UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended September 30, 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 (the "Exchange Act") during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically 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 November 7, 2017
Common stock, par value $0.01 per share
 
75,805,019
 

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 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)
 
September 30, 2017
 
December 31, 2016
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $1,480,226 and $1,379,603, respectively)
$
1,501,544

 
$
1,346,556

Non-controlled/affiliated investments (cost of $175,576 and $54,996, respectively)
173,619

 
57,440

Controlled investments (cost of $157,902 and $140,579, respectively)
170,880

 
154,821

Total investments at fair value (cost of $1,813,704 and $1,575,178, respectively)
1,846,043

 
1,558,817

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000 respectively)
26,836

 
29,218

Cash and cash equivalents
39,646

 
45,928

Interest and dividend receivable
27,800

 
17,833

Receivable from unsettled securities sold
3,496

 
990

Receivable from affiliates
339

 
346

Other assets
6,455

 
2,886

Total assets
$
1,950,615

 
$
1,656,018

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
376,163

 
$
333,513

     Convertible Notes
155,440

 
155,523

     Unsecured Notes
145,000

 
90,000

     SBA-guaranteed debentures
144,000

 
121,745

     NMFC Credit Facility
19,000

 
10,000

     Deferred financing costs (net of accumulated amortization of $15,333 and $12,279, respectively)
(12,502
)
 
(14,041
)
Net borrowings
827,101

 
696,740

Payable for unsettled securities purchased
67,499

 
2,740

Management fee payable
6,939

 
5,852

Incentive fee payable
6,573

 
5,745

Interest payable
6,098

 
3,172

Payable to affiliates
786

 
136

Deferred tax liability
509

 
1,034

Other liabilities
3,027

 
2,037

Total liabilities
918,532

 
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, 75,805,019 and 69,755,387 shares issued, respectively, and 75,805,019 and 69,717,814 shares outstanding, respectively
758

 
698

Paid in capital in excess of par
1,087,474

 
1,001,862

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

 
(460
)
Accumulated undistributed net investment income
2,462

 
2,073

Accumulated undistributed net realized losses on investments
(76,790
)
 
(36,947
)
Net unrealized appreciation (depreciation) (net of provision for taxes of $509 and $1,034, respectively)
18,179

 
(28,664
)
Total net assets
$
1,032,083

 
$
938,562

Total liabilities and net assets
$
1,950,615

 
$
1,656,018

Number of shares outstanding
75,805,019

 
69,717,814

Net asset value per share
$
13.61

 
$
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
 
Nine Months Ended
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
Investment income
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
38,511

 
$
34,735

 
$
107,905

 
$
106,743

Dividend income
—

 
83

 
159

 
175

Non-cash dividend income
59

 
—

 
72

 
—

Other income
1,196

 
2,557

 
5,545

 
4,776

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
718

 
720

 
2,077

 
3,929

Dividend income
816

 
1,061

 
2,662

 
2,868

Non-cash dividend income
3,994

 
—

 
8,625

 
—

Other income
294

 
284

 
888

 
902

From controlled investments:
 
 
 
 
 
 
 
Interest income
409

 
462

 
1,293

 
1,447

Dividend income
3,659

 
1,151

 
11,739

 
1,151

Non-cash dividend income
1,342

 
768

 
3,016

 
2,229

Other income
238

 
13

 
581

 
80

Total investment income
51,236

 
41,834

 
144,562

 
124,300

Expenses
 
 
 
 
 
 
 
Incentive fee
6,573

 
5,432

 
18,430

 
16,266

Management fee
8,422

 
6,883

 
24,311

 
20,537

Interest and other financing expenses
9,509

 
7,171

 
26,930

 
20,544

Professional fees
819

 
723

 
2,391

 
2,461

Administrative expenses
652

 
586

 
2,022

 
2,054

Other general and administrative expenses
346

 
390

 
1,214

 
1,206

Total expenses
26,321

 
21,185

 
75,298

 
63,068

Less: management and incentive fees waived (See Note 5)
(1,483
)
 
(1,102
)
 
(6,124
)
 
(3,662
)
Less: expenses waived and reimbursed (See Note 5)
—

 
—

 
(474
)
 
