.5 million in investments during the quarter, which included two new portfolio company investments and eight follow-on investments [3][5] - Principal repayments amounted to $160.4 million, which included five full repayments of existing investments [3][5] Portfolio Composition - The fair value of the portfolio was $960.1 million, with 86.8% in first lien debt, indicating a strong focus on secured investments [2][14] - The weighted average current yield on the portfolio was 10.8%, with first lien term loans yielding 11.6% [14] Credit Quality - The overall credit quality remained stable, with 99.7% of credits rated in the highest category, and only two investments on non-accrual status [5][6] - The company has taken decisive actions to resolve challenges in four portfolio companies through sales and restructurings [5][6] Management Commentary - The management expressed confidence in navigating the current economic environment, citing a robust pipeline and strong underwriting standards to enhance portfolio quality and performance [5][6]