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Section 1: 10-Q (10-Q)

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 10-Q

 


 

x      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarter Ended March 31, 2012

 

o         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 


 

Commission
File Number

 

Exact name of registrants as specified in their charters, addresses of principal executive
offices, telephone numbers and states or other jurisdictions of incorporation or organization

 

I.R.S. Employer
Identification Number

814-00839

 

New Mountain Finance Holdings, L.L.C.
787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware

 

26-3633318

814-00832

 

New Mountain Finance Corporation
787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware

 

27-2978010

814-00902

 

New Mountain Finance AIV Holdings Corporation
787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware

 

80-0721242

 


 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.

 

New Mountain Finance Holdings, L.L.C.

 

Yes x No o

New Mountain Finance Corporation

 

Yes x No o

New Mountain Finance AIV Holdings Corporation

 

Yes x No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

New Mountain Finance Holdings, L.L.C.

 

Yes o No o

New Mountain Finance Corporation

 

Yes o No o

New Mountain Finance AIV Holdings Corporation

 

Yes o No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

New Mountain Finance Holdings, L.L.C.

 

Large accelerated filer o

 

Accelerated filer o

 

 

Non-accelerated filer x

 

Smaller reporting company o

New Mountain Finance Corporation

 

Large accelerated filer o

 

Accelerated filer o

 

 

Non-accelerated filer x

 

Smaller reporting company o

New Mountain Finance AIV Holdings Corporation

 

Large accelerated filer o

 

Accelerated filer o

 

 

Non-accelerated filer x

 

Smaller reporting company o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

New Mountain Finance Holdings, L.L.C.

 

Yes o No x

New Mountain Finance Corporation

 

Yes o No x

New Mountain Finance AIV Holdings Corporation

 

Yes o No x

 

Registrants

 

Description

 

Shares / Units as of May 8, 2012

 

New Mountain Finance Holdings, L.L.C.

 

Common membership units

 

30,919,629

 

New Mountain Finance Corporation

 

Common stock, $0.01 par value

 

10,697,691

 

New Mountain Finance AIV Holdings Corporation

 

Common stock, $0.01 par value

 

100

 

 

        This combined Form 10-Q is filed separately by three registrants: New Mountain Finance Holdings, L.L.C., New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation (collectively, the “New Mountain Finance Registrant(s)” or the “Registrant(s)”). Information contained herein relating to any New Mountain Finance Registrant is filed by such registrant solely on its own behalf. Each New Mountain Finance Registrant makes no representation as to information relating exclusively to the other registrants.

 

 

 



Table of Contents

 

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2012
TABLE OF CONTENTS

 

 

 

PAGE

 

 

 

PART I. FINANCIAL INFORMATION

2

 

 

 

Item 1.

Financial Statements

2

 

 

 

 

New Mountain Finance Holdings, L.L.C.

 

 

Consolidated Statements of Assets, Liabilities and Members’ Capital as of March 31, 2012 (unaudited) and December 31, 2011

2

 

Consolidated Statements of Operations for the three months ended March 31, 2012 (unaudited) and March 31, 2011 (unaudited)

3

 

Consolidated Statements of Changes in Members’ Capital for the three months ended March 31, 2012 (unaudited) and March 31, 2011 (unaudited)

4

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2012 (unaudited) and March 31, 2011 (unaudited)

5

 

Consolidated Schedule of Investments as of March 31, 2012 (unaudited)

6

 

Consolidated Schedule of Investments as of December 31, 2011

12

 

New Mountain Finance Corporation

 

 

Statement of Assets and Liabilities as of March 31, 2012 (unaudited) and December 31, 2011

18

 

Statements of Operations for the three months ended March 31, 2012 (unaudited)

19

 

Statement of Changes in Net Assets for the three months ended March 31, 2012 (unaudited)

20

 

Statement of Cash Flows for the three months ended March 31, 2012 (unaudited)

21

 

New Mountain Finance AIV Holdings Corporation

 

 

Statement of Assets and Liabilities as of March 31, 2012 (unaudited) and December 31, 2011

22

 

Statements of Operations for the three months ended March 31, 2012 (unaudited)

23

 

Statement of Changes in Net Assets for the three months ended March 31, 2012 (unaudited)

24

 

Statement of Cash Flows for the three months ended March 31, 2012 (unaudited)

25

 

 

 

 

Combined Notes to the Financial Statements for New Mountain Finance Holdings, L.L.C., New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation

26

 

 

 

 

Reports of Independent Registered Public Accounting Firm

47

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

50

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

64

Item 4.

