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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 September 30, 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
 
 
 
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 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




 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description
 
Shares as of November 6, 2019
Common stock, par value $0.01 per share
 
96,768,695
 


Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 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)
 
September 30, 2019
 
December 31, 2018
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $2,456,149 and $1,868,785, respectively)
$
2,452,793

 
$
1,861,323

Non-controlled/affiliated investments (cost of $82,085 and $78,438, respectively)
78,469

 
77,493

Controlled investments (cost of $442,414 and $382,503, respectively)
466,918

 
403,137

Total investments at fair value (cost of $2,980,648 and $2,329,726, respectively)
2,998,180

 
2,341,953

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
22,176

 
23,508

Cash and cash equivalents
69,815

 
49,664

Interest and dividend receivable
37,330

 
30,081

Receivable from affiliates
586

 
288

Other assets
4,041

 
3,172

Total assets
$
3,132,128

 
$
2,448,666

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
637,563

 
$
512,563

     Unsecured Notes
453,250

 
336,750

     DB Credit Facility
202,000

 
57,000

     Convertible Notes
201,649

 
270,301

     SBA-guaranteed debentures
184,000

 
165,000

     NMFC Credit Facility
138,500

 
60,000

        NMNLC Credit Facility
10,600

 

     Deferred financing costs (net of accumulated amortization of $26,933 and $22,234, respectively)
(16,785
)
 
(17,515
)
Net borrowings
1,810,777

 
1,384,099

Payable for unsettled securities purchased
99,667

 
20,147

Management fee payable
18,363

 
8,392

Incentive fee payable
14,779

 
6,864

Interest payable
11,972

 
12,397

Payable to affiliates
1,210

 
1,021

Deferred tax liability
885

 
1,006

Other liabilities
5,196

 
8,471

Total liabilities
1,962,849

 
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, 200,000,000 and 100,000,000 shares authorized, respectively, and 87,568,695 and 76,106,372 shares issued and outstanding, respectively
876

 
761

Paid in capital in excess of par
1,191,881

 
1,035,629

Accumulated overdistributed earnings
(23,478
)
 
(30,121
)
Total net assets
$
1,169,279

 
$
1,006,269

Total liabilities and net assets
$
3,132,128

 
$
2,448,666

Number of shares outstanding
87,568,695

 
76,106,372

Net asset value per share
$
13.35

 
$
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
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Investment income
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
51,452

 
$
38,332

 
$
143,927

 
$
112,278

Dividend income

 

 

 
486

Non-cash dividend income
2,239

 
1,491

 
6,282

 
4,254

Other income
3,599

 
4,669

 
7,694

 
8,550

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
1,051

 
817

 
3,088

 
1,129

Dividend income
788

 
787

 
2,326

 
2,423

Non-cash dividend income
309

 
4,024

 
901

 
12,050

Other income
342

 
315

 
934

 
1,529

From controlled investments:
 
 
 
 
 
 
 
Interest income
2,717

 
1,771

 
7,764

 
4,342

Dividend income
7,661

 
5,925

 
23,383

 
14,755

Non-cash dividend income
2,273

 
1,721

 
6,446

 
4,683

Other income
163

 
617

 
505

 
1,477

Total investment income
72,594

 
60,469

 
203,250

 
167,956

Expenses
 
 
 
 
 
 
 
Incentive fee
7,792

 
6,780

 
21,642

 
19,644

Management fee
12,687

 
10,018

 
35,302

 
28,011

Interest and other financing expenses
21,830

 
14,759

 
61,695

 
38,873

Professional fees
834

 
2,053

 
2,486

 
3,455

Administrative expenses
930

 
846

 
3,074

 
2,607

Other general and administrative expenses
492

 
437

 
1,302

 
1,365

Total expenses
44,565

 
34,893

 
125,501

 
93,955

Less: management fees waived (See Note 5)
(3,141
)
 
(1,766
)
 
(8,497
)
 
(4,583
)
Less: expenses waived and reimbursed (See Note 5)

 

 
(335
)
 
(276
)
Net expenses
41,424

 
33,127

 
116,669

 
89,096

Net investment income before income taxes
31,170

 
27,342

 
86,581

 
78,860

Income tax expense

 
225

 
13

 
286

Net investment income
31,170

 
27,117

 
86,568

 
78,574

Net realized gains (losses):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
349

 
3,254

 
439

 
(3,149
)
Controlled investments
6

 

