UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended March 31, 2017
o         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Commission
File Number
 
Exact name of registrant as specified in its charter, address of principal executive
offices, telephone numbers and states or other jurisdictions of incorporation or organization
 
I.R.S. Employer
Identification Number
814-00832
 
New Mountain Finance Corporation
 
27-2978010
 
 
787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically 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). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ý
 
Accelerated filer o
 
 
Non-accelerated filer o (Do not check if a smaller reporting company)
 
Smaller reporting company o
 
 
Emerging growth company o
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description
 
Shares as of May 8, 2017
Common stock, par value $0.01 per share
 
75,571,693
 

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2017
TABLE OF CONTENTS
 
PAGE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2
Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
New Mountain Finance Corporation
 
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
(unaudited)
 
March 31, 2017
 
December 31, 2016
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $1,483,399 and $1,379,603, respectively)
$
1,458,331

 
$
1,346,556

Non-controlled/affiliated investments (cost of $164,065 and $54,996, respectively)
166,213

 
57,440

Controlled investments (cost of $149,587 and $140,579, respectively)
162,351

 
154,821

Total investments at fair value (cost of $1,797,051 and $1,575,178, respectively)
1,786,895

 
1,558,817

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
28,418

 
29,218

Cash and cash equivalents
37,663

 
45,928

Interest and dividend receivable
21,714

 
17,833

Receivable from unsettled securities sold
1,681

 
990

Receivable from affiliates
715

 
346

Other assets
3,853

 
2,886

Total assets
$
1,880,939

 
$
1,656,018

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
376,913

 
$
333,513

     Convertible Notes
155,496

 
155,523

     NMFC Credit Facility
122,500

 
10,000

     SBA-guaranteed debentures
121,745

 
121,745

     Unsecured Notes
90,000

 
90,000

     Deferred financing costs (net of accumulated amortization of $13,267 and $12,279, respectively)
(13,053
)
 
(14,041
)
Net borrowings
853,601

 
696,740

Payable for unsettled securities purchased
50,551

 
2,740

Management fee payable
12,110

 
5,852

Incentive fee payable
9,353

 
5,745

Interest payable
5,650

 
3,172

Payable to affiliates
412

 
136

Deferred tax liability
279

 
1,034

Other liabilities
2,241

 
2,037

Total liabilities
934,197

 
717,456

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, 69,821,693 and 69,755,387 shares issued, respectively, and 69,821,693 and 69,717,814 shares outstanding, respectively
698

 
698

Paid in capital in excess of par
1,002,869

 
1,001,862

Treasury stock at cost, 0 and 37,573 shares held, respectively
—

 
(460
)
Accumulated undistributed net investment income
1,800

 
2,073

Accumulated undistributed net realized losses on investments
(36,121
)
 
(36,947
)
Net unrealized (depreciation) appreciation (net of provision for taxes of $279 and $1,034, respectively)
(22,504
)
 
(28,664
)
Total net assets
$
946,742

 
$
938,562

Total liabilities and net assets
$
1,880,939

 
$
1,656,018

Number of shares outstanding
69,821,693

 
69,717,814

Net asset value per share
$
13.56

 
$
13.46


The accompanying notes are an integral part of these consolidated financial statements.
3
Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
March 31, 2017
 
March 31, 2016
Investment income
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
Interest income
$
32,876

 
$
35,706

Dividend income
51

 
—

Other income
2,265

 
1,222

From non-controlled/affiliated investments:
 
 
 
Interest income
647

 
1,582

Dividend income
1,648

 
920

Other income
298

 
313

From controlled investments:
 
 
 
Interest income
475

 
502

Dividend income
5,034

 
719

Other income
13

 
12

Total investment income
43,307

 
40,976

Expenses
 
 
 
Incentive fee
5,408

 
5,385

Management fee
7,614

 
6,836

Interest and other financing expenses
8,376

 
6,602

Professional fees
850

 
877

Administrative expenses
708

 
839

Other general and administrative expenses
466

 
432

Total expenses
23,422

 
20,971

Less: management and incentive fees waived (See Note 5)
(3,156
)
 
(1,319
)
Less: expenses waived and reimbursed (See Note 5)
(470
)
 
(284
)
Net expenses
19,796

 
19,368

Net investment income before income taxes
23,511

 
21,608

Income tax expense
80

 
41

Net investment income
23,431

 
21,567

Net realized gains:
 
