New Mountain Finance Corp

For the period ended Mar 31, 2024. Filed May 1, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 1, 2024

NMFC$6.88-0.4%Stored close · as of Nov 9, 2026

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Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Statements of Assets and Liabilities

	March 31, 2024	December 31, 2023
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,330,396 and $2,283,490, respectively)	$2,279,598	$2,209,867
Non-controlled/affiliated investments (cost of $109,980 and $107,895, respectively)	113,281	133,659
Controlled investments (cost of $653,810 and $646,823, respectively)	677,103	667,796
Total investments at fair value (cost of $3,094,186 and $3,038,208, respectively)	3,069,982	3,011,322
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)	16,500	16,500
Cash and cash equivalents	107,467	70,090
Interest and dividend receivable	43,171	44,107
Receivable from broker	960	—
Deferred tax asset	68	594
Receivable from affiliates	50	82
Other assets	17,409	16,519
Total assets	$3,255,607	$3,159,214
Liabilities
Borrowings
Unsecured Notes	$686,663	$506,500
SBA-guaranteed debentures	300,000	300,000
Holdings Credit Facility	291,563	515,063
Convertible Notes	260,178	260,207
DB Credit Facility	182,000	186,400
NMFC Credit Facility	47,618	36,813
NMNLC Credit Facility II	2,938	2,853
Deferred financing costs (net of accumulated amortization of $56,248 and $54,263, respectively)	(24,370)	(22,387)
Net borrowings	1,746,590	1,785,449
Payable for unsettled securities purchased	94,079	—
Interest payable	23,071	20,440
Management fee payable	10,096	10,116
Incentive fee payable	9,389	8,555
Other liabilities	3,199	2,931
Total liabilities	1,886,424	1,827,491
Commitments and contingencies (See Note 9)
Net assets
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued	—	—
Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 106,289,293 and 102,558,859 shares issued and outstanding, respectively	1,063	1,026
Paid in capital in excess of par	1,379,070	1,331,269
Accumulated undistributed earnings	(23,201)	(12,344)
Total net assets of New Mountain Finance Corporation	$1,356,932	$1,319,951
Non-controlling interest in New Mountain Net Lease Corporation	12,251	11,772
Total net assets	$1,369,183	$1,331,723
Total liabilities and net assets	$3,255,607	$3,159,214
Number of shares outstanding	106,289,293	102,558,859
Net asset value per share of New Mountain Finance Corporation	$12.77	$12.87

Consolidated Statements of Operations

	Three Months Ended
	March 31, 2024	March 31, 2023
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)	$56,237	$60,758
PIK interest income	4,683	3,944
Dividend income	293	47
Non-cash dividend income	4,684	4,166
Other income	1,600	1,918
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	368	9
PIK interest income	836	691
Non-cash dividend income	1,244	1,105
Other income	63	63
From controlled investments:
Interest income (excluding PIK interest income)	1,361	1,444
PIK interest income	4,135	4,388
Dividend income	12,683	10,995
Non-cash dividend income	1,496	1,230
Other income	873	1,195
Total investment income	90,556	91,953
Expenses
Interest and other financing expenses	31,016	30,796
Management fee	10,997	11,638
Incentive fee	9,389	9,597
Professional fees	1,067	965
Administrative expenses	968	1,048
Other general and administrative expenses	465	488
Total expenses	53,902	54,532
Less: management fee waived (See Note 5)	(901)	(1,063)
Net expenses	53,001	53,469
Net investment income before income taxes	37,555	38,484
Income tax expense	1	96
Net investment income	37,554	38,388
Net realized (losses) gains:
Non-controlled/non-affiliated investments	(11,858)	(1,308)
Controlled investments	31	1,973
Foreign currency	—	12
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments	23,160	(2,929)
Non-controlled/affiliated investments	(22,463)	(16)
Controlled investments	2,320	8,797
Foreign currency	(23)	26
Provision for taxes	(637)	(131)
Net realized and unrealized (losses) gains	(9,470)	6,424
Net increase in net assets resulting from operations	28,084	44,812
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation	(676)	(239)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	$27,408	$44,573
Basic earnings per share	$0.26	$0.44
Weighted average shares of common stock outstanding - basic (See Note 11)	103,660,370	100,937,026
Diluted earnings per share	$0.26	$0.40
Weighted average shares of common stock outstanding - diluted (See Note 11)	122,443,478	123,591,432
Distributions declared and paid per share	$0.36	$0.32