 
14

 

Net change in unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(8,334
)
 
(4,048
)
 
4,106

 
(22,069
)
Non-controlled/affiliated investments
(143
)
 
829

 
(2,671
)
 
10,908

Controlled investments
1,453

 
(390
)
 
3,870

 
10,471

Securities purchased under collateralized agreements to resell
(1,332
)
 

 
(1,332
)
 
(12
)
Benefit (provision) for taxes
281

 
(2
)
 
121

 
(986
)
Net realized and unrealized gains (losses)
(7,720
)
 
(357
)
 
4,547

 
(4,837
)
Net increase in net assets resulting from operations
$
23,450

 
$
26,760

 
$
91,115

 
$
73,737

Basic earnings per share
$
0.27

 
$
0.35

 
$
1.11

 
$
0.97

Weighted average shares of common stock outstanding - basic (See Note 11)
86,987,841

 
76,106,372

 
82,020,549

 
75,994,068

Diluted earnings per share
$
0.26

 
$
0.32

 
$
1.01

 
$
0.91

Weighted average shares of common stock outstanding - diluted (See Note 11)
100,245,426

 
89,388,999

 
97,948,225

 
86,983,697

Distributions declared and paid per share
$
0.34

 
$
0.34

 
$
1.02

 
$
1.02


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
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Increase (decrease) in net assets resulting from operations:
 
 
 
 
 
 
 
Net investment income
$
31,170

 
$
27,117

 
$
86,568

 
$
78,574

Net realized gains (losses) on investments
355

 
3,254

 
453

 
(3,149
)
Net change in unrealized (depreciation) appreciation of investments
(7,024
)
 
(3,609
)
 
5,305

 
(690
)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell
(1,332
)
 

 
(1,332
)
 
(12
)
Benefit (provision) for taxes
281

 
(2
)
 
121

 
(986
)
Net increase in net assets resulting from operations
23,450

 
26,760

 
91,115

 
73,737

Capital transactions
 
 
 
 
 
 
 
Net proceeds from shares sold
94,185

 

 
153,482

 

Deferred offering costs
(315
)
 

 
(544
)
 

Distributions declared to stockholders from net investment income
(29,753
)
 
(25,876
)
 
(84,472
)
 
(77,512
)
Reinvestment of distributions
795

 

 
3,429

 
2,330

Total net increase (decrease) in net assets resulting from capital transactions
64,912

 
(25,876
)
 
71,895

 
(75,182
)
Net increase (decrease) in net assets
88,362

 
884

 
163,010

 
(1,445
)
Net assets at the beginning of the period
1,080,917

 
1,032,646

 
1,006,269

 
1,034,975

Net assets at the end of the period
$
1,169,279

 
$
1,033,530

 
$
1,169,279

 
$
1,033,530

 
 
 
 
 
 
 
 
Capital share activity
 
 
 
 
 
 
 
Shares sold
6,900,000

 

 
11,212,500

 

Shares issued from the reinvestment of distributions
58,393

 

 
249,823

 
171,279

Net increase in shares outstanding
6,958,393

 

 
11,462,323

 
171,279




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)
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
91,115

 
$
73,737

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized (gains) losses on investments
(453
)
 
3,149

Net change in unrealized (appreciation) depreciation of investments
(5,305
)
 
690

Net change in unrealized depreciation of securities purchased under collateralized agreements to resell
1,332

 
12

Amortization of purchase discount
(3,684
)
 
(3,924
)
Amortization of deferred financing costs
4,699

 
4,068

Amortization of premium on Convertible Notes
(83
)
 
(83
)
Non-cash investment income
(22,075
)
 
(13,469
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(827,462
)
 
(1,046,015
)
Proceeds from sales and paydowns of investments
207,785

 
599,218

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
195

 
978

Cash paid for purchase of drawn portion of revolving credit facilities
(338
)
 
(11,631
)
Cash paid on drawn revolvers
(18,574
)
 
(19,609
)
Cash repayments on drawn revolvers
13,684

 
21,514

Interest and dividend receivable
(7,249
)
 
(18,120
)
Receivable from unsettled securities sold

 
(1,283
)
Receivable from affiliates
(298
)
 
48

Other assets
(1,054
)
 
5,350

Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
79,520

 
80,781

Management fee payable
9,971

 
8,993

Incentive fee payable
7,915

 
6,539

Interest payable
(425
)
 
