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, 2014
o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Commission |
|
Exact name of registrant as specified in its charter, address of principal executive |
|
I.R.S. Employer |
|
814-00832 |
|
New Mountain Finance Corporation 787 Seventh Avenue, 48th Floor |
|
27-2978010 |
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 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 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 Corporation |
|
Large accelerated filer o |
Accelerated filer x |
|
|
|
Non-accelerated filer o |
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 Corporation |
|
Yes o No x |
|
Registrant |
|
Description |
|
Shares as of |
|
|
New Mountain Finance Corporation |
|
Common stock, $0.01 par value |
|
57,918,320 |
|
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2014
New Mountain Finance Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
(unaudited)
|
|
|
September 30, 2014 |
|
December 31, 2013 |
| ||
|
|
|
|
|
|
| ||
|
Assets |
|
|
|
|
| ||
|
Investments at fair value |
|
|
|
|
| ||
|
Non-controlled/non-affiliated investments (cost of $1,324,380 and $0, respectively) |
|
$ |
1,338,512 |
|
$ |
— |
|
|
Non-controlled/affiliated investments (cost $15,210 and $0, respectively) |
|
15,157 |
|
— |
| ||
|
Investment in New Mountain Finance Holdings, L.L.C. (cost of $0 and $633,835, respectively) |
|
— |
|
650,107 |
| ||
|
Total investments at fair value (cost $1,339,590 and $633,835, respectively) |
|
1,353,669 |
|
650,107 |
| ||
|
Cash and cash equivalents |
|
17,857 |
|
— |
| ||
|
Restricted cash and cash equivalents |
|
1,784 |
|
— |
| ||
|
Interest and dividend receivable |
|
13,471 |
|
— |
| ||
|
Deferred financing costs (net of accumulated amortization of $5,183 and $0, respectively) |
|
8,858 |
|
— |
| ||
|
Receivable from affiliates |
|
183 |
|
— |
| ||
|
Other assets |
|
2,319 |
|
— |
| ||
|
Total assets |
|
$ |
1,398,141 |
|
$ |
650,107 |
|
|
Liabilities |
|
|
|
|
| ||
|
Holdings Credit Facility |
|
258,962 |
|
— |
| ||
|
SLF Credit Facility |
|
204,867 |
|
— |
| ||
|
Convertible Notes |
|
115,000 |
|
— |
| ||
|
Payable for unsettled securities purchased |
|
25,222 |
|
— |
| ||
|
NMFC Credit Facility |
|
22,000 |
|
— |
| ||
|
Capital gains incentive fee payable |
|
6,669 |
|
— |
| ||
|
Incentive fee payable |
|
4,520 |
|
— |
| ||
|
Management fee payable |
|
5,021 |
|
— |
| ||
|
Interest payable |
|
2,783 |
|
— |
| ||
|
Deferred tax liability |
|
271 |
|
— |
| ||
|
Payable to affiliates |
|
254 |
|
— |
| ||
|
Other liabilities |
|
5,115 |
|
— |
| ||
|
Total liabilities |
|
650,684 |
|
— |
| ||
|
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, and 52,168,320 and 45,224,755 shares issued and outstanding, respectively |
|
522 |
|
452 |
| ||
|
Paid in capital in excess of par |
|
734,062 |
|
633,383 |
| ||
|
Accumulated undistributed net investment income |
|
2,474 |
|
— |
| ||
|
Accumulated undistributed net realized gains on investments |
|
7,078 |
|
5,056 |
| ||
|
Net unrealized appreciation of investments (net of provision for taxes of $271 and $0, respectively) |
|
3,321 |
|
11,216 |
| ||
|
Total net assets |
|
$ |
747,457 |
|
$ |
650,107 |
|
|
Total liabilities and net assets |
|
$ |
1,398,141 |
|
$ |
650,107 |
|
|
Number of shares outstanding |
|
52,168,320 |
|
45,224,755 |
| ||
|
Net asset value per share |
|
$ |
14.33 |
|
$ |
14.38 |
|
The accompanying notes are an integral part of these consolidated financial statements.
