On September 8, 2022, the Saratoga Investment Corp. entered into the Second Supplemental Notes Purchase Agreement (the “Second Supplemental Agreement”) governing the issuance of its 7.00% Notes due 2025 (the “Notes”) in the aggregate principal amount of $12.0 million to the Purchaser in a private placement. In addition, pursuant to the Second Supplement Agreement, upon the mutual agreement of the Company and the Purchaser, the Purchaser may purchase from the Company up to an additional $8.0 million in aggregate principal amount of the Notes by September 30, 2022.

The Notes were delivered and paid for on September 8, 2022. Upon the issuance of the Notes, the outstanding aggregate principal amount of the Company's unsecured notes held by the Purchaser under the Notes Purchase Agreement, the First Supplemental Agreement and the Second Supplemental Agreement, collectively, is $27.0 million. In connection with the issuance of the Notes, on September 8, 2022, the Company and U.S. Bank Trust Company, National Association, as trustee (as successor in interest to U.S. Bank National Association) (the “Trustee”), entered into a Eleventh Supplemental Indenture (the “Eleventh Supplemental Indenture”) to the Base Indenture, dated May 10, 2013, between the Company and the Trustee (the “Base Indenture”; and together with the Eleventh Supplemental Indenture, the “Indenture”).

As set forth in the Eleventh Supplemental Indenture, the Notes have a fixed interest rate of 7.00% per year. The Company will pay interest on the Notes on February 28, May 31, August 31 and November 30 each year, beginning on November 30, 2022 . The Notes will mature on September 8, 2025, unless extended to September 8, 2027 by mutual agreement of the Company and the Purchaser.

The Company may redeem the Notes, in whole or in part, at any time or from time to time on or after September 8, 2024 at the redemption price of par, plus accrued interest. The net proceeds to the Company from the issuance of the Notes was approximately $11,560,000, based on an offering price of 100% of par, after deducting customary fees and offering expenses payable by the Company. The Company intends to use the net proceeds from the offering of the Notes to make investments in middle-market companies in accordance with its investment objective and strategies and for general corporate purposes.