New Mountain Finance Corp

Previous wording

Our portfolio may be concentrated in a limited number of industries. As of March 31, 2026, our top five industry concentrations were business services, healthcare, software, investment funds (which includes our investments in our joint ventures) and consumer services.

Current wording

Our portfolio may be concentrated in a limited number of industries. As of June 30, 2026, our top five industry concentrations were business services, software, healthcare, investment funds (which includes our investments in our joint ventures) and consumer services.

Previous wording

As of March 31, 2026, our net asset value was approximately $1,043.5 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately $2,313.4 million in 114 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 11.1% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.5%. The YTM at Cost calculation assumes that all investments, including secured collateralized agreements, not on non-accrual are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. The YTM at Cost for Investments calculation assumes that all investments, including secured collateralized agreements, are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. YTM at Cost and YTM at Cost for Investments calculations exclude the impact of existing leverage. YTM at Cost and YTM at Cost for Investments use Sterling Overnight Interbank Average Rate ("SONIA"), Secured Overnight Financing Rate ("SOFR") and Euro Interbank Offered Rate ("EURIBOR") curves at each quarter's end date. The actual yield to maturity may be higher or lower due to the future selection of the SONIA, SOFR and EURIBOR contracts by the individual companies in our portfolio or other factors.

Current wording

As of June 30, 2026, our net asset value was approximately $1,028.2 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately $2,289.8 million in 112 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 11.1% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.9%. The YTM at Cost calculation assumes that all investments, including secured collateralized agreements, not on non-accrual are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. The YTM at Cost for Investments calculation assumes that all investments, including secured collateralized agreements, are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. YTM at Cost and YTM at Cost for Investments calculations exclude the impact of existing leverage. YTM at Cost and YTM at Cost for Investments use Sterling Overnight Interbank Average Rate ("SONIA"), Secured Overnight Financing Rate ("SOFR") and Euro Interbank Offered Rate ("EURIBOR") curves at each quarter's end date. The actual yield to maturity may be higher or lower due to the future selection of the SONIA, SOFR and EURIBOR contracts by the individual companies in our portfolio or other factors.

Previous wording

On April 22, 2026, our board of directors declared a second quarter 2026 distribution of $0.25 per share payable on June 30, 2026 to holders of record as of June 16, 2026.

Current wording

On July 21, 2026, our board of directors declared a third quarter 2026 distribution of $0.25 per share payable on September 30, 2026 to holders of record as of September 16, 2026.

Previous wording

As of March 31, 2026 and December 31, 2025, SLP III had total investments with an aggregate fair value of approximately $976.7 million and $941.4 million, respectively, and debt outstanding under its credit facility of $821.7 million and $672.7 million, respectively. Additionally, as of March 31, 2026 and December 31, 2025, SLP III had unfunded commitments in the form of delayed draws of $7.1 million and $6.9 million, respectively.

Current wording

As of June 30, 2026 and December 31, 2025, SLP III had total investments with an aggregate fair value of approximately $919.8 million and $941.4 million, respectively, and debt outstanding under its credit facility of $800.7 million and $672.7 million, respectively. Additionally, as of June 30, 2026 and December 31, 2025, SLP III had unfunded commitments in the form of delayed draws of $4.4 million and $6.9 million, respectively.

Previous wording

During the first quarter of 2026, SLP III placed its first lien positions in Convey Health Solutions, Inc. ("Convey") on non-accrual status. As of March 31, 2026, SLP III's first lien positions in Convey had total unearned income of $0.2 million, for the three months then ended.

Current wording

During the first quarter of 2026, SLP III placed its first lien positions in Convey Health Solutions, Inc. ("Convey") on non-accrual status. As of June 30, 2026, SLP III's first lien positions in Convey had total unearned income of $0.2 million and $0.4 million, respectively, for the three and six months then ended.

Previous wording

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investmentsin this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP III's portfolio as of March 31, 2026 and December 31, 2025 and additional information on certain summarized financial information for SLP III as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and March 31, 2025.

Current wording

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investmentsin this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP III's portfolio as of June 30, 2026 and December 31, 2025 and additional information on certain summarized financial information for SLP III as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and June 30, 2025.