3,812

Payable to affiliates
189

 
125

Deferred tax liability
(121
)
 
986

Other liabilities
(2,885
)
 
9,416

Net cash flows used in operating activities
(473,601
)
 
(294,718
)
Cash flows from financing activities
 
 
 
Net proceeds from shares sold
153,482

 

Distributions paid
(81,043
)
 
(75,182
)
Offering costs paid
(606
)
 

Proceeds from Holdings Credit Facility
222,500

 
382,500

Repayment of Holdings Credit Facility
(97,500
)
 
(228,900
)
Proceeds from Convertible Notes
86,681

 
115,000

Repayment of Convertible Notes
(155,250
)
 

Proceeds from Unsecured Notes
116,500

 
190,000

Proceeds from SBA-guaranteed debentures
19,000

 
15,000

Proceeds from NMFC Credit Facility
268,500

 
255,000

Repayment of NMFC Credit Facility
(190,000
)
 
(242,500
)
Proceeds from DB Credit Facility
232,000

 

Repayment of DB Credit Facility
(87,000
)
 

Proceeds from NMNLC Credit Facility
10,600

 

Deferred financing costs paid
(4,112
)
 
(4,791
)
Net cash flows provided by financing activities
493,752

 
406,127

Net increase in cash and cash equivalents
20,151

 
111,409

Cash and cash equivalents at the beginning of the period
49,664

 
34,936

Cash and cash equivalents at the end of the period
$
69,815

 
$
146,345

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
58,037

 
$
30,162

Income taxes paid
10

 
213

Non-cash operating activities:
 
 
 
Non-cash activity on investments
$

 
$
1,346

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
3,429

 
$
2,330

Accrual for offering costs
49

 
335

Accrual for deferred financing costs
19

 
373



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

Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
September 30, 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)
 
9.54% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
28,613

 
$
28,384

 
$
28,148

 
 
 
 
Second lien (8)
 
9.54% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,443

 
7,378

 
 
 
 
 
 
 
 
 
 
 
 
36,113

 
35,827

 
35,526

 
3.04
 %
Wolfpack IP Co.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)(9)
 
8.56% (L + 6.50%/M)
 
6/14/2019
 
6/13/2025
 
9,091

 
9,004

 
9,000

 
0.77
 %
Total Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
45,204

 
$
44,831

 
$
44,526

 
3.81
 %
Funded Debt Investments - United Arab Emirates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GEMS Menasa (Cayman) Limited**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (8)
 
7.04% (L + 5.00%/M)

7/30/2019

7/30/2026

$
33,489


$
33,321


$
33,572


2.87
 %
Total Funded Debt Investments - United Arab Emirates
 
 
 






$
33,489


$
33,321


$
33,572


2.87
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (2)
 
9.54% (L + 7.50%/M)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,665

 
$
36,623

 
 
 
 
Second lien (8)
 
9.54% (L + 7.50%/M)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,970

 
5,805

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,635

 
42,428

 
3.63
 %
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.79% (L + 4.75%/M)
 
5/25/2018
 
5/31/2024
 
19,974

 
19,933

 
20,007

 
1.71
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
63,827

 
$
63,568

 
$
62,435

 
5.34
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
8.90% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
62,891

 
$
62,891

 
$
62,890

 
 
 
 
First lien (8)(9)
 
8.90% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
15,431

 
15,431

 
15,431

 
 
 
 
First lien (3)(9)
 
8.91% (L + 6.32%/Q)
 
3/29/2019
 
3/15/2024
 
7,821

 
7,821

 
7,821

 
 
 
 
 
 
 
 
 
 
 
 
86,143

 
86,143

 
86,142

 
7.38
 %
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
7.54% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
50,496

 
50,064

 
50,496

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.55% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
25,441

 
25,318

 
25,441

 
 
 
 
 
 
 
 
 
 
 
 
75,937

 
75,382

 
75,937

 
6.49
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.84% (L + 5.75%/Q)
 
10/9/2015
 
10/31/2022
 
50,848

 
50,609

 
50,848

 
 
 
 
Second lien (8)(9)
 
11.36% (L + 9.25%/Q)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,938

 
10,000

 
 
 
 
 
 
 
 
 
 
 
 
60,848

 
60,547

 
60,848

 
5.20
 %
Nomad Buyer, Inc.



















