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 |
|
Exact name of registrants as specified in their charters, addresses of principal executive |
|
I.R.S. Employer |
|
814-00839 |
|
New Mountain Finance Holdings, L.L.C. |
|
26-3633318 |
|
814-00832 |
|
New Mountain Finance Corporation |
|
27-2978010 |
|
814-00902 |
|
New Mountain Finance AIV Holdings Corporation |
|
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.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2012
TABLE OF CONTENTS
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.
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.
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.
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.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments
March 31, 2012
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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 Investments—Luxembourg |
|
|
|
|
|
|
|
$ |
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.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments (continued)
March 31, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments (continued)
March 31, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments (continued)
March 31, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Advantage Sales & Marketing Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (2), (4) |
|
6.25% (Base Rate + 3.00%) |
|
12/17/2015 |
|
4,200,000 |
|
3,696,000 |
|
3,885,000 |
|
0.89 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
ATI Acquisition Company (fka Ability Acquisition, Inc.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (2) |
|
12.25% (Base Rate + 5.00% + 4.00% PIK) (5)* |
|
12/30/2014 |
|
4,432,500 |
|
4,306,437 |
|
443,250 |
|
|
| |||
|
|
|
First lien (2) |
|
17.25% (Base Rate + 10.00% + 4.00% PIK)* |
|
6/30/2012 |
|
101,848 |
|
92,678 |
|
101,848 |
|
|
| |||
|
|
|
First lien (2) |
|
17.25% (Base Rate + 10.00% + 4.00% PIK)* |
|
6/30/2012 |
|
1,648,706 |
|
1,500,269 |
|
1,648,706 |
|
|
| |||
|
|
|
|
|
|
|
|
|
6,183,054 |
|
5,899,384 |
|
2,193,804 |
|
0.51 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Total Funded Debt Investments - United States |
|
|
|
|
|
|
|
$ |
761,865,303 |
|
$ |
737,763,993 |
|
$ |
746,260,449 |
|
171.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Equity - United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Global Knowledge Training LLC |
|
|
|
|
|
|
|
|
|
|||||||||