Previous wording

As of March 31, 2026 and December 31, 2025, SLP IV had total investments with an aggregate fair value of approximately $655.1 million and $641.5 million, respectively, and debt outstanding under its credit facility of $545.1 million and $471.7 million, respectively. As of March 31, 2026 and December 31, 2025, none of SLP IV’s investments were on non-accrual. Additionally, as of March 31, 2026 and December 31, 2025, SLP IV had unfunded commitments in the form of delayed draws of $4.9 million and $4.8 million, respectively.

Current wording

As of June 30, 2026 and December 31, 2025, SLP IV had total investments with an aggregate fair value of approximately $625.0 million and $641.5 million, respectively, and debt outstanding under its credit facility of $534.1 million and $471.7 million, respectively. As of June 30, 2026 and December 31, 2025, none of SLP IV’s investments were on non-accrual. Additionally, as of June 30, 2026 and December 31, 2025, SLP IV had unfunded commitments in the form of delayed draws of $2.7 million and $4.8 million, respectively.

Previous wording

During the first quarter of 2026, SLP IV placed its first lien positions in Convey on non-accrual status. As of March 31, 2026, SLP IV's first lien positions in Convey had total unearned income of $0.1 million, for the three months then ended.

Current wording

During the first quarter of 2026, SLP IV placed its first lien positions in Convey on non-accrual status. As of June 30, 2026, SLP IV's first lien positions in Convey had total unearned income of $0.1 million and $0.2 million, respectively, for the three and six months then ended.

Previous wording

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investmentsin this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP IV's consolidated portfolio as of March 31, 2026 and December 31, 2025 and additional information on certain summarized financial information for SLP IV as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and March 31, 2025.

Current wording

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investmentsin this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP IV's consolidated portfolio as of June 30, 2026 and December 31, 2025 and additional information on certain summarized financial information for SLP IV as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and June 30, 2025.

Previous wording

We follow the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral ("ASC 860") when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of March 31, 2026 and December 31, 2025, we held one collateralized agreement to resell with a cost basis of $30.0 million and $30.0 million, respectively, and a fair value of $5.7 million and $13.5 million, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from us at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to us, therefore, we do not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized our contractual rights under the collateralized agreement. We continue to exercise our rights under the collateralized agreement and continue to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.

Current wording

The claim arises from a collateralized agreement to resell that was guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from us at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to us, therefore, we do not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized our contractual rights under the collateralized agreement. We continue to exercise our rights under the collateralized agreement and continue to monitor the liquidation process of the private hedge fund.

Previous wording

On December 22, 2017, we settled the Trustee’s $20.5 million Claim for $16.0 million and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16.0 million that is owed to us under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. We continue to exercise our rights under the SPP Agreement and continue to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, we received a $1.5 million payment from our insurance carrier in respect to the settlement. As of March 31, 2026 and December 31, 2025, the SPP Agreement had a cost basis of $14.5 million and $14.5 million, respectively, and a fair value of $2.8 million and $6.5 million, respectively, which is reflective of the higher inherent risk in this transaction.

Current wording

On December 22, 2017, we settled the Trustee’s $20.5 million Claim for $16.0 million and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16.0 million that is owed to us under the SPP Agreement. As a result of the settlement and the counterparty's failure to satisfy its contractual obligations, the Company's rights under the SPP Agreement have been converted into a contractual claim being pursued through the Cayman Islands liquidation proceedings. Accordingly, we no longer classify the asset as a collateralized securities purchase and put agreement but as a claim. During the year ended December 31, 2018, we received a $1.5 million payment from our insurance carrier in respect to the settlement. As of June 30, 2026, the claim had a cost basis of $14.5 million and a fair value of $2.8 million. As of December 31, 2025, the SPP Agreement had a cost basis of $14.5 million and a fair value of $6.5 million.

Previous wording

Interest and dividend income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three months ended March 31, 2026 and March 31, 2025 we recognized PIK interest from investments of approximately $5.1 million and $7.6 million, respectively, and PIK dividends from investments of approximately $5.3 million and $8.2 million, respectively.

Current wording

Interest and dividend income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and six months ended June 30, 2026 we recognized PIK interest from investments of approximately $5.4 million and $10.6 million, respectively, and PIK dividends from investments of approximately $4.9 million and $10.2 million, respectively. For the three and six months ended June 30, 2025 we recognized PIK interest from investments of approximately $6.9 million and $14.5 million, respectively, and PIK dividends from investments of approximately $6.6 million and $14.8 million, respectively.