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, 2014 |
|
September 30, 2013 |
|
September 30, 2014 |
|
September 30, 2013 |
| ||||
|
Investment income(1) |
|
|
|
|
|
|
|
|
| ||||
|
From non-controlled/non-affiliated investments: |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
$ |
32,353 |
|
$ |
— |
|
$ |
51,141 |
|
$ |
— |
|
|
Dividend income |
|
214 |
|
— |
|
1,186 |
|
— |
| ||||
|
Other income |
|
1,667 |
|
— |
|
2,372 |
|
— |
| ||||
|
From non-controlled/affiliated investments: |
|
|
|
|
|
|
|
|
| ||||
|
Dividend income |
|
297 |
|
— |
|
297 |
|
— |
| ||||
|
Other income |
|
175 |
|
— |
|
179 |
|
— |
| ||||
|
Investment income allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
— |
|
23,190 |
|
40,515 |
|
59,220 |
| ||||
|
Dividend income |
|
— |
|
(1,391 |
) |
2,368 |
|
3,334 |
| ||||
|
Other income |
|
— |
|
213 |
|
795 |
|
1,539 |
| ||||
|
Total investment income |
|
34,706 |
|
22,012 |
|
98,853 |
|
64,093 |
| ||||
|
Expenses |
|
|
|
|
|
|
|
|
| ||||
|
Incentive fee(1) |
|
4,520 |
|
— |
|
7,267 |
|
— |
| ||||
|
Capital gains incentive fee(1) |
|
(2,667 |
) |
— |
|
(1,904 |
) |
— |
| ||||
|
Total incentive fees(1) |
|
1,853 |
|
— |
|
5,363 |
|
— |
| ||||
|
Management fee(1) |
|
5,021 |
|
— |
|
7,763 |
|
— |
| ||||
|
Interest and other financing expenses(1) |
|
5,237 |
|
— |
|
7,796 |
|
— |
| ||||
|
Professional fees(1) |
|
890 |
|
— |
|
1,530 |
|
— |
| ||||
|
Administrative expenses(1) |
|
549 |
|
— |
|
909 |
|
— |
| ||||
|
Other general and administrative expenses(1) |
|
448 |
|
— |
|
687 |
|
— |
| ||||
|
Income tax expense(1) |
|
230 |
|
— |
|
230 |
|
— |
| ||||
|
Net expenses allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
— |
|
11,209 |
|
20,808 |
|
28,398 |
| ||||
|
Total expenses |
|
14,228 |
|
11,209 |
|
45,086 |
|
28,398 |
| ||||
|
Less: expenses waived and reimbursed (see Note 5)(1) |
|
(322 |
) |
— |
|
(380 |
) |
— |
| ||||
|
Net expenses |
|
13,906 |
|
11,209 |
|
44,706 |
|
28,398 |
| ||||
|
Net investment income |
|
20,800 |
|
10,803 |
|
54,147 |
|
35,695 |
| ||||
|
Net realized gains (losses): |
|
|
|
|
|
|
|
|
| ||||
|
Non-controlled/non-affiliated investments(1) |
|
768 |
|
— |
|
(299 |
) |
— |
| ||||
|
Investments allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
— |
|
4,403 |
|
8,568 |
|
7,567 |
| ||||
|
Net change in unrealized (depreciation) appreciation: |
|
|
|
|
|
|
|
|
| ||||
|
Non-controlled/non-affiliated investments(1) |
|
(14,220 |
) |
— |
|
(8,512 |
) |
— |
| ||||
|
Non-controlled/affiliated investments(1) |
|
(52 |
) |
— |
|
(52 |
) |
— |
| ||||
|
Investments allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
— |
|
2,269 |
|
940 |
|
753 |
| ||||
|
Investment in New Mountain Finance Holdings, L.L.C.(2) |
|
— |
|
(8 |
) |
— |
|
(40 |
) | ||||
|
Benefit (provision) for taxes(1) |
|
115 |
|
— |
|
(271 |
) |
— |
| ||||
|
Net increase in net assets resulting from operations |
|
$ |
7,411 |
|
$ |
17,467 |
|
$ |
54,521 |
|
$ |
43,975 |
|
|
Basic earnings per share |
|
$ |
0.14 |
|
$ |
0.46 |
|
$ |
1.09 |
|
$ |
1.38 |
|
|
Weighted average shares of common stock outstanding—basic (See Note 11) |
|
52,071,071 |
|
38,159,320 |
|
50,262,656 |
|
31,952,623 |
| ||||
|
Diluted earnings per share |
|
$ |
0.14 |
|
$ |
0.46 |
|
$ |
1.05 |
|
$ |
1.40 |
|
|
Weighted average shares of common stock outstanding—diluted (See Note 11) |
|
59,290,154 |
|
44,731,258 |
|
53,594,541 |
|
42,847,638 |
| ||||
|
Dividends declared and paid per share |
|
$ |
0.46 |
|
$ |
0.46 |
|
$ |
1.14 |
|
$ |
1.14 |
|
(1) For the nine months ended September 30, 2014, the amounts reported relate to the period from May 8, 2014 to September 30, 2014.
(2) For the nine months ended September 30, 2014, the amounts reported relate to the period from January 1, 2014 to May 7, 2014.