 
 
Non-controlled/non-affiliated investments
826

 
176

Net change in unrealized appreciation (depreciation):
 
 
 
Non-controlled/non-affiliated investments
7,979

 
(14,414
)
Non-controlled/affiliated investments
(296
)
 
(1,151
)
Controlled investments
(1,478
)
 
1,179

Securities purchased under collateralized agreements to resell
(800
)
 
(30
)
Benefit for taxes
755

 
724

Net realized and unrealized gains (losses)
6,986

 
(13,516
)
Net increase in net assets resulting from operations
$
30,417

 
$
8,051

Basic earnings per share
$
0.44

 
$
0.13

Weighted average shares of common stock outstanding - basic (See Note 11)
69,718,968

 
63,934,151

Diluted earnings per share
$
0.40

 
$
0.13

Weighted average shares of common stock outstanding - diluted (See Note 11)
79,543,095

 
71,211,282

Distributions declared and paid per share
$
0.34

 
$
0.34


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

New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
March 31, 2017
 
March 31, 2016
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income
$
23,431

 
$
21,567

Net realized gains on investments
826

 
176

Net change in unrealized appreciation (depreciation) of investments
6,205

 
(14,386
)
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell
(800
)
 
(30
)
Benefit for taxes
755

 
724

Net increase in net assets resulting from operations
30,417

 
8,051

Capital transactions
 
 
 
Deferred offering costs
—

 
38

Distributions declared to stockholders from net investment income
(23,704
)
 
(21,719
)
Reinvestment of distributions
1,548

 
—

Repurchase of shares under repurchase program
—

 
(1,433
)
Other
(81
)
 
—

Total net decrease in net assets resulting from capital transactions
(22,237
)
 
(23,114
)
Net increase (decrease) in net assets
8,180

 
(15,063
)
Net assets at the beginning of the period
938,562

 
836,908

Net assets at the end of the period
$
946,742

 
$
821,845

 
 
 
 
Capital share activity
 
 
 
Shares issued from the reinvestment of distributions
66,306

 
—

Shares reissued from repurchase program in connection with the reinvestment of distributions
37,573

 
—

Shares repurchased under repurchase program
—

 
(124,950
)
Net increase (decrease) in shares outstanding
103,879

 
(124,950
)



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

New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Three Months Ended
 
March 31, 2017
 
March 31, 2016
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
30,417

 
$
8,051

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash (used in) provided by operating activities:
 
 
 
Net realized gains on investments
(826
)
 
(176
)
Net change in unrealized (appreciation) depreciation of investments
(6,205
)
 
14,386

Net change in unrealized depreciation (appreciation) of securities purchased under collateralized agreements to resell
800

 
30

Amortization of purchase discount
(747
)
 
(769
)
Amortization of deferred financing costs
988

 
774

Amortization of premium on Convertible Notes
(27
)
 
—

Non-cash investment income
(1,933
)
 
(1,664
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(349,477
)
 
(27,591
)
Proceeds from sales and paydowns of investments
133,801

 
40,188

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
120

 
10

Cash paid on drawn revolvers
(3,970
)
 
(3,806
)
Cash repayments on drawn revolvers
1,159

 
1,443

Interest and dividend receivable
(3,881
)
 
(2,202
)
Receivable from unsettled securities sold
(691
)
 
—

Receivable from affiliates
(369
)
 
(347
)
Other assets
(967
)
 
(770
)
Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
47,811

 
2,108

Management fee payable
6,258

 
5,517

Incentive fee payable
3,608

 
5,385

Interest payable
2,478

 
603

Payable to affiliates
276

 
395

Deferred tax liability
(755
)
 
(724
)
Other liabilities
298

 
283

Net cash flows (used in) provided by operating activities
(141,834
)
 
41,124

Cash flows from financing activities
 
 
 
Distributions paid
(22,156
)
 
(21,719
)
Offering costs paid
(58
)
 
(53
)
Proceeds from Holdings Credit Facility
165,600

 
17,500

Repayment of Holdings Credit Facility
(122,200
)
 
(39,300
)
Proceeds from NMFC Credit Facility
122,500

 
10,500

Repayment of NMFC Credit Facility
(10,000
)
 
(4,000
)
Other
(81
)
 
—

Deferred financing costs paid
(36
)
 