Controls and Procedures

65

 

 

 

PART II. OTHER INFORMATION

66

 

 

 

Item 1.

Legal Proceedings

66

Item 1A.

Risk Factors

66

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

66

Item 3.

Defaults upon Senior Securities

66

Item 4.

Mine Safety Disclosures

66

Item 5.

Other Information

66

Item 6.

Exhibits

66

 

Signatures

70

 

1



Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Statements of Assets, Liabilities and Members’ Capital

 

 

 

March 31, 2012

 

December 31, 2011

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Investments at fair value (cost of $741,822,346 and $699,864,784, respectively)

 

$

758,217,537

 

$

703,513,560

 

Cash and cash equivalents

 

13,556,115

 

15,318,811

 

Interest receivable

 

7,865,219

 

7,307,092

 

Receivable from unsettled securities sold

 

4,924,209

 

 

Deferred credit facility costs (net of accumulated amortization of $1,098,836 and $855,955, respectively)

 

3,477,827

 

3,713,739

 

Receivable from affiliate

 

246,009

 

369,017

 

Other assets

 

329,682

 

356,486

 

Total assets

 

$

788,616,598

 

$

730,578,705

 

Liabilities

 

 

 

 

 

SLF Credit Facility

 

175,000,000

 

165,928,000

 

Holdings Credit Facility

 

151,922,888

 

129,037,813

 

Payable for unsettled securities purchased

 

12,180,000

 

7,604,931

 

Dividends payable

 

6,471,020

 

 

Incentive fee payable

 

3,361,463

 

2,317,328

 

Management fee payable

 

2,514,296

 

2,200,354

 

Interest payable

 

2,099,549

 

1,747,095

 

Other liabilities

 

793,144

 

1,241,366

 

Total liabilities

 

354,342,360

 

310,076,887

 

Members’ Capital

 

434,274,238

 

420,501,818

 

Total liabilities and members’ capital

 

$

788,616,598

 

$

730,578,705

 

Outstanding common membership units

 

30,919,629

 

30,919,629

 

Capital per unit

 

$

14.05

 

$

13.60

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

2



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Statements of Operations

(unaudited)

 

 

 

Three months ended

 

 

 

March 31, 2012

 

March 31, 2011

 

Investment income

 

 

 

 

 

Interest income

 

$

18,601,183

 

$

11,168,047

 

Other income

 

420,818

 

43,673

 

Total investment income

 

19,022,001

 

11,211,720

 

Expenses

 

 

 

 

 

Incentive fee

 

3,361,463

 

 

Management fee

 

2,514,296

 

34,000

 

Interest and other credit facility expenses

 

2,483,289

 

1,546,753

 

Administrative expenses (net of reimbursable expenses of $303,795 and $0, respectively)

 

251,869

 

140,808

 

Professional fees (net of reimbursable expenses of $246,009 and $0, respectively)

 

201,838

 

53,156

 

Other general and administrative expenses

 

296,293

 

7,856

 

Total expenses

 

9,109,048

 

1,782,573

 

Net investment income

 

9,912,953

 

9,429,147

 

Realized gains on investments

 

1,007,333

 

5,892,330

 

Net change in unrealized appreciation (depreciation) of investments

 

12,746,415

 

1,097,337

 

Net increase in capital resulting from operations

 

$

23,666,701

 

$

16,418,814

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Statements of Changes in Members’ Capital

(unaudited)

 

 

 

Three months ended

 

 

 

