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Section 1: 10-Q (10-Q)

Document

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended June 30, 2017
o         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Commission
File Number
 
Exact name of registrant as specified in its charter, address of principal executive
offices, telephone numbers and states or other jurisdictions of incorporation or organization
 
I.R.S. Employer
Identification Number
814-00832
 
New Mountain Finance Corporation
 
27-2978010
 
 
787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware
 
 
 
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 (the "Exchange Act") during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ý 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). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ý
 
Accelerated filer o
 
 
Non-accelerated filer o (Do not check if a smaller reporting company)
 
Smaller reporting company o
 
 
Emerging growth company o
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description
 
Shares as of August 8, 2017
Common stock, par value $0.01 per share
 
75,685,838
 


Table of Contents

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2017
TABLE OF CONTENTS
 
PAGE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
New Mountain Finance Corporation
 
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
(unaudited)
 
June 30, 2017
 
December 31, 2016
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $1,514,133 and $1,379,603, respectively)
$
1,515,696

 
$
1,346,556

Non-controlled/affiliated investments (cost of $166,764 and $54,996, respectively)
168,614

 
57,440

Controlled investments (cost of $156,440 and $140,579, respectively)
170,723

 
154,821

Total investments at fair value (cost of $1,837,337 and $1,575,178, respectively)
1,855,033

 
1,558,817

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
28,385

 
29,218

Cash and cash equivalents
36,337

 
45,928

Interest and dividend receivable
24,655

 
17,833

Receivable from affiliates
378

 
346

Receivable from unsettled securities sold

 
990

Other assets
5,043

 
2,886

Total assets
$
1,949,831

 
$
1,656,018

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
328,713

 
$
333,513

     Convertible Notes
155,468

 
155,523

     Unsecured Notes
145,000

 
90,000

     SBA-guaranteed debentures
126,745

 
121,745

     NMFC Credit Facility
122,500

 
10,000

     Deferred financing costs (net of accumulated amortization of $14,270 and $12,279, respectively)
(13,088
)
 
(14,041
)
Net borrowings
865,338

 
696,740

Payable for unsettled securities purchased
24,151

 
2,740

Management fee payable
13,048

 
5,852

Incentive fee payable
10,057

 
5,745

Interest payable
3,401

 
3,172

Payable to affiliates
661

 
136

Deferred tax liability
115

 
1,034

Other liabilities
1,718

 
2,037

Total liabilities
918,489

 
717,456

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, 100,000,000 shares authorized, 75,685,838 and 69,755,387 shares issued, respectively, and 75,685,838 and 69,717,814 shares outstanding, respectively
757

 
698

Paid in capital in excess of par
1,085,776

 
1,001,862

Treasury stock at cost, 0 and 37,573 shares held, respectively

 
(460
)
Accumulated undistributed net investment income
1,904

 
2,073

Accumulated undistributed net realized losses on investments
(62,574
)
 
(36,947
)
Net unrealized appreciation (depreciation) (net of provision for taxes of $115 and $1,034, respectively)
5,479

 
(28,664
)
Total net assets
$
1,031,342

 
$
938,562

Total liabilities and net assets
$
1,949,831

 
$
1,656,018

Number of shares outstanding
75,685,838

 
69,717,814

Net asset value per share
$
13.63

 
$
13.46


The accompanying notes are an integral part of these consolidated financial statements.
3

Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
Six Months Ended
 
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
Investment income
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
36,518

 
$
36,302

 
$
69,394

 
$
72,008

Dividend income
121

 
92

 
172

 
92

Other income
2,084

 
997

 
4,349

 
2,219

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
712

 
1,627

 
1,359

 
3,209

Dividend income
4,829

 
887

 
6,477

 
1,807

Other income
296

 
305

 
594

 
618

From controlled investments:
 
 
 
 
 
 
 
Interest income
409

 
483

 
884

 
985

Dividend income
4,720

 
742

 
9,754

 
1,461

Other income
330

 
55

 
343

 
67

Total investment income
50,019

 
41,490

 
93,326

 
82,466

Expenses
 
 
 
 
 
 
 
