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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 March 31, 2019
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 every Interactive Data File required to be submitted 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 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, a 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
 
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
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
 
 
Common stock, par value $0.01 per share
NMFC
New York Stock Exchange
 
 
5.75% Notes due 2023
NMFX
New York Stock Exchange
 
 




Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description
 
Shares as of May 6, 2019
Common stock, par value $0.01 per share
 
80,519,430
 


Table of Contents

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2019
TABLE OF CONTENTS
 
PAGE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3

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)
 
March 31, 2019
 
December 31, 2018
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $2,020,776 and $1,868,785, respectively)
$
2,023,077

 
$
1,861,323

Non-controlled/affiliated investments (cost of $79,423 and $78,438, respectively)
77,587

 
77,493

Controlled investments (cost of $393,565 and $382,503, respectively)
421,641

 
403,137

Total investments at fair value (cost of $2,493,764 and $2,329,726, respectively)
2,522,305

 
2,341,953

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
23,508

 
23,508

Cash and cash equivalents
65,571

 
49,664

Interest and dividend receivable
34,370

 
30,081

Receivable from affiliates
575

 
288

Other assets
3,787

 
3,172

Total assets
$
2,650,116

 
$
2,448,666

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
567,063

 
$
512,563

     Unsecured Notes
336,750

 
336,750

     Convertible Notes
270,273

 
270,301

     SBA-guaranteed debentures
165,000

 
165,000

     NMFC Credit Facility
135,000

 
60,000

     DB Credit Facility
50,000

 
57,000

     Deferred financing costs (net of accumulated amortization of $23,885 and $22,234, respectively)
(16,186
)
 
(17,515
)
Net borrowings
1,507,900

 
1,384,099

Payable for unsettled securities purchased
20,442

 
20,147

Interest payable
10,513

 
12,397

Management fee payable
8,442

 
8,392

Incentive fee payable
6,863

 
6,864

Deferred tax liability
896

 
1,006

Payable to affiliates
798

 
1,021

Other liabilities
10,983

 
8,471

Total liabilities
1,566,837

 
1,442,397

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, 80,519,430 and 76,106,372 shares issued and outstanding, respectively
805

 
761

Paid in capital in excess of par
1,096,017

 
1,035,629

Accumulated overdistributed earnings
(13,543
)
 
(30,121
)
Total net assets
$
1,083,279

 
$
1,006,269

Total liabilities and net assets
$
2,650,116

 
$
2,448,666

Number of shares outstanding
80,519,430

 
76,106,372

Net asset value per share
$
13.45

 
$
13.22


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

Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Investment income
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
Interest income
$
44,457

 
$
35,436

Dividend income

 
486

Non-cash dividend income
1,974

 
1,324

Other income
2,254

 
2,868

From non-controlled/affiliated investments:
 
 
 
Interest income
1,004

 
102

Dividend income
726

 
845

Non-cash dividend income
291

 
4,009

Other income
291

 
302

From controlled investments:
 
 
 
Interest income
2,463

 
1,201

Dividend income
8,457

 
4,239

Non-cash dividend income
2,045

 
1,454

Other income
229

 
623

Total investment income
64,191

 
52,889

Expenses
 
 
 
Incentive fee
6,863

 
6,434

Management fee
10,975

 
8,692

Interest and other financing expenses
19,146

 
11,290

Professional fees
766

 
694

Administrative expenses
1,095

 
939

Other general and administrative expenses
412

 
410

Total expenses
39,257

 
28,459

Less: management fees waived (See Note 5)
(2,533
)
 
(1,322
)
Net expenses
36,724

 
27,137

Net investment income before income taxes
27,467

 
25,752

Income tax expense
17

 
16

Net investment income
27,450

 
25,736

Net realized gains (losses):
 
 
 
Non-controlled/non-affiliated investments
43

 
206

Controlled investments
3

 

Net change in unrealized appreciation (depreciation):
 
 
 
Non-controlled/non-affiliated investments
9,763

 
(3,521
)
Non-controlled/affiliated investments
(891
)
 