Previous wording

As of March 31, 2026, all investments in our portfolio had a Green Risk Rating with the exception of eight portfolio companies that had a Yellow Risk Rating, nine portfolio companies that had an Orange Risk Rating and one portfolio company that had a Red Risk Rating.

Current wording

As of June 30, 2026, all investments in our portfolio had a Green Risk Rating with the exception of thirteen portfolio companies that had a Yellow Risk Rating, seven portfolio companies that had an Orange Risk Rating and one portfolio company that had a Red Risk Rating.

Previous wording

As of March 31, 2026, our aggregate principal amount of our subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5.2 million and $31.4 million, respectively. During the first quarter of 2021, we placed an aggregate principal amount of $5.2 million of our subordinated position on non-accrual status. During the third quarter of 2021, we placed an aggregate principal amount of $13.5 million of our first lien term loans on non-accrual status. During the third quarter of 2023, we placed the remaining aggregate principal amount of $17.9 million of our first lien term loans on non-accrual status. As of March 31, 2026, our positions in AAC on non-accrual status had total unearned interest income of $1.4 million for the three months then ended. As of March 31, 2026, our investment in AAC had an Orange Risk Rating.

Current wording

As of June 30, 2026, our aggregate principal amount of our subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5.2 million and $31.4 million, respectively. During the first quarter of 2021, we placed an aggregate principal amount of $5.2 million of our subordinated position on non-accrual status. During the third quarter of 2021, we placed an aggregate principal amount of $13.5 million of our first lien term loans on non-accrual status. During the third quarter of 2023, we placed the remaining aggregate principal amount of $17.9 million of our first lien term loans on non-accrual status. As of June 30, 2026, our positions in AAC on non-accrual status had total unearned interest income of $1.4 million and $2.8 million, respectively, for the three and six months then ended. As of June 30, 2026, our investment in AAC had an Orange Risk Rating.

Previous wording

During the second quarter of 2024, we placed our investment in our junior Series B preferred shares in Eclipse Topco Holdings, Inc. (fka Transcendia Holdings, Inc.) ("Transcendia") on non-accrual status. As of March 31, 2026, our junior preferred shares in Transcendia had total unearned income of $0.1 million for the three months then ended. As of March 31, 2026, our investment in Transcendia had a Green Risk Rating.

Current wording

During the second quarter of 2024, we placed our investment in our junior Series B preferred shares in Eclipse Topco Holdings, Inc. (fka Transcendia Holdings, Inc.) ("Transcendia") on non-accrual status. As of June 30, 2026, our junior preferred shares in Transcendia had total unearned income of $0.1 million and $0.2 million, respectively, for the three and six months then ended. As of June 30, 2026, our investment in Transcendia had a Green Risk Rating.

Previous wording

During the first quarter of 2026, we placed our first lien positions in Convey on non-accrual status. As of March 31, 2026,our first lien positions in Convey had total unearned income of $0.3 million, for the three months then ended. As of March 31, 2026, our investment in Convey had a Red Risk Rating.

Current wording

During the first quarter of 2026, we placed our first lien positions in Convey on non-accrual status. As of June 30, 2026, our first lien positions in Convey had total unearned income of $0.4 million and $0.7 million, respectively, for the three and six months then ended. As of June 30, 2026, our investment in Convey had a Red Risk Rating.

Previous wording

The fair value of our investments, as determined in good faith by our board of directors, was approximately $2,313.4 million in 114 portfolio companies at March 31, 2026 and approximately $2,742.0 million in 113 portfolio companies at December 31, 2025.

Current wording

The fair value of our investments, as determined in good faith by our board of directors, was approximately $2,289.8 million in 112 portfolio companies at June 30, 2026 and approximately $2,742.0 million in 113 portfolio companies at December 31, 2025.

Previous wording

The following table shows our portfolio and investment activity for the three months ended March 31, 2026 and March 31, 2025:

Current wording

The following table shows our portfolio and investment activity for the six months ended June 30, 2026 and June 30, 2025:

Previous wording

On March 10, 2026, we completed our previously announced sale of approximately $468.0 million of assets held by us and our wholly-owned subsidiary, NMFH, at 94% of the fair value of such assets as of December 31, 2025 (the “Asset Sale”). The Asset Sale was completed pursuant to a definitive agreement, dated February 21, 2026, by and between us, as seller, and Eagle Credit CV, L.P., Eagle Credit Holdings SPV, L.P. and Eagle Credit Sub Blocker L.P. as the third party purchasers (the “Purchaser”), pursuant to which the Purchaser acquired full or partial investments in fifteen portfolio companies.