Healthcare Services

First lien (2)

7.04% (L + 5.00%/M)

8/3/2018

8/1/2025

58,582


56,889


58,436


5.00
 %

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)
September 30, 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
Associations, Inc.



















Business Services

First lien (2)(9)

9.32% (L + 4.00% + 3.00% PIK/Q)*

7/30/2018

7/30/2024

$
44,215


$
43,981


$
43,928





First lien (8)(9)

9.32% (L + 4.00% + 3.00% PIK/Q)*

7/30/2018

7/30/2024

5,076


5,050


5,043





First lien (3)(9)(10) - Drawn

9.32% (L + 4.00% + 3.00% PIK/Q)*

7/30/2018

7/30/2024

5,986


5,953


5,947













55,277


54,984


54,918


4.70
 %
GS Acquisitionco, Inc.
















Software

First lien (2)(9)

7.80% (L + 5.75%/M)

8/7/2019

5/24/2024

26,962


26,797


26,793





First lien (5)(9)

7.80% (L + 5.75%/M)

8/7/2019

5/24/2024

22,462


22,326


22,322





First lien (3)(9)(10) - Drawn

7.80% (L + 5.75%/M)

8/7/2019

5/24/2024

3,730


3,706


3,706





First lien (3)(9)(10) - Drawn

7.80% (L + 5.75%/M)

8/7/2019

5/24/2024

1,097


1,090


1,090













54,251


53,919


53,911


4.61
 %
Dealer Tire, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (2)
 
7.54% (L + 5.50%/M)
 
12/4/2018
 
12/12/2025
 
53,515

 
52,293

 
53,682

 
4.59
 %
Frontline Technologies Group Holdings, LLC
















Education

First lien (2)(9)

8.60% (L + 6.50%/Q)

9/18/2017

9/18/2023

23,724


23,636


23,724





First lien (4)(9)

8.60% (L + 6.50%/Q)

9/18/2017

9/18/2023

22,218


22,099


22,218





First lien (2)(9)

8.60% (L + 6.50%/Q)

9/18/2017

9/18/2023

7,729


7,674


7,729













53,671


53,409


53,671


4.59
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
8.05% (L + 6.00%/M)
 
1/6/2015
 
2/28/2022
 
39,593

 
39,299

 
38,405

 
 
 
 
First lien (8)
 
8.05% (L + 6.00%/M)
 
6/6/2019
 
2/28/2022
 
13,529

 
13,033

 
13,123

 
 
 
 
First lien (3)(10) - Drawn

9.75% (P + 4.75%/Q)

6/26/2018

11/29/2021

2,100


1,932


2,037

 
 
 
 
 
 
 
 
 
 
 
 
55,222

 
54,264

 
53,565

 
4.58
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.50% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
41,000

 
40,655

 
41,768

 
 
 
 
Second lien (8)
 
10.50% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
11,147

 
11,147

 
11,356

 
 
 
 
 
 
 
 
 
 
 
 
52,147

 
51,802

 
53,124

 
4.54
 %
CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
9.54% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
47,838

 
47,282

 
45,327

 
 
 
 
Second lien (8)
 
9.54% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,413

 
7,106

 
 
 
 
 
 
 
 
 
 
 
 
55,338

 
54,695

 
52,433

 
4.48
 %
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.10% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
38,443

 
38,295

 
38,443

 
 
 
 
First lien (2)(9)(10) - Drawn
 
8.10% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,685

 
10,640

 
10,685

 
 
 
 
 
 
 
 
 
 
 
 
49,128

 
48,935

 
49,128

 
4.20
 %
Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.51% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,310

 
43,042

 
3.68
 %
Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
9.76% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,402

 
21,206

 
 
 
 
Second lien (2)
 
9.76% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
16,624

 
16,475

 
15,668

 
 
 
 
Second lien (8)
 
9.76% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
6,000

 
5,946

 
5,655

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,823

 
42,529

 
3.64
 %

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)
September 30, 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
Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Symplr Software, Inc. (fka Caliper Software, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
First lien (2)(9)
 
8.10% (L + 6.00%/Q)
 
11/30/2018
 
11/28/2025
 
$
25,625

 
$
25,445

 
$
25,433

 
 
 
 
First lien (4)(9)
 
8.10% (L + 6.00%/Q)
 
11/30/2018
 
11/28/2025
 
14,888

 
14,786

 
14,776

 
 
 
 
 
 
 
 
 
 
 
 