(347
)
Net expenses
24,838

 
20,083

 
68,700

 
59,059

Net investment income before income taxes
26,398

 
21,751

 
75,862

 
65,241

Income tax expense
106

 
22

 
341

 
113

Net investment income
26,292

 
21,729

 
75,521

 
65,128

Net realized (losses) gains:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(14,216
)
 
1,150

 
(39,843
)
 
2,191

Net change in unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
19,755

 
3,837

 
54,365

 
2,955

Non-controlled/affiliated investments
(3,807
)
 
109

 
(4,401
)
 
84

Controlled investments
(1,305
)
 
(800
)
 
(1,264
)
 
7,677

Securities purchased under collateralized agreements to resell
(1,549
)
 
(957
)
 
(2,382
)
 
(1,031
)
(Provision) benefit for taxes
(394
)
 
11

 
525

 
819

Net realized and unrealized gains (losses)
(1,516
)
 
3,350

 
7,000

 
12,695

Net increase in net assets resulting from operations
$
24,776

 
$
25,079

 
$
82,521

 
$
77,823

Basic earnings per share
$
0.33

 
$
0.39

 
$
1.12

 
$
1.22

Weighted average shares of common stock outstanding - basic (See Note 11)
75,688,429

 
63,758,062

 
73,618,794

 
63,843,730

Diluted earnings per share
$
0.31

 
$
0.37

 
$
1.04

 
$
1.14

Weighted average shares of common stock outstanding - diluted (See Note 11)
85,512,556

 
71,145,932

 
83,442,921

 
71,158,044

Distributions declared and paid per share
$
0.34

 
$
0.34

 
$
1.02

 
$
1.02


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

New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
 
Nine Months Ended
 
September 30, 2017
 
September 30, 2016
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income
$
75,521

 
$
65,128

Net realized (losses) gains on investments
(39,843
)
 
2,191

Net change in unrealized appreciation (depreciation) of investments
48,700

 
10,716

Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell
(2,382
)
 
(1,031
)
Benefit for taxes
525

 
819

Net increase in net assets resulting from operations
82,521

 
77,823

Capital transactions
 
 
 
Net proceeds from shares sold
81,478

 
—

Deferred offering costs
(172
)
 
38

Distributions declared to stockholders from net investment income
(75,132
)
 
(65,095
)
Reinvestment of distributions
4,907

 
1,486

Repurchase of shares under repurchase program
—

 
(2,948
)
Other
(81
)
 
—

Total net increase (decrease) in net assets resulting from capital transactions
11,000

 
(66,519
)
Net increase in net assets
93,521

 
11,304

Net assets at the beginning of the period
938,562

 
836,908

Net assets at the end of the period
$
1,032,083

 
$
848,212

 
 
 
 
Capital share activity
 
 
 
Shares sold
5,750,000

 
—

Shares issued from the reinvestment of distributions
299,632

 
—

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

 
107,970

Shares repurchased under repurchase program
—

 
(248,499
)
Net increase (decrease) in shares outstanding
6,087,205

 
(140,529
)



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)
 
Nine Months Ended
 
September 30, 2017
 
September 30, 2016
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
82,521

 
$
77,823

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized losses (gains) on investments
39,843

 
(2,191
)
Net change in unrealized (appreciation) depreciation of investments
(48,700
)
 
(10,716
)
Net change in unrealized depreciation (appreciation) of securities purchased under collateralized agreements to resell
2,382

 
1,031

Amortization of purchase discount
(6,458
)
 
(2,342
)
Amortization of deferred financing costs
3,054

 
2,446

Amortization of premium on Convertible Notes
(83
)
 
—

Non-cash investment income
(6,236
)
 
(5,101
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(810,119
)
 
(336,310
)
Proceeds from sales and paydowns of investments
542,563

 
352,607

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
339

 
86

Cash paid on drawn revolvers
(11,387
)
 
(10,899
)
Cash repayments on drawn revolvers
12,929

 
8,111

Interest and dividend receivable
(9,967
)
 
(2,822
)
Receivable from unsettled securities sold
(2,506
)
 
—

Receivable from affiliates
7

 
(485
)
Other assets
(2,954
)
 