Current wording

On March 10, 2026, we completed a sale of approximately $468.0 million of assets held by us and our wholly-owned subsidiary, NMFH, at 94% of the fair value of such assets as of December 31, 2025 (the “Asset Sale”). The Asset Sale was completed pursuant to a definitive agreement, dated February 21, 2026, by and between us, as seller, and Eagle Credit CV, L.P., Eagle Credit Holdings SPV, L.P. and Eagle Credit Sub Blocker L.P. as the third party purchasers (the “Purchaser”), pursuant to which the Purchaser acquired full or partial investments in fifteen portfolio companies.

Previous wording

Our total investment income decreased by approximately $16.9 million, or 20%, for the three months ended March 31, 2026 as compared to the same period in the prior year. For the three months ended March 31, 2026, total investment income of approximately $68.8 million consisted of approximately $41.5 million in cash interest from investments, approximately $5.1 million in PIK interest from investments, net amortization of purchase premiums and discounts of approximately $1.4 million, approximately $13.7 million in cash dividends from investments, approximately $5.3 million in non-cash dividends from investments and approximately $1.8 million in other income. The decrease in interest income of approximately $13.5 million was primarily due to a lower invested asset base as a result of prior period repayments combined with the sale of assets to a third-party purchaser from the Asset Sale, which included full or partial investments in fifteen of our portfolio companies. The decrease in dividend income of approximately $1.9 million was primarily due to decrease in preferred equity investments held.

Current wording

Our total investment income decreased by approximately $22.0 million, or 26%, for the three months ended June 30, 2026 as compared to the same period in the prior year. For the three months ended June 30, 2026, total investment income of approximately $61.5 million consisted of approximately $35.6 million in cash interest from investments, approximately $5.4 million in PIK interest from investments, net amortization of purchase premiums and discounts of approximately $2.4 million, approximately $11.0 million in cash dividends from investments, approximately $4.9 million in non-cash dividends from investments and approximately $2.2 million in other income. The decrease in interest income of approximately $19.5 million was primarily due to a lower invested asset base as a result of the Asset Sale. The decrease in dividend income of approximately $3.4 million was primarily due to a decrease in preferred equity investments held. Other income during the three months ended June 30, 2026, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront and amendment fees received from 13 different portfolio companies.

Previous wording

Our total net operating expenses decreased by approximately $12.8 million for the three months ended March 31, 2026 as compared to the same period in the prior year. Our total net management fee decreased by approximately $1.7 million for the three months ended March 31, 2026 as compared to the same period in prior year. The decrease in total net management fee was primarily attributable to a lower invested asset base. Our total net incentive fee decreased by approximately $6.7 million for the three months ended March 31, 2026 as compared to same period in prior year. Our full incentive fee was waived for the three months ended March 31, 2026.

Current wording

Our total net operating expenses decreased by approximately $12.1 million for the three months ended June 30, 2026 as compared to the same period in the prior year. Our total net management fee decreased by approximately $2.4 million for the three months ended June 30, 2026 as compared to the same period in the prior year. The decrease in total net management fee was primarily attributable to a lower invested asset base. Our total net incentive fee decreased by approximately $1.0 million for the three months ended June 30, 2026 as compared to the same period in the prior year. The decrease in incentives fees was primarily attributable to the decrease in investment income due to a lower invested asset base.

Previous wording

Interest and other financing expenses decreased by approximately $3.9 million for the three months ended March 31, 2026 as compared to the same period in the prior year. The decrease in interest and other financing expenses was primarily attributable to a decrease in total outstanding borrowings. Our total professional fees, administrative expenses and total other general and administrative expenses remained relatively consistent period over period.

Current wording

Interest and other financing expenses decreased by approximately $8.6 million for the three months ended June 30, 2026 as compared to the same period in the prior year. The decrease in interest and other financing expenses was primarily attributable to a decrease in total outstanding borrowings. Our total professional fees, administrative expenses and total other general and administrative expenses remained relatively consistent period over period.

