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 June 30, 2019
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
 
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
 
 
Common stock, par value $0.01 per share
NMFC
New York Stock Exchange
 
 
5.75% Notes due 2023
NMFX
New York Stock Exchange
 
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 every Interactive Data File required to be submitted 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 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, a 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
 
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 August 7, 2019
Common stock, par value $0.01 per share
 
87,510,302
 

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2019
TABLE OF CONTENTS
 
PAGE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3
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)
 
June 30, 2019
 
December 31, 2018
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $2,139,158 and $1,868,785, respectively)
$
2,144,134

 
$
1,861,323

Non-controlled/affiliated investments (cost of $80,065 and $78,438, respectively)
76,592

 
77,493

Controlled investments (cost of $399,317 and $382,503, respectively)
422,370

 
403,137

Total investments at fair value (cost of $2,618,540 and $2,329,726, respectively)
2,643,096

 
2,341,953

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
23,508

 
23,508

Cash and cash equivalents
87,161

 
49,664

Interest and dividend receivable
33,385

 
30,081

Receivable from affiliates
297

 
288

Other assets
3,869

 
3,172

Total assets
$
2,791,316

 
$
2,448,666

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
549,063

 
$
512,563

     Unsecured Notes
453,250

 
336,750

     Convertible Notes
201,674

 
270,301

     SBA-guaranteed debentures
165,000

 
165,000

     NMFC Credit Facility
135,000

 
60,000

     DB Credit Facility
100,000

 
57,000

     Deferred financing costs (net of accumulated amortization of $25,481 and $22,234, respectively)
(16,469
)
 
(17,515
)
Net borrowings
1,587,518

 
1,384,099

Payable for unsettled securities purchased
84,930

 
20,147

Interest payable
15,501

 
12,397

Management fee payable
8,817

 
8,392

Incentive fee payable
6,987

 
6,864

Deferred tax liability
1,166

 
1,006

Payable to affiliates
451

 
1,021

Other liabilities
5,029

 
8,471

Total liabilities
1,710,399

 
1,442,397

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, 200,000,000 and 100,000,000 shares authorized, respectively, and 80,610,302 and 76,106,372 shares issued and outstanding, respectively
806

 
761

Paid in capital in excess of par
1,097,286

 
1,035,629

Accumulated overdistributed earnings
(17,175
)
 
(30,121
)
Total net assets
$
1,080,917

 
$
1,006,269

Total liabilities and net assets
$
2,791,316

 
$
2,448,666

Number of shares outstanding
80,610,302

 
76,106,372

Net asset value per share
$
13.41

 
$
13.22


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

New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Investment income
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
48,018

 
$
38,510

 
$
92,475

 
$
73,946

Dividend income
—

 
—

 
—

 
486

Non-cash dividend income
2,069

 
1,439

 
4,043

 
2,763

Other income
1,841

 
1,013

 
4,095

 
3,881

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
1,033

 
210

 
2,037

 
312

Dividend income
812

 
791

 
1,538

 
1,636

Non-cash dividend income
301

 
4,017

 
592

 
8,026

Other income
301

 
912

 
592

 
1,214

From controlled investments:
 
 
 
 
 
 
 
Interest income
2,584

 
1,370

 
5,047

 
2,571

Dividend income
7,265

 
4,591

 
15,722

 
8,830

Non-cash dividend income
2,128

 
1,508

 
4,173

 
2,962

Other income
113

 
237

 
342

 
860

Total investment income
66,465

 
54,598

 
130,656

 
107,487

Expenses
 
 
 
 
 
 
 
Incentive fee
6,987

 
6,430

 
13,850

 
12,864

Management fee
11,640

 
9,301

 
22,615

 
17,993

Interest and other financing expenses
20,719

 
12,824

 
39,865

 
24,114

Professional fees
886

 
708

 
1,652

 
1,402

Administrative expenses
1,049

 
822

 
2,144

 
1,761

Other general and administrative expenses
398

 
518

 
810

 
928

Total expenses
41,679

 
30,603

 
80,936

 
59,062

Less: management fees waived (See Note 5)
(2,823
)
 
(1,495
)
 
(5,356
)
 
(2,817
)
Less: expenses waived and reimbursed (See Note 5)
(335
)
 
(276
)
 
(335
)
 
(276
)
Net expenses
38,521

 
28,832

 
75,245

 
55,969

Net investment income before income taxes
27,944

 
25,766

 
55,411

 
51,518

Income tax expense
(4
)
 
45

 
13

 
61

Net investment income
27,948

 
25,721

 
55,398

 
51,457

Net realized gains (losses):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
47

 
(6,609
)
 
90

 
(6,403
)
Controlled investments
5

 
—

 
8

 
—

Net change in unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
2,677

 
(14,500
)
 
12,440

 
(18,021
)
Non-controlled/affiliated investments
(1,637
)
 
8,270

 
(2,528
)
 
10,079

Controlled investments
(5,025
)
 
11,317

 
2,417

 
10,861

Securities purchased under collateralized agreements to resell
—

 
—

 
—

 
(12
)
Provision for taxes
(270
)
 
(1,066
)
 
(160
)
 
(984
)
Net realized and unrealized gains (losses)
(4,203
)
 
(2,588
)
 
12,267

 
(4,480
)
Net increase in net assets resulting from operations
$
23,745

 
$
23,133

 
$
67,665

 
$
46,977

Basic earnings per share
$
0.29

 
$
0.30

 
$
0.85

 
$
0.62

Weighted average shares of common stock outstanding - basic (See Note 11)
80,522,426

 
75,938,857

 
79,495,737

 
75,936,986

Diluted earnings per share
$
0.27

 
$
0.29

 
$
0.76

 
$
0.58

Weighted average shares of common stock outstanding - diluted (See Note 11)
97,693,499

 
85,762,984

 
96,780,587

 
85,761,113

Distributions declared and paid per share
$
0.34

 
$
0.34

 
$
0.68

 
$
0.68


The accompanying notes are an integral part of these consolidated financial statements.
5
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
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Increase (decrease) in net assets resulting from operations:
 
 
 
 
 
 
 
Net investment income
$
27,948

 
$
25,721

 
$
55,398

 
$
51,457

Net realized gains (losses) on investments
52

 
(6,609
)
 
98

 
(6,403
)
Net change in unrealized (depreciation) appreciation of investments
(3,985
)
 