1,809

Controlled investments
7,442

 
(456
)
Securities purchased under collateralized agreements to resell

 
(12
)
Benefit for taxes
110

 
82

Net realized and unrealized gains (losses)
16,470

 
(1,892
)
Net increase in net assets resulting from operations
$
43,920

 
$
23,844

Basic earnings per share
$
0.56

 
$
0.31

Weighted average shares of common stock outstanding - basic (See Note 11)
78,457,641

 
75,935,093

Diluted earnings per share
$
0.49

 
$
0.30

Weighted average shares of common stock outstanding - diluted (See Note 11)
95,857,530

 
85,759,220

Distributions declared and paid per share
$
0.34

 
$
0.34


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

Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income
$
27,450

 
$
25,736

Net realized gains on investments
46

 
206

Net change in unrealized appreciation (depreciation) of investments
16,314

 
(2,168
)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell

 
(12
)
Benefit for taxes
110

 
82

Net increase in net assets resulting from operations
43,920

 
23,844

Capital transactions
 
 
 
Net proceeds from shares sold
59,297

 

Deferred offering costs
(229
)
 

Distributions declared to stockholders from net investment income
(27,342
)
 
(25,818
)
Reinvestment of distributions
1,364

 

Total net increase (decrease) in net assets resulting from capital transactions
33,090

 
(25,818
)
Net increase (decrease) in net assets
77,010

 
(1,974
)
Net assets at the beginning of the period
1,006,269

 
1,034,975

Net assets at the end of the period
$
1,083,279

 
$
1,033,001

 
 
 
 
Capital share activity
 
 
 
Shares sold
4,312,500

 

Shares issued from the reinvestment of distributions
100,558

 

Net increase in shares outstanding
4,413,058

 




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

Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
43,920

 
$
23,844

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized gains on investments
(46
)
 
(206
)
Net change in unrealized (appreciation) depreciation of investments
(16,314
)
 
2,168

Net change in unrealized depreciation of securities purchased under collateralized agreements to resell

 
12

Amortization of purchase discount
(835
)
 
(926
)
Amortization of deferred financing costs
1,651

 
1,307

Amortization of premium on Convertible Notes
(27
)
 
(27
)
Non-cash investment income
(6,842
)
 
(4,292
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(158,036
)
 
(237,846
)
Proceeds from sales and paydowns of investments
5,857

 
87,141

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
46

 
29

Cash paid for purchase of drawn portion of revolving credit facilities
(338
)
 

Cash paid on drawn revolvers
(9,026
)
 
(5,423
)
Cash repayments on drawn revolvers
5,182

 
7,092

Interest and dividend receivable
(4,289
)
 
(4,923
)
Receivable from affiliates
(287
)
 
(308
)
Other assets
(758
)
 
1,781

Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
295

 
29,841

Interest payable
(1,884
)
 
2,094

Management fee payable
50

 
7,370

Incentive fee payable
(1
)
 
6,434

Deferred tax liability
(110
)
 
(82
)
Payable to affiliates
(223
)
 
1,213

Other liabilities
2,758

 
(101
)
Net cash flows used in operating activities
(139,257
)
 
(83,808
)
Cash flows from financing activities
 
 
 
Net proceeds from shares sold
59,297

 

Distributions paid
(25,978
)
 
(25,818
)
Offering costs paid
(265
)
 

Proceeds from Holdings Credit Facility
69,500

 
94,500

Repayment of Holdings Credit Facility
(15,000
)
 
(51,200
)
Proceeds from Unsecured Notes

 
90,000

Proceeds from NMFC Credit Facility
110,000

 
65,000

Repayment of NMFC Credit Facility
(35,000
)
 
(92,500
)
Proceeds from DB Credit Facility
25,000

 

Repayment of DB Credit Facility
(32,000
)
 

Deferred financing costs paid
(390
)
 
(1,474
)
Net cash flows provided by financing activities
155,164

 
78,508

Net increase (decrease) in cash and cash equivalents
15,907

 
(5,300
)
Cash and cash equivalents at the beginning of the period
49,664

 
34,936

Cash and cash equivalents at the end of the period
$
65,571

 
$
29,636

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
19,085

 
$
7,577

Income taxes paid
3

 
3

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
1,364

 
$

Accrual for offering costs
92

 
944

Accrual for deferred financing costs
119

 
171



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

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
March 31, 2019
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)
 