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Corporation
Consolidated Statements of Changes in Net Assets
(in thousands)
(unaudited)
|
|
|
Nine months ended |
| ||||
|
|
|
September 30, 2014 |
|
September 30, 2013 |
| ||
|
Increase (decrease) in net assets resulting from operations: |
|
|
|
|
| ||
|
Net investment income(1) |
|
$ |
31,277 |
|
$ |
— |
|
|
Net investment income allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
22,870 |
|
35,695 |
| ||
|
Net realized losses on investments(1) |
|
(299 |
) |
— |
| ||
|
Net realized gains on investments allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
8,568 |
|
7,567 |
| ||
|
Net change in unrealized (depreciation) appreciation of investments(1) |
|
(8,564 |
) |
— |
| ||
|
Net change in unrealized appreciation (depreciation) of investments allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
940 |
|
753 |
| ||
|
Net change in unrealized (depreciation) appreciation of investment in New Mountain Finance Holdings, L.L.C.(2) |
|
— |
|
(40 |
) | ||
|
Provision for taxes(1) |
|
(271 |
) |
— |
| ||
|
Net increase in net assets resulting from operations |
|
54,521 |
|
43,975 |
| ||
|
Capital transactions |
|
|
|
|
| ||
|
Net proceeds from shares sold |
|
58,644 |
|
57,020 |
| ||
|
Deferred offering costs allocated from New Mountain Finance Holdings, L.L.C. |
|
(250 |
) |
(203 |
) | ||
|
Deferred offering costs |
|
(126 |
) |
— |
| ||
|
Value of shares issued for exchanged units |
|
38,840 |
|
137,384 |
| ||
|
Dividends declared to stockholders from net investment income |
|
(51,673 |
) |
(35,695 |
) | ||
|
Dividends declared to stockholders from net realized gains |
|
(6,247 |
) |
(794 |
) | ||
|
Reinvestment of dividends |
|
3,641 |
|
4,109 |
| ||
|
Total net increase in net assets resulting from capital transactions |
|
42,829 |
|
161,821 |
| ||
|
Net increase in net assets |
|
97,350 |
|
205,796 |
| ||
|
Net assets at the beginning of the period |
|
650,107 |
|
341,926 |
| ||
|
Net assets at the end of the period |
|
$ |
747,457 |
|
$ |
547,722 |
|
(1) For the nine months ended September 30, 2014, the amounts reported relate to the period from May 8, 2014 to September 30, 2014.
(2) For the nine months ended September 30, 2014, the amounts reported relate to the period from January 1, 2014 to May 7, 2014.
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
Nine months ended |
| ||||
|
|
|
September 30, 2014 |
|
September 30, 2013 |
| ||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net increase in net assets resulting from operations |
|
$ |
54,521 |
|
$ |
43,975 |
|
|
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash (used in) provided by operating activities: |
|
|
|
|
| ||
|
Net investment income allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
(22,870 |
) |
(35,695 |
) | ||
|
Net realized losses on investments(1) |
|
299 |
|
— |
| ||
|
Net realized gains on investments allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
(8,568 |
) |
(7,567 |
) | ||
|
Net change in unrealized (appreciation) depreciation of investments(1) |
|
8,564 |
|
— |
| ||
|
Net change in unrealized (appreciation) depreciation of investments allocated from New Mountain Finance Holdings, L.L.C.(2) |
|
(940 |
) |
(753 |
) | ||
|
Net change in unrealized depreciation (appreciation) in New Mountain Finance Holdings, L.L.C.(2) |
|
— |
|
40 |
| ||
|
Amortization of purchase discount(1) |
|
(1,073 |
) |
— |
| ||
|
Amortization of deferred financing costs(1) |
|
1,029 |
|
— |
| ||
|
Non-cash investment income(1) |
|
(1,029 |
) |
— |
| ||
|
(Increase) decrease in operating assets: |
|
|
|
|
| ||
|
Cash and cash equivalents from New Mountain Finance Holdings, L.L.C.(3) |
|
957 |
|
— |
| ||
|
Purchase of investments(1) |
|
(325,038 |
) |
— |
| ||
|
Proceeds from sales and paydowns of investments(1) |
|
159,792 |
|
— |
| ||
|
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities(1) |
|
29 |
|
— |
| ||
|
Cash paid for purchase of drawn portion of revolving credit or delayed draw facilities(1) |
|
(2,548 |
) |
— |
| ||
|
Cash repayments on drawn revolvers(1) |
|
380 |
