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 September 30, 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. 787 Seventh Avenue, 48th Floor |
|
26-3633318 |
|
814-00832 |
|
New Mountain Finance Corporation 787 Seventh Avenue, 48th Floor |
|
27-2978010 |
|
814-00902 |
|
New Mountain Finance AIV Holdings Corporation 787 Seventh Avenue, 48th Floor |
|
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 November 6, 2012 |
|
New Mountain Finance Holdings, L.L.C. |
|
Common membership units |
|
36,912,573 |
|
New Mountain Finance Corporation |
|
Common stock, $0.01 par value |
|
20,690,635 |
|
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 SEPTEMBER 30, 2012
New Mountain Finance Holdings, L.L.C.
Consolidated Statements of Assets, Liabilities and Members’ Capital
|
|
|
September 30, 2012 |
|
December 31, 2011 |
| ||
|
|
|
(unaudited) |
|
|
| ||
|
Assets |
|
|
|
|
| ||
|
Investments at fair value (cost of $844,524,713 and $699,864,784, respectively) |
|
$ |
858,884,178 |
|
$ |
703,513,560 |
|
|
Cash and cash equivalents |
|
12,670,690 |
|
15,318,811 |
| ||
|
Interest and dividend receivable |
|
8,579,017 |
|
7,307,092 |
| ||
|
Deferred credit facility costs (net of accumulated amortization of $1,680,588 and $855,955, respectively) |
|
5,317,053 |
|
3,713,739 |
| ||
|
Receivable from affiliate |
|
170,909 |
|
369,017 |
| ||
|
Other assets |
|
1,206,326 |
|
356,486 |
| ||
|
Total assets |
|
$ |
886,828,173 |
|
$ |
730,578,705 |
|
|
Liabilities |
|
|
|
|
| ||
|
SLF Credit Facility |
|
200,000,000 |
|
165,928,000 |
| ||
|
Holdings Credit Facility |
|
135,664,913 |
|
129,037,813 |
| ||
|
Payable for unsettled securities purchased |
|
19,800,000 |
|
7,604,931 |
| ||
|
Incentive fee payable |
|
6,525,063 |
|
2,317,328 |
| ||
|
Management fee payable |
|
2,767,648 |
|
2,200,354 |
| ||
|
Interest payable |
|
580,796 |
|
1,747,095 |
| ||
|
Payable to affiliate |
|
22,728 |
|
— |
| ||
|
Other liabilities |
|
1,112,085 |
|
1,241,366 |
| ||
|
Total liabilities |
|
366,473,233 |
|
310,076,887 |
| ||
|
Members’ Capital |
|
520,354,940 |
|
420,501,818 |
| ||
|
Total liabilities and members’ capital |
|
$ |
886,828,173 |
|
$ |
730,578,705 |
|
|
Outstanding common membership units |
|
36,912,573 |
|
30,919,629 |
| ||
|
Capital per unit |
|
$ |
14.10 |
|
$ |
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 |
|
Nine months ended |
| ||||||||
|
|
|
September 30, 2012 |
|
September 30, 2011 |
|
September 30, 2012 |
|
September 30, 2011 |
| ||||
|
Investment income |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
21,362,055 |
|
$ |
14,860,750 |
|
$ |
60,087,281 |
|
$ |
38,838,944 |
|
|
Dividend income |
|
215,160 |
|
— |
|
215,160 |
|
— |
| ||||
|
Other income |
|
174,515 |
|
207,831 |
|
770,313 |
|
557,648 |
| ||||
|
Total investment income |
|
21,751,730 |
|
15,068,581 |
|
61,072,754 |
|
39,396,592 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Expenses |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Incentive fee |
|
5,561,173 |
|
700,610 |
|
11,693,825 |
|
1,205,003 |
| ||||
|
Management fee |
|
2,767,649 |
|
1,930,140 |
|
7,887,506 |
|
2,737,649 |
| ||||
|
Interest and other credit facility expenses |
|
2,401,847 |
|
1,686,113 |
|
7,286,164 |
|
4,767,013 |
| ||||
|
Administrative expenses (net of reimbursable expenses of $267,973, $218,396, $850,816 and $398,651, respectively) |
|
276,277 |
|
314,250 |
|
753,021 |
|
517,668 |
| ||||
|
Professional fees (net of reimbursable expenses of $170,909, $816,530, $535,771 and $946,716, respectively) |
|
233,561 |
|
55,138 |
|
742,934 |
|
624,972 |
| ||||
|
Other general and administrative expenses |
|
