---
schema_version: "secwatch.filing_event.v1"
accession: "0001213900-25-107282"
form_type: "8-K"
ticker: "SAR"
cik: "0001377936"
company_name: "SARATOGA INVESTMENT CORP."
filed_at: "2025-11-07T23:59:59+00:00"
generated_at: "2026-05-16T23:00:03.845732+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# Saratoga Investment enters $85M Valley National credit facility, terminates prior Encina facility

## Summary
- New $85M revolving credit facility with Valley National Bank; can be increased to $100M in first two years.
- Facility matures Nov 6, 2028; interest at Term SOFR + 2.85% (SOFR floor 1.00%); unused fee 0.50%-0.75%.
- Advance rates on eligible loans range from 25% to 75% based on loan type; collateral includes SIF II assets and equity pledge.
- Terminated prior Encina credit facility and equity pledge agreement upon satisfaction of all obligations.
- SIF II must maintain minimum drawn amount of $25M or 38% of facility amount; financial covenants include interest coverage and overcollateralization tests.

## SEC filing metadata
- accession: 0001213900-25-107282
- form_type: 8-K
- ticker: SAR
- cik: 0001377936
- company_name: SARATOGA INVESTMENT CORP.
- filed_at: 2025-11-07T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 1.01, 1.02, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1377936/000121390025107282/0001213900-25-107282-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1377936/000121390025107282/ea0264440-8k_saratoga.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001213900-25-107282
- JSON: https://secwatch.observer/filing/0001213900-25-107282.json
- Plain text: https://secwatch.observer/filing/0001213900-25-107282.txt

## Key facts
- Debt Financings
  SARATOGA INVESTMENT CORP. incurred credit facility of up to $85.0 million, with potential to increase to $100.0 million with Valley National Bank, as administrative agent, lead arranger and bookrunner, and the lenders at Term SOFR plus an applicable margin of 2.85%, with a SOFR Floor of 1.00% maturing November 6, 2028.
  - Instrument: credit facility
  - Principal: up to $85.0 million, with potential to increase to $100.0 million
  - Counterparty: Valley National Bank, as administrative agent, lead arranger and bookrunner, and the lenders
  - Rate: Term SOFR plus an applicable margin of 2.85%, with a SOFR Floor of 1.00%
  - Maturity: November 6, 2028
  - Event: incurrence
  source text: The Valley Credit Facility provides for borrowings in U.S. dollars in an aggregate amount of up to $85.0 million. During the first two years following the closing date, SIF II may request one or more increases in the commitment amount from $85.0 million to an amount not to exceed $100.0 million, subject to certain terms and conditions and a customary fee. The terms of the Valley Credit Agreement require a minimum drawn amount at all times equal to the greater of $25.0 million or 38% of the facility amount in effect at such time. The Valley Credit Facility matures on November 6, 2028. Advances are available during the term of the Valley Credit Facility and must be repaid in full at maturity. Advances under the Valley Credit Facility are subject to a borrowing base calculation, with advance rates on eligible loans ranging from 25% to 75%. The Valley Credit Facility has numerous eligibility criteria for loans to be included in the borrowing base. Advances under the Valley Credit Facility
  evidence_url: https://www.sec.gov/Archives/edgar/data/1377936/000121390025107282/0001213900-25-107282-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.