(299
)
Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
64,759

 
40,249

Management fee payable
1,087

 
315

Incentive fee payable
828

 
(190
)
Interest payable
2,926

 
2,027

Payable to affiliates
650

 
3

Deferred tax liability
(525
)
 
(819
)
Other liabilities
585

 
311

Net cash flows (used in) provided by operating activities
(144,462
)
 
112,835

Cash flows from financing activities
 
 
 
Net proceeds from shares sold
81,478

 
—

Distributions paid
(70,225
)
 
(63,609
)
Offering costs paid
(441
)
 
(155
)
Proceeds from Holdings Credit Facility
435,750

 
128,500

Repayment of Holdings Credit Facility
(393,100
)
 
(238,900
)
Proceeds from Convertible Notes
—

 
40,552

Proceeds from Unsecured Notes
55,000

 
90,000

Proceeds from SBA-guaranteed debentures
22,255

 
4,000

Proceeds from NMFC Credit Facility
251,100

 
156,500

Repayment of NMFC Credit Facility
(242,100
)
 
(204,000
)
Other
(81
)
 
—

Deferred financing costs paid
(1,456
)
 
(3,083
)
Repurchase of shares under repurchase program
—

 
(2,948
)
Net cash flows provided by (used in) financing activities
138,180

 
(93,143
)
Net (decrease) increase in cash and cash equivalents
(6,282
)
 
19,692

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

 
30,102

Cash and cash equivalents at the end of the period
$
39,646

 
$
49,794

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
20,064

 
$
15,975

Income taxes paid
175

 
11

Non-cash operating activities:
 
 
 
Non-cash activity on investments
$
12,858

 
$
167

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
4,347

 
$
—

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

 
1,486

Accrual for offering costs
944

 
576

Accrual for deferred financing costs
158

 
371



The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
September 30, 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 - Luxembourg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.84% (L + 3.50% + 2.00% PIK/Q)*
 
7/30/2019
 
$
2,984

 
$
2,616

 
$
2,955

 
 
 
 
First lien (3)
 
6.84% (L + 3.50% + 2.00% PIK/Q)*
 
7/30/2019
 
1,719

 
1,515

 
1,702

 
 
 
 
Second lien (2)
 
10.58% (L + 9.25%/Q)
 
7/30/2020
 
24,630

 
24,381

 
23,275

 
 
 
 
Second lien (3)
 
10.58% (L + 9.25%/Q)
 
7/30/2020
 
8,204

 
8,338

 
7,753

 
 
 
 
 
 
 
 
 
 
37,537

 
36,850

 
35,685

 
3.46
 %
Total Funded Debt Investments - Luxembourg
 
 
 
 
 
 
 
$
37,537

 
$
36,850

 
$
35,685

 
3.46
 %
Funded Debt Investments - Netherlands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.52% (L + 5.25%/Q)
 
2/18/2022
 
$
14,274

 
$
14,282

 
$
14,372

 
 
 
 
Second lien (3)
 
10.40% (L + 9.13%/Q)
 
2/17/2023
 
29,227

 
28,689

 
29,080

 
 
 
 
 
 
 
 
 
 
43,501

 
42,971

 
43,452

 
4.21
 %
Total Funded Debt Investments - Netherlands
 
 
 
 
 
 
 
$
43,501

 
$
42,971

 
$
43,452

 
4.21
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.81% (L + 9.50%/Q)
 
1/31/2023
 
$
40,000

 
$
38,998

 
$
39,000

 
3.78
 %
Shine Acquisition Co. S.à.r.l. / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (3)
 
8.73% (L+7.50%/M)
 
10/3/2025
 
40,353

 
40,050

 
40,050

 
3.88
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
$
80,353

 
$
79,048

 
$
79,050

 
7.66
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AmWINS Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
7.99% (L + 6.75%/M)
 
1/25/2025
 
$
57,000

 
$
56,800

 
$
58,378

 
5.66
 %
DigiCert Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
 6.24% (L + 5.00%/M)
 
10/21/2021
 
34,374

 
33,873

 
34,589

 
 
 
 
Second lien (3)
 
 9.24% (L + 8.00%/M)
 
10/31/2025
 
20,176

 
20,076

 
20,403

 
 
 
 
 
 