5,087

 
12,329

 
2,919

Net change in unrealized depreciation of securities purchased under collateralized agreements to resell
—

 
—

 
—

 
(12
)
Provision for taxes
(270
)
 
(1,066
)
 
(160
)
 
(984
)
Net increase in net assets resulting from operations
23,745

 
23,133

 
67,665

 
46,977

Capital transactions
 
 
 
 
 
 
 
Net proceeds from shares sold
—

 
—

 
59,297

 
—

Deferred offering costs
—

 
—

 
(229
)
 
—

Distributions declared to stockholders from net investment income
(27,377
)
 
(25,818
)
 
(54,719
)
 
(51,636
)
Reinvestment of distributions
1,270

 
2,330

 
2,634

 
2,330

Total net increase (decrease) in net assets resulting from capital transactions
(26,107
)
 
(23,488
)
 
6,983

 
(49,306
)
Net increase (decrease) in net assets
(2,362
)
 
(355
)
 
74,648

 
(2,329
)
Net assets at the beginning of the period
1,083,279

 
1,033,001

 
1,006,269

 
1,034,975

Net assets at the end of the period
$
1,080,917

 
$
1,032,646

 
$
1,080,917

 
$
1,032,646

 
 
 
 
 
 
 
 
Capital share activity
 
 
 
 
 
 
 
Shares sold
—

 
—

 
4,312,500

 
—

Shares issued from the reinvestment of distributions
90,872

 
171,279

 
191,430

 
171,279

Net increase in shares outstanding
90,872

 
171,279

 
4,503,930

 
171,279




The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
67,665

 
$
46,977

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized (gains) losses on investments
(98
)
 
6,403

Net change in unrealized appreciation of investments
(12,329
)
 
(2,919
)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell
—

 
12

Amortization of purchase discount
(2,205
)
 
(2,592
)
Amortization of deferred financing costs
3,247

 
2,651

Amortization of premium on Convertible Notes
(57
)
 
(55
)
Non-cash investment income
(14,274
)
 
(8,559
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(341,402
)
 
(549,417
)
Proceeds from sales and paydowns of investments
74,268

 
296,835

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
88

 
588

Cash paid for purchase of drawn portion of revolving credit facilities
(338
)
 
(11,631
)
Cash paid on drawn revolvers
(13,181
)
 
(11,004
)
Cash repayments on drawn revolvers
8,328

 
9,938

Interest and dividend receivable
(3,304
)
 
(10,553
)
Receivable from affiliates
(9
)
 
(609
)
Other assets
(802
)
 
4,597

Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
64,783

 
29,903

Interest payable
3,104

 
1,992

Management fee payable
425

 
15,175

Incentive fee payable
123

 
12,864

Deferred tax liability
160

 
984

Payable to affiliates
(570
)
 
1,625

Other liabilities
(3,360
)
 
8,469

Net cash flows used in operating activities
(169,738
)
 
(158,326
)
Cash flows from financing activities
 
 
 
Net proceeds from shares sold
59,297

 
—

Distributions paid
(52,085
)
 
(49,306
)
Offering costs paid
(380
)
 
(40
)
Proceeds from Holdings Credit Facility
119,500

 
152,500

Repayment of Holdings Credit Facility
(83,000
)
 
(74,400
)
Proceeds from Convertible Notes
86,681

 
—

Repayments from Convertible Notes
(155,250
)
 
—

Proceeds from Unsecured Notes
116,500

 
90,000

Proceeds from SBA-guaranteed debentures
—

 
13,000

Proceeds from NMFC Credit Facility
245,000

 
120,000

Repayment of NMFC Credit Facility
(170,000
)
 
(92,500
)
Proceeds from DB Credit Facility
95,000

 
—

Repayment of DB Credit Facility
(52,000
)
 
—

Deferred financing costs paid
(2,028
)
 
(1,916
)
Net cash flows provided by financing activities
207,235

 
157,338

Net increase (decrease) in cash and cash equivalents
37,497

 
(988
)
Cash and cash equivalents at the beginning of the period
49,664

 
34,936

Cash and cash equivalents at the end of the period
$
87,161

 
$
33,948

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
34,452

 
$
18,871

Income taxes paid
10

 
216

Non-cash operating activities:
 
 
 
Non-cash activity on investments
$
—

 
$
1,346

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
2,634

 
$
2,330

Accrual for offering costs
40

 
904

Accrual for deferred financing costs
336

 
170



The accompanying notes are an integral part of these consolidated financial statements.
7
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
June 30, 2019
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)
 
9.90% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
28,613

 
$
28,377

 
$
28,040

 
 
 
 
Second lien (8)
 
9.90% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,442

 
7,350

 
 
 
 
 
 
 
 
 
 
 
 
36,113

 
35,819

 
35,390

 
3.27
 %
Wolfpack IP Co.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
8.90% (L + 6.50%/M)
 
6/14/2019
 
6/13/2025
 
9,091

 
9,001

 
9,000

 
0.83
 %
Total Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
45,204

 
$
44,820

 
$
44,390

 
4.10
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (2)
 
9.92% (L + 7.50%/M)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,659

 
$
37,664

 
 
 
 
Second lien (8)
 
9.92% (L + 7.50%/M)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,969

 
5,970

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,628

 
43,634

 
4.04
 %
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.16% (L + 4.75%/M)
 
5/25/2018
 
5/31/2024
 
20,024

 
19,982

 
20,024

 
1.85
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
63,877

 
$
63,610

 
$
63,658

 
5.89
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
8.90% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
63,051

 
$
63,051

 
$
63,051

 
 
 
 
First lien (8)(9)
 
8.90% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
15,470

 
15,470

 
15,470

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.91% (L + 6.32%/Q)
 
3/29/2019
 
3/15/2024
 
626

 
626

 
626

 
 
 
 
 
 
 
 
 
 
 
 
79,147

 
79,147

 
79,147

 
7.32
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.24% (L + 5.75%/Q)
 
10/9/2015
 
10/31/2022
 
50,981

 
50,723

 
50,980

 
 
 
 
Second lien (8)(9)
 
11.76% (L + 9.25%/Q)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,936

 
10,000

 
 
 
 
 
 
 
 
 
 
 
 
60,981

 
60,659

 
60,980

 
5.64
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.83% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
46,000

 
45,587

 
47,629

 
 