(38
)
Repurchase of shares under repurchase program
—

 
(1,433
)
Net cash flows provided by (used in) financing activities
133,569

 
(38,543
)
Net (decrease) increase in cash and cash equivalents
(8,265
)
 
2,581

Cash and cash equivalents at the beginning of the period
45,928

 
30,102

Cash and cash equivalents at the end of the period
$
37,663

 
$
32,683

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
4,570

 
$
5,031

Income taxes paid
12

 
2

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
988

 
$
—

Value of shares reissued from repurchase program in connection with the distribution reinvestment plan
560

 
—

Accrual for offering costs
540

 
817

Accrual for deferred financing costs
63

 
90



The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
March 31, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Australia
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Project Sunshine IV Pty Ltd**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Media
 
First lien (2)
 
8.00% (L + 7.00%/M)
 
9/23/2019
 
$
4,618

 
$
4,604

 
$
4,647

 
0.49
 %
Total Funded Debt Investments - Australia
 
 
 
 
 
 
 
$
4,618

 
$
4,604

 
$
4,647

 
0.49
 %
Funded Debt Investments - Luxembourg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
4.75% (L + 3.50%/Q)
 
7/30/2019
 
$
2,992

 
$
2,533

 
$
2,470

 
 
 
 
First lien (3)
 
4.75% (L + 3.50%/Q)
 
7/30/2019
 
1,724

 
1,467

 
1,422

 
 
 
 
Second lien (2)
 
10.50% (L + 9.25%/Q)
 
7/30/2020
 
24,630

 
24,368

 
17,240

 
 
 
 
Second lien (3)
 
10.50% (L + 9.25%/Q)
 
7/30/2020
 
8,204

 
8,334

 
5,743

 
 
 
 
 
 
 
 
 
 
37,550

 
36,702

 
26,875

 
2.84
 %
Total Funded Debt Investments - Luxembourg
 
 
 
 
 
 
 
$
37,550

 
$
36,702

 
$
26,875

 
2.84
 %
Funded Debt Investments - Netherlands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.40% (L + 5.25%/Q)
 
2/18/2022
 
$
16,352

 
$
16,362

 
$
16,392

 
 
 
 
Second lien (3)
 
10.27% (L + 9.13%/Q)
 
2/17/2023
 
29,227

 
28,628

 
29,245

 
 
 
 
 
 
 
 
 
 
45,579

 
44,990

 
45,637

 
4.82
 %
Total Funded Debt Investments - Netherlands
 
 
 
 
 
 
 
$
45,579

 
$
44,990

 
$
45,637

 
4.82
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.56% (L + 9.50%/Q)
 
1/31/2023
 
$
37,500

 
$
36,483

 
$
34,594

 
3.65
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
$
37,500

 
$
36,483

 
$
34,594

 
3.65
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AmWINS Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
7.75% (L + 6.75%/M)
 
1/25/2025
 
$
57,000

 
$
56,789

 
$
57,748

 
6.10
 %
AssuredPartners, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.00% (L + 9.00%/M)
 
10/20/2023
 
30,200

 
29,402

 
30,673

 
 
 
 
Second lien (2)
 
10.00% (L + 9.00%/M)
 
10/20/2023
 
20,000

 
19,297

 
20,312

 
 
 
 
 
 
 
 
 
 
50,200

 
48,699

 
50,985

 
5.39
 %
TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
5.50% (L + 4.50%/M)
 
12/4/2020
 
29,400

 
28,430

 
29,745

 
 
 
 
Subordinated (3)
 
11.38%/S
 
12/1/2021
 
15,000

 
14,673

 
16,650

 
 
 
 
 
 
 
 
 
 
44,400

 
43,103

 
46,395

 
4.90
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
6.75% (L + 5.75%/M)
 
2/28/2022
 
42,500

 
41,933

 
42,022

 
4.44
 %

The accompanying notes are an integral part of these consolidated financial statements.
7
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Severin Acquisition, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)
 
9.90% (L + 8.75%/Q)
 
7/29/2022
 
$
15,000

 
$
14,878

 
$
15,150

 
 
 
 
Second lien (3)
 
9.90% (L + 8.75%/Q)
 
7/29/2022
 
14,518

 
14,341

 
14,663

 
 
 
 
Second lien (4)
 
9.90% (L + 8.75%/Q)
 
7/29/2022
 
4,154

 
4,119

 
4,195

 
 
 
 
Second lien (4)
 