Incentive fee
6,449

 
5,449

 
11,857

 
10,834

Management fee
8,275

 
6,818

 
15,889

 
13,654

Interest and other financing expenses
9,045

 
6,771

 
17,421

 
13,373

Professional fees
722

 
861

 
1,572

 
1,738

Administrative expenses
662

 
629

 
1,370

 
1,468

Other general and administrative expenses
402

 
384

 
868

 
816

Total expenses
25,555

 
20,912

 
48,977

 
41,883

Less: management and incentive fees waived (See Note 5)
(1,485
)
 
(1,241
)
 
(4,641
)
 
(2,560
)
Less: expenses waived and reimbursed (See Note 5)
(4
)
 
(63
)
 
(474
)
 
(347
)
Net expenses
24,066

 
19,608

 
43,862

 
38,976

Net investment income before income taxes
25,953

 
21,882

 
49,464

 
43,490

Income tax expense
155

 
50

 
235

 
91

Net investment income
25,798

 
21,832

 
49,229

 
43,399

Net realized (losses) gains:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(26,453
)
 
865

 
(25,627
)
 
1,041

Net change in unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
26,631

 
13,532

 
34,610

 
(882
)
Non-controlled/affiliated investments
(298
)
 
1,126

 
(594
)
 
(25
)
Controlled investments
1,519

 
7,298

 
41

 
8,477

Securities purchased under collateralized agreements to resell
(33
)
 
(44
)
 
(833
)
 
(74
)
Benefit for taxes
164

 
84

 
919

 
808

Net realized and unrealized gains (losses)
1,530

 
22,861

 
8,516

 
9,345

Net increase in net assets resulting from operations
$
27,328

 
$
44,693

 
$
57,745

 
$
52,744

Basic earnings per share
$
0.36

 
$
0.70

 
$
0.80

 
$
0.83

Weighted average shares of common stock outstanding - basic (See Note 11)
75,383,387

 
63,839,920

 
72,566,825

 
63,887,036

Diluted earnings per share
$
0.34

 
$
0.64

 
$
0.74

 
$
0.77

Weighted average shares of common stock outstanding - diluted (See Note 11)
85,207,514

 
71,117,051

 
82,390,952

 
71,164,167

Distributions declared and paid per share
$
0.34

 
$
0.34

 
$
0.68

 
$
0.68


The accompanying notes are an integral part of these consolidated financial statements.
4

Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
 
Six Months Ended
 
June 30, 2017
 
June 30, 2016
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income
$
49,229

 
$
43,399

Net realized (losses) gains on investments
(25,627
)
 
1,041

Net change in unrealized appreciation (depreciation) of investments
34,057

 
7,570

Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell
(833
)
 
(74
)
Benefit for taxes
919

 
808

Net increase in net assets resulting from operations
57,745

 
52,744

Capital transactions
 
 
 
Net proceeds from shares sold
81,478

 

Deferred offering costs
(172
)
 
38

Distributions declared to stockholders from net investment income
(49,398
)
 
(43,417
)
Reinvestment of distributions
3,208

 

Repurchase of shares under repurchase program

 
(2,948
)
Other
(81
)
 

Total net increase (decrease) in net assets resulting from capital transactions
35,035

 
(46,327
)
Net increase in net assets
92,780

 
6,417

Net assets at the beginning of the period
938,562

 
836,908

Net assets at the end of the period
$
1,031,342

 
$
843,325

 
 
 
 
Capital share activity
 
 
 
Shares sold
5,750,000

 

Shares issued from the reinvestment of distributions
180,451

 

Shares reissued from repurchase program in connection with the reinvestment of distributions
37,573

 

Shares repurchased under repurchase program

 
(248,499
)
Net increase (decrease) in shares outstanding
5,968,024

 
(248,499
)



The accompanying notes are an integral part of these consolidated financial statements.
5

Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Six Months Ended
 
June 30, 2017
 
June 30, 2016
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
57,745

 
$
52,744

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized losses (gains) on investments
25,627

 
(1,041
)
Net change in unrealized (appreciation) depreciation of investments
(34,057
)
 
(7,570
)
Net change in unrealized depreciation (appreciation) of securities purchased under collateralized agreements to resell
833

 
74

Amortization of purchase discount
(2,495
)
 
(1,617
)
Amortization of deferred financing costs
1,991

 
1,589

Amortization of premium on Convertible Notes
(55
)
 

Non-cash investment income
(3,864
)
 
(3,356
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(607,755
)
 
(163,888
)
Proceeds from sales and paydowns of investments
330,586

 
198,211

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
189

 
43

Cash paid on drawn revolvers
(7,344
)
 