Previous wording

Our net realized and unrealized losses resulted in a net loss of approximately $81.4 million for the three months ended March 31, 2026 compared to net realized gains and unrealized gains and losses resulting in a net loss of approximately $11.1 million for the same period in 2025. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net loss for the three months ended March 31, 2026 was primarily driven by realized losses due to the Asset Sale where we sold approximately $468.0 million of assets at 94% of the fair value of such assets as of December 31, 2025, unrealized depreciation in the collateralized agreement with PPVA Fund, L.P., PPVA Black Elk (Equity) LLC, SLP IV and Affordable Care, partially offset by unrealized appreciation in New Benevis Holdco, Inc. and UniTek Global Services, Inc. ("UniTek"). The provision for income taxes was attributable to equity investments that are held as of March 31, 2026 in five of our corporate subsidiaries. The net loss for the three months ended March 31, 2025 was primarily driven by unrealized depreciation in UniTek, TVG-Edmentum Holdings, LLC ("Edmentum")

Current wording

Our net realized and unrealized losses resulted in a net loss of approximately $88.5 million for the six months ended June 30, 2026 compared to net realized gains and unrealized gains and losses resulting in a net loss of approximately $37.8 million for the same period in 2025. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net loss for the six months ended June 30, 2026 was primarily driven by realized losses due to the Asset Sale where we sold approximately $468.0 million of assets at 94% of the fair value of such assets as of December 31, 2025, unrealized depreciation on the claim related to the collateralized agreement with PPVA Fund, L.P. and PPVA Black Elk (Equity) LLC, Convey, Affordable Care, SLP IV and HelpsSystems, partially offset by unrealized appreciation in UniTek and Eagle Infrastructure Super HoldCo, LLC. The benefit (provision) for income taxes was attributable to equity investments that are held as of June 30, 2026 in five of our corporate subsidiaries. The net loss for the six months ended June 30, 2025 was primarily driven by unrealized depreciation in UniTek, TVG-Edmentum Holdings, LLC, ACI Parent Inc. and New Permian Holdco, Inc., partially offset by unrealized appreciation in Homrich Berg and realized gains in OA Topco, L.P. The provision for income taxes was attributable to equity investments that are held as of June 30, 2025 in eight of our corporate subsidiaries. See Monitoring of Portfolio Investments above for more details regarding the health of our portfolio companies.

Previous wording

Our liquidity is generated and generally available through advances from the revolving credit facilities, from cash flows from operations, and, we expect, through periodic follow-on equity offerings. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including unsecured debt and/or debt securities convertible into common stock. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. On June 8, 2018 our shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction of the minimum asset coverage ratio applicable to us from 200.0% to 150.0% as of June 9, 2018. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, is at least 150.0% after such borrowing (which means we can borrow $2 for every $1 of our equity). As a result of our exemptive relief received on November 5, 2014, we are permitted to exclude the SBA-guaranteed debentures of SBIC I, SBIC II and SBIC III from the definition of "senior securities" in the asset coverage requirement applicable to us under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2022 Convertible Notes and certain of the Unsecured Notes (as defined in Item 1— Financial Statements—Note 7. Borrowingsin this Quarterly Report on Form 10-Q) contain certain covenants and terms, including a requirement that we not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that we not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of March 31, 2026, our asset coverage ratio was 189.0%.

Current wording

Our liquidity is generated and generally available through advances from the revolving credit facilities, from cash flows from operations, and, we expect, through periodic follow-on equity offerings. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including unsecured debt and/or debt securities convertible into common stock. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. On June 8, 2018 our shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction of the minimum asset coverage ratio applicable to us from 200.0% to 150.0% as of June 9, 2018. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, is at least 150.0% after such borrowing (which means we can borrow $2 for every $1 of our equity). As a result of our exemptive relief received on November 5, 2014, we are permitted to exclude the SBA-guaranteed debentures of SBIC I, SBIC II and SBIC III from the definition of "senior securities" in the asset coverage requirement applicable to us under the 1940 Act. The agreements governing the NMFC Credit Facility and certain of the Unsecured Notes (as defined in Item 1— Financial Statements—Note 7. Borrowingsin this Quarterly Report on Form 10-Q) contain certain covenants and terms, including a requirement that we not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that we not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of June 30, 2026, our asset coverage ratio was 186.2%.