10.00% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
12,130

 
$
12,034

 
$
11,948

 
 
 
 
Second lien (3)
 
10.00% (L + 7.50%/M)
 
3/8/2019
 
6/8/2026
 
11,575

 
11,474

 
11,401

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,440

 
7,388

 
 
 
 
Second lien (3)(10) - Drawn
 
10.00% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
3,641

 
3,608

 
3,587

 
 
 
 
 
 
 
 
 
 
 
 
34,846

 
34,556

 
34,324

 
3.17
 %
Total Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
34,846

 
$
34,556

 
$
34,324

 
3.17
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (2)
 
10.24% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,654

 
$
36,717

 
 
 
 
Second lien (8)
 
10.24% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,968

 
5,820

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,622

 
42,537

 
3.93
 %
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.24% (L + 4.75%/M)
 
5/25/2018
 
5/31/2024
 
20,075

 
20,030

 
20,087

 
1.85
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
63,928

 
$
63,652

 
$
62,624

 
5.78
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
9.06% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
63,210

 
$
63,210

 
$
63,210

 
 
 
 
First lien (8)(9)
 
9.06% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
8,557

 
8,557

 
8,557

 
 
 
 
First lien (3)(9)
 
9.06% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
6,952

 
6,952

 
6,952

 
 
 
 
 
 
 
 
 
 
 
 
78,719

 
78,719

 
78,719

 
7.27
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.37% (L + 5.75%/Q)
 
10/9/2015
 
10/31/2022
 
51,113

 
50,837

 
51,113

 
 
 
 
Second lien (8)(9)
 
11.87% (L + 9.25%/Q)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,933

 
10,000

 
 
 
 
 
 
 
 
 
 
 
 
61,113

 
60,770

 
61,113

 
5.64
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.99% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
36,000

 
35,574

 
36,624

 
 
 
 
Second lien (3)
 
10.99% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
21,147

 
21,145

 
21,513

 
 
 
 
 
 
 
 
 
 
 
 
57,147

 
56,719

 
58,137

 
5.38
 %
Nomad Buyer, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.48% (L + 5.00%/M)
 
8/3/2018
 
8/1/2025
 
58,878

 
57,062

 
57,333

 
5.29
 %
CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.00% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
47,839

 
47,254

 
47,359

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,408

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
55,339

 
54,662

 
54,784

 
5.07
 %
Dealer Tire, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (2)
 
8.00% (L + 5.50%/M)
 
12/4/2018
 
12/12/2025
 
53,784

 
52,480

 
53,885

 
4.97
 %
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 


 


 


 
 
Healthcare Services
 
First lien (2)(9)
 
8.00% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
50,752

 
50,281

 
50,244

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.99% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
3,485

 
3,468

 
3,468

 
 
 
 
 
 
 
 
 
 
 
 
54,237

 
53,749

 
53,712

 
4.96
 %

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)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.60% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
$
38,638

 
$
38,475

 
$
38,638

 
 
 
 
First lien (2)(9)(10) - Drawn
 
8.60% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,739

 
10,690

 
10,738

 
 
 
 
 
 
 
 
 
 
 
 
49,377

 
49,165

 
49,376

 
4.56
 %
Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.80% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
36,168

 
35,963

 
35,942

 
 
 
 
First lien (8)(9)
 
9.80% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
5,000

 
4,972

 
4,969

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
4,964

 
4,935

 
4,933

 
 
 
 
 
 
 
 
 
 
 
 
46,132

 
45,870

 
45,844

 
4.24
 %
Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.00% (L + 7.50%/M)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,396

 
22,416

 
 
 
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
16,624

 
16,467

 
16,562

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
6,000

 
5,943

 
5,977

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,806

 
44,955

 
4.15
 %
Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.99% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,290

 
43,260

 
3.99
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (4)(9)
 