 
 
Second lien (8)
 
10.83% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
11,147

 
11,147

 
11,541

 
 
 
 
 
 
 
 
 
 
 
 
57,147

 
56,734

 
59,170

 
5.47
 %
Nomad Buyer, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.41% (L + 5.00%/M)
 
8/3/2018
 
8/1/2025
 
58,730

 
56,975

 
58,436

 
5.41
 %
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
7.90% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
50,624

 
50,173

 
50,117

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.90% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
6,970

 
6,937

 
6,935

 
 
 
 
 
 
 
 
 
 
 
 
57,594

 
57,110

 
57,052

 
5.28
 %
CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
9.90% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
47,839

 
47,268

 
47,360

 
 
 
 
Second lien (8)
 
9.90% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,411

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
55,339

 
54,679

 
54,785

 
5.07
 %
Dealer Tire, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (2)
 
7.87% (L + 5.50%/M)
 
12/4/2018
 
12/12/2025
 
53,649

 
52,386

 
53,716

 
4.97
 %

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)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
8.40% (L + 6.00%/M)
 
1/6/2015
 
2/28/2022
 
$
39,873

 
$
39,550

 
$
38,279

 
 
 
 
First lien (8)
 
8.40% (L + 6.00%/M)
 
6/6/2019
 
2/28/2022
 
13,625

 
13,080

 
13,080

 
 
 
 
 
 
 
 
 
 
 
 
53,498

 
52,630

 
51,359

 
4.75
 %
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.33% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
38,541

 
38,385

 
38,541

 
 
 
 
First lien (2)(9)(10) - Drawn
 
8.33% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,712

 
10,665

 
10,712

 
 
 
 
 
 
 
 
 
 
 
 
49,253

 
49,050

 
49,253

 
4.56
 %
Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.60% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
36,439

 
36,243

 
36,211

 
 
 
 
First lien (8)(9)
 
9.60% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
5,038

 
5,010

 
5,006

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.59% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
5,943

 
5,910

 
5,906

 
 
 
 
 
 
 
 
 
 
 
 
47,420

 
47,163

 
47,123

 
4.36
 %
Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.08% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,399

 
22,416

 
 
 
 
Second lien (2)
 
10.08% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
16,624

 
16,471

 
16,562

 
 
 
 
Second lien (8)
 
10.08% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
6,000

 
5,945

 
5,978

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,815

 
44,956

 
4.16
 %
Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.83% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,300

 
43,005

 
3.98
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (4)(9)
 
8.83% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
22,273

 
22,148

 
22,273

 
 
 
 
First lien (2)(9)
 
8.83% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
16,499

 
16,404

 
16,499

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.83% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
1,717

 
1,705

 
1,717

 
 
 
 
 
 
 
 
 
 
 
 
40,489

 
40,257

 
40,489

 
3.75
 %
Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Symplr Software, Inc. (fka Caliper Software, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
First lien (2)(9)
 
8.33% (L + 6.00%/Q)
 
11/30/2018
 
11/28/2025
 
25,690

 
25,504

 
25,497

 
 
 
 
First lien (4)(9)
 
8.33% (L + 6.00%/Q)
 
11/30/2018
 
11/28/2025
 
14,925

 
14,820

 
14,813

 
 
 
 
 
 
 
 
 
 
 
 
40,615

 
40,324

 
40,310

 
3.73
 %
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
8.90% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
31,636

 
31,353

 
31,320

 
 
 
 
First lien (8)(9)
 
8.90% (L + 6.50%/M)
 
6/14/2019
 
9/12/2024
 
8,667

 
8,580

 
8,580

 
 
 
 
 
 
 
 
 
 
 
 
40,303

 
39,933

 
39,900

 
3.69
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)
 
10.90% (Base + 8.50%/Q)
 
5/12/2014
 
10/30/2024
 
39,300

 
39,246

 
39,300

 
3.64
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.90% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
32,095

 
31,924

 
32,095

 
 
 
 
First lien (8)(9)
 
8.90% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
4,975

 
4,948

 
4,975

 
 
 
 
 
 
 
 
 
 
 
 
37,070

 
36,872

 
37,070

 
3.43
 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
7.66% (L + 5.25%/M)
 
4/25/2017
 
4/29/2024
 
37,096

 
36,957

 
36,864

 
3.41
 %

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)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)(9)
 
7.83% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
$
24,986

 
$
24,880

 
$
24,986

 
 
 
 
First lien (8)(9)
 
7.83% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
4,975

 
4,954

 
4,975

 
 
 
 
First lien (2)(9)
 
7.83% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
3,337

 
3,323

 
3,337

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.94% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
1,387

 
1,380

 
1,387

 
 
 
 
 
 
 
 
 
 
 
 
34,685

 
34,537

 
34,685

 
3.21
 %
Geo Parent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.83% (L + 5.50%/Q)
 
12/13/2018
 
12/19/2025
 
33,494

 
33,336

 
33,452

 
3.09
 %
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.67% (L + 7.25%/M)
 
1/10/2019
 
1/10/2025
 
34,076

 
33,426

 
33,394

 
3.09
 %
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
8.09% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,331

 
22,181

 
22,164

 
 
 
 
First lien (2)(9)
 
8.09% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
11,030

 
10,955

 
10,947

 
 
 
 
 
 
 
 
 
 
 
 
33,361

 
33,136

 
33,111

 
3.06
 %
Idera, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)
 
11.41% (L + 9.00%/M)
 
6/27/2019
 
6/28/2027
 
22,500

 
22,331

 
22,331

 
 
 
 
Second lien (2)
 
11.41% (L + 9.00%/M)
 
6/27/2019
 
6/28/2027
 
9,500

 
9,429

 
9,429

 
 
 
 
 
 
 
 
 
 
 
 
32,000

 
31,760

 
31,760

 
2.94
 %
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (8)
 
8.15% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
28,600

 
28,511

 
27,170

 
 
 
 
First lien (3)(10) - Drawn
 
8.16% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
4,767

 
4,757

 
4,529

 
 
 
 
 
 
 
 
 
 
 
 
33,367

 
33,268

 
31,699

 
2.93
 %
Navicure, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
9.90% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
25,970

 
25,910

 
25,710

 
 
 
 
Second lien (8)
 
9.90% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
6,000

 
5,986

 
5,940

 
 
 
 
 
 
