New Mountain Finance Corp

For the period ended Jun 30, 2024. Filed Jul 31, 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.

Jun 30, 2024 · Filed Jul 31, 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

	June 30, 2024	December 31, 2023
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,429,377 and $2,283,490, respectively)	$2,411,396	$2,209,867
Non-controlled/affiliated investments (cost of $119,130 and $107,895, respectively)	118,351	133,659
Controlled investments (cost of $659,042 and $646,823, respectively)	684,033	667,796
Total investments at fair value (cost of $3,207,549 and $3,038,208, respectively)	3,213,780	3,011,322
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)	13,500	16,500
Cash and cash equivalents	119,607	70,090
Interest and dividend receivable	48,071	44,107
Deferred tax asset	—	594
Receivable from affiliates	154	82
Other assets	28,506	16,519
Total assets	$3,423,618	$3,159,214
Liabilities
Borrowings
Unsecured Notes	$685,974	$506,500
Holdings Credit Facility	386,563	515,063
SBA-guaranteed debentures	300,000	300,000
Convertible Notes	260,150	260,207
DB Credit Facility	182,000	186,400
NMFC Credit Facility	141,840	36,813
NMNLC Credit Facility II	2,948	2,853
Deferred financing costs (net of accumulated amortization of $58,243 and $54,263, respectively)	(22,516)	(22,387)
Net borrowings	1,936,959	1,785,449
Payable for unsettled securities purchased	51,199	—
Interest payable	22,937	20,440
Management fee payable	10,490	10,116
Incentive fee payable	9,550	8,555
Payable to broker	1,650	—
Derivative liability at fair value	1,552	—
Deferred tax liability	63	—
Other liabilities	2,701	2,931
Total liabilities	2,037,101	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 107,851,415 and 102,558,859 shares issued and outstanding, respectively	1,079	1,026
Paid in capital in excess of par	1,398,438	1,331,269
Accumulated undistributed earnings	(25,399)	(12,344)
Total net assets of New Mountain Finance Corporation	$1,374,118	$1,319,951
Non-controlling interest in New Mountain Net Lease Corporation	12,399	11,772
Total net assets	$1,386,517	$1,331,723
Total liabilities and net assets	$3,423,618	$3,159,214
Number of shares outstanding	107,851,415	102,558,859
Net asset value per share of New Mountain Finance Corporation	$12.74	$12.87

Consolidated Statements of Operations

	Three Months Ended		Six Months Ended
	June 30, 2024	June 30, 2023	June 30, 2024	June 30, 2023
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)	$57,583	$64,649	$113,820	$125,407
PIK interest income	4,437	3,767	9,120	7,711
Dividend income	2,284	47	2,577	94
Non-cash dividend income	4,797	4,305	9,481	8,471
Other income	3,291	686	4,891	2,604
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	376	683	744	692
PIK interest income	873	414	1,709	1,105
Non-cash dividend income	1,374	1,139	2,618	2,244
Other income	62	63	125	126
From controlled investments:
Interest income (excluding PIK interest income)	1,383	1,243	2,744	2,687
PIK interest income	3,721	3,686	7,856	8,074
Dividend income	12,340	12,143	25,023	23,138
Non-cash dividend income	1,570	1,292	3,066	2,522
Other income	497	1,375	1,370	2,570
Total investment income	94,588	95,492	185,144	187,445
Expenses
Interest and other financing expenses	33,113	31,700	64,129	62,496
Management fee	11,351	11,577	22,348	23,215
Incentive fee	9,550	9,982	18,939	19,579
Professional fees	1,127	1,003	2,194	1,968
Administrative expenses	1,108	953	2,076	2,001
Other general and administrative expenses	527	513	992	1,001
Total expenses	56,776	55,728	110,678	110,260
Less: management fee waived (See Note 5)	(861)	(1,096)	(1,762)	(2,159)
Net expenses	55,915	54,632	108,916	108,101
Net investment income before income taxes	38,673	40,860	76,228	79,344
Income tax expense	234	932	235	1,028
Net investment income	38,439	39,928	75,993	78,316
Net realized (losses) gains:
Non-controlled/non-affiliated investments	(34,966)	(7,314)	(46,824)	(8,622)
Controlled investments	3,800	9,880	3,831	11,853
Foreign currency	—	1	—	13
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments	32,895	2,174	56,055	(755)
Non-controlled/affiliated investments	(4,080)	1	(26,543)	(15)
Controlled investments	1,697	(9,488)	4,017	(691)
Securities purchased under collateralized agreements to resell	(3,000)	(39)	(3,000)	(39)
Foreign currency	129	29	106	55
Provision for taxes	(130)	(94)	(767)	(225)
Net realized and unrealized (losses) gains	(3,655)	(4,850)	(13,125)	1,574
Net increase in net assets resulting from operations	34,784	35,078	62,868	79,890
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation	(313)	(248)	(989)	(487)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	$34,471	$34,830	$61,879	$79,403
Basic earnings per share	$0.32	$0.35	$0.59	$0.79
Weighted average shares of common stock outstanding - basic (See Note 11)	106,891,784	100,937,026	105,276,077	100,937,026
Diluted earnings per share	$0.31	$0.32	$0.56	$0.71
Weighted average shares of common stock outstanding - diluted (See Note 11)	125,759,769	127,016,910	124,101,624	125,313,634
Distributions declared and paid per share	$0.34	$0.35	$0.70	$0.67

Consolidated Statements of Changes in Net Assets

	Three Months Ended		Six Months Ended
	June 30, 2024	June 30, 2023	June 30, 2024	June 30, 2023
Increase (decrease) in net assets resulting from operations:
Net investment income	$38,439	$39,928	$75,993	$78,316
Net realized (losses) gains on investments and foreign currency	(31,166)	2,567	(42,993)	3,244
Net change in unrealized appreciation (depreciation) of investments and foreign currency	30,641	(7,284)	33,635	(1,406)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell	(3,000)	(39)	(3,000)	(39)
Provision for taxes	(130)	(94)	(767)	(225)
Net increase in net assets resulting from operations	34,784	35,078	62,868	79,890
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")	(313)	(248)	(989)	(487)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	34,471	34,830	61,879	79,403
Capital transactions
Net proceeds from shares sold	19,772	—	67,691	—
Offering costs	(388)	(91)	(469)	(147)
Distributions declared to stockholders from net investment income	(36,669)	(35,328)	(74,934)	(67,628)
Total net decrease in net assets resulting from capital transactions	(17,285)	(35,419)	(7,712)	(67,775)
Net increase (decrease) in net assets	17,186	(589)	54,167	11,628
New Mountain Finance Corporation net assets at the beginning of the period	1,356,932	1,326,690	1,319,951	1,314,473
New Mountain Finance Corporation net assets at the end of the period	1,374,118	1,326,101	1,374,118	1,326,101
Non-controlling interest in NMNLC	12,399	11,861	12,399	11,861
Net assets at the end of the period	$1,386,517	$1,337,962	$1,386,517	$1,337,962
Capital share activity
Shares sold	1,562,122	—	5,292,556	—
Net increase in shares outstanding	1,562,122	—	5,292,556	—

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.