December 27, 2016
(Update: If you purchased on our recommendation, the price was $25.15. SAB has sky-rocketed higher—$26.00 as we write this: DO NOT PAY more than $25.25)
SAB is a new issue that is starting to trade today. We are buying a small position. This is another ‘baby bond’ that pays a very nice dividend.
NEW Readers: Here is the link to a “primer” on baby-bonds:
Saratoga Investment Corp. is a publicly traded (NYSE: SAR) business development company (BDC) which provides customized financing solutions for middle market companies located in the United States. Saratoga’s senior investment professionals have over eighty years of combined experience investing more than $4 billion in middle market businesses.
Within the BDC, Saratoga manages both an SBIC-licensed subsidiary and a $300 million Collateralized Loan Obligation (CLO) fund. These diverse funding sources, combined with a permanent capital base, enable Saratoga to offer a broad range of financing solutions, including subordinated debt, first and second lien loans, one-stop and unitranche structures and equity co-investments.
As a solutions-oriented lender, Saratoga seeks to partner with business owners (equity sponsors, fundless sponsors, family-owned businesses) and management teams and craft capital structures that enable them to pursue their business plans. Saratoga focuses on the lower end of the middle market, targeting US-based cash flow positive companies with annual revenues between $10 and $100 million and EBITDA in excess of $2 million.
QUANTUMONLINE.COM SECURITY DESCRIPTION: Saratoga Investment Corp., 6.75% Notes due 2023, issued in $25 denominations, redeemable at the issuer’s option on or after 12/21/2019 at $25 per note plus accrued and unpaid interest, and maturing 12/30/2023. Interest distributions of 6.75% per annum ($1.6875 per annum or $0.421875 per quarter) will be paid quarterly on 3/30, 6/30, 9/30 & 12/30 to holders of record on the record date that will be 3/15, 6/15, 9/15 & 12/15 respectively
Here is a STUNNING EYE=OPENING article on the growth in drones: you know those things that Amazon is using for delivery. We saw one capturing the local July 4th fireworks.
We had NO idea that there is HUMONGOUS potential in this market–beyond the retail consumer. It’s really an incredible story. The ETF IFLY is one way to play this market: we are thinking about buying a small position for a LONG term hold if by chance the prices comes back down-we are watching the charts for a buy signal but it may not be soon. We encourage you to read this:
CLICK HERE for Dividend Income Investor Core Portfolio showing current holdings. We have been selling interest rate sensitive positions and buying investments that may do well in a rising rate environment.
A note for new readers: Dividend Income Investor is designed for self directed retirees (and investors seeking income) who are seeking ‘safe’ dividend payers in the 3% up to 8% range. The Core Portfolio is not designed to get you rich, but instead to provide a reasonable level of income.