(8,851
)
Cash repayments on drawn revolvers
2,897

 
2,232

Interest and dividend receivable
(6,822
)
 
(1,440
)
Receivable from affiliates
(32
)
 
(593
)
Receivable from unsettled securities sold
990

 
(3,600
)
Other assets
(1,543
)
 
(423
)
Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
21,411

 
10,391

Management fee payable
7,196

 
111

Incentive fee payable
4,312

 
(173
)
Interest payable
229

 
406

Payable to affiliates
525

 
(127
)
Deferred tax liability
(919
)
 
(808
)
Other liabilities
(845
)
 
257

Net cash flows (used in) provided by operating activities
(211,200
)
 
72,571

Cash flows from financing activities
 
 
 
Net proceeds from shares sold
81,478

 

Distributions paid
(46,190
)
 
(43,417
)
Offering costs paid
(289
)
 
(53
)
Proceeds from Holdings Credit Facility
278,200

 
103,300

Repayment of Holdings Credit Facility
(283,000
)
 
(174,600
)
Proceeds from Unsecured Notes
55,000

 
50,000

Proceeds from SBA-guaranteed debentures
5,000

 
4,000

Proceeds from NMFC Credit Facility
232,100

 
71,000

Repayment of NMFC Credit Facility
(119,600
)
 
(74,000
)
Other
(81
)
 

Deferred financing costs paid
(1,009
)
 
(1,488
)
Repurchase of shares under repurchase program

 
(2,948
)
Net cash flows provided by (used in) financing activities
201,609

 
(68,206
)
Net (decrease) increase in cash and cash equivalents
(9,591
)
 
4,365

Cash and cash equivalents at the beginning of the period
45,928

 
30,102

Cash and cash equivalents at the end of the period
$
36,337

 
$
34,467

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
14,567

 
$
10,960

Income taxes paid
175

 
3

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
2,648

 
$

Value of shares reissued from repurchase program in connection with the distribution reinvestment plan
560

 

Accrual for offering costs
1,095

 
817

Accrual for deferred financing costs
128

 
106



The accompanying notes are an integral part of these consolidated financial statements.
6

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
June 30, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Australia
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Project Sunshine IV Pty Ltd**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Media
 
First lien (2)
 
8.23% (L + 7.00%/M)
 
9/23/2019
 
$
3,456

 
$
3,447

 
$
3,491

 
0.34
 %
Total Funded Debt Investments - Australia
 
 
 
 
 
 
 
$
3,456

 
$
3,447

 
$
3,491

 
0.34
 %
Funded Debt Investments - Luxembourg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
4.80% (L + 3.50%/Q)
 
7/30/2019
 
$
2,984

 
$
2,569

 
$
2,656

 
 
 
 
First lien (3)
 
4.80% (L + 3.50%/Q)
 
7/30/2019
 
1,719

 
1,489

 
1,530

 
 
 
 
Second lien (2)
 
10.55% (L + 9.25%/Q)
 
7/30/2020
 
24,630

 
24,375

 
19,396

 
 
 
 
Second lien (3)
 
10.55% (L + 9.25%/Q)
 
7/30/2020
 
8,204

 
8,336

 
6,460

 
 
 
 
 
 
 
 
 
 
37,537

 
36,769

 
30,042

 
2.91
 %
Total Funded Debt Investments - Luxembourg
 
 
 
 
 
 
 
$
37,537

 
$
36,769

 
$
30,042

 
2.91
 %
Funded Debt Investments - Netherlands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.55% (L + 5.25%/Q)
 
2/18/2022
 
$
16,310

 
$
16,320

 
$
16,412

 
 
 
 
Second lien (3)
 
10.42% (L + 9.13%/Q)
 
2/17/2023
 
29,227

 
28,670

 
29,080

 
 
 
 
 
 
 
 
 
 
45,537

 
44,990

 
45,492

 
4.41
 %
Total Funded Debt Investments - Netherlands
 
 
 
 
 
 
 
$
45,537

 
$
44,990

 
$
45,492

 
4.41
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.67% (L + 9.50%/Q)
 
1/31/2023
 
$
37,500

 
$
36,515

 
$
34,688

 
3.36
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
$
37,500

 
$
36,515

 
$
34,688

 
3.36
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AmWINS Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
7.98% (L + 6.75%/M)
 