 
 
 
 
 
 
31,970

 
31,896

 
31,650

 
2.93
 %
Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.58% (L + 5.25%/Q)
 
5/10/2017
 
5/1/2024
 
24,607

 
24,483

 
24,084

 
 
 
 
Second lien (2)
 
11.58% (L + 9.25%/Q)
 
5/10/2017
 
5/1/2025
 
4,500

 
4,463

 
4,399

 
 
 
 
 
 
 
 
 
 
 
 
29,107

 
28,946

 
28,483

 
2.64
 %
Sovos Brands Intermediate, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Food & Beverage
 
First lien (2)
 
7.20% (L + 5.00%/Q)
 
11/16/2018
 
11/20/2025
 
28,098

 
27,966

 
27,817

 
2.57
 %
Confluent Health, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.40% (L + 5.00%/Q)
 
6/21/2019
 
6/24/2026
 
27,500

 
27,363

 
27,363

 
2.53
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
7.58% (L + 5.25%/Q)
 
7/2/2015
 
7/2/2021
 
17,185

 
17,120

 
17,185

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.58% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
5,572

 
5,530

 
5,572

 
 
 
 
First lien (2)(9)
 
7.58% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
4,205

 
4,177

 
4,205

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (P + 4.25%/Q)
 
7/2/2015
 
7/2/2021
 
342

 
338

 
342

 
 
 
 
 
 
 
 
 
 
 
 
27,304

 
27,165

 
27,304

 
2.53
 %
Kaseya Traverse Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
8.94% (L + 5.50% + 1.00% PIK/M)*
 
5/9/2019
 
5/2/2025
 
27,432

 
27,163

 
27,157

 
2.51
 %

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)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.58% (L + 5.25%/Q)
 
1/3/2019
 
11/29/2024
 
$
25,438

 
$
25,319

 
$
25,311

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.58% (L + 5.25%/Q)
 
1/3/2019
 
11/29/2024
 
1,074

 
1,069

 
1,069

 
 
 
 
 
 
 
 
 
 
 
 
26,512

 
26,388

 
26,380

 
2.44
 %
EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
6.83% (L + 4.50%/Q)
 
7/30/2015
 
6/30/2021
 
23,226

 
23,128

 
23,226

 
 
 
 
First lien (2)(9)
 
6.83% (L + 4.50%/Q)
 
7/30/2015
 
6/30/2021
 
1,344

 
1,337

 
1,344

 
 
 
 
 
 
 
 
 
 
 
 
24,570

 
24,465

 
24,570

 
2.27
 %
AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)(9)
 
10.69% (L + 8.25%/M)
 
9/30/2015
 
9/30/2022
 
24,754

 
24,650

 
23,509

 
2.17
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
7.16% (L + 4.75%/M)
 
8/4/2015
 
8/4/2022
 
17,325

 
17,237

 
17,325

 
 
 
 
First lien (4)(9)
 
7.16% (L + 4.75%/M)
 
6/16/2017
 
8/4/2022
 
4,508

 
4,493

 
4,508

 
 
 
 
First lien (2)(9)
 
7.16% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
1,144

 
1,140

 
1,144

 
 
 
 
First lien (4)(9)
 
7.16% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
503

 
501

 
503

 
 
 
 
 
 
 
 
 
 
 
 
23,480

 
23,371

 
23,480

 
2.17
 %
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (2)
 
10.83% (L + 8.25%/Q)
 
7/26/2018
 
7/30/2026
 
22,533

 
22,458

 
22,477

 
2.08
 %
CRCI Longhorn Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
9.66% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
14,349

 
14,298

 
14,205

 
 
 
 
Second lien (8)
 
9.66% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
7,500

 
7,474

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,849

 
21,772

 
21,630

 
2.00
 %
Avatar Topco, Inc. (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EAB Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (3)
 
10.13% (L + 7.50%/Q)
 
11/17/2017
 
11/17/2025
 
13,950

 
13,771

 
13,811

 
 
 
 
Second lien (8)
 
10.13% (L + 7.50%/Q)
 
11/17/2017
 
11/17/2025
 
7,500

 
7,404

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,450

 
21,175

 
21,236

 
1.96
 %
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
10.91% (L + 8.50%/M)
 
2/5/2019
 
3/8/2027
 
21,051

 
20,589

 
20,999

 
1.94
 %
Institutional Shareholder Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.83% (L + 8.50%/Q)
 
3/5/2019
 
3/5/2027
 
20,372

 
20,074

 
20,321

 
1.88
 %
Help/Systems Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.08% (L + 7.75%/Q)
 
3/23/2018
 
3/27/2026
 
20,231

 
20,141

 
20,155

 
1.86
 %
DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Second lien (2)
 
9.83% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
12,000

 
11,903

 
11,835

 
 
 
 
Second lien (8)
 
9.83% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
7,500

 
7,439

 
7,397

 
 
 
 
 
 
 
 
 
 
 
 
19,500

 
19,342

 
19,232

 
1.78
 %
Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
9.66% (L + 7.25%/M)
 
7/31/2017
 
7/29/2022
 
19,047

 
18,904

 
19,047

 
1.76
 %
Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.66% (L + 6.00% + 1.25% PIK/M)*
 
7/19/2018
 
7/19/2024
 
18,794

 
18,632

 
18,606

 
1.72
 %
FR Arsenal Holdings II Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.75% (L + 7.25%/Q)
 
9/29/2016
 
9/8/2022
 
18,450

 
18,326

 
18,450

 
1.71
 %
The Kleinfelder Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (4)(9)
 
7.12% (L + 4.75%/W)
 
12/18/2018
 
11/29/2024
 
17,413

 
17,332

 
17,325

 
1.60
 %
Navex Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.41% (L + 7.00%/M)
 
8/9/2018
 
9/4/2026
 
16,807

 
16,728

 
16,681

 
1.54
 %

The accompanying notes are an integral part of these consolidated financial statements.
11
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
11.38%/S
 
11/24/2014
 
12/1/2021
 
$
15,000

 
$
14,809

 
$
15,947

 
1.48
 %
Hill International, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.08% (L + 5.75%/Q)
 
6/21/2017
 
6/21/2023
 
15,484

 
15,429

 
15,484

 
1.43
 %
OEConnection LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.41% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,660

 
7,569

 
7,583

 
 
 
 
Second lien (8)
 