March 31, 2012

 

March 31, 2011

 

Increase in members’ capital resulting from operations:

 

 

 

 

 

Net investment income

 

$

9,912,953

 

$

9,429,147

 

Realized gains on investments

 

1,007,333

 

5,892,330

 

Net change in unrealized appreciation (depreciation) of investments

 

12,746,415

 

1,097,337

 

Net increase in members’ capital resulting from operations

 

23,666,701

 

16,418,814

 

Distributions

 

 

(10,249,155

)

Contributions

 

 

42,100,712

 

Dividends declared

 

(9,894,281

)

 

Net increase in members’ capital

 

13,772,420

 

48,270,371

 

Members’ capital at beginning of period

 

420,501,818

 

241,927,261

 

Members’ capital at end of period

 

$

434,274,238

 

$

290,197,632

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Statements of Cash Flows

(unaudited)

 

 

 

Three months ended

 

 

 

March 31, 2012

 

March 31, 2011

 

Cash flows from operating activities

 

 

 

 

 

Net increase in capital resulting from operations

 

$

23,666,701

 

$

16,418,814

 

Adjustments to reconcile net (increase) decrease in capital resulting from operations to net cash (used in) provided by operating activities:

 

 

 

 

 

Realized gains on investments

 

(1,007,333

)

(5,892,330

)

Net change in unrealized (appreciation) depreciation of investments

 

(12,746,415

)

(1,097,337

)

Amortization of purchase discount

 

(1,539,318

)

(1,679,684

)

Amortization of deferred credit facility costs

 

242,881

 

137,623

 

Non-cash interest income

 

(203,667

)

(226,711

)

(Increase) decrease in operating assets:

 

 

 

 

 

Purchase of investments

 

(106,679,875

)

(88,582,500

)

Proceeds from sales and paydowns of investments

 

71,672,631

 

77,255,809

 

Cash received for purchase of undrawn portion of revolving credit facility

 

 

1,260,000

 

Cash paid for drawn revolvers

 

(7,665,000

)

 

Cash repayments on drawn revolvers

 

3,465,000

 

 

Interest receivable

 

(558,127

)

(1,793,682

)

Receivable from unsettled securities sold

 

(4,924,209

)

 

Receivable from affiliate

 

123,008

 

 

Other assets

 

26,804

 

2,808

 

Increase (decrease) in operating liabilities:

 

 

 

 

 

Payable for unsettled securities purchased

 

4,575,069

 

(66,902,500

)

Incentive fee payable

 

1,044,135

 

 

Management fee payable

 

313,942

 

 

Interest payable

 

352,454

 

334,000

 

Payable to affiliates

 

 

77,294

 

Other liabilities

 

(263,092

)

159,997

 

Net cash flows (used in) provided by operating activities

 

(30,104,411

)

(70,528,399

)

Cash flows from financing activities

 

 

 

 

 

Contributions

 

 

42,100,712

 

Distributions

 

 

(10,249,155

)

Dividends paid

 

(3,423,261

)

 

Proceeds from Holdings Credit Facility

 

93,884,000

 

24,359,947

 

Repayment of Holdings Credit Facility

 

(70,998,925

)

(19,164,635

)

Proceeds from SLF Credit Facility

 

22,131,051

 

49,965,300

 

Repayment of SLF Credit Facility

 

(13,059,051

)

(29,431

)

Deferred credit facility costs paid

 

(192,099

)

 

Net cash flows provided by (used in) financing activities

 

28,341,715

 

86,982,738

 

Net increase (decrease) in cash and cash equivalents

 

(1,762,696

)

16,454,339

 

Cash and cash equivalents at the beginning of the period

 

15,318,811

 

10,744,082

 

Cash and cash equivalents at the end of the period

 

$

13,556,115

 

$

27,198,421

 

Supplemental disclosure of cash flow information

 

 

 

 

 

Interest paid

 

$

1,777,637

 

$

841,305

 

Non-cash financing activities:

 

 

 

 

 

Dividends declared and payable

 