 
 
 
 
54,550

 
53,949

 
54,992

 
5.33
 %
Alegeus Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)(10)
 
9.83% (L + 8.50%/Q)
 
10/30/2023
 
23,500

 
23,500

 
23,500

 
 
 
 
Second lien (4)(10)
 
9.83% (L + 8.50%/Q)
 
10/30/2023
 
22,500

 
22,500

 
22,500

 
 
 
 
 
 
 
 
 
 
46,000

 
46,000

 
46,000

 
4.46
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
6.99% (L + 5.75%/M)
 
2/28/2022
 
41,766

 
41,258

 
41,662

 
4.04
 %
Severin Acquisition, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)(10)
 
9.99% (L + 8.75%/M)
 
7/29/2022
 
15,000

 
14,887

 
15,000

 
 
 
 
Second lien (3)(10)
 
9.99% (L + 8.75%/M)
 
7/29/2022
 
14,518

 
14,354

 
14,518

 
 
 
 
Second lien (4)(10)
 
9.99% (L + 8.75%/M)
 
7/29/2022
 
4,154

 
4,122

 
4,154

 
 
 
 
Second lien (4)(10)
 
10.49% (L + 9.25%/M)
 
7/29/2022
 
3,273

 
3,246

 
3,273

 
 
 
 
Second lien (3)(10)
 
10.24% (L + 9.00%/M)
 
7/29/2022
 
2,361

 
2,340

 
2,361

 
 
 
 
Second lien (3)(10)
 
10.49% (L + 9.25%/M)
 
7/29/2022
 
1,825

 
1,809

 
1,825

 
 
 
 
Second lien (4)(10)
 
10.49% (L + 9.25%/M)
 
7/29/2022
 
300

 
297

 
300

 
 
 
 
 
 
 
 
 
 
41,431

 
41,055

 
41,431

 
4.01
 %

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)
September 30, 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
PetVet Care Centers LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)(10)
 
7.33% (L + 6.00%/Q)
 
6/8/2023
 
$
34,613

 
$
34,491

 
$
34,486

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.32% (L + 6.00%/Q)
 
6/8/2023
 
5,813

 
5,792

 
5,792

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.27% (L + 6.00%/Q)
 
6/8/2023
 
605

 
603

 
603

 
 
 
 
 
 
 
 
 
 
41,031

 
40,886

 
40,881

 
3.96
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(10)
 
10.50% (Base + 8.00%/Q)
 
5/12/2019
 
39,900

 
39,831

 
39,900

 
3.87
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)
 
7.82% (L+ 6.50%Q)
 
9/18/2023
 
16,792

 
16,667

 
16,666

 
 
 
 
First lien (4)
 
7.82% (L+ 6.50%Q)
 
9/18/2023
 
22,670

 
22,501

 
22,500

 
 
 
 
 
 
 
 
 
 
39,462

 
39,168

 
39,166

 
3.79
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.56% (L + 8.25%/Q)
 
11/1/2024
 
36,000

 
35,495

 
37,233

 
3.61
 %
VetCor Professional Practices LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (4)(10)
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
19,160

 
19,036

 
19,160

 
 
 
 
First lien (2)(10)
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
7,734

 
7,615

 
7,733

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
2,721

 
2,669

 
2,721

 
 
 
 
First lien (4)(10)
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
2,657

 
2,638

 
2,657

 
 
 
 
First lien (2)(10)
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
1,636

 
1,608

 
1,636

 
 
 
 
First lien (4)(10)
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
496

 
488

 
496

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.33% (L + 6.00%/Q)
 
4/20/2021
 
180

 
178

 
180

 
 
 
 
 
 
 
 
 
 
34,584

 
34,232

 
34,583

 
3.35
 %
Weston Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
10.74% (L + 9.50%/M)
 
12/31/2020
 
33,214

 
33,214

 
34,211

 
3.31
 %
Valet Waste Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
8.24% (L + 7.00%/M)
 
9/24/2021
 
29,400

 
29,138

 
29,400

 
 
 
 
First lien (2)(10)
 
8.24% (L + 7.00%/M)
 
9/24/2021
 
3,741

 
3,705

 
3,741

 
 
 
 
 
 
 
 