10.41% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,500

 
7,411

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
15,160

 
14,980

 
15,008

 
1.39
 %
Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Second lien (2)
 
9.90% (L + 7.50%/M)
 
4/18/2016
 
10/19/2023
 
15,000

 
14,750

 
15,000

 
1.39
 %
Transcendia Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaging
 
Second lien (8)(9)
 
10.40% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
14,500

 
14,337

 
14,109

 
1.31
 %
BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
13.09% (L + 7.50% + 3.00% PIK/Q)*
 
8/25/2017
 
8/25/2023
 
13,280

 
13,196

 
12,647

 
 
 
 
First lien (3)(9)(10) - Drawn
 
13.07% (L + 7.50% + 3.00% PIK/Q)*
 
8/25/2017
 
8/25/2023
 
829

 
822

 
790

 
 
 
 
 
 
 
 
 
 
 
 
14,109

 
14,018

 
13,437

 
1.24
 %
Alegeus Technologies Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (8)(9)
 
8.84% (L + 6.25%/Q)
 
9/5/2018
 
9/5/2024
 
13,444

 
13,383

 
13,376

 
1.24
 %
Castle Management Borrower LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.77% (L + 6.25%/Q)
 
5/31/2018
 
2/15/2024
 
13,282

 
13,226

 
13,282

 
1.23
 %
Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.33% (L + 4.00%/Q)
 
12/7/2016
 
12/2/2022
 
2,947

 
2,938

 
2,947

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.33% (L + 5.00%/Q)
 
12/7/2016
 
12/2/2022
 
200

 
199

 
200

 
 
 
 
Second lien (8)(9)
 
11.58% (L + 9.25%/Q)
 
12/7/2016
 
6/2/2023
 
7,840

 
7,800

 
7,840

 
 
 
 
Second lien (3)(9)
 
11.58% (L + 9.25%/Q)
 
12/7/2016
 
6/2/2023
 
2,160

 
2,149

 
2,160

 
 
 
 
 
 
 
 
 
 
 
 
13,147

 
13,086

 
13,147

 
1.22
 %
Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
8.68% (L + 6.00%/Q)
 
9/15/2017
 
9/15/2023
 
6,646

 
6,614

 
6,646

 
 
 
 
First lien (3)(9)
 
8.52% (L + 6.00%/Q)
 
9/15/2017
 
9/15/2023
 
5,250

 
5,217

 
5,250

 
 
 
 
 
 
 
 
 
 
 
 
11,896

 
11,831

 
11,896

 
1.10
 %
CHA Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
11.08% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
7,012

 
6,949

 
7,117

 
 
 
 
Second lien (3)
 
11.08% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
4,453

 
4,413

 
4,519

 
 
 
 
 
 
 
 
 
 
 
 
11,465

 
11,362

 
11,636

 
1.08
 %
PPVA Black Elk (Equity) LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Subordinated (3)(9)
 
—
 
5/3/2013
 
—
 
14,500

 
14,500

 
11,362

 
1.05
 %
NorthStar Financial Services Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
9.85% (L + 7.50%/Q)
 
5/23/2018
 
5/25/2026
 
10,607

 
10,583

 
10,501

 
0.97
 %
Vectra Co.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Products
 
Second lien (8)
 
9.65% (L + 7.25%/M)
 
2/23/2018
 
3/8/2026
 
10,788

 
10,752

 
10,438

 
0.97
 %
Masergy Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
9.83% (L + 7.50%/Q)
 
12/14/2016
 
12/16/2024
 
10,500

 
10,455

 
10,342

 
0.96
 %

The accompanying notes are an integral part of these consolidated financial statements.
12
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)(9)
 
10.40% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
$
8,651

 
$
8,621

 
$
8,651

 
 
 
 
First lien (4)(9)
 
10.40% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
1,442

 
1,437

 
1,442

 
 
 
 
 
 
 
 
 
 
 
 
10,093

 
10,058

 
10,093

 
0.93
 %
Quartz Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.44% (L + 8.00%/M)
 
4/2/2019
 
4/2/2027
 
10,000

 
9,804

 
10,050

 
0.93
 %
VT Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
9.33% (L + 7.00%/Q)
 
8/14/2018
 
7/31/2026
 
10,000

 
9,977

 
10,037

 
0.93
 %
Stats Intermediate Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.62% (L + 5.25%/M)
 
5/22/2019
 
7/10/2026
 
10,000

 
9,875

 
9,825

 
0.91
 %
Affordable Care Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.23% (L + 4.75%/M)
 
3/18/2019
 
10/24/2022
 
9,948

 
9,763

 
9,700

 
0.90
 %
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First Lien (4)
 
7.15% (L + 4.75%/M)
 
11/30/2018
 
7/23/2023
 
9,403

 
9,361

 
9,379

 
0.87
 %
JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.53% (L + 7.00%/Q)
 
11/13/2017
 
11/11/2022
 
8,757

 
8,694

 
8,757

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.41% (L + 7.00%/M)
 
11/13/2017
 
11/11/2022
 
500

 
495

 
500

 
 
 
 
 
 
 
 
 
 
 
 
9,257

 
9,189

 
9,257

 
0.86
 %
WD Wolverine Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.90% (L + 5.50%/M)
 
2/22/2017
 
8/16/2022
 
9,239

 
9,052

 
9,170

 
0.85
 %
Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.16% (L + 6.75%/M)
 
12/31/2018
 
12/31/2024
 
9,067

 
8,982

 
8,976

 
0.83
 %
Alert Holding Company, Inc. (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appriss Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (8)
 
7.83% (L + 5.50%/Q)
 
5/24/2019
 
5/29/2026
 
8,000

 
7,921

 
7,880

 
0.73
 %
Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)(9)
 
11.59% (L + 9.00%/Q)
 
11/22/2016
 
11/17/2023
 
6,980

 
6,943

 
6,980

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.39% (L + 5.00%/Q)
 
11/22/2016
 
11/17/2022
 
670

 
665

 
670

 
 
 
 
 
 
 
 
 
 
 
 
7,650

 
7,608

 
7,650

 
0.71
 %
J.D. Power (fka J.D. Power and Associates)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.90% (L + 8.50%/M)
 
6/9/2016
 
9/7/2024
 
7,583

 
7,513

 
7,507

 
0.69
 %
MH Sub I, LLC (Micro Holding Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.90% (L + 7.50%/M)
 