Previous wording

As of March 31, 2026 and December 31, 2025, our borrowings consisted of the June 2027 Notes, November 2028 Notes, February 2029 Notes, October 2027 Notes, Holdings Credit Facility, SBA-guaranteed debentures, NMFC Credit Facility and Unsecured Management Company Revolver. See Item 1—Financial Statements —Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information.

Current wording

As of June 30, 2026 and December 31, 2025, our borrowings consisted of the June 2027 Notes, November 2028 Notes, February 2029 Notes, October 2027 Notes, Holdings Credit Facility, SBA-guaranteed debentures, NMFC Credit Facility and

Previous wording

At March 31, 2026 and December 31, 2025, we had cash and cash equivalents of approximately $51.1 million and $80.7 million, respectively. Our cash provided by operating activities during the three months ended March 31, 2026 and March 31, 2025 was approximately $401.4 million and $103.9 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.

Current wording

At June 30, 2026 and December 31, 2025, we had cash and cash equivalents of approximately $64.8 million and $80.7 million, respectively. Our cash provided by operating activities during the six months ended June 30, 2026 and June 30, 2025 was approximately $425.8 million and $144.3 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.

Previous wording

For the three months ended March 31, 2026 and March 31, 2025, we did not sell any shares of common stock under the Distribution Agreement.

Current wording

For the three and six months ended June 30, 2026 and June 30, 2025, we did not sell any shares of common stock under the Distribution Agreement.

Previous wording

On February 4, 2016, our board of directors authorized a program for the purpose of repurchasing up to $50.0 million worth of our common stock (the "Old Repurchase Program"). The Old Repurchase Program terminated on October 8, 2025 upon the repurchase of $50.0 million of our common stock. On October 23, 2025, our board of directors authorized a new program for the purpose of repurchasing up to $100.0 million worth of our common stock (the "Repurchase Program").

Current wording

On February 4, 2016, our board of directors authorized a program for the purpose of repurchasing up to $50.0 million worth of our common stock (the "Old Repurchase Program"). The Old Repurchase Program terminated on October 8, 2025 upon the repurchase of $50.0 million of our common stock. On October 23, 2025, our board of directors authorized a new program for the purpose of repurchasing up to $100.0 million worth of our common stock (the "Repurchase Program"). On April 28, 2026, our board of directors authorized the repurchase of up to an additional $50.0 million worth of our common stock. Giving effect to the increase, the Repurchase Program authorizes us to repurchase up to $150.0 million worth of our common stock.

Previous wording

Under the Old Repurchase Program and the Repurchase Program, we were permitted, but were not obligated, to repurchase our outstanding common stock in the open market from time to time, provided that we complied with our code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. We expect the Repurchase Program to be in place until the earlier of December 31, 2026 or until $100.0 million of our outstanding shares of common stock have been repurchased.

Current wording

Under the Old Repurchase Program and the Repurchase Program, we were permitted, but were not obligated, to repurchase our outstanding common stock in the open market from time to time, provided that we complied with our code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. We expect the Repurchase Program to be in place until the earlier of December 31, 2026 or until $150.0 million worth of common stock have been repurchased.

Previous wording

During the fiscal year ended March 31, 2026, approximately $56.6 million of common stock was repurchased by us under the Repurchase Program. As of March 31, 2026, approximately $38.5 million remained available under the Repurchase Program.

Current wording

During the six months ended June 30, 2026, approximately $65.6 million of common stock was repurchased by us under the Repurchase Program. As of June 30, 2026, approximately $79.5 million remained available under the Repurchase Program.

Previous wording

We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of March 31, 2026 and December 31, 2025, we had outstanding commitments to third parties to fund investments totaling $190.4 million, which included €7.6 million denominated in EUR that has been translated to U.S. dollars, and $211.1 million, which included €7.5 million denominated in EUR that has been translated to U.S. dollars, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.

Current wording

We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of June 30, 2026 and December 31, 2025, we had outstanding commitments to third parties to fund investments totaling $157.2 million, which included €7.6 million denominated in EUR that has been translated to U.S. dollars, and $211.1 million, which included €7.5 million denominated in EUR that has been translated to U.S. dollars, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.

Previous wording

We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of March 31, 2026 and December 31, 2025, we had commitment letters to purchase investments in an aggregate par amount of $46.0 million and $4.7 million, respectively. As of March 31, 2026 and December 31, 2025, we had not entered into any bridge financing commitments which could require funding in the future.