$

6,471,020

 

$

 

Accrual for offering costs

 

 

 

 

1,544,500

 

Accrual for deferred credit facility costs

 

6,969

 

856,521

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

5



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Schedule of Investments

 

March 31, 2012

 

Portfolio Company, Location and
Industry

 

Type of
Investment

 

Interest Rate

 

Maturity
Date

 

Principal
Amount,
Par Value
or Shares

 

Cost

 

Fair
Value

 

Percent of
Members’
Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funded Debt Investments—Luxembourg

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infor Lux Bond Company**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

Subordinated (2)

 

8.47% PIK (Base Rate + 8.00%)*

 

9/2/2014

 

$

10,173,217

 

$

6,491,458

 

$

10,179,289

 

2.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Funded Debt InvestmentsLuxembourg

 

 

 

 

 

 

 

$

10,173,217

 

$

6,491,458

 

$

10,179,289

 

2.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funded Debt Investments - United States

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decision Resources, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

 

First lien (3)

 

7.00% (Base Rate + 5.50%)

 

12/28/2016

 

$

17,775,000

 

$

17,553,601

 

$

17,463,938

 

 

 

 

 

Second lien (2)

 

9.50% (Base Rate + 8.00%)

 

5/7/2018

 

14,500,000

 

14,368,391

 

14,282,500

 

 

 

 

 

 

 

 

 

 

 

32,275,000

 

31,921,992

 

31,746,438

 

7.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Meritas Schools Holdings, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education

 

First lien (3)

 

7.50% (Base Rate + 6.00%)

 

7/29/2017

 

9,250,000

 

9,165,362

 

9,203,750

 

 

 

 

 

Second lien (2)

 

11.50% (Base Rate + 10.00%)

 

1/29/2018

 

20,000,000

 

19,720,717

 

20,100,000

 

 

 

 

 

 

 

 

 

 

 

29,250,000

 

28,886,079

 

29,303,750

 

6.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Knowledge Training LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education

 

First lien (3)

 

6.50% (Base Rate + 4.99%)

 

4/21/2017

 

4,867,647

 

4,799,418

 

4,794,632

 

 

 

 

 

Second lien (2)

 

11.50% (Base Rate + 9.75%)

 

10/21/2018

 

24,250,000

 

23,775,903

 

23,755,300

 

 

 

 

 

 

 

 

 

 

 

29,117,647

 

28,575,321

 

28,549,932

 

6.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Health Care Associates, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (2)

 

3.50% (Base Rate + 3.25%)

 

8/1/2014

 

15,467,673

 

13,167,877

 

14,500,943

 

 

 

 

 

Second lien (2)

 

6.75% (Base Rate + 6.50%)

 

2/1/2015

 

15,000,000

 

12,148,811

 

13,950,000

 

 

 

 

 

 

 

 

 

 

 

30,467,673

 

25,316,688

 

28,450,943

 

6.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lawson Software, Inc. (fka SoftBrands, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (3)

 

6.75% (Base Rate + 5.25%)

 

7/5/2017

 

9,962,406

 

9,602,718

 

9,962,406

 

 

 

 

 

Subordinated (2)

 

11.50%

 

7/15/2018

 

13,500,000

 

12,357,561

 

14,985,000

 

 

 

 

 

 

 

 

 

 

 

23,462,406

 

21,960,279

 

24,947,406

 

5.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insight Pharmaceuticals LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Products

 

Second lien (2)

 

13.25% (Base Rate + 11.75%)

 

8/25/2017

 

25,000,000

 

24,065,834

 

24,656,250

 

5.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Novell, Inc. (fka Attachmate Corporation, NetIQ Corporation)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (3)

 

6.50% (Base Rate + 5.00%)

 

4/27/2017

 

3,776,582

 

3,735,005

 

3,768,323

 

 

 

 

 

Second lien (2)

 

9.50% (Base Rate + 8.00%)

 

10/27/2017

 

20,000,000

 

19,683,010

 

20,025,000

 

 

 

 

 

 

 

 

 

