Saratoga Investment Corp (NYSE:SAR) Q2 2020 Earnings Conference Call - Final Transcript

Oct 10, 2019 • 10:00 am ET


Saratoga Investment Corp (NYSE:SAR) Q2 2020 Earnings Conference Call - Final Transcript


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Christian L. Oberbeck

12 months return on equity, dividend coverage, year-over-year dividend growth and NAV per share growth. Of note is that as our assets have grown and we are increasingly achieving scale, our expense ratio is moving closer towards the industry averages. Notably, our latest 12 months return on equity and NAV per share outperformance reflects the growing value our shareholders are receiving.

Moving on to Slide 21, all of our initiatives and achievements discussed today on this call are designed to make Saratoga Investment a highly competitive BDC that is attractive to the capital markets community. We believe that our differentiated characteristics as outlined on this slide will help drive the size and quality of our investor base, including adding more institutions. Differentiating characteristics include maintaining one of the highest levels of management ownership in the industry at 16%, which has been updated for recent equity issuances with no shares sold by management. A strong and growing dividend covered by NII access to low cost and long-term liquidity with which to grow our current asset base by another 50% further strengthen this quarter with the receipt of our second SBIC license, a BBB investment grade rating, solid earnings per share and NII yield with substantial growth potential, high-quality expansion of AUM and an attractive risk profile. In addition, our high credit quality portfolio contains minimal exposure to cyclical industries including the oil and gas industry.

Finally, looking at Slide 22, we continue to progress on our long-term goal to expand our asset base without sacrificing credit quality, while benefiting from scale. We also continue to increase our capacity to source, analyze, close and manage our investments by adding to our management team and capabilities, enabling us to execute on our simple and consistent objectives.

In closing, I would again like to thank all of our shareholders for their ongoing support. We are excited for the growth and profitability that lies ahead for Saratoga Investment Corp.

And I would like to now open the call for questions.