1/25/2025
 
$
57,000

 
$
56,794

 
$
58,283

 
5.65
 %
AssuredPartners, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.23% (L + 9.00%/M)
 
10/20/2023
 
30,200

 
29,429

 
30,842

 
 
 
 
Second lien (2)
 
10.23% (L + 9.00%/M)
 
10/20/2023
 
20,000

 
19,314

 
20,425

 
 
 
 
 
 
 
 
 
 
50,200

 
48,743

 
51,267

 
4.97
 %
Alegeus Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)
 
9.67% (L + 8.50%/Q)
 
10/30/2023
 
23,500

 
23,500

 
23,500

 
 
 
 
Second lien (4)
 
9.67% (L + 8.50%/Q)
 
10/30/2023
 
22,500

 
22,500

 
22,500

 
 
 
 
 
 
 
 
 
 
46,000

 
46,000

 
46,000

 
4.46
 %
TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
5.73% (L + 4.50%/M)
 
12/4/2020
 
26,326

 
25,511

 
26,499

 
 
 
 
Subordinated (3)
 
11.38%/S
 
12/1/2021
 
15,000

 
14,687

 
16,575

 
 
 
 
 
 
 
 
 
 
41,326

 
40,198

 
43,074

 
4.18
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
6.98% (L + 5.75%/M)
 
2/28/2022
 
42,234

 
41,695

 
41,918

 
4.06
 %

The accompanying notes are an integral part of these consolidated financial statements.
7

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Severin Acquisition, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)
 
10.05% (L + 8.75%/Q)
 
7/29/2022
 
$
15,000

 
$
14,882

 
$
15,000

 
 
 
 
Second lien (3)
 
10.05% (L + 8.75%/Q)
 
7/29/2022
 
14,518

 
14,347

 
14,518

 
 
 
 
Second lien (4)
 
10.05% (L + 8.75%/Q)
 
7/29/2022
 
4,154

 
4,120

 
4,154

 
 
 
 
Second lien (4)
 
10.55% (L + 9.25%/Q)
 
7/29/2022
 
3,273

 
3,245

 
3,273

 
 
 
 
Second lien (3)
 
10.30% (L + 9.00%/Q)
 
7/29/2022
 
2,361

 
2,339

 
2,361

 
 
 
 
Second lien (3)
 
10.55% (L + 9.25%/Q)
 
7/29/2022
 
1,825

 
1,808

 
1,825

 
 
 
 
Second lien (4)
 
10.55% (L + 9.25%/Q)
 
7/29/2022
 
300

 
297

 
300

 
 
 
 
 
 
 
 
 
 
41,431

 
41,038

 
41,431

 
4.02
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)
 
10.50% (Base + 8.00%/Q)
 
5/12/2019
 
40,000

 
39,922

 
40,000

 
3.88
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.42% (L + 8.25%/Q)
 
11/1/2024
 
36,000

 
35,482

 
37,380

 
3.62
 %
PetVet Care Centers LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)
 
7.22% (L + 6.00%/Q)
 
6/8/2023
 
35,700

 
35,570

 
35,568

 
 
 
 
First lien (3)(11) - Drawn
 
7.22% (L + 6.00%/M)
 
6/8/2023
 
121

 
121

 
121

 
 
 
 
 
 
 
 
 
 
35,821

 
35,691

 
35,689

 
3.46
 %
DigiCert Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.30% (L + 5.00%/Q)
 
10/21/2021
 
34,462

 
33,933

 
34,548

 
3.35
 %
Ascend Learning, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (3)
 
9.73% (L + 8.50%/M)
 
11/30/2020
 
33,727

 
33,468

 
33,843

 
3.28
 %
Weston Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
10.58% (L + 9.50%/M)
 
12/31/2020
 
33,750

 
33,750

 
33,750

 
3.27
 %
VetCor Professional Practices LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (4)
 
7.55% (L + 6.25%/Q)
 
4/20/2021
 
19,209

 
19,077

 
19,245

 
 
 
 
First lien (2)
 
7.55% (L + 6.25%/Q)
 
4/20/2021
 
7,753

 
7,626

 
7,768

 
 
 
 
First lien (4)
 
7.55% (L + 6.25%/Q)
 
4/20/2021
 
2,664

 
2,643

 
2,669

 
 
 
 
First lien (2)
 