375,777 |
|
380,612 |
|
1,014,660 |
|
559,180 |
| ||||
|
Total expenses |
|
11,616,284 |
|
5,066,863 |
|
29,378,110 |
|
10,411,485 |
| ||||
|
Net investment income |
|
10,135,446 |
|
10,001,718 |
|
31,694,644 |
|
28,985,107 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net realized gains on investments |
|
1,615,032 |
|
1,402,671 |
|
14,590,819 |
|
13,954,834 |
| ||||
|
Net change in unrealized appreciation (depreciation) of investments |
|
10,494,213 |
|
(22,657,239 |
) |
10,710,689 |
|
(29,119,352 |
) | ||||
|
Net increase (decrease) in capital resulting from operations |
|
$ |
22,244,691 |
|
$ |
(11,252,850 |
) |
$ |
56,996,152 |
|
$ |
13,820,589 |
|
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)
|
|
|
Nine months ended |
| ||||
|
|
|
September 30, 2012 |
|
September 30, 2011 |
| ||
|
Increase (decrease) in members’ capital resulting from operations: |
|
|
|
|
| ||
|
Net investment income |
|
$ |
31,694,644 |
|
$ |
28,985,107 |
|
|
Net realized gains on investments |
|
14,590,819 |
|
13,954,834 |
| ||
|
Net change in unrealized appreciation (depreciation) of investments |
|
10,710,689 |
|
(29,119,352 |
) | ||
|
Net increase in members’ capital resulting from operations |
|
56,996,152 |
|
13,820,589 |
| ||
|
Distributions |
|
— |
|
(10,249,155 |
) | ||
|
Contributions |
|
— |
|
65,429,677 |
| ||
|
Net proceeds from issuance of members’ units |
|
82,299,574 |
|
129,864,997 |
| ||
|
Dividends declared |
|
(40,046,256 |
) |
(17,314,992 |
) | ||
|
Offering costs |
|
(376,559 |
) |
(11,557,173 |
) | ||
|
Reinvestment of dividends |
|
980,211 |
|
— |
| ||
|
Net increase in members’ capital |
|
99,853,122 |
|
169,993,943 |
| ||
|
Members’ capital at beginning of period |
|
420,501,818 |
|
241,927,261 |
| ||
|
Members’ capital at end of period |
|
$ |
520,354,940 |
|
$ |
411,921,204 |
|
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)
|
|
|
Nine months ended |
| ||||
|
|
|
September 30, 2012 |
|
September 30, 2011 |
| ||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net increase in members’ capital resulting from operations |
|
$ |
56,996,152 |
|
$ |
13,820,589 |
|
|
Adjustments to reconcile net (increase) decrease in capital resulting from operations to net cash (used in) provided by operating activities: |
|
|
|
|
| ||
|
Net realized gains on investments |
|
(14,590,819 |
) |
(13,954,834 |
) | ||
|
Net change in unrealized (appreciation) depreciation of investments |
|
(10,710,689 |
) |
29,119,352 |
| ||
|
Amortization of purchase discount |
|
(4,548,871 |
) |
(5,048,033 |
) | ||
|
Amortization of deferred credit facility costs |
|
824,634 |
|
540,957 |
| ||
|
Non-cash interest income |
|
(888,438 |
) |
(957,171 |
) | ||
|
(Increase) decrease in operating assets: |
|
|
|
|
| ||
|
Purchase of investments |
|
(392,161,971 |
) |
(355,424,928 |
) | ||
|
Proceeds from sales and paydowns of investments |
|
268,370,176 |
|
182,264,633 |
| ||
|
Cash received for purchase of undrawn portion of revolving credit facility |
|
— |
|
1,260,000 |
| ||
|
Cash paid for drawn revolvers |
|
(10,710,000 |
) |
(535,593 |
) | ||
|
Cash repayments on drawn revolvers |
|
9,870,000 |
|
— |
| ||
|
Interest and dividend receivable |
|
(1,271,925 |
) |
(3,753,482 |
) | ||
|
Receivable from unsettled securities sold |
|
— |
|
(6,755,000 |
) | ||
|
Receivable from affiliate |
|
198,108 |
|
(1,003,530 |
) | ||
|
Other assets |
|
(641,517 |
) |
(515,714 |
) | ||
|
Increase (decrease) in operating liabilities: |
|
|
|
|
| ||
|
Payable for unsettled securities purchased |
|
12,195,069 |
|
(94,462,500 |
) | ||
|
Incentive fee payable |
|
4,207,735 |
|
700,610 |
| ||
|