 
 
33,141

 
32,843

 
33,141

 
3.21
 %
Evo Payments International, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
10.24% (L + 9.00%/M)
 
12/23/2024
 
25,000

 
24,821

 
25,218

 
 
 
 
Second lien (3)
 
10.24% (L + 9.00%/M)
 
12/23/2024
 
5,000

 
5,052

 
5,044

 
 
 
 
 
 
 
 
 
 
30,000

 
29,873

 
30,262

 
2.93
 %
Redbox Automated Retail, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)
 
8.74% (L + 7.50%/M)
 
9/27/2021
 
29,258

 
28,963

 
29,441

 
2.85
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.06% (L + 5.75%/Q)
 
10/31/2022
 
19,656

 
19,353

 
19,607

 
 
 
 
Second lien (3)
 
10.56% (L + 9.25%/Q)
 
10/30/2023
 
10,000

 
9,917

 
9,800

 
 
 
 
 
 
 
 
 
 
29,656

 
29,270

 
29,407

 
2.85
 %
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.83% (L + 6.50%/Q)
 
12/20/2022
 
25,985

 
25,869

 
25,920

 
 
 
 
First lien (3)(11) - Drawn
 
7.82% (L + 6.50%/Q)
 
12/20/2022
 
2,113

 
2,102

 
2,107

 
 
 
 
 
 
 
 
 
 
28,098

 
27,971

 
28,027

 
2.72
 %
Wirepath LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (2)
 
6.56% (L + 5.25%/Q)
 
8/5/2024
 
27,800

 
27,663

 
27,948

 
2.71
 %

The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 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)
 
10.59% (L + 9.25%/Q)
 
7/14/2022
 
$
21,500

 
$
21,292

 
$
21,690

 
 
 
 
Second lien (3)(10)
 
10.59% (L + 9.25%/Q)
 
7/14/2022
 
5,800

 
5,734

 
5,852

 
 
 
 
 
 
 
 
 
 
27,300

 
27,026

 
27,542

 
2.67
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
7.48% (L + 6.25%/M)
 
6/17/2024
 
27,259

 
27,061

 
27,054

 
2.62
 %
Marketo, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(10)
 
10.83% (L + 9.50%/Q)
 
8/16/2021
 
26,820

 
26,491

 
26,820

 
2.60
 %
nThrive, Inc. (fka Precyse Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)(10)
 
10.99% (L + 9.75%/M)
 
4/20/2023
 
25,000

 
24,628

 
24,808

 
2.40
 %
Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
6.58% (L + 5.25%/Q)
 
5/1/2024
 
20,000

 
19,808

 
20,017

 
 
 
 
Second lien (3)
 
10.58% (L + 9.25%/Q)
 
5/1/2025
 
4,500

 
4,456

 
4,469

 
 
 
 
 
 
 
 
 
 
24,500

 
24,264

 
24,486

 
2.37
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(10)
 
8.49% (L + 7.25%/M)
 
8/4/2022
 
17,589

 
17,458

 
17,589

 
 
 
 
First lien (4)(10)
 
7.48% (L + 6.25%/M)
 
8/4/2022
 
4,589

 
4,567

 
4,566

 
 
 
 
First lien (2)(10)
 
7.48% (L + 6.25%/M)
 
8/4/2022
 
1,164

 
1,158

 
1,158

 
 
 
 
First lien (4)(10)
 
7.48% (L + 6.25%/M)
 
8/4/2022
 
512

 
510

 
509

 
 
 
 
 
 
 
 
 
 
23,854

 
23,693

 
23,822

 
2.31
 %
AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)(10)
 
9.49% (L + 8.25%/M)
 
9/30/2020
 
23,350

 
23,123

 
23,350

 
2.26
 %
TWDiamondback Holdings Corp. (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)(10)
 
10.30% (L + 8.75%/Q)
 
11/19/2019
 
19,895

 
19,895

 
20,094

 
 
 
 
First lien (3)(10)
 
10.09% (L + 8.75%/Q)
 
11/19/2019
 
2,158

 
2,158

 
2,180

 
 
 
 
First lien (4)(10)
 
10.09% (L + 8.75%/Q)
 
11/19/2019
 
605

 
605

 
611

 
 