|
— |
| ||
|
Restricted cash and cash equivalents(1) |
|
(1,784 |
) |
— |
| ||
|
Interest and dividend receivable(1) |
|
(1,934 |
) |
— |
| ||
|
Receivable from affiliates(1) |
|
201 |
|
— |
| ||
|
Other assets(1) |
|
(167 |
) |
— |
| ||
|
Purchase of investment in New Mountain Finance Holdings, L.L.C.(2) |
|
(58,644 |
) |
(57,020 |
) | ||
|
Distributions from New Mountain Finance Holdings, L.L.C.(2) |
|
15,247 |
|
35,785 |
| ||
|
Increase (decrease) in operating liabilities(1): |
|
|
|
|
| ||
|
Capital gains incentive fee payable |
|
(1,904 |
) |
— |
| ||
|
Incentive fee payable |
|
(1,805 |
) |
— |
| ||
|
Management fee payable |
|
(1,034 |
) |
— |
| ||
|
Payable for unsettled securities purchased |
|
15,816 |
|
— |
| ||
|
Interest payable |
|
2,690 |
|
— |
| ||
|
Payable to affiliates |
|
21 |
|
— |
| ||
|
Deferred tax liability |
|
271 |
|
— |
| ||
|
Other liabilities |
|
1,859 |
|
— |
| ||
|
Net cash flows used in operating activities |
|
(167,662 |
) |
(21,235 |
) | ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Net proceeds from shares sold |
|
58,644 |
|
57,020 |
| ||
|
Dividends paid |
|
(54,279 |
) |
(35,785 |
) | ||
|
Offering costs paid(1) |
|
(264 |
) |
— |
| ||
|
Proceeds from Holdings Credit Facility(1) |
|
247,830 |
|
— |
| ||
|
Repayment of Holdings Credit Facility(1) |
|
(188,100 |
) |
— |
| ||
|
Proceeds from SLF Credit Facility(1) |
|
19,867 |
|
— |
| ||
|
Repayment of SLF Credit Facility(1) |
|
(30,000 |
) |
— |
| ||
|
Proceeds from Convertible Notes(1) |
|
115,000 |
|
— |
| ||
|
Proceeds from NMFC Credit Facility(1) |
|
22,000 |
|
— |
| ||
|
Deferred financing costs paid(1) |
|
(5,179 |
) |
— |
| ||
|
Net cash flows provided by financing activities |
|
185,519 |
|
21,235 |
| ||
|
Net increase (decrease) in cash and cash equivalents |
|
17,857 |
|
— |
| ||
|
Cash and cash equivalents at the beginning of the period |
|
— |
|
— |
| ||
|
Cash and cash equivalents at the end of the period |
|
$ |
17,857 |
|
$ |
— |
|
|
Supplemental disclosure of cash flow information |
|
|
|
|
| ||
|
Cash interest paid |
|
$ |
3,866 |
|
$ |
— |
|
|
Non-cash financing activities: |
|
|
|
|
| ||
|
New Mountain Finance AIV Holdings Corporation exchange of New Mountain Finance Holdings, L.L.C. units for shares |
|
$ |
38,840 |
|
$ |
137,384 |
|
|
Value of shares issued in connection with dividend reinvestment plan |
|
3,641 |
|
4,109 |
| ||
|
Accrual for offering costs(1) |
|
729 |
|
— |
| ||
|
Accrual for deferred financing costs(1) |
|
576 |
|
— |
| ||
|
Deferred offering costs allocated from New Mountain Finance Holdings, L.L.C(2) |
|
(250 |
) |
(203 |
) | ||
(1) For the nine months ended September 30, 2014, the amounts reported relate to the period from May 8, 2014 to September 30, 2014.
(2) For the nine months ended September 30, 2014, the amounts reported relate to the period from January 1, 2014 to May 7, 2014.
(3) Refer to the New Mountain Finance Holdings, L.L.C.’s Consolidated Statements of Cash Flows for the period January 1, 2014 to May 7, 2014 included in an exhibit attached hereto.
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Corporation
Consolidated Schedule of Investments
September 30, 2014
(in thousands, except shares)
(unaudited)
|
Portfolio Company, Location and Industry(1) |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair Value |
|
Percent of |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Non-Controlled/Non-Affiliated Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Funded Debt Investments - Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Project Sunshine IV Pty Ltd** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Media |
|
First lien (2) |
|
8.00% (Base Rate + 7.00%) |
|
9/23/2019 |
|
$ |
20,000 |
|
$ |
19,887 |
|
$ |
20,100 |
|
2.69 |
% |
|
Total Funded Debt Investments - Australia |
|
|
|
|
|
|
|
$ |
20,000 |
|
$ |
19,887 |
|
$ |
20,100 |
|
2.69 |
% |
|
Funded Debt Investments - Luxembourg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Pinnacle Holdco S.à r.l. / Pinnacle (US) Acquisition Co Limited** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