8/16/2017
 
9/15/2025
 
7,000

 
6,941

 
7,035

 
0.65
 %
Restaurant Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
8.90% (L + 6.50%/M)
 
9/24/2018
 
10/1/2026
 
6,722

 
6,706

 
6,747

 
0.62
 %
CP VI Bella Midco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)
 
9.15% (L + 6.75%/M)
 
1/25/2018
 
12/29/2025
 
6,732

 
6,703

 
6,615

 
0.61
 %
DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.15% (L + 4.75%/M)
 
4/16/2018
 
4/26/2023
 
6,644

 
6,604

 
6,577

 
0.61
 %
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
9.15% (L + 6.75%/M)
 
1/29/2018
 
2/2/2026
 
6,732

 
6,703

 
6,564

 
0.61
 %
First American Payment Systems, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.35% (L + 4.75%/Q)
 
1/3/2017
 
1/5/2024
 
6,344

 
6,299

 
6,344

 
0.59
 %

The accompanying notes are an integral part of these consolidated financial statements.
13
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Solera LLC / Solera Finance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
10.50%/S
 
2/29/2016
 
3/1/2024
 
$
5,000

 
$
4,829

 
$
5,431

 
0.50
 %
ADG, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)(9)
 
12.20% (L + 10.00%/S)
 
10/3/2016
 
3/28/2024
 
5,087

 
5,033

 
4,794

 
0.44
 %
York Risk Services Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Subordinated (3)
 
8.50%/S
 
9/17/2014
 
10/1/2022
 
3,000

 
3,000

 
2,483

 
0.23
 %
Ensemble S Merger Sub, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
9.00%/S
 
9/21/2015
 
9/30/2023
 
2,000

 
1,957

 
2,073

 
0.19
 %
Diligent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Drawn
 
8.35% (L + 5.50%/S)
 
12/19/2018
 
4/14/2022
 
2,077

 
2,065

 
2,064

 
0.19
 %
TMK Hawk Parent, Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (3)
 
5.70% (L + 3.50%/Q)
 
6/24/2019
 
8/28/2024
 
1,995

 
1,666

 
1,666

 
0.15
 %
Education Management Corporation (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education Management II LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First Lien (2)
 
11.00% (P + 5.50%/Q)(24)
 
1/5/2015
 
7/2/2020
 
211

 
205

 
7

 
 
 
 
First Lien (3)
 
11.00% (P + 5.50%/Q)(24)
 
1/5/2015
 
7/2/2020
 
119

 
116

 
4

 
 
 
 
First Lien (2)
 
14.00% (P + 8.50%/M)(24)
 
1/5/2015
 
7/2/2020
 
300

 
292

 
1

 
 
 
 
First Lien (3)
 
14.00% (P + 8.50%/M)(24)
 
1/5/2015
 
7/2/2020
 
169

 
165

 
—

 
 
 
 
First Lien (2)
 
14.00% (P + 8.50%/M)(24)
 
1/5/2015
 
7/2/2020
 
170

 
141

 
—

 
 
 
 
First Lien (2)
 
14.00% (P + 8.50%/M)(24)
 
1/5/2015
 
7/2/2020
 
5

 
4

 
—

 
 
 
 
First Lien (3)
 
14.00% (P + 8.50%/M)(24)
 
1/5/2015
 
7/2/2020
 
96

 
79

 
—

 
 
 
 
First Lien (3)
 
14.00% (P + 8.50%/M)(24)
 
1/5/2015
 
7/2/2020
 
3

 
2

 
—

 
 
 
 
 
 
 
 
 
 
 
 
1,073

 
1,004

 
12

 
0.00
 %
PPVA Fund, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Collateralized Financing (25)
 
—
 
11/7/2014
 
—
 
—

 
—

 
—

 
—
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
1,975,187

 
$
1,958,660

 
$
1,957,782

 
181.12
 %
Total Funded Debt Investments
 
 
 
 
 
 
 
 
 
$
2,084,268

 
$
2,067,090

 
$
2,065,830

 
191.11
 %
Equity - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bach Special Limited (Bach Preference Limited)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Preferred shares (3)(9)(21)
 
—
 
9/1/2017
 
—
 
70,712

 
$
6,991

 
$
7,071

 
0.65
 %
Total Shares - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
$
6,991

 
$
7,071

 
0.65
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avatar Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Preferred shares (3)(9)(22)
 
—
 
11/17/2017
 
—
 
35,750

 
$
43,125

 
$
43,362

 
4.01
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QID NGL LLC
 
Preferred shares (6)(9)
 
—
 
10/30/2017
 
—
 
1,623,385

 
1,624

 
2,989

 
 
Energy
 
Ordinary shares (6)(9)
 
—
 
5/12/2014
 
—
 
5,290,997

 
5,291

 
9,256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,915

 
12,245

 
1.13
 %

The accompanying notes are an integral part of these consolidated financial statements.
14
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Preferred Shares (4)(9)
 
—
 
11/30/2018
 
—
 
7,500

 
$
7,979

 
$
7,970

 
 
 
 
Preferred Shares (3)(9)
 
—
 
11/30/2018
 
—
 
2,586

 
2,751

 
2,748

 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,730

 
10,718

 
0.99
 %
Alert Holding Company, Inc. (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alert Intermediate Holdings I, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Preferred shares (3)(9)
 
—
 
5/31/2019
 
—
 
5,000

 
4,977

 
4,976

 
0.47
 %
Education Management Corporation(12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Preferred shares (2)
 
—
 
1/5/2015
 
—
 
3,331

 
200

 
—

 
 
 
 
Preferred shares (3)
 
—
 
1/5/2015
 
—
 
1,879

 
113

 
—

 
 
 
 
Ordinary shares (2)
 
—
 
1/5/2015
 
—
 
2,994,065

 
100

 
—

 
 
 
 
Ordinary shares (3)
 
—
 
1/5/2015
 
—
 
1,688,976

 
56

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
469

 
—

 
—
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
66,216

 
$
71,301

 
6.60
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
73,207

 
$
78,372

 
7.25
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
.