Management fee payable |
|
567,294 |
|
1,930,140 |
| ||
|
Interest payable |
|
(1,166,299 |
) |
416,448 |
| ||
|
Payable to affiliate |
|
22,728 |
|
(202,180 |
) | ||
|
Other liabilities |
|
(322,345 |
) |
525,198 |
| ||
|
Net cash flows (used in) provided by operating activities |
|
(83,760,978 |
) |
(252,035,038 |
) | ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Contributions |
|
— |
|
65,429,677 |
| ||
|
Distributions |
|
— |
|
(10,249,155 |
) | ||
|
Net proceeds from issuance of members’ units |
|
82,299,574 |
|
129,864,997 |
| ||
|
Dividends paid |
|
(39,066,045 |
) |
(17,314,992 |
) | ||
|
Offering costs paid |
|
(258,516 |
) |
(11,500,044 |
) | ||
|
Proceeds from Holdings Credit Facility |
|
311,326,025 |
|
205,870,450 |
| ||
|
Repayment of Holdings Credit Facility |
|
(304,698,925 |
) |
(207,664,263 |
) | ||
|
Proceeds from SLF Credit Facility |
|
89,031,051 |
|
134,361,800 |
| ||
|
Repayment of SLF Credit Facility |
|
(54,959,051 |
) |
(24,691,352 |
) | ||
|
Deferred credit facility costs paid |
|
(2,561,256 |
) |
(4,377,595 |
) | ||
|
Net cash flows provided by financing activities |
|
81,112,857 |
|
259,729,523 |
| ||
|
Net (decrease) increase in cash and cash equivalents |
|
(2,648,121 |
) |
7,694,485 |
| ||
|
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 |
|
$ |
12,670,690 |
|
$ |
18,438,567 |
|
|
Supplemental disclosure of cash flow information |
|
|
|
|
| ||
|
Interest paid |
|
$ |
7,184,552 |
|
$ |
3,025,253 |
|
|
Non-cash financing activities: |
|
|
|
|
| ||
|
Value of members’ capital issued in connection with dividend reinvestment plan |
|
$ |
980,211 |
|
$ |
— |
|
|
Accrual for offering costs |
|
326,372 |
|
57,129 |
| ||
|
Accrual for deferred credit facility costs |
|
58,791 |
|
— |
| ||
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments
September 30, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Funded Debt Investments - Cayman Islands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Pinnacle Holdco S.à r.l. / Pinnacle (US) Acquisition Co Limited** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
6.50% (Base Rate + 5.25%) |
|
7/30/2019 |
|
$ |
15,000,000 |
|
$ |
14,913,322 |
|
$ |
14,962,500 |
|
|
|
|
|
|
Second lien (2) |
|
10.50% (Base Rate + 9.25%) |
|
7/30/2020 |
|
30,000,000 |
|
29,407,720 |
|
30,450,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
45,000,000 |
|
44,321,042 |
|
45,412,500 |
|
8.73 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Total Funded Debt Investments - Cayman Islands |
|
|
|
|
|
|
|
$ |
45,000,000 |
|
$ |
44,321,042 |
|
$ |
45,412,500 |
|
8.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Funded Debt Investments - United Kingdom |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Magic Newco, LLC** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
7.25% (Base Rate + 6.00%) |
|
12/12/2018 |
|
$ |
15,000,000 |
|
$ |
14,566,032 |
|
$ |
15,089,070 |
|
2.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Total Funded Debt Investments - United Kingdom |
|
|
|
|
|
|
|
$ |
15,000,000 |
|
$ |
14,566,032 |
|
$ |
15,089,070 |
|
2.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Funded Debt Investments - United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Plato, Inc. (Archipelago Learning, Inc.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
7.50% (Base Rate + 6.00%) |
|
5/17/2018 |
|
$ |
11,850,000 |
|
$ |
11,511,291 |
|
$ |
11,894,438 |
|
|
|
|
|
|
Second lien (2) |
|
11.25% (Base Rate + 9.75%) |
|
5/17/2019 |
|
29,150,000 |
|
28,589,575 |
|
28,567,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
41,000,000 |
|
40,100,866 |
|
40,461,438 |
|