10.50% (Base Rate + 9.25%) |
|
7/30/2020 |
|
$ |
24,630 |
|
$ |
24,313 |
|
$ |
24,660 |
|
|
|
|
|
|
Second lien (4) |
|
10.50% (Base Rate + 9.25%) |
|
7/30/2020 |
|
8,204 |
|
8,316 |
|
8,214 |
|
|
| |||
|
|
|
|
|
|
|
|
|
32,834 |
|
32,629 |
|
32,874 |
|
4.40 |
% | |||
|
Evergreen Skills Lux S.À R.L.** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
Second lien (4) |
|
9.25% (Base Rate + 8.25%) |
|
4/28/2022 |
|
5,000 |
|
4,875 |
|
4,875 |
|
0.65 |
% | |||
|
Total Funded Debt Investments - Luxembourg |
|
|
|
|
|
|
|
$ |
37,834 |
|
$ |
37,504 |
|
$ |
37,749 |
|
5.05 |
% |
|
Funded Debt Investments - United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Ascend Learning, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
6.00% (Base Rate + 5.00%) |
|
7/31/2019 |
|
$ |
14,888 |
|
$ |
14,821 |
|
$ |
14,953 |
|
|
|
|
|
|
Second lien (4) |
|
9.50% (Base Rate + 8.50%) |
|
11/30/2020 |
|
29,000 |
|
28,877 |
|
29,362 |
|
|
| |||
|
|
|
|
|
|
|
|
|
43,888 |
|
43,698 |
|
44,315 |
|
5.93 |
% | |||
|
McGraw-Hill Global Education Holdings, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (2)(10) |
|
9.75% |
|
4/1/2021 |
|
24,500 |
|
24,358 |
|
27,195 |
|
|
| |||
|
|
|
First lien (3) |
|
5.75% (Base Rate + 4.75%) |
|
3/22/2019 |
|
14,888 |
|
14,535 |
|
14,939 |
|
|
| |||
|
|
|
|
|
|
|
|
|
39,388 |
|
38,893 |
|
42,134 |
|
5.64 |
% | |||
|
Global Knowledge Training LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
Second lien (2) |
|
11.00% (Base Rate + 9.75%) |
|
10/21/2018 |
|
41,450 |
|
41,120 |
|
41,557 |
|
5.56 |
% | |||
|
Deltek, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
10.00% (Base Rate + 8.75%) |
|
10/10/2019 |
|
40,000 |
|
39,990 |
|
40,400 |
|
|
| |||
|
|
|
Second lien (4) |
|
10.00% (Base Rate + 8.75%) |
|
10/10/2019 |
|
1,000 |
|
990 |
|
1,010 |
|
|
| |||
|
|
|
|
|
|
|
|
|
41,000 |
|
40,980 |
|
41,410 |
|
5.54 |
% | |||
|
Novell, Inc. (fka Attachmate Corporation, NetIQ Corporation) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
7.25% (Base Rate + 5.75%) |
|
11/22/2017 |
|
6,514 |
|
6,434 |
|
6,538 |
|
|
| |||
|
|
|
Second lien (2) |
|
11.00% (Base Rate + 9.50%) |
|
11/22/2018 |
|
33,321 |
|
32,874 |
|
33,841 |
|
|
| |||
|
|
|
|
|
|
|
|
|
39,835 |
|
39,308 |
|
40,379 |
|
5.40 |
% | |||
|
Tenawa Resource Holdings LLC (17) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Tenawa Resource Management LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Energy |
|
First lien (4) |
|
10.50% (Base Rate + 8.00%) |
|
5/12/2019 |
|
40,000 |
|
39,831 |
|
39,820 |
|
5.33 |
% | |||
|
Kronos Incorporated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
9.75% (Base Rate + 8.50%) |
|
4/30/2020 |
|
32,641 |
|
32,398 |
|
33,702 |
|
|
| |||
|
|
|
Second lien (4) |
|
9.75% (Base Rate + 8.50%) |
|
4/30/2020 |
|
5,000 |
|
4,954 |
|
5,163 |
|
|
| |||
|
|
|
|
|
|
|
|
|
37,641 |
|
37,352 |
|
38,865 |
|
5.20 |
% | |||
|
Tolt Solutions, Inc. (16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (2) |
|
7.00% (Base Rate + 6.00%) |
|
3/7/2019 |
|
18,631 |
|
18,631 |
|
18,374 |
|
|
| |||
|
|
|
First lien (2) |
|
12.00% (Base Rate + 11.00%) |
|
3/7/2019 |
|
18,800 |
|
18,800 |
|
18,657 |
|
|
| |||
|
|
|
|
|
|
|
|
|
37,431 |
|
37,431 |
|
37,031 |
|
4.95 |
% | |||
|
Hill International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (3) |
|
9.00% (Base Rate + 5.75%) |
|
9/26/2020 |
|
20,000 |
|
19,800 |
|
19,800 |
|
|
| |||
|
|
|
First lien (2) |
|
9.00% (Base Rate + 5.75%) |
|
9/26/2020 |
|
15,000 |
|
14,850 |
|
14,850 |
|
|
| |||
|
|
|
|
|
|
|
|
|
35,000 |
|
34,650 |
|
34,650 |
|
4.64 |
% | |||
|
Meritas Schools Holdings, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
7.00% (Base Rate + 5.75%) |
|
6/25/2019 |
|
16,744 |
|
16,605 |
|
16,827 |
|
|
| |||
|
|
|
First lien (2) |
|
7.00% (Base Rate + 5.75%) |
|
6/25/2019 |
|
4,969 |
|
4,929 |
|
4,994 |
|
|
| |||
|
|
|
Second lien (2) |
|
10.00% (Base Rate + 9.00%) |
|
1/23/2021 |
|
12,000 |
|
11,941 |
|
12,210 |
|
|
| |||
|
|
|
|
|
|
|
|
|
33,713 |
|
33,475 |
|
34,031 |
|
4.55 |
% | |||
|
SRA International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (2) |
|