 

 

23,776,582

 

23,418,015

 

23,793,323

 

5.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renaissance Learning, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education

 

Second lien (2)

 

12.00% (Base Rate + 10.50%)

 

10/19/2018

 

20,000,000

 

19,039,995

 

20,200,000

 

4.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Learning Care Group (US), Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education

 

First lien (2)

 

12.00%

 

4/27/2016

 

17,368,421

 

17,130,060

 

16,695,606

 

 

 

 

 

Subordinated (2)

 

15.00% PIK*

 

6/30/2016

 

3,273,004

 

3,099,660

 

2,971,990

 

 

 

 

 

 

 

 

 

 

 

20,641,425

 

20,229,720

 

19,667,596

 

4.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transplace Texas, L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Logistics

 

Second lien (2)

 

11.00% (Base Rate + 9.00%)

 

4/12/2017

 

20,000,000

 

19,531,663

 

19,500,000

 

4.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Healthworks Holding Company, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

Second lien (2)

 

10.50% (Base Rate + 9.00%)

 

6/15/2017

 

20,000,000

 

19,729,108

 

19,500,000

 

4.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unitek Global Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

 

First lien (2)

 

9.00% (Base Rate + 7.50%)

 

4/15/2018

 

19,800,000

 

19,285,290

 

19,416,375

 

4.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ipreo Holdings LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information Services

 

First lien (3)

 

8.00% (Base Rate + 6.50%)

 

8/5/2017

 

18,656,250

 

18,276,280

 

18,376,406

 

4.23

%

 

The accompanying notes are an integral part of these consolidated financial statements.

 

6



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Schedule of Investments (continued)

 

March 31, 2012

(unaudited)

 

Portfolio Company, Location and
Industry

 

Type of
Investment

 

Interest Rate

 

Maturity
Date

 

Principal
Amount,
Par Value
or Shares

 

Cost

 

Fair
Value

 

Percent of
Members’
Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KeyPoint Government Solutions, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Services

 

First lien (2)

 

10.00% (Base Rate + 8.00%)

 

12/31/2015

 

$

17,775,000

 

$

17,493,200

 

$

17,863,875

 

4.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rocket Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

Second lien (2)

 

10.25% (Base Rate + 8.75%)

 

2/8/2019

 

17,500,000

 

17,278,438

 

17,500,000

 

4.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEWAsurion Corporation (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asurion, LLC (fka Asurion Corporation)

 

Second lien (2)

 

9.00% (Base Rate + 7.50%)

 

5/24/2019

 

5,000,000

 

4,977,602

 

5,076,250

 

 

 

Lonestar Intermediate Super Holdings, LLC

 

Subordinated (2)

 

11.00% (Base Rate + 9.50%)

 

9/2/2019

 

12,000,000

 

11,642,123

 

12,195,000

 

 

 

 

 

 

 

 

 

 

 

17,000,000

 

16,619,725

 

17,271,250

 

3.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sotera Defense Solutions, Inc. (Global Defense Technology & Systems, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Services

 

First lien (3)

 

7.00% (Base Rate + 5.50%)

 

4/21/2017

 

16,872,500

 

16,729,410

 

16,830,319

 

3.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SRA International, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Services

 

First lien (3)

 

6.50% (Base Rate + 5.25%)

 

7/20/2018

 

16,401,827

 

15,664,733

 

16,371,074

 

3.77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpenLink International, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (3)

 

7.75% (Base Rate + 6.25%)

 

10/30/2017

 

14,962,500

 

14,679,698

 

15,009,258

 

3.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volume Services America, Inc. (Centerplate)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Services

 

First lien (2)

 

10.50% (Base Rate + 8.50%)

 

9/16/2016

 

14,812,500

 

14,490,613

 

14,966,802

 

3.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PODS, Inc. (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PODS Funding Corp. II

 

First lien (1), (3)

 

8.50% (Base Rate + 7.00%)

 

11/29/2016

 

11,445,923

 

11,119,973

 

11,217,004

 

 

 

Storapod Holding Company, Inc.