7.77 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Novell, Inc. (fka Attachmate Corporation, NetIQ Corporation) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
7.25% (Base Rate + 5.75%) |
|
11/22/2017 |
|
7,850,000 |
|
7,701,167 |
|
7,923,594 |
|
|
| |||
|
|
|
Second lien (2) |
|
11.00% (Base Rate + 9.50%) |
|
11/22/2018 |
|
24,000,000 |
|
23,306,638 |
|
23,535,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
31,850,000 |
|
31,007,805 |
|
31,458,594 |
|
6.04 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Rocket Software, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
10.25% (Base Rate + 8.75%) |
|
2/8/2019 |
|
30,875,000 |
|
30,706,131 |
|
30,836,406 |
|
5.92 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Unitek Global Services, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (2) |
|
9.00% (Base Rate + 7.50%) |
|
4/15/2018 |
|
19,700,000 |
|
19,229,669 |
|
19,379,875 |
|
|
| |||
|
|
|
First lien (2) |
|
9.00% (Base Rate + 7.50%) |
|
4/15/2018 |
|
4,975,000 |
|
4,786,094 |
|
4,894,156 |
|
|
| |||
|
|
|
First lien (2) |
|
9.00% (Base Rate + 7.50%) |
|
4/15/2018 |
|
5,985,000 |
|
5,806,242 |
|
5,887,744 |
|
|
| |||
|
|
|
|
|
|
|
|
|
30,660,000 |
|
29,822,005 |
|
30,161,775 |
|
5.80 |
% | |||
|
Managed Health Care Associates, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (2) |
|
3.47% (Base Rate + 3.25%) |
|
8/1/2014 |
|
14,755,543 |
|
13,009,095 |
|
14,275,988 |
|
|
| |||
|
|
|
Second lien (2) |
|
6.72% (Base Rate + 6.50%) |
|
2/1/2015 |
|
15,000,000 |
|
12,567,838 |
|
14,475,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
29,755,543 |
|
25,576,933 |
|
28,750,988 |
|
5.53 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Global Knowledge Training LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
6.50% (Base Rate + 4.99%) |
|
4/21/2017 |
|
4,806,802 |
|
4,745,019 |
|
4,734,699 |
|
|
| |||
|
|
|
Second lien (2) |
|
11.50% (Base Rate + 9.75%) |
|
10/21/2018 |
|
24,250,000 |
|
23,800,763 |
|
23,755,300 |
|
|
| |||
|
|
|
|
|
|
|
|
|
29,056,802 |
|
28,545,782 |
|
28,489,999 |
|
5.48 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Meritas Schools Holdings, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
7.50% (Base Rate + 6.00%) |
|
7/29/2017 |
|
8,390,000 |
|
8,319,083 |
|
8,390,000 |
|
|
| |||
|
|
|
Second lien (2) |
|
11.50% (Base Rate + 10.00%) |
|
1/29/2018 |
|
20,000,000 |
|
19,738,032 |
|
20,050,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
28,390,000 |
|
28,057,115 |
|
28,440,000 |
|
5.47 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Insight Pharmaceuticals LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Products |
|
Second lien (2) |
|
13.25% (Base Rate + 11.75%) |
|
8/25/2017 |
|
25,000,000 |
|
24,125,366 |
|
24,625,000 |
|
4.73 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
SRA International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (2) |
|
6.50% (Base Rate + 5.25%) |
|
7/20/2018 |
|
4,315,000 |
|
4,222,087 |
|
4,288,031 |
|
|
| |||
|
|
|
First lien (3) |
|
6.50% (Base Rate + 5.25%) |
|
7/20/2018 |
|
20,436,329 |
|
19,715,305 |
|
20,308,602 |
|
|
| |||
|
|
|
|
|
|
|
|
|
24,751,329 |
|
23,937,392 |
|
24,596,633 |
|
4.73 |
% | |||
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments (continued)
September 30, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Ipreo Holdings LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Information Services |
|
First lien (2) |
|
8.00% (Base Rate + 6.50%) |
|
8/7/2017 |
|
$ |
2,992,500 |
|
$ |
2,963,476 |
|
$ |
2,992,500 |
|
|
|
|
|
|
First lien (3) |
|
8.00% (Base Rate + 6.50%) |
|
8/7/2017 |
|
18,562,500 |
|
18,212,926 |