Current wording

We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of June 30, 2026 and December 31, 2025, we had commitment letters to purchase investments in an aggregate par amount of $10.5 million and $4.7 million, respectively. As of June 30, 2026 and December 31, 2025, we had not entered into any bridge financing commitments which could require funding in the future.

Previous wording

(2)Under the terms of the Holdings Credit Facility, all outstanding borrowings under that facility exceeding $350.0 million must be repaid on or before October 26, 2026 ($4.4 million outstanding as of March 31, 2026) and all remaining borrowings must be repaid on or before March 12, 2031 ($350.0 million outstanding as of March 31, 2026). As of March 31, 2026, there was approximately $95.6 million of available capacity remaining, subject to borrowing base limitations, under the Holdings Credit Facility.

Current wording

(2)Under the terms of the Holdings Credit Facility, all outstanding borrowings under that facility exceeding $350.0 million must be repaid on or before October 26, 2026 ($28.1 million outstanding as of June 30, 2026) and all remaining borrowings must be repaid on or before March 12, 2031 ($350.0 million outstanding as of June 30, 2026). As of June 30, 2026, there was approximately $71.9 million of available capacity remaining, subject to borrowing base limitations, under the Holdings Credit Facility.

Previous wording

(4)Under the terms of the $527.1 million NMFC Credit Facility, all outstanding borrowings under that facility ($30.5 million, which included €16.5 million denominated in EUR and £8.7 million denominated in GBP that have been translated to U.S. dollars as of March 31, 2026) must be repaid on or before September 28, 2029. As of March 31, 2026, there was approximately $496.6 million of available capacity remaining, subject to borrowing base limitations, under the NMFC Credit Facility.

Current wording

(4)Under the terms of the $527.1 million NMFC Credit Facility, all outstanding borrowings under that facility ($30.4 million, which included €16.5 million denominated in EUR and £8.7 million denominated in GBP that have been translated to U.S. dollars as of June 30, 2026) must be repaid on or before September 28, 2029. As of June 30, 2026, there was approximately $496.7 million of available capacity remaining, subject to borrowing base limitations, under the NMFC Credit Facility.

Previous wording

Distributions declared and paid to stockholders for the three months ended March 31, 2026 totaled approximately $31.2 million.

Current wording

Distributions declared and paid to stockholders for the six months ended June 30, 2026 totaled approximately $54.8 million.

Previous wording

•We have entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our office space and provides office equipment and administrative services necessary to conduct our respective day-to-day operations pursuant to the Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to us under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance, and compliance functions, and the compensation of our chief financial officer and chief compliance officer and their respective staffs. Pursuant to the Administration Agreement and further restricted by us, the Administrator may, in its own discretion, submit to us for reimbursement some or all of the expenses that the Administrator has incurred on our behalf during any quarterly period. As a result, the amount of expenses for which we will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to us for reimbursement in the future. However, it is expected that the Administrator will continue to support part of our expense burden in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three months ended March 31, 2026 approximately $0.6 million of indirect administrative expenses were included in administrative expenses, of which no expenses were waived by the Administrator. As of March 31, 2026, approximately $0.6 million of indirect administrative expenses were included in payable to affiliates. For the three months ended March 31, 2026, the reimbursement to the Administrator represented approximately 0.02% of our gross assets.

Current wording

•We have entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our office space and provides office equipment and administrative services necessary to conduct our respective day-to-day operations pursuant to the Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to us under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance, and compliance functions, and the compensation of our chief financial officer and chief compliance officer and their respective staffs. Pursuant to the Administration Agreement and further restricted by us, the Administrator may, in its own discretion, submit to us for reimbursement some or all of the expenses that the Administrator has incurred on our behalf during any quarterly period. As a result, the amount of expenses for which we will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to us for reimbursement in the future. However, it is expected that the Administrator will continue to support part of our expense burden in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and six months ended June 30, 2026 approximately $0.6 million and $1.2 million, respectively, of indirect administrative expenses were included in administrative expenses, of which no expenses were waived by the Administrator. As of June 30, 2026, approximately $0.6 million of indirect administrative expenses were included in payable to affiliates. For the three and six months ended June 30, 2026, the reimbursement to the Administrator represented approximately 0.02% and 0.05%, respectively, of our gross assets.