 

Subordinated (1), (2)

 

21.00% PIK*

 

11/29/2017

 

3,728,642

 

3,603,252

 

3,599,461

 

 

 

 

 

 

 

 

 

 

 

15,174,565

 

14,723,225

 

14,816,465

 

3.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brock Holdings III, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Services

 

Second lien (2)

 

10.00% (Base Rate + 8.25%)

 

3/16/2018

 

15,000,000

 

14,743,502

 

14,812,500

 

3.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triple Point Technology, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (3)

 

8.00% (Base Rate + 6.50%)

 

10/27/2017

 

14,463,750

 

13,915,868

 

14,537,877

 

3.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SonicWALL, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (3)

 

8.27% (Base Rate + 6.18%)

 

1/23/2016

 

3,952,017

 

3,956,241

 

3,971,776

 

 

 

 

 

Second lien (2)

 

12.00% (Base Rate + 10.00%)

 

1/23/2017

 

10,000,000

 

9,755,318

 

10,250,000

 

 

 

 

 

 

 

 

 

 

 

13,952,017

 

13,711,559

 

14,221,776

 

3.27

%

Pacific Architects and Engineers Incorporated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Services

 

First lien (3)

 

7.50% (Base Rate + 6.00%)

 

4/4/2017

 

14,100,000

 

13,860,160

 

14,029,500

 

3.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Virtual Radiologic Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Information Technology

 

First lien (3)

 

7.75% (Base Rate + 4.50%)

 

12/22/2016

 

14,852,481

 

14,674,868

 

13,961,332

 

3.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aspen Dental Management, Inc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (3)

 

7.00% (Base Rate + 5.50%)

 

10/6/2016

 

12,967,500

 

12,710,271

 

12,918,872

 

2.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permian Tank & Manufacturing, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy

 

First lien (2)

 

9.50% (Base Rate + 7.75%)

 

3/15/2017

 

13,000,000

 

12,677,155

 

12,675,000

 

2.92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Smile Brands Group Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (3)

 

7.00% (Base Rate + 5.25%)

 

12/21/2017

 

12,306,439

 

12,148,416

 

12,375,663

 

2.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vision Solutions, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

Second lien (2)

 

9.50% (Base Rate + 8.00%)

 

7/23/2017

 

12,000,000

 

11,898,722

 

11,820,000

 

2.72

%

 

The accompanying notes are an integral part of these consolidated financial statements.

 

7



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Schedule of Investments (continued)

 

March 31, 2012

(unaudited)

 

Portfolio Company, Location and
Industry

 

Type of
Investment

 

Interest Rate

 

Maturity
Date

 

Principal
Amount,
Par Value
or Shares

 

Cost

 

Fair
Value

 

Percent of
Members’
Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mailsouth, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

First lien (3)

 

6.75% (Base Rate + 5.00%)

 

12/14/2016

 

$

11,880,000

 

$

11,733,073

 

$

11,731,500

 

2.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brickman Group Holdings, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

 

First lien (3)

 

7.25% (Base Rate + 5.50%)

 

10/14/2016

 

7,937,311

 

7,983,349

 

8,010,072

 

 

 

 

 

Subordinated (2)

 

9.13%

 

11/1/2018

 

3,650,000

 

3,314,508

 

3,540,500

 

 

 

 

 

 

 

 

 

 

 

11,587,311

 

11,297,857

 

11,550,572

 

2.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TravelCLICK, Inc. (fka TravelCLICK Acquisition Co.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information Services

 

First lien (3)

 

6.50% (Base Rate + 5.00%)

 

3/16/2016

 

11,372,594

 

11,191,660

 

11,358,378

 

2.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tekelec Global, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (3)

 

9.00% (Base Rate + 7.50%)

 

1/29/2018

 

11,500,000

 

11,331,396

 

11,327,500

 

2.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merrill Communications LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

 

First lien (2)

 

7.50% (Base Rate + 5.50%)

 

12/24/2012

 

11,421,788

 

10,554,020

 