6.50% (Base Rate + 5.25%) |
|
7/20/2018 |
|
25,725 |
|
25,116 |
|
25,757 |
|
|
| |||
|
|
|
First lien (3) |
|
6.50% (Base Rate + 5.25%) |
|
7/20/2018 |
|
7,080 |
|
6,914 |
|
7,089 |
|
|
| |||
|
|
|
|
|
|
|
|
|
32,805 |
|
32,030 |
|
32,846 |
|
4.39 |
% | |||
|
Envision Acquisition Company, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
Second lien (2) |
|
9.75% (Base Rate + 8.75%) |
|
11/4/2021 |
|
26,000 |
|
25,602 |
|
26,195 |
|
|
| |||
|
|
|
Second lien (4) |
|
9.75% (Base Rate + 8.75%) |
|
11/4/2021 |
|
5,250 |
|
5,285 |
|
5,288 |
|
|
| |||
|
|
|
|
|
|
|
|
|
31,250 |
|
30,887 |
|
31,483 |
|
4.21 |
% | |||
|
Edmentum, Inc.(fka Plato, Inc.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
Second lien (2) |
|
11.25% (Base Rate + 9.75%) |
|
5/17/2019 |
|
25,000 |
|
24,700 |
|
25,250 |
|
|
| |||
|
|
|
Second lien (4) |
|
11.25% (Base Rate + 9.75%) |
|
5/17/2019 |
|
6,150 |
|
6,037 |
|
6,212 |
|
|
| |||
|
|
|
|
|
|
|
|
|
31,150 |
|
30,737 |
|
31,462 |
|
4.21 |
% | |||
|
Rocket Software, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
10.25% (Base Rate + 8.75%) |
|
2/8/2019 |
|
30,875 |
|
30,750 |
|
31,126 |
|
4.16 |
% | |||
|
Acrisure, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
Second lien (2) |
|
11.50% (Base Rate + 10.50%) |
|
3/31/2020 |
|
30,425 |
|
30,134 |
|
30,751 |
|
4.11 |
% | |||
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
September 30, 2014
(in thousands, except shares)
(unaudited)
|
Portfolio Company, Location and Industry(1) |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair Value |
|
Percent of |
| |||
|
YP Holdings LLC (11) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
YP LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Media |
|
First lien (2) |
|
8.00% (Base Rate + 6.75%) |
|
6/4/2018 |
|
$ |
30,025 |
|
$ |
29,695 |
|
$ |
30,175 |
|
4.04 |
% |
|
UniTek Global Services, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (2) |
|
17.00% PIK (Base Rate + 13.50% PIK + 2.00% Default PIK Interest)(8)* |
|
4/15/2018 |
|
19,591 |
|
19,069 |
|
13,816 |
|
|
| |||
|
|
|
First lien (4) |
|
17.00% PIK (Base Rate + 13.50% PIK + 2.00% Default PIK Interest)(8)* |
|
4/15/2018 |
|
7,393 |
|
7,161 |
|
5,214 |
|
|
| |||
|
|
|
First lien (2) |
|
17.00% PIK (Base Rate + 13.50% PIK + 2.00% Default PIK Interest)(8)* |
|
4/15/2018 |
|
5,965 |
|
5,800 |
|
4,207 |
|
|
| |||
|
|
|
First lien (4) |
|
17.00% PIK (Base Rate + 13.50% PIK + 2.00% Default PIK Interest)(8)* |
|
4/15/2018 |
|
568 |
|
550 |
|
400 |
|
|
| |||
|
|
|
First lien (2) |
|
17.00% PIK (Base Rate + 13.50% PIK + 2.00% Default PIK Interest)(8)* |
|
4/15/2018 |
|
4,958 |
|
4,821 |
|
3,497 |
|
|
| |||
|
|
|
First lien (4) |
|
17.00% PIK (Base Rate + 13.50% PIK + 2.00% Default PIK Interest)(8)* |
|
4/15/2018 |
|
472 |
|
457 |
|
333 |
|
|
| |||
|
|
|
First lien (4)(12) - Drawn |
|
12.25% (Base Rate + 5.00% + 4.25% PIK + 2.00% Default PIK Interest)* |
|
4/15/2016 |
|
2,571 |
|
2,571 |
|
2,571 |
|
|
| |||
|
|
|
|
|
|
|
|
|
41,518 |
|
40,429 |
|
30,038 |
|
4.02 |
% | |||
|
CompassLearning, Inc. (15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (2) |
|
8.00% (Base Rate + 6.75%) |
|
11/26/2018 |
|
30,000 |
|
29,358 |
|
29,146 |
|
3.90 |
% | |||
|
Transtar Holding Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Distribution & Logistics |
|
Second lien (2) |
|
10.00% (Base Rate + 8.75%) |
|
10/9/2019 |
|
28,300 |
|
27,890 |
|
28,088 |
|
3.76 |
% | |||
|
Sierra Hamilton LLC / Sierra Hamilton Finance, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Energy |
|
First lien (2) |
|
12.25% |
|
12/15/2018 |
|
25,000 |
|
25,000 |
|
26,250 |
|
3.51 |
% | |||
|
KeyPoint Government Solutions, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (3) |
|
7.25% (Base Rate + 6.00%) |
|
11/13/2017 |
|
19,355 |
|
19,036 |
|
19,367 |
|
|
| |||
|
|
|
First lien (2) |
|
7.25% (Base Rate + 6.00%) |
|
11/13/2017 |
|
6,420 |
|
6,337 |
|
6,424 |
|
|
| |||
|
|
|
|
|
|
|
|
|
25,775 |
|
25,373 |
|
25,791 |
|
3.45 |
% | |||
|
Pelican Products, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Products |
|
Second lien (4) |
|
9.25% (Base Rate + 8.25%) |