 
 
 
 
 
 
 
 
22,658

 
22,658

 
22,885

 
2.22
 %
BackOffice Associates Holdings, L.L.C.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
7.74% (L + 6.50%/M)
 
8/25/2023
 
22,927

 
22,729

 
22,726

 
2.20
 %
EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
7.33% (L + 6.00%/Q)
 
6/30/2021
 
20,946

 
20,805

 
20,946

 
 
 
 
First lien (2)(10)
 
7.33% (L + 6.00%/Q)
 
6/30/2021
 
1,211

 
1,202

 
1,211

 
 
 
 
 
 
 
 
 
 
22,157

 
22,007

 
22,157

 
2.15
 %
DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Second lien (3)
 
8.84% (L + 7.50%/Q)
 
6/2/2025
 
19,500

 
19,310

 
19,817

 
1.92
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(10)
 
6.58% (L + 5.25%/Q)
 
7/2/2021
 
17,498

 
17,381

 
17,498

 
 
 
 
First lien (3)(10)(11) - Drawn
 
8.50% (P + 4.25%/Q)
 
7/2/2021
 
1,025

 
1,015

 
1,025

 
 
 
 
 
 
 
 
 
 
18,523

 
18,396

 
18,523

 
1.79
 %
KeyPoint Government Solutions, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)(10)
 
7.30% (L + 6.00%/Q)
 
4/18/2024
 
18,652

 
18,475

 
18,465

 
1.79
 %
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)(10)
 
9.49% (L + 8.25%/M)
 
7/23/2020
 
18,500

 
18,401

 
18,315

 
1.77
 %
VF Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)(10)
 
10.24% (L + 9.00%/M)
 
6/28/2024
 
17,086

 
17,404

 
17,598

 
1.71
 %

The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 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
ProQuest LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.24% (L + 9.00%/M)
 
12/15/2022
 
$
17,220

 
$
16,942

 
$
17,220

 
1.67
 %
TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
11.38%/S
 
12/1/2021
 
15,000

 
14,700

 
16,463

 
1.60
 %
American Tire Distributors, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Subordinated (3)
 
10.25%/S
 
3/1/2022
 
15,520

 
15,257

 
16,261

 
1.58
 %
Hill International, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
6.99% (L + 5.75%/M)
 
6/21/2023
 
15,761

 
15,685

 
15,682

 
1.52
 %
Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Second lien (2)
 
10.82% (L + 9.50%/Q)
 
10/19/2023
 
15,000

 
14,676

 
15,075

 
1.46
 %
Transcendia Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaging
 
Second lien (3)
 
9.24% (L + 8.00%/M)
 
5/30/2025
 
14,500

 
14,304

 
14,391

 
1.39
 %
SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)(10)
 
10.08% (L + 8.75%/Q)
 
12/30/2021
 
14,265

 
14,162

 
14,368

 
1.39
 %
Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)(10)
 
9.24% (L + 8.00%/M)
 
7/15/2021
 
12,054

 
11,982

 
12,120

 
 
 
 
First lien (4)(10)
 
9.24% (L + 8.00%/M)
 
7/15/2021
 
2,009

 
1,997

 
2,020

 
 
 
 
 
 
 
 
 
 
14,063

 
13,979

 
14,140

 
1.37
 %
Poseidon Intermediate, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)(10)
 
9.81% (L + 8.50%/Q)
 
8/15/2023
 
13,000

 
12,844

 
13,130

 
1.27
 %
Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(10)
 
6.24% (L + 5.00%/M)
 
12/2/2022
 
3,000

 
2,987

 
3,028

 
 
 
 
Second lien (3)(10)
 
10.49% (L + 9.25%/M)
 
6/2/2023
 
7,840

 
7,787

 
7,841

 
 
 
 
Second lien (3)(10)
 
10.49% (L + 9.25%/M)
 
6/2/2023
 
2,160

 
2,145

 
2,160

 
 
 
 
 
 
 
 
 
 
13,000

 
12,919

 
13,029

 
1.26
 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
6.49% (L + 5.25%/M)
 
4/29/2024
 
12,569

 
12,509

 
12,662

 
1.23
 %
FR Arsenal Holdings II Corp.