 
 
 
 
ASP LCG Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Warrants (3)(9)
 
—
 
5/5/2014
 
5/5/2026
 
622

 
$
37

 
$
827

 
0.08
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
37

 
$
827

 
0.08
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,140,334

 
$
2,145,029

 
198.44
 %
Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wolfpack IP Co.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(10) - Undrawn
 
—
 
6/14/2019
 
6/13/2025
 
$
909

 
$
(9
)
 
$
(9
)
 
(0.00
)%
Total Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
909

 
$
(9
)
 
$
(9
)
 
(0.00
)%
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
`

 
 
 
 
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
4/16/2019
 
4/16/2021
 
$
20,426

 
$
—

 
$
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/20/2017
 
12/20/2019
 
3,645

 
(32
)
 
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/2/2015
 
7/2/2021
 
1,758

 
(18
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
25,829

 
(50
)
 
—

 
—
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/4/2015
 
8/4/2021
 
1,000

 
(10
)
 
—

 
—
 %
Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/7/2016
 
12/2/2022
 
800

 
(4
)
 
—

 
—
 %
Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/22/2016
 
11/17/2022
 
1,330

 
(10
)
 
—

 
—
 %

The accompanying notes are an integral part of these consolidated financial statements.
15
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
3/29/2019
 
4/17/2020
 
$
7,195

 
$
—

 
$
—

 
—
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/15/2017
 
6/15/2023
 
1,673

 
(13
)
 
—

 
—
 %
Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/31/2017
 
7/29/2022
 
992

 
(10
)
 
—

 
—
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/8/2018
 
10/30/2021
 
6,743

 
(34
)
 
—

 
—
 %
Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/15/2017
 
3/15/2023
 
1,738

 
(17
)
 
—

 
—
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/18/2017
 
9/18/2019
 
6,016

 
(45
)
 
—

 
—
 %
JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/13/2017
 
11/11/2022
 
250

 
(2
)
 
—

 
—
 %
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)(10) - Undrawn
 
—
 
2/9/2018
 
2/9/2020
 
771

 
(2
)
 
—

 
—
 %
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
5/22/2018
 
5/31/2024
 
3,657

 
(18
)
 
—

 
—
 %
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(10) - Undrawn
 
—
 
11/30/2018
 
7/23/2023
 
526

 
(3
)
 
(1
)
 
(0.00
)%
BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/25/2017
 
8/25/2023
 
52

 
—

 
(2
)
 
(0.00
)%
DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(10) - Undrawn
 
—
 
4/16/2018
 
4/26/2023
 
560

 
(4
)
 
(6
)
 
(0.00
)%
Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/31/2018
 
12/31/2024
 
933

 
(9
)
 
(9
)
 
(0.00
)%
Alert Holding Company, Inc. (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appriss Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(10) - Undrawn
 
—
 
5/24/2019
 
5/30/2025
 
930

 
(9
)
 
(14
)
 
(0.00
)%
Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/19/2018
 
7/19/2023
 
1,429

 
(14
)
 
(14
)
 
(0.00
)%
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/25/2018
 
9/25/2024
 
2,521

 
(19
)
 
(19
)
 
(0.00
)%
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/12/2018
 
9/12/2024
 
1,977

 
(20
)
 
(20
)
 
(0.00
)%

The accompanying notes are an integral part of these consolidated financial statements.
16
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
1/3/2019
 
11/29/2024
 
$
1,360

 
$
(7
)
 
$
(7
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
1/3/2019
 
6/30/2020
 
5,641

 
—

 
(27
)
 
 
 
 
 
 
 
 
 
 
 
 
7,001

 
(7
)
 
(34
)
 
(0.00
)%
Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2021
 
4,300

 
(27
)
 
(27
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2024
 
2,033

 
(13
)
 
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
6,333

 
(40
)
 
(40
)
 
(0.00
)%
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
1/10/2019
 
1/10/2025
 
2,066

 
(41
)
 
(41
)
 
(0.01
)%
Kaseya Traverse Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
5/9/2019
 
5/3/2021
 
3,302

 
—

 
(33
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
5/9/2019
 
5/2/2025
 
2,312

 
(23
)
 
(23
)
 
 
 
 
 
 
 
 
 
 
 
 
5,614

 
(23
)
 
(56
)
 
(0.01
)%
Diligent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/19/2018
 
12/19/2020
 
11,349

 
(71
)
 
(71
)
 
(0.01
)%
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(10) - Undrawn
 
—
 
12/19/2016
 
4/16/2020
 
2,437

 
(10
)
 
(122
)
 
(0.01
)%
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/17/2018
 
8/16/2020
 
38,335

 
(192
)
 
(192
)
 
(0.02
)%
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (3)(10) - Undrawn
 
—
 
6/26/2018
 
11/29/2021
 
6,125

 
(490
)
 
(245
)
 
(0.02
)%
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
146,182

 
$
(1,167
)
 
$
(886
)
 
(0.08
)%
Total Unfunded Debt Investments
 
 
 
 
 
 
 
 
 
$
147,091

 
$
(1,176
)
 
$
(895
)
 
(0.08
)%
Total Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,139,158

 
$
2,144,134

 
198.36
 %
Non-Controlled/Affiliated Investments (26)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 2, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)
 
14.94% (L + 7.50% + 5.00% PIK/M)*
 
6/14/2018
 
6/30/2022
 
$
10,309

 
$
10,309

 
$
10,309

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.91% (L + 6.50%/M)
 
6/14/2018
 
6/30/2022
 
17,750

 
17,750

 
17,750

 
 
 
 
Subordinated (3)(9)
 
18.00% PIK/Q*
 
12/26/2018
 
6/30/2022
 
2,633

 
2,633

 
2,633

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
2,467

 
2,467

 
2,100

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
1,271

 
1,271

 
1,082

 
 
 
 
 
 
 
 
 
 
 
 
34,430

 
34,430

 
33,874

 
3.13
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
34,430

 
$
34,430

 
$
33,874

 
3.13
 %

The accompanying notes are an integral part of these consolidated financial statements.
17
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NMFC Senior Loan Program I LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Fund
 
Membership interest (3)(9)
 
—
 
6/13/2014
 
—
 
—

 
$
23,000

 
$
23,000

 
2.13
 %
Sierra Hamilton Holdings Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
Ordinary shares (2)(9)
 
—
 
7/31/2017
 
—
 
25,000,000

 
11,501

 
9,897

 
 
 
 
Ordinary shares (3)(9)
 
—
 
7/31/2017
 
—
 
2,786,000

 
1,281

 
1,103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,782

 
11,000

 
1.02
 %
Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
Preferred shares (3)(9)(16)
 