|
18,562,500 |
|
|
| |||
|
|
|
|
|
|
|
|
|
21,555,000 |
|
21,176,402 |
|
21,555,000 |
|
4.14 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Renaissance Learning, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
Second lien (2) |
|
12.00% (Base Rate + 10.50%) |
|
10/19/2018 |
|
20,000,000 |
|
19,088,505 |
|
20,500,000 |
|
3.94 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Learning Care Group (US), Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (2) |
|
12.00% |
|
4/27/2016 |
|
17,368,421 |
|
17,159,158 |
|
16,695,606 |
|
|
| |||
|
|
|
Subordinated (2) |
|
15.00% PIK* |
|
6/30/2016 |
|
3,518,479 |
|
3,364,940 |
|
3,194,889 |
|
|
| |||
|
|
|
|
|
|
|
|
|
20,886,900 |
|
20,524,098 |
|
19,890,495 |
|
3.82 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
eResearchTechnology, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
8.00% (Base Rate + 6.50%) |
|
5/2/2018 |
|
20,000,000 |
|
19,223,418 |
|
19,837,500 |
|
3.81 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Six3 Systems, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (2) |
|
7.00% (Base Rate + 5.75%) |
|
10/4/2019 |
|
20,000,000 |
|
19,800,000 |
|
19,800,000 |
|
3.81 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Transplace Texas, L.P. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Logistics |
|
Second lien (2) |
|
11.00% (Base Rate + 9.00%) |
|
4/12/2017 |
|
20,000,000 |
|
19,567,234 |
|
19,500,000 |
|
3.75 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Smile Brands Group Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
7.00% (Base Rate + 5.25%) |
|
12/21/2017 |
|
17,409,960 |
|
17,264,301 |
|
17,464,367 |
|
3.36 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Brock Holdings III, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Industrial Services |
|
Second lien (2) |
|
10.00% (Base Rate + 8.25%) |
|
3/16/2018 |
|
17,000,000 |
|
16,769,702 |
|
17,042,500 |
|
3.28 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
PODS, Inc. (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Consumer Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
PODS Funding Corp. II |
|
First lien (3) |
|
8.50% (Base Rate + 7.00%) |
|
11/29/2016 |
|
12,473,577 |
|
12,148,661 |
|
12,442,393 |
|
|
| |||
|
Storapod Holding Company, Inc. |
|
Subordinated (2) |
|
21.00% PIK* |
|
11/29/2017 |
|
4,500,000 |
|
4,356,024 |
|
4,344,095 |
|
|
| |||
|
|
|
|
|
|
|
|
|
16,973,577 |
|
16,504,685 |
|
16,786,488 |
|
3.23 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Sotera Defense Solutions, Inc. (Global Defense Technology & Systems, Inc.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (3) |
|
7.00% (Base Rate + 5.50%) |
|
4/21/2017 |
|
16,787,570 |
|
16,659,206 |
|
16,619,694 |
|
3.19 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
KeyPoint Government Solutions, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (2) |
|
10.25% (Base Rate + 7.00%) |
|
12/31/2015 |
|
16,364,668 |
|
16,135,054 |
|
16,446,491 |
|
3.16 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
NEWAsurion Corporation (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Asurion, LLC (fka Asurion Corporation) |
|
Second lien (2) |
|
9.00% (Base Rate + 7.50%) |
|
5/24/2019 |
|
2,229,299 |
|
2,220,007 |
|
2,310,111 |
|
|
| |||
|
Lonestar Intermediate Super Holdings, LLC |
|
Subordinated (2) |
|
11.00% (Base Rate + 9.50%) |
|
9/2/2019 |
|
12,000,000 |
|
11,657,714 |
|
12,825,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
14,229,299 |
|
13,877,721 |
|
15,135,111 |
|
2.91 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
OpenLink International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
