Saratoga Investment Corp. Increases Quarterly Dividend to $0.47 per Share

NEW YORK, May 30, 2017

This increase is the eleventh sequential increase to the Company's quarterly dividends and follows total dividends of $1.98 per share for the fiscal period ending February 28, 2017, representing four quarters' dividends and one special dividend.

"The combination of growth in assets under management and strong credit quality allows us to continue to pay an increasing and healthy quarterly dividend," said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. "At the same time, we continue to over-earn our dividend due to an investment pipeline that continues to be productive in a difficult market environment, a growing income yield generated from our prudently increasing high quality portfolio, and levels of available liquidity and capital resources supporting continued growth."

Strong financial performance has enabled Saratoga Investment to increase regular quarterly dividends each quarter for the past eleven quarters from $0.18 per share for the third quarter of fiscal 2015 to $0.47 per share for the first quarter of fiscal 2018. Actual dividends paid in fiscal year 2017 were $0.43 per share for the quarter ended May 31, 2016, $0.44 per share for the quarter ended August 31, 2016, $0.45 per share for the quarter ended November 30, 2016 and $0.46 per share for the quarter ended February 28, 2017. In addition, Saratoga Investment paid a special dividend of $0.20 per share on September 5, 2016.

Shareholders will have the option to receive payment of the dividend in cash, or receive shares of common stock pursuant to the Company's dividend reinvestment plan ("DRIP"). Saratoga Investment shareholders who hold their shares with a broker must affirmatively instruct their brokers prior to the record date if they prefer to receive this dividend and future dividends in common stock.  The number of shares of Common Stock to be delivered shall be determined by dividing the total dollar amount by 95% of the average of the market prices per share at the close of trading on the ten (10) trading days immediately preceding (and including) the payment date.

About Saratoga Investment Corp.

Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses.  The Company invests primarily in mezzanine debt, senior and unitranche leveraged loans and, to a lesser extent, equity to provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors.  Saratoga Investment Corp.'s objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments.  Saratoga Investment Corp. has elected to be regulated as a business development company under the Investment Company Act of 1940 and is externally-managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies.  Saratoga Investment Corp. owns an SBIC-licensed subsidiary and manages a $300 million collateralized loan obligation ("CLO") fund.  It also owns 100% of the subordinated notes of the CLO.  These diverse funding sources, combined with a permanent capital base, enable Saratoga Investment Corp. to provide a broad range of financing solutions.