7.55% (L + 6.25%/Q)
 
4/20/2021
 
1,640

 
1,610

 
1,643

 
 
 
 
First lien (3)(11) - Drawn
 
7.55% (L + 6.25%/Q)
 
4/20/2021
 
1,481

 
1,453

 
1,484

 
 
 
 
First lien (4)
 
7.55% (L + 6.25%/Q)
 
4/20/2021
 
498

 
489

 
498

 
 
 
 
 
 
 
 
 
 
33,245

 
32,898

 
33,307

 
3.23
 %
Valet Waste Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
8.23% (L + 7.00%/M)
 
9/24/2021
 
29,475

 
29,198

 
29,637

 
 
 
 
First lien (3)(11) - Drawn
 
8.23% (L + 7.00%/M)
 
9/24/2021
 
2,250

 
2,222

 
2,250

 
 
 
 
 
 
 
 
 
 
31,725

 
31,420

 
31,887

 
3.09
 %
Redbox Automated Retail, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)
 
8.79% (L + 7.50%/Q)
 
9/27/2021
 
31,087

 
30,757

 
31,268

 
3.03
 %
Evo Payments International, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
10.23% (L + 9.00%/M)
 
12/23/2024
 
25,000

 
24,819

 
25,234

 
 
 
 
Second lien (3)
 
10.23% (L + 9.00%/M)
 
12/23/2024
 
5,000

 
5,051

 
5,047

 
 
 
 
 
 
 
 
 
 
30,000

 
29,870

 
30,281

 
2.94
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
6.93% (L + 5.75%/Q)
 
10/31/2022
 
19,706

 
19,389

 
19,755

 
 
 
 
Second lien (3)
 
10.42% (L + 9.25%/Q)
 
10/30/2023
 
10,000

 
9,915

 
9,849

 
 
 
 
 
 
 
 
 
 
29,706

 
29,304

 
29,604

 
2.87
 %

The accompanying notes are an integral part of these consolidated financial statements.
8

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
TW-NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
National HME, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (4)
 
10.55% (L + 9.25%/Q)
 
7/14/2022
 
$
21,500

 
$
21,284

 
$
21,500

 
 
 
 
Second lien (3)
 
10.55% (L + 9.25%/Q)
 
7/14/2022
 
5,800

 
5,732

 
5,800

 
 
 
 
 
 
 
 
 
 
27,300

 
27,016

 
27,300

 
2.65
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.41% (L + 6.25%/M)
 
6/17/2024
 
27,327

 
27,124

 
27,122

 
2.63
 %
ProQuest LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.22% (L + 9.00%/M)
 
12/15/2022
 
27,020

 
26,568

 
27,020

 
2.62
 %
Marketo, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)
 
10.80% (L + 9.50%/Q)
 
8/16/2021
 
26,820

 
26,474

 
26,820

 
2.60
 %
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.80% (L + 6.50%/Q)
 
12/20/2022
 
26,051

 
25,930

 
25,856

 
2.51
 %
nThrive, Inc. (fka Precyse Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
10.98% (L + 9.75%/M)
 
4/20/2023
 
25,000

 
24,616

 
25,605

 
2.48
 %
Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
6.55% (L + 5.25%/Q)
 
5/1/2024
 
20,000

 
19,802

 
19,925

 
 
 
 
Second lien (3)
 
10.55% (L + 9.25%/Q)
 
5/1/2025
 
4,500

 
4,455

 
4,469

 
 
 
 
 
 
 
 
 
 
24,500

 
24,257

 
24,394

 
2.37
 %
Navex Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.31% (L + 8.75%/Q)
 
11/18/2022
 
12,536

 
12,221

 
12,473

 
 
 
 
Second lien (4)
 
10.31% (L + 8.75%/Q)
 
11/18/2022
 
11,508

 
11,387

 
11,450

 
 
 
 
 
 
 
 
 
 
24,044

 
23,608

 
23,923

 
2.32
 %
AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)
 
9.31% (L + 8.25%/M)
 
9/30/2020
 
23,538

 
23,293

 
23,538

 
2.28
 %
EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.30% (L + 6.00%/Q)
 
6/30/2021
 
21,000

 
20,850

 
21,000

 
 
 
 
First lien (2)
 
8.16% (Base + 5.56%/Q)
 
6/30/2021
 
2,178

 
2,161

 
2,178

 
 