7.75% (Base Rate + 6.25%) |
|
10/30/2017 |
|
14,887,500 |
|
14,626,310 |
|
14,980,547 |
|
2.88 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Landslide Holdings, Inc. (Crimson Acquisition Corp.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
7.00% (Base Rate + 5.75%) |
|
6/19/2018 |
|
14,812,500 |
|
14,526,917 |
|
14,886,192 |
|
2.86 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Volume Services America, Inc. (Centerplate) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Consumer Services |
|
First lien (2) |
|
10.50% (Base Rate + 8.50%) |
|
9/16/2016 |
|
14,737,500 |
|
14,448,936 |
|
14,737,500 |
|
2.83 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Triple Point Technology, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
8.00% (Base Rate + 6.50%) |
|
10/27/2017 |
|
14,391,250 |
|
13,884,062 |
|
14,427,228 |
|
2.77 |
% | |||
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments (continued)
September 30, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Sabre Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (2) |
|
7.25% (Base Rate + 6.00%) |
|
12/29/2017 |
|
$ |
14,000,000 |
|
$ |
13,950,842 |
|
$ |
14,128,338 |
|
2.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Virtual Radiologic Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Information Technology |
|
First lien (3) |
|
7.75% (Base Rate + 4.50%) |
|
12/22/2016 |
|
14,777,469 |
|
14,616,427 |
|
13,299,722 |
|
2.56 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Aspen Dental Management, Inc |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
7.00% (Base Rate + 5.50%) |
|
10/6/2016 |
|
12,902,500 |
|
12,670,893 |
|
12,870,244 |
|
2.47 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Van Wagner Communications, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Media |
|
First lien (2) |
|
8.25% (Base Rate + 7.00%) |
|
8/3/2018 |
|
12,000,000 |
|
11,764,551 |
|
12,230,004 |
|
2.35 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Supervalu Inc.** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Retail |
|
First lien (2) |
|
8.00% (Base Rate + 6.75%) |
|
8/30/2018 |
|
11,970,000 |
|
11,614,165 |
|
12,060,709 |
|
2.32 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Vision Solutions, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
9.50% (Base Rate + 8.00%) |
|
7/23/2017 |
|
12,000,000 |
|
11,908,205 |
|
12,030,000 |
|
2.31 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
TravelCLICK, Inc. (fka TravelCLICK Acquisition Co.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Information Services |
|
First lien (3) |
|
6.50% (Base Rate + 5.00%) |
|
3/16/2016 |
|
11,315,157 |
|
11,157,696 |
|
11,258,581 |
|
2.16 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Merrill Communications LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (2) |
|
9.75% (Base Rate + 6.50%) |
|
12/24/2012 |
|
11,421,788 |
|
11,132,749 |
|
11,207,630 |
|
2.15 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Mailsouth, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Media |
|
First lien (3) |
|
6.75% (Base Rate + 5.00%) |
|
12/14/2016 |
|
11,164,655 |
|
11,039,209 |
|
10,997,185 |
|
2.11 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Immucor, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
5.75% (Base Rate + 4.50%) |
|
8/19/2018 |
|
4,950,094 |
|
4,777,916 |
|
5,024,345 |
|
|
| |||
|
|
|
Subordinated (2) |
|
11.13% |
|
8/15/2019 |
|
5,000,000 |
|
4,941,655 |
|
5,675,000 |
|
|
| |||
|
|
|
|
|
|
|
|
|
9,950,094 |
|
9,719,571 |
|
10,699,345 |
|
2.06 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Permian Tank & Manufacturing, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Energy |