10.40% (L + 9.25%/Q)
 
7/29/2022
 
3,273

 
3,244

 
3,305

 
 
 
 
Second lien (3)
 
10.15% (L + 9.00%/Q)
 
7/29/2022
 
2,361

 
2,339

 
2,384

 
 
 
 
Second lien (3)
 
10.40% (L + 9.25%/Q)
 
7/29/2022
 
1,825

 
1,808

 
1,843

 
 
 
 
Second lien (4)
 
10.40% (L + 9.25%/Q)
 
7/29/2022
 
300

 
297

 
303

 
 
 
 
 
 
 
 
 
 
41,431

 
41,026

 
41,843

 
4.42
 %
Hill International, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.75% (L + 6.75%/M)
 
9/28/2020
 
41,438

 
41,068

 
41,438

 
4.38
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)
 
10.50% (Base + 8.00%/Q)
 
5/12/2019
 
40,000

 
39,913

 
39,826

 
4.21
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.28% (L + 8.25%/Q)
 
11/1/2024
 
36,000

 
35,470

 
37,220

 
3.93
 %
Ascend Learning, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (3)
 
9.52% (L + 8.50%/Q)
 
11/30/2020
 
36,727

 
36,427

 
37,049

 
3.91
 %
PetVet Care Centers LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (3)
 
10.40% (L + 9.25%/Q)
 
6/17/2021
 
24,000

 
23,828

 
24,240

 
 
 
 
Second lien (3)
 
10.54% (L + 9.50%/Q)
 
6/17/2021
 
6,500

 
6,446

 
6,565

 
 
 
 
Second lien (3)
 
9.65% (L + 8.50%/Q)
 
6/17/2021
 
6,000

 
5,915

 
5,910

 
 
 
 
 
 
 
 
 
 
36,500

 
36,189

 
36,715

 
3.88
 %
Redbox Automated Retail, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)
 
8.50% (L + 7.50%/M)
 
9/27/2021
 
36,573

 
36,164

 
36,619

 
3.87
 %
DigiCert Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.00% (L + 5.00%/M)
 
10/21/2021
 
34,662

 
34,102

 
34,748

 
3.67
 %
Weston Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
10.50% (L + 9.50%/M)
 
12/31/2020
 
34,286

 
34,286

 
34,286

 
3.62
 %
VetCor Professional Practices LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (4)
 
7.15% (L + 6.00%/Q)
 
4/20/2021
 
19,257

 
19,118

 
19,257

 
 
 
 
First lien (2)
 
7.15% (L + 6.00%/Q)
 
4/20/2021
 
7,773

 
7,639

 
7,773

 
 
 
 
First lien (4)
 
7.15% (L + 6.00%/Q)
 
4/20/2021
 
2,671

 
2,649

 
2,671

 
 
 
 
First lien (2)
 
7.15% (L + 6.00%/Q)
 
4/20/2021
 
1,644

 
1,613

 
1,644

 
 
 
 
First lien (3)(11) - Drawn
 
7.15% (L + 6.00%/Q)
 
4/20/2021
 
608

 
596

 
608

 
 
 
 
First lien (4)
 
7.15% (L + 6.00%/Q)
 
4/20/2021
 
499

 
490

 
499

 
 
 
 
 
 
 
 
 
 
32,452

 
32,105

 
32,452

 
3.43
 %
Valet Waste Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
8.00% (L + 7.00%/M)
 
9/24/2021
 
29,550

 
29,259

 
29,550

 
 
 
 
First lien (3)(11) - Drawn
 
8.00% (L + 7.00%/M)
 
9/24/2021
 
2,250

 
2,222

 
2,250

 
 
 
 
 
 
 
 
 
 
31,800

 
31,481

 
31,800

 
3.36
 %
Evo Payments International, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
10.00% (L + 9.00%/M)
 
12/23/2024
 
25,000

 
24,817

 
25,250

 
 
 
 
Second lien (3)
 
10.00% (L + 9.00%/M)
 
12/23/2024
 
5,000

 
5,050

 
5,050

 
 
 
 
 
 
 
 
 
 
30,000

 
29,867

 
30,300

 
3.20
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
6.80% (L + 5.75%/Q)
 
10/31/2022
 
19,756

 
19,426

 
19,854

 
 
 
 
Second lien (3)
 
10.29% (L + 9.25%/Q)
 
10/30/2023
 
10,000

 
9,913

 
9,849

 
 