|
4/9/2021 |
|
15,500 |
|
15,534 |
|
15,645 |
|
|
| |||
|
|
|
Second lien (2) |
|
9.25% (Base Rate + 8.25%) |
|
4/9/2021 |
|
10,000 |
|
10,125 |
|
10,094 |
|
|
| |||
|
|
|
|
|
|
|
|
|
25,500 |
|
25,659 |
|
25,739 |
|
3.44 |
% | |||
|
Permian Tank & Manufacturing, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Energy |
|
First lien (2) |
|
10.50% |
|
1/15/2018 |
|
24,500 |
|
24,714 |
|
25,113 |
|
3.36 |
% | |||
|
Aderant North America, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
10.00% (Base Rate + 8.75%) |
|
6/20/2019 |
|
24,000 |
|
23,762 |
|
24,300 |
|
3.25 |
% | |||
|
TASC, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (2) |
|
6.50% (Base Rate + 5.50%) |
|
5/22/2020 |
|
24,938 |
|
24,581 |
|
24,119 |
|
3.23 |
% | |||
|
Aricent Technologies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
Second lien (3) |
|
9.50% (Base Rate + 8.50%) |
|
4/14/2022 |
|
20,000 |
|
19,869 |
|
20,000 |
|
|
| |||
|
|
|
Second lien (4) |
|
9.50% (Base Rate + 8.50%) |
|
4/14/2022 |
|
2,550 |
|
2,555 |
|
2,550 |
|
|
| |||
|
|
|
|
|
|
|
|
|
22,550 |
|
22,424 |
|
22,550 |
|
3.02 |
% | |||
|
McGraw-Hill School Education Holdings, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
6.25% (Base Rate + 5.00%) |
|
12/18/2019 |
|
19,850 |
|
19,673 |
|
19,887 |
|
|
| |||
|
|
|
First lien (2) |
|
6.25% (Base Rate + 5.00%) |
|
12/18/2019 |
|
1,985 |
|
1,967 |
|
1,989 |
|
|
| |||
|
|
|
|
|
|
|
|
|
21,835 |
|
21,640 |
|
21,876 |
|
2.93 |
% | |||
|
Aspen Dental Management, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
7.00% (Base Rate + 5.50%) |
|
10/6/2016 |
|
20,916 |
|
20,727 |
|
20,811 |
|
2.78 |
% | |||
|
Weston Solutions, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
Subordinated (5) |
|
16.00% (11.50% + 4.50% PIK)* |
|
7/3/2019 |
|
20,225 |
|
20,225 |
|
20,225 |
|
2.71 |
% | |||
|
American Pacific Corporation** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Specialty Chemicals and Materials |
|
First lien (3) |
|
7.00% (Base Rate + 6.00%) |
|
2/27/2019 |
|
19,900 |
|
19,765 |
|
20,024 |
|
2.68 |
% | |||
|
Distribution International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Distribution & Logistics |
|
First lien (2) |
|
7.50% (Base Rate + 6.50%) |
|
7/16/2019 |
|
19,750 |
|
19,421 |
|
19,799 |
|
2.65 |
% | |||
|
Novitex Acquisition, LLC (fka ARSloane Acquisition, LLC) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
First lien (3) |
|
7.50% (Base Rate + 6.25%) |
|
7/7/2020 |
|
20,000 |
|
19,631 |
|
19,699 |
|
2.64 |
% | |||
|
eResearchTechnology, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
6.00% (Base Rate + 4.75%) |
|
5/2/2018 |
|
19,059 |
|
18,485 |
|
19,107 |
|
2.56 |
% | |||
|
Confie Seguros Holding II Co. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Consumer Services |
|
Second lien (3) |
|
10.25% (Base Rate + 9.00%) |
|
5/8/2019 |
|
18,886 |
|
18,791 |
|
19,074 |
|
2.55 |
% | |||
|
First American Payment Systems, L.P. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
Second lien (3) |
|
10.75% (Base Rate + 9.50%) |
|
4/12/2019 |
|
18,643 |
|
18,357 |
|
18,644 |
|
2.49 |
% | |||
|
AgKnowledge Holdings Company, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
Second lien (2) |
|
9.25% (Base Rate + 8.25%) |
|
7/23/2020 |
|
18,500 |
|
18,320 |
|
18,315 |
|
2.45 |
% | |||
|
MailSouth, Inc. (d/b/a Mspark) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Media |
|
First lien (3) |
|
6.75% (Base Rate + 4.98%) |
|
12/14/2016 |
|
17,107 |
|
16,436 |
|
16,081 |
|
2.15 |
% | |||
|
GSDM Holdings Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
Subordinated (5) |
|
10.00% |
|
6/23/2020 |
|
15,000 |
|
14,855 |
|
14,761 |
|
1.97 |
% | |||
|
Smile Brands Group Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
First lien (3) |
|
7.50% (Base Rate + 6.25%) |
|
8/16/2019 |
|
14,355 |
|
14,183 |
|
14,081 |
|
1.88 |
% | |||
|
Vision Solutions, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
9.50% (Base Rate + 8.00%) |
|
7/23/2017 |
|
14,000 |
|
13,963 |
|
13,895 |
|
1.86 |
% | |||
The accompanying notes are an integral part of these consolidated financial statements.