Consolidated Statements of Changes in Net Assets

	Three Months Ended
	March 31, 2024	March 31, 2023
Increase (decrease) in net assets resulting from operations:
Net investment income	$37,554	$38,388
Net realized (losses) gains on investments and foreign currency	(11,827)	677
Net change in unrealized appreciation of investments and foreign currency	2,994	5,878
Provision for taxes	(637)	(131)
Net increase in net assets resulting from operations	28,084	44,812
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")	(676)	(239)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	27,408	44,573
Capital transactions
Net proceeds from shares sold	47,919	—
Offering costs	(81)	(56)
Distributions declared to stockholders from net investment income	(38,265)	(32,300)
Total net increase (decrease) in net assets resulting from capital transactions	9,573	(32,356)
Net increase in net assets	36,981	12,217
New Mountain Finance Corporation net assets at the beginning of the period	1,319,951	1,314,473
New Mountain Finance Corporation net assets at the end of the period	1,356,932	1,326,690
Non-controlling interest in NMNLC	12,251	11,804
Net assets at the end of the period	$1,369,183	$1,338,494
Capital share activity
Shares sold	3,730,434	—
Net increase in shares outstanding	3,730,434	—

Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended
	March 31, 2024	March 31, 2023
Cash flows from operating activities
Net increase in net assets resulting from operations	$28,084	$44,812
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:
Net realized losses (gains) on investments	11,827	(665)
Net realized gains on translation of assets and liabilities in foreign currencies	—	(12)
Net change in unrealized appreciation of investments	(3,017)	(5,852)
Net change in unrealized depreciation (appreciation) on translation of assets and liabilities in foreign currencies	23	(26)
Amortization of purchase discount	(1,762)	(1,644)
Amortization of deferred financing costs	1,985	1,637
Amortization of premium on Convertible Notes	(29)	(18)
Amortization of discount on 6.875% Unsecured Notes	102	—
Non-cash investment income	(16,527)	(16,270)
Decrease (Increase) in operating assets:
Purchase of investments and delayed draw facilities	(192,397)	(94,352)
Proceeds from sales and paydowns of investments	145,475	67,651
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities	120	110
Cash paid for purchase of drawn portion of revolving credit facilities	(76)	—
Cash paid on drawn revolvers	(7,705)	(6,507)
Cash repayments on drawn revolvers	5,036	9,046
Deferred tax asset	527	—
Interest and dividend receivable	949	1,861
Receivable from broker	(960)	—
Receivable from affiliates	32	(91)
Other assets	(922)	(1,495)
Increase (decrease) in operating liabilities:
Management fee payable	(20)	51
Incentive fee payable	834	3,301
Payable for unsettled securities purchased	94,147	—
Interest payable	2,631	939
Payable to affiliates	—	(78)
Deferred tax liability	—	(5,499)
Other liabilities	(78)	(403)
Net cash flows provided by (used in) operating activities	68,279	(3,504)
Cash flows from financing activities
Net proceeds from shares sold	47,919	—
Offering costs paid	(117)	(17)
Distributions paid	(38,265)	(32,300)
Proceeds from Holdings Credit Facility	184,600	29,000
Repayment of Holdings Credit Facility	(408,100)	(33,300)
Proceeds from Convertible Notes	—	60,300
Proceeds from Unsecured Notes	296,994	—
Repayment of Unsecured Notes	(116,500)	(90,000)
Proceeds from NMFC Credit Facility	18,083	157,000
Repayment of NMFC Credit Facility	(6,950)	(110,000)
Repayment of DB Credit Facility	(4,400)	—
Proceeds from NMNLC Credit Facility II	1,140	1,682
Repayment of NMNLC Credit Facility II	(1,055)	(2,347)
Distributions related to non-controlling interest in NMNLC	(197)	(153)
Deferred financing costs paid	(3,955)	(1,189)
Net cash flows used in financing activities	(30,803)	(21,324)
Net increase (decrease) in cash and cash equivalents	37,476	(24,828)
Effect of foreign exchange rate changes on cash and cash equivalents	(99)	37
Cash and cash equivalents at the beginning of the period	70,090	71,190
Cash and cash equivalents at the end of the period	$107,467	$46,399
Supplemental disclosure of cash flow information
Cash interest paid	$25,360	$27,794
Income taxes (received) paid	(10)	5,713
Non-cash operating activities:
Non-cash activity on investments	$20,291	$15,582
Non-cash financing activities:
Accrual for offering costs	$79	$124
Accrual for deferred financing costs	203	84

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