 
 
 
 
 
 
 
 
29,756

 
29,339

 
29,703

 
3.14
 %

The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
    TW-NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
National HME, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (4)
 
10.40% (L + 9.25%/Q)
 
7/14/2022
 
$
21,500

 
$
21,275

 
$
21,500

 
 
 
 
Second lien (3)
 
10.40% (L + 9.25%/Q)
 
7/14/2022
 
5,800

 
5,729

 
5,800

 
 
 
 
 
 
 
 
 
 
27,300

 
27,004

 
27,300

 
2.88
 %
ProQuest LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.00% (L + 9.00%/M)
 
12/15/2022
 
27,020

 
26,553

 
27,020

 
2.85
 %
Marketo, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)
 
10.65% (L + 9.50%/Q)
 
8/16/2021
 
26,820

 
26,457

 
26,595

 
2.81
 %
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.66% (Base + 6.50%/Q)
 
12/20/2022
 
26,182

 
26,055

 
25,985

 
2.74
 %
nThrive, Inc. (fka Precyse Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
10.75% (L + 9.75%/M)
 
4/20/2023
 
25,000

 
24,604

 
25,000

 
2.64
 %
AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)
 
9.25% (L + 8.25%/M)
 
9/30/2020
 
23,729

 
23,465

 
23,965

 
2.53
 %
Navex Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.31% (L + 8.75%/Q)
 
11/18/2022
 
12,536

 
12,211

 
12,473

 
 
 
 
Second lien (4)
 
10.31% (L + 8.75%/Q)
 
11/18/2022
 
11,508

 
11,383

 
11,450

 
 
 
 
 
 
 
 
 
 
24,044

 
23,594

 
23,923

 
2.53
 %
EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.15% (L + 6.00%/Q)
 
6/30/2021
 
21,054

 
20,895

 
21,054

 
 
 
 
First lien (2)
 
7.97% (Base + 5.56%/Q)
 
6/30/2021
 
2,183

 
2,165

 
2,183

 
 
 
 
 
 
 
 
 
 
23,237

 
23,060

 
23,237

 
2.45
 %
TWDiamondback Holdings Corp. (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)
 
9.90% (L + 8.75%/Q)
 
11/19/2019
 
19,895

 
19,895

 
19,895

 
 
 
 
First lien (3)
 
9.90% (L + 8.75%/Q)
 
11/19/2019
 
2,158

 
2,158

 
2,158

 
 
 
 
First lien (4)
 
9.90% (L + 8.75%/Q)
 
11/19/2019
 
605

 
605

 
605

 
 
 
 
 
 
 
 
 
 
22,658

 
22,658

 
22,658

 
2.39
 %
Ryan, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
6.75% (L + 5.75%/M)
 
8/7/2020
 
21,930

 
21,698

 
21,752

 
2.30
 %
KeyPoint Government Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
7.75% (L + 6.50%/M)
 
11/13/2017
 
21,544

 
21,476

 
21,544

 
2.28
 %
IT'SUGAR LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
First lien (4)
 
11.35% (L + 10.00%/Q)
 
10/23/2019
 
20,844

 
20,289

 
20,844

 
2.20
 %
Vision Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.64% (L + 6.50%/Q)
 
6/16/2022
 
19,632

 
19,457

 
19,718

 
2.08
 %
Pelican Products, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Products
 
Second lien (2)
 
9.40% (L + 8.25%/Q)
 
4/9/2021
 
10,000

 
10,079

 
9,962

 
 
 
 
Second lien (3)
 
9.40% (L + 8.25%/Q)
 
4/9/2021
 
9,500

 
9,503

 
9,465

 
 
 
 
 
 
 
 
 
 
19,500

 
19,582

 
19,427

 
2.05
 %
Sierra Hamilton LLC / Sierra Hamilton Finance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (2)
 
12.25%/S (10)
 
12/15/2018
 
25,000

 
25,000

 
14,882

 
 
 
 
First lien (3)
 
12.25%/S (10)
 
12/15/2018
 
2,660

 
2,231

 
1,583

 
 
 
 
First lien (3)
 
9.00% (L + 8.00%/M)
 
6/13/2017
 
2,239

 
2,212

 
2,205

 
 
 
 
 
 
 
 
 
 
29,899

 
29,443

 
18,670

 
1.97
 %

The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
9.25% (L + 8.25%/M)
 