40,513

 
40,231

 
40,209

 
3.44
 %
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
8.56% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
31,636

 
31,364

 
31,320

 
 
 
 
First lien (8)(9)
 
8.56% (L + 6.50%/M)
 
6/14/2019
 
9/12/2024
 
8,667

 
8,584

 
8,580

 
 
 
 
 
 
 
 
 
 
 
 
40,303

 
39,948

 
39,900

 
3.41
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)
 
10.50% (Base + 8.50%/Q)
 
5/12/2014
 
10/30/2024
 
39,100

 
39,048

 
39,100

 
3.34
 %
KAMC Holdings, Inc



















Business Services

Second lien (2)(9)

10.18% (L + 8.00%/Q)

8/14/2019

8/13/2027

18,750


18,611


18,609





Second lien (8)(9)

10.18% (L + 8.00%/Q)

8/14/2019

8/13/2027

18,750


18,611


18,609













37,500


37,222


37,218


3.18
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.54% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
32,014

 
31,850

 
32,014

 
 
 
 
First lien (8)(9)
 
8.54% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
4,962

 
4,937

 
4,962

 
 
 
 
 
 
 
 
 
 
 
 
36,976

 
36,787

 
36,976

 
3.16
 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
7.30% (L + 5.25%/M)
 
4/25/2017
 
4/29/2024
 
37,001

 
36,869

 
36,909

 
3.16
 %
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.56% (L + 7.25%/Q)
 
1/10/2019
 
1/10/2025
 
34,076

 
33,449

 
33,394

 
2.86
 %
Geo Parent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.54% (L + 5.50%/M)
 
12/13/2018
 
12/19/2025
 
33,410

 
33,257

 
33,326

 
2.85
 %
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
7.76% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,275

 
22,131

 
22,275

 
 
 
 
First lien (2)(9)
 
7.76% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
11,002

 
10,931

 
11,002

 
 
 
 
 
 
 
 
 
 
 
 
33,277

 
33,062

 
33,277

 
2.85
 %
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)(9)
 
7.60% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
24,923

 
24,821

 
24,923

 
 
 
 
First lien (8)(9)
 
7.60% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
4,962

 
4,942

 
4,962

 
 
 
 
First lien (2)(9)
 
7.60% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
3,329

 
3,315

 
3,329

 
 
 
 
 
 
 
 
 
 
 
 
33,214

 
33,078

 
33,214

 
2.84
 %
Definitive Healthcare Holdings, LLC



















Healthcare Information Technology

First lien (8)(9)

8.67% (L + 5.50% + 1.00% PIK/Q)*

8/7/2019

7/16/2026

33,317


33,153


33,150


2.84
 %
Idera, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)
 
11.05% (L + 9.00%/M)
 
6/27/2019
 
6/28/2027
 
22,500

 
22,334

 
22,500

 
 
 
 
Second lien (2)
 
11.05% (L + 9.00%/M)
 
6/27/2019
 
6/28/2027
 
9,500

 
9,430

 
9,500

 
 
 
 
 
 
 
 
 
 
 
 
32,000

 
31,764

 
32,000

 
2.74
 %

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)
September 30, 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
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (8)
 
7.79% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
$
28,527

 
$
28,445

 
$
27,101

 
 
 
 
First lien (3)(10) - Drawn
 
7.79% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
4,755

 
4,746

 
4,517

 
 
 
 
 
 
 
 
 
 
 
 
33,282

 
33,191

 
31,618

 
2.70
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
7.35% (L + 5.25%/Q)
 
7/2/2015
 
7/2/2021
 
17,140

 
17,083

 
17,140

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.35% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
8,251

 
8,192

 
8,251

 
 
 
 
First lien (2)(9)
 
7.35% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
4,195

 
4,170

 
4,195

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.25% (P + 4.25%/Q)
 
7/2/2015
 
7/2/2021
 
232

 
230

 
232

 
 
 
 
 
 
 
 
 
 
 
 
29,818

 
29,675

 
29,818

 
2.55
 %
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.29% (L + 5.25%/M)
 
1/3/2019
 
11/29/2024
 
25,375

 
25,260

 
25,248

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.29% (L + 5.25%/M)
 
1/3/2019
 
11/29/2024
 
4,430

 
4,408

 
4,407

 
 
 
 
 
 
 
 
 
 
 
 
29,805

 
29,668

 
29,655

 
2.54
 %
Clarkson Eyecare, LLC