9.10% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
22,330

 
22,198

 
22,329

 
 
 
 
First lien (2)(9)
 
9.10% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
16,540

 
16,442

 
16,540

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.10% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
1,722

 
1,709

 
1,722

 
 
 
 
 
 
 
 
 
 
 
 
40,592

 
40,349

 
40,591

 
3.75
 %
Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Symplr Software, Inc. (fka Caliper Software, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
First lien (2)(9)
 
8.00% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
25,754

 
25,563

 
25,561

 
 
 
 
First lien (4)(9)
 
8.00% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
14,963

 
14,854

 
14,850

 
 
 
 
 
 
 
 
 
 
 
 
40,717

 
40,417

 
40,411

 
3.73
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
8.25% (L + 5.75%/M)
 
1/6/2015
 
2/28/2022
 
40,154

 
39,801

 
39,652

 
3.66
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)
 
10.91% (Base + 8.50%/M)
 
5/12/2014
 
10/30/2024
 
39,400

 
39,344

 
39,400

 
3.64
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.00% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
32,177

 
31,998

 
32,177

 
 
 
 
First lien (8)(9)
 
9.00% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
4,987

 
4,960

 
4,987

 
 
 
 
 
 
 
 
 
 
 
 
37,164

 
36,958

 
37,164

 
3.43
 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
7.75% (L + 5.25%/M)
 
4/25/2017
 
4/29/2024
 
37,191

 
37,046

 
35,889

 
3.31
 %
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)(9)
 
8.10% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
25,049

 
24,938

 
24,924

 
 
 
 
First lien (8)(9)
 
8.10% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
4,987

 
4,965

 
4,963

 
 
 
 
First lien (2)(9)
 
8.10% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
3,346

 
3,331

 
3,329

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.03% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
1,261

 
1,255

 
1,255

 
 
 
 
 
 
 
 
 
 
 
 
34,643

 
34,489

 
34,471

 
3.19
 %

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)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Geo Parent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
8.06% (L + 5.50%/Q)
 
12/13/2018
 
12/19/2025
 
$
33,578

 
$
33,414

 
$
33,494

 
3.09
 %
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
8.25% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,388

 
22,231

 
22,220

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
11,058

 
10,980

 
10,974

 
 
 
 
 
 
 
 
 
 
 
 
33,446

 
33,211

 
33,194

 
3.06
 %
Navicure, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
25,970

 
25,908

 
25,580

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
6,000

 
5,986

 
5,910

 
 
 
 
 
 
 
 
 
 
 
 
31,970

 
31,894

 
31,490

 
2.91
 %
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
8.99% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
31,636

 
31,342

 
31,320

 
2.89
 %
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (8)
 
8.25% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
28,672

 
28,578

 
28,600

 
 
 
 
First lien (3)(10) - Drawn
 
8.25% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
1,789

 
1,782

 
1,784

 
 
 
 
 
 
 
 
 
 
 
 
30,461

 
30,360

 
30,384

 
2.80
 %
Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.85% (L + 5.25%/Q)
 
5/10/2017
 
5/1/2024
 
24,670

 
24,540

 
24,176

 
 
 
 
Second lien (2)
 
11.85% (L + 9.25%/Q)
 
5/10/2017
 
5/1/2025
 
4,500

 
4,462

 
4,410

 
 
 
 
 
 
 
 
 
 
 
 
29,170

 
29,002

 
28,586

 
2.64
 %
Sovos Brands Intermediate, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Food & Beverage
 
First lien (2)
 
7.50% (L + 5.00%/M)
 
11/16/2018
 
11/20/2025
 
28,169

 
28,033

 
27,887

 
2.57
 %
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.75% (L + 5.25%/M)
 
1/3/2019
 
11/29/2024
 
25,502

 
25,378

 
25,375

 
2.34
 %
EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.00% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
23,286

 
23,177

 
23,286

 
 
 
 
First lien (2)(9)
 
7.00% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
1,347

 
1,340

 
1,347

 
 
 
 
 
 
 
 
 
 
 
 
24,633

 
24,517

 
24,633

 
2.27
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
7.85% (L + 5.25%/Q)
 