7/23/2020
 
$
18,500

 
$
18,386

 
$
18,324

 
1.94
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
6.25% (L + 5.25%/M)
 
7/2/2021
 
17,587

 
17,456

 
17,587

 
 
 
 
First lien (3)(11) - Drawn
 
8.25% (P + 4.25%/Q)
 
7/2/2021
 
513

 
507

 
513

 
 
 
 
 
 
 
 
 
 
18,100

 
17,963

 
18,100

 
1.91
 %
Project Alpha Intermediate Holding, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
9.25% (L + 8.25%/M)
 
8/22/2022
 
17,910

 
17,745

 
17,988

 
1.90
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)
 
8.25% (L + 7.25%/M)
 
8/4/2022
 
17,730

 
17,587

 
17,730

 
1.87
 %
American Tire Distributors, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Subordinated (3)
 
10.25%/S
 
3/1/2022
 
15,520

 
15,233

 
15,868

 
1.68
 %
Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Second lien (2)
 
10.55% (L + 9.50%/Q)
 
10/19/2023
 
15,000

 
14,657

 
14,963

 
1.58
 %
Cvent, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.00% (L + 5.00%/M)
 
11/29/2023
 
5,000

 
4,964

 
5,075

 
 
 
 
Second lien (3)
 
11.00% (L + 10.00%/M)
 
5/29/2024
 
10,000

 
9,854

 
9,850

 
 
 
 
 
 
 
 
 
 
15,000

 
14,818

 
14,925

 
1.58
 %
Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)
 
9.00% (L + 8.00%/M)
 
7/15/2021
 
12,375

 
12,293

 
12,358

 
 
 
 
First lien (4)
 
9.00% (L + 8.00%/M)
 
7/15/2021
 
2,063

 
2,049

 
2,060

 
 
 
 
 
 
 
 
 
 
14,438

 
14,342

 
14,418

 
1.52
 %
SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
9.75% (L + 8.75%/M)
 
12/30/2021
 
14,265

 
14,152

 
14,265

 
1.51
 %
YP Holdings LLC / Print Media Holdings LLC (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YP LLC / Print Media LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Media
 
First lien (2)
 
12.25% (L + 11.00%/M)
 
6/4/2018
 
13,740

 
13,687

 
13,757

 
1.45
 %
Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)
 
6.00% (L + 5.00%/M)
 
12/2/2022
 
3,015

 
3,001

 
3,007

 
 
 
 
First lien (3)(11) - Drawn
 
6.00% (L + 5.00%/M)
 
12/2/2022
 
350

 
348

 
349

 
 
 
 
Second lien (3)
 
10.25% (L + 9.25%/M)
 
6/2/2023
 
7,840

 
7,783

 
7,782

 
 
 
 
Second lien (3)
 
10.25% (L + 9.25%/M)
 
6/2/2023
 
2,160

 
2,144

 
2,144

 
 
 
 
 
 
 
 
 
 
13,365

 
13,276

 
13,282

 
1.40
 %
Poseidon Intermediate, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.56% (L + 8.50%/Q)
 
8/15/2023
 
13,000

 
12,834

 
13,000

 
1.37
 %
Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)
 
10.04% (L + 9.00%/Q)
 
11/17/2023
 
11,000

 
10,920

 
10,918

 
1.15
 %
QC McKissock Investment, LLC (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
McKissock, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)
 
7.65% (L + 6.50%/Q)
 
8/5/2019
 
6,447

 
6,409

 
6,447

 
 
 
 
First lien (2)
 
7.65% (L + 6.50%/Q)
 
8/5/2019
 
3,074

 
3,058

 
3,074

 
 
 
 
First lien (2)
 
7.65% (L + 6.50%/Q)
 
8/5/2019
 
992

 
986

 
992

 
 
 
 
 
 
 
 
 
 
10,513

 
10,453

 
10,513

 
1.11
 %
Masergy Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
9.50% (L + 8.50%/Q)
 
12/16/2024
 
10,000

 
9,939

 
10,150

 
1.07
 %
Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.00% (L + 6.00%/Q)
 
10/31/2022
 
9,975

 
9,834

 
10,128

 
1.07
 %

The accompanying notes are an integral part of these consolidated financial statements.
10
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2017
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate(9)
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
PowerPlan Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.00% (L + 9.00%/M)
 
2/23/2023
 
$
10,000

 
$
9,919