 
 
 
 
 
 
 
 
23,178

 
23,011

 
23,178

 
2.25
 %
TWDiamondback Holdings Corp. (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)
 
10.28% (L + 8.75%/Q)
 
11/19/2019
 
19,895

 
19,895

 
19,895

 
 
 
 
First lien (3)
 
10.05% (L + 8.75%/Q)
 
11/19/2019
 
2,158

 
2,158

 
2,158

 
 
 
 
First lien (4)
 
10.05% (L + 8.75%/Q)
 
11/19/2019
 
605

 
605

 
605

 
 
 
 
 
 
 
 
 
 
22,658

 
22,658

 
22,658

 
2.20
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)
 
8.48% (L + 7.25%/M)
 
8/4/2022
 
17,589

 
17,452

 
17,765

 
 
 
 
First lien (4)
 
7.42% (L + 6.25%/M)
 
8/4/2022
 
4,600

 
4,577

 
4,577

 
 
 
 
 
 
 
 
 
 
22,189

 
22,029

 
22,342

 
2.16
 %
Ryan, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
6.98% (L + 5.75%/M)
 
8/7/2020
 
20,532

 
20,330

 
20,442

 
1.98
 %
DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Second lien (3)
 
8.70% (L + 7.50%/Q)
 
6/2/2025
 
19,500

 
19,306

 
19,914

 
1.93
 %
KeyPoint Government Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
7.16% (L + 6.00%/M)
 
4/18/2024
 
19,891

 
19,696

 
19,692

 
1.91
 %

The accompanying notes are an integral part of these consolidated financial statements.
9

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Vision Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.75% (L + 6.50%/Q)
 
6/16/2022
 
$
19,491

 
$
19,324

 
$
19,516

 
1.89
 %
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
9.48% (L + 8.25%/M)
 
7/23/2020
 
18,500

 
18,394

 
18,315

 
1.77
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
6.48% (L + 5.25%/M)
 
7/2/2021
 
17,542

 
17,419

 
17,542

 
 
 
 
First lien (3)(11) - Drawn
 
8.50% (P + 4.25%/Q)
 
7/2/2021
 
547

 
541

 
547

 
 
 
 
 
 
 
 
 
 
18,089

 
17,960

 
18,089

 
1.75
 %
VF Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.30% (L + 9.00%/Q)
 
6/28/2024
 
17,086

 
17,413

 
17,598

 
1.71
 %
Hill International, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
6.96% (L + 5.75%/M)
 
6/21/2023
 
17,300

 
17,214

 
17,214

 
1.67
 %
American Tire Distributors, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Subordinated (3)
 
10.25%/S
 
3/1/2022
 
15,520

 
15,244

 
16,141

 
1.57
 %
Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Second lien (2)
 
10.70% (L + 9.50%/Q)
 
10/19/2023
 
15,000

 
14,666

 
14,963

 
1.45
 %
Sierra Hamilton LLC / Sierra Hamilton Finance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (2)
 
12.25%/S (10)
 
12/15/2018
 
25,000

 
25,000

 
11,501

 
 
 
 
First lien (3)
 
12.25%/S (10)
 
12/15/2018
 
2,660

 
2,231

 
1,224

 
 
 
 
First lien (3)
 
9.23% (L + 8.00%/M)
 
8/15/2017
 
2,239

 
2,229

 
2,205

 
 
 
 
 
 
 
 
 
 
29,899

 
29,460

 
14,930

 
1.45
 %
SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
10.05% (L + 8.75%/Q)
 
12/30/2021
 
14,265

 
14,157

 
14,399

 
1.39
 %
Transcendia Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaging
 
Second lien (3)
 
9.23% (L + 8.00%/M)
 
5/30/2025
 
14,500

 
14,301

 
14,301

 
1.39
 %
MHVC Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
6.48% (L + 5.25%/M)
 
4/29/2024
 
14,100

 
14,031

 
14,206

 
1.38
 %
Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)
 
9.23% (L + 8.00%/M)
 
7/15/2021
 
12,214

 
12,138

 
12,124

 
 
 
 
First lien (4)
 
9.23% (L + 8.00%/M)
 
7/15/2021
 
2,036

 
2,023

 
2,020

 
 
 
 
 
 
 
 
 
 
14,250

 
14,161

 
14,144

 
1.37
 %
Poseidon Intermediate, LLC