7/2/2015
 
7/2/2021
 
17,229

 
17,157

 
17,229

 
 
 
 
First lien (3)(9)
 
7.85% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
4,216

 
4,184

 
4,216

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.85% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
2,886

 
2,865

 
2,886

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (P + 4.25%/Q)
 
7/2/2015
 
7/2/2021
 
41

 
41

 
41

 
 
 
 
 
 
 
 
 
 
 
 
24,372

 
24,247

 
24,372

 
2.25
 %
SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)(9)
 
11.35% (L + 8.75%/Q)
 
6/30/2015
 
12/30/2021
 
18,161

 
18,060

 
18,161

 
 
 
 
Second lien (3)(9)
 
11.35% (L + 8.75%/Q)
 
4/16/2018
 
12/30/2021
 
6,181

 
6,133

 
6,181

 
 
 
 
 
 
 
 
 
 
 
 
24,342

 
24,193

 
24,342

 
2.25
 %
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.74% (L + 7.25%/M)
 
1/10/2019
 
1/10/2025
 
24,796

 
24,314

 
24,300

 
2.24
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
7.25% (L + 4.75%/M)
 
8/4/2015
 
8/4/2022
 
17,370

 
17,275

 
17,370

 
 
 
 
First lien (4)(9)
 
7.25% (L + 4.75%/M)
 
6/16/2017
 
8/4/2022
 
4,520

 
4,504

 
4,520

 
 
 
 
First lien (2)(9)
 
7.25% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
1,146

 
1,142

 
1,146

 
 
 
 
First lien (4)(9)
 
7.25% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
504

 
503

 
504

 
 
 
 
 
 
 
 
 
 
 
 
23,540

 
23,424

 
23,540

 
2.17
 %

The accompanying notes are an integral part of these consolidated financial statements.
10

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (2)
 
10.75% (L + 8.25%/M)
 
7/26/2018
 
7/30/2026
 
$
22,533

 
$
22,456

 
$
22,589

 
2.09
 %
CRCI Longhorn Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
9.75% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
14,349

 
14,297

 
14,205

 
 
 
 
Second lien (8)
 
9.75% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
7,500

 
7,473

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,849

 
21,770

 
21,630

 
2.00
 %
AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)(9)
 
10.74% (L + 8.25%/M)
 
9/30/2015
 
9/30/2020
 
22,214

 
22,099

 
21,412

 
1.98
 %
Avatar Topco, Inc. (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EAB Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (3)
 
10.16% (L + 7.50%/S)
 
11/17/2017
 
11/17/2025
 
13,950

 
13,766

 
13,811

 
 
 
 
Second lien (8)
 
10.16% (L + 7.50%/S)
 
11/17/2017
 
11/17/2025
 
7,500

 
7,401

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,450

 
21,167

 
21,236

 
1.96
 %
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
11.00% (L + 8.50%/M)
 
2/5/2019
 
3/8/2027
 
21,051

 
20,579

 
20,735

 
1.91
 %
Help/Systems Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.25% (L + 7.75%/M)
 
3/23/2018
 
3/27/2026
 
20,231

 
20,139

 
20,130

 
1.86
 %
Institutional Shareholder Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
11.12% (L + 8.50%/Q)
 
3/5/2019
 
3/5/2027
 
20,372

 
20,068

 
20,067

 
1.85
 %
DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Second lien (3)
 
10.10% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
12,000

 
11,900

 
11,640

 
 
 
 
Second lien (8)
 
10.10% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
7,500

 
7,438

 
7,275

 
 
 
 
 
 
 
 
 
 
 
 
19,500

 
19,338

 
18,915

 
1.75
 %
Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.75% (L + 6.00% + 1.25% PIK/M)*
 
7/19/2018
 
7/19/2024
 
18,735

 
18,566

 
18,548

 
1.71
 %
FR Arsenal Holdings II Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.88% (L + 7.25%/Q)
 
9/29/2016
 
9/8/2022
 
18,497

 
18,365

 
18,497

 
1.71
 %
The Kleinfelder Group, Inc.