Saratoga Investment (SAR) has disclosed a new risk, in the Debt & Financing category.
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Saratoga Investment faces a significant business risk as it transitions from LIBOR to alternative reference rates such as the CME Term SOFR for its credit arrangements and other financial instruments. The new benchmarks may not replicate LIBOR’s economic outcomes, potentially affecting the company’s financial performance. Moreover, the nascent nature of CME Term SOFR could lead to illiquidity and lower trading prices for Saratoga’s instruments if the rate fails to gain widespread acceptance. This market uncertainty poses a threat to the stability and predictability of Saratoga’s financial activities.
The average SAR stock price target is $23.75, implying 1.24% upside potential.
To learn more about Saratoga Investment’s risk factors, click here.