10,736,481

 

2.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Immucor, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (3)

 

7.25% (Base Rate + 5.75%)

 

8/19/2018

 

4,975,000

 

4,789,318

 

5,039,262

 

 

 

 

 

Subordinated (2)

 

11.13%

 

8/15/2019

 

5,000,000

 

4,938,898

 

5,581,250

 

 

 

 

 

 

 

 

 

 

 

9,975,000

 

9,728,216

 

10,620,512

 

2.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHG Companies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

Second lien (2)

 

11.25% (Base Rate + 9.50%)

 

4/7/2017

 

10,000,000

 

9,832,604

 

10,050,000

 

2.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vertafore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

Second lien (2)

 

9.75% (Base Rate + 8.25%)

 

10/29/2017

 

10,000,000

 

9,914,923

 

10,020,830

 

2.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merge Healthcare Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (2)

 

11.75%

 

5/1/2015

 

9,000,000

 

8,888,302

 

9,765,000

 

2.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Dental Services, Inc. (Western)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (2)

 

5.97% (Base Rate + 5.50%)

 

7/1/2013

 

9,961,832

 

9,296,330

 

9,364,122

 

2.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sunquest Information Systems, Inc. (Misys Hospital Systems, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

Second lien (2)

 

9.75% (Base Rate + 8.50%)

 

6/16/2017

 

9,000,000

 

8,845,075

 

9,315,000

 

2.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physio-Control International, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Products

 

First lien (2)

 

9.88%

 

1/15/2019

 

7,000,000

 

7,000,000

 

7,385,000

 

1.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research Pharmaceutical Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (3)

 

6.75% (Base Rate + 5.24%)

 

2/18/2017

 

7,406,250

 

7,312,058

 

7,128,516

 

1.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Surgery Center Holdings, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services

 

First lien (3)

 

6.50% (Base Rate + 5.00%)

 

2/6/2017

 

6,930,000

 

6,900,773

 

6,687,450

 

1.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IDQ Holdings Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Products

 

First lien (2)

 

11.50%

 

4/1/2017

 

6,250,000

 

6,125,251

 

6,437,500

 

1.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stratus Technologies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information Technology

 

First lien (2)

 

12.00%

 

3/29/2015

 

6,827,000

 

6,505,897

 

6,058,963

 

1.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airvana Network Solutions Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

First lien (2)

 

10.00% (Base Rate + 8.00%)

 

3/25/2015

 

6,285,714

 

6,191,397

 

6,002,857

 

1.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alion Science and Technology Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Services

 

First lien (2)

 

10.00% + 2.00% PIK*

 

11/1/2014

 

6,195,238

 

5,931,105

 

5,802,876

 

1.34

%

 

The accompanying notes are an integral part of these consolidated financial statements.

 

8



Table of Contents

 

New Mountain Finance Holdings, L.L.C.

 

Consolidated Schedule of Investments (continued)

 

March 31, 2012

(unaudited)

 

Portfolio Company, Location and
Industry

 

Type of
Investment

 

Interest Rate

 

Maturity
Date

 

Principal
Amount,
Par Value
or Shares

 

Cost

 

Fair
Value

 

Percent of
Members’
Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mach Gen, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power Generation

 

Second lien (2)

 

7.99% PIK (Base Rate + 7.50%)*

 

2/22/2015

 

$

8,227,575

 

$

7,061,091

 

$

5,569,227

 

1.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ozburn-Hessey Holding Company LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Logistics

 

Second lien (2)

 

11.50% (Base Rate + 9.50%)

 

10/10/2016

 

6,000,000

 

5,897,749

 

4,950,000

 

1.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LVI Services Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Services

 

First lien (2)

 

9.25% (Base Rate + 7.50%)

 

3/31/2014

 

5,073,885

 

4,494,005

 

4,249,379

 

0.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education Management LLC**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Education

 

First lien (3)

 

8.25% (Base Rate + 7.00%)

 

3/30/2018

 

4,000,000

 

3,880,000

 

3,980,000

 

0.92

%