|
First lien (3) |
|
9.00% (Base Rate + 7.25%) |
|
3/15/2017 |
|
10,657,658 |
|
10,414,096 |
|
10,657,658 |
|
2.05 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
YP Holdings LLC (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
YP Intermediate Holdings Corp. / YP Intermediate Holdings II LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Media |
|
Second lien (2) |
|
15.00% (12.00% + 3.00% PIK)* |
|
5/18/2017 |
|
10,411,891 |
|
9,676,418 |
|
10,516,010 |
|
2.02 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
CHG Companies, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
Second lien (2) |
|
11.25% (Base Rate + 9.50%) |
|
4/7/2017 |
|
10,000,000 |
|
9,845,241 |
|
10,050,000 |
|
1.93 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Vertafore, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
9.75% (Base Rate + 8.25%) |
|
10/29/2017 |
|
10,000,000 |
|
9,920,803 |
|
10,050,000 |
|
1.93 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Premier Dental Services, Inc. (Western) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (2) |
|
5.87% (Base Rate + 5.50%) |
|
7/1/2013 |
|
9,961,832 |
|
9,550,010 |
|
9,936,928 |
|
1.91 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Merge Healthcare Inc.** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (2) |
|
11.75% |
|
5/1/2015 |
|
9,000,000 |
|
8,906,260 |
|
9,787,500 |
|
1.88 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Consona Holdings, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
7.25% (Base Rate + 6.00%) |
|
8/6/2018 |
|
8,500,000 |
|
8,416,300 |
|
8,415,000 |
|
1.62 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Physio-Control International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Products |
|
First lien (2)(8) |
|
9.88% |
|
1/15/2019 |
|
7,000,000 |
|
7,000,000 |
|
7,700,000 |
|
1.48 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Surgery Center Holdings, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
6.50% (Base Rate + 5.00%) |
|
2/6/2017 |
|
6,851,250 |
|
6,825,324 |
|
6,851,250 |
|
1.32 |
% | |||
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Holdings, L.L.C.
Consolidated Schedule of Investments (continued)
September 30, 2012
(unaudited)
|
Portfolio Company, Location and |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Research Pharmaceutical Services, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
6.76% (Base Rate + 5.24%) |
|
2/18/2017 |
|
$ |
7,218,750 |
|
$ |
7,134,959 |
|
$ |
6,496,875 |
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Stratus Technologies, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Information Technology |
|
First lien (2) |
|
12.00% |
|
3/29/2015 |
|
6,664,000 |
|
6,380,436 |
|
6,230,840 |
|
1.20 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Alion Science and Technology Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (2) |
|
12.00% (10.00% + 2.00% PIK)* |
|
11/1/2014 |
|
6,257,192 |
|
6,043,096 |
|
5,845,263 |
|
1.12 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Ozburn-Hessey Holding Company LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Logistics |
|
Second lien (2) |
|
11.50% (Base Rate + 9.50%) |
|
10/10/2016 |
|
6,000,000 |
|
5,908,033 |
|
5,430,000 |
|
1.04 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education Management LLC** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
8.25% (Base Rate + 7.00%) |
|
3/30/2018 |
|
5,072,385 |
|
4,928,655 |
|
4,499,205 |
|
0.86 |
% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Brickman Group Holdings, Inc. |
|
|
|
|
|
|
||||||||||||