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
September 30, 2014
(in thousands, except shares)
(unaudited)
|
Portfolio Company, Location and Industry(1) |
|
Type of |
|
Interest Rate |
|
Maturity |
|
Principal |
|
Cost |
|
Fair Value |
|
Percent of |
| |||
|
Asurion, LLC (fka Asurion Corporation) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Business Services |
|
Second lien (2) |
|
8.50% (Base Rate + 7.50%) |
|
3/3/2021 |
|
$ |
5,000 |
|
$ |
4,930 |
|
$ |
5,075 |
|
|
|
|
|
|
Second lien (4) |
|
8.50% (Base Rate + 7.50%) |
|
3/3/2021 |
|
5,000 |
|
4,930 |
|
5,075 |
|
|
| |||
|
|
|
|
|
|
|
|
|
10,000 |
|
9,860 |
|
10,150 |
|
1.36 |
% | |||
|
Vertafore, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
Second lien (2) |
|
9.75% (Base Rate + 8.25%) |
|
10/27/2017 |
|
10,000 |
|
9,948 |
|
10,106 |
|
1.35 |
% | |||
|
Learning Care Group (US) Inc. (18) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Learning Care Group (US) No. 2 Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (3) |
|
5.50% (Base Rate + 4.50%) |
|
5/5/2021 |
|
9,476 |
|
9,386 |
|
9,518 |
|
1.27 |
% | |||
|
Brock Holdings III, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Industrial Services |
|
Second lien (2) |
|
10.00% (Base Rate + 8.25%) |
|
3/16/2018 |
|
9,000 |
|
8,910 |
|
8,972 |
|
1.20 |
% | |||
|
Vitera Healthcare Solutions, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Software |
|
First lien (3) |
|
6.00% (Base Rate + 5.00%) |
|
11/4/2020 |
|
1,985 |
|
1,967 |
|
1,982 |
|
|
| |||
|
|
|
Second lien (3) |
|
9.25% (Base Rate + 8.25%) |
|
11/4/2021 |
|
7,000 |
|
6,903 |
|
6,965 |
|
|
| |||
|
|
|
|
|
|
|
|
|
8,985 |
|
8,870 |
|
8,947 |
|
1.20 |
% | |||
|
Harley Marine Services, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Distribution & Logistics |
|
Second lien (3) |
|
10.50% (Base Rate + 9.25%) |
|
12/20/2019 |
|
9,000 |
|
8,837 |
|
8,910 |
|
1.19 |
% | |||
|
McKissock, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
QC McKissock Investment, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Education |
|
First lien (2) |
|
7.50% (Base Rate + 6.50%) |
|
8/5/2019 |
|
4,934 |
|
4,886 |
|
4,885 |
|
|
| |||
|
|
|
First lien (2) |
|
7.50% (Base Rate + 6.50%) |
|
8/5/2019 |
|
3,186 |
|
3,155 |
|
3,154 |
|
|
| |||
|
|
|
|
|
|
|
|
|
8,120 |
|
8,041 |
|
8,039 |
|
1.08 |
% | |||
|
Albertson’s LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Retail |
|
First lien (3) |
|
4.50% |
|
8/25/2021 |
|
7,500 |
|
7,388 |
|
7,471 |
|
1.00 |
% | |||
|
Physio-Control International, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Products |
|
First lien (3) |
|
9.88% |
|
1/15/2019 |
|
6,651 |
|
6,651 |
|
7,149 |
|
0.96 |
% | |||
|
Sotera Defense Solutions, Inc. (Global Defense Technology & Systems, Inc.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Federal Services |
|
First lien (3) |
|
9.00% (Base Rate + 7.50%) |
|
4/21/2017 |
|
7,495 |
|
7,432 |
|
6,959 |
|
0.93 |
% | |||
|
Virtual Radiologic Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Information Technology |
|
First lien (3) |
|
7.25% (Base Rate + 5.50%) |
|
12/22/2016 |
|
8,478 |
|
8,427 |
|
6,380 |
|
0.85 |
% | |||
|
Immucor, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Healthcare Services |
|
Subordinated (3)(10) |
|
11.13% |
|
8/15/2019 |
|
3,000 |
|
2,964 |
|
3,255 |
|
|
| |||
|
|
|
Subordinated (2)(10) |
|
11.13% |
|
8/15/2019 |
|
2,000 |
|
1,990 |
|
2,169 |
|
|
| |||
|
|
|
|
|
|
|
|
|
|||||||||||