—
 
10/31/2016
 
—
 
1,873,737

 
8,503

 
8,450

 
 
 
 
Ordinary shares (3)(9)
 
—
 
10/31/2016
 
—
 
1,366,452

 
1,350

 
268

 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,853

 
8,718

 
0.81
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
45,635

 
$
42,718

 
3.96
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
80,065

 
$
76,592

 
7.09
 %
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/14/2018
 
6/30/2022
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Non-Controlled/Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
80,065

 
$
76,592

 
7.09
 %
Controlled Investments (27)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)
 
11.08% (L + 4.50% + 4.00% PIK/Q)*
 
8/6/2018
 
6/9/2021
 
$
10,000

 
$
8,770

 
$
8,500

 
 
 
 
Second lien (3)(9)
 
7.00% PIK/Q*
 
2/23/2018
 
12/9/2021
 
11,581

 
11,060

 
11,581

 
 
 
 
Second lien (3)(9)(10) - Drawn
 
5.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
7,708

 
7,708

 
7,708

 
 
 
 
Subordinated (3)(9)
 
8.50% PIK/Q*
 
6/9/2015
 
12/9/2021
 
5,102

 
5,099

 
5,102

 
 
 
 
Subordinated (2)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
19,468

 
19,468

 
17,100

 
 
 
 
Subordinated (3)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
4,789

 
4,789

 
4,206

 
 
 
 
 
 
 
 
 
 
 
 
58,648

 
56,894

 
54,197

 
5.01
 %
NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
National HME, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
15,562

 
11,835

 
11,283

 
 
 
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
8,600

 
7,674

 
7,525

 
 
 
 
 
 
 
 
 
 
 
 
24,162

 
19,509

 
18,808

 
1.74
 %

The accompanying notes are an integral part of these consolidated financial statements.
18
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.83% (L + 5.50%/Q)
 
6/29/2018
 
8/20/2024
 
$
12,478

 
$
12,478

 
$
12,478

 
 
 
 
First lien (2)(9)
 
7.83% (L + 5.50%/Q)
 
6/29/2018
 
8/20/2024
 
2,496

 
2,496

 
2,496

 
 
 
 
 
 
 
 
 
 
 
 
14,974

 
14,974

 
14,974

 
1.39
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
97,784

 
$
91,377

 
$
87,979

 
8.14
 %
Equity - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NM APP Canada Corp.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—
 
$
7,345

 
$
9,949

 
0.92
 %
Total Shares - Canada
 
 
 
 
 
 
 
 
 
 
 
$
7,345

 
$
9,949

 
0.92
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NMFC Senior Loan Program III LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Fund
 
Membership interest (3)(9)
 
—
 
5/4/2018
 
—
 
—
 
$
80,000

 
$
80,000

 
7.40
 %
NMFC Senior Loan Program II LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Fund
 
Membership interest (3)(9)
 
—
 
5/3/2016
 
—
 
—
 
79,400

 
79,400

 
7.35
 %
UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Preferred shares (2)(9)(17)
 
—
 
1/13/2015
 
—
 
26,546,931

 
24,167

 
23,852

 
 
 
 
Preferred shares (3)(9)(17)
 
—
 
1/13/2015
 
—
 
7,336,309

 
6,679

 
6,592

 
 
 
 
Preferred shares (3)(9)(18)
 
—
 
6/30/2017
 
—
 
14,351,499

 
14,351

 
14,304

 
 
 
 
Preferred shares (3)(9)(19)
 
—
 
8/17/2018
 
—
 
7,795,276

 
7,795

 
7,795

 
 
 
 
Ordinary shares (2)(9)
 
—
 
1/13/2015
 
—
 
2,096,477

 
1,925

 
5,003

 
 
 
 
Ordinary shares (3)(9)
 
—
 
1/13/2015
 
—
 
1,993,749

 
532

 
4,758

 
 
 
 
 
 
 
 
 
 
 
 
 
 
55,449

 
62,304

 
5.76
 %
NM NL Holdings, L.P.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—
 
32,578

 
34,294

 
3.17
 %
NM GLCR LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
2/1/2018
 
—
 
—
 
14,750

 
20,918

 
1.94
 %
NM CLFX LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
10/6/2017
 
—
 
—
 
12,538

 
12,725

 
1.18
 %
NM APP US LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—
 
5,080

 
6,101

 
0.56
 %
NM DRVT LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
11/18/2016
 
—
 
—
 
5,152

 
5,704

 
0.53
 %
NM KRLN LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
11/15/2016
 
—
 
—
 
7,510

 
4,386

 
0.40
 %
NHME Holdings Corp.(20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Ordinary Shares (3)(9)
 
—
 
11/27/2018
 
—
 
640,000

 
4,000

 
4,000

 
0.37
 %
NM JRA LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
8/12/2016
 
—
 
—
 
2,043

 
3,500

 
0.32
 %

The accompanying notes are an integral part of these consolidated financial statements.
19
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Edmentum Ultimate Holdings, LLC(15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Ordinary shares (3)(9)
 
—
 
6/9/2015
 
—
 
123,968

 
$
11

 
$
884

 
 
 
 
Ordinary shares (2)(9)
 
—
 
6/9/2015
 
—
 
107,143

 
9

 
764

 
 
 
 
 
 
 
 
 
 
 
 
 
 
20

 
1,648

 
0.15
 %
NM GP Holdco, LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—
 
306

 
317

 
0.03
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
298,826

 
$
315,297

 
29.16
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
306,171

 
$
325,246

 
30.08
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum Ultimate Holdings, LLC(15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Warrants (3)(9)
 
—
 
2/23/2018
 
5/5/2026
 
1,141,846

 
$
769

 
$
8,145

 
0.75
 %
NHME Holdings Corp.(20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Warrants (3)(9)
 
—
 
11/27/2018
 
—
 
160,000

 
1,000

 
1,000

 
0.09
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
1,769

 
$
9,145

 
0.84
 %
Total Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
$
399,317

 
$
422,370

 
39.07
 %
Total Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,618,540

 
$
2,643,096

 
244.52
 %
 
(1)
New Mountain Finance Corporation (the “Company”) generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.
(2)
Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company as Collateral Manager, New Mountain Finance Holdings, L.L.C. (“NMF Holdings”) as the Borrower, Wells Fargo Bank, National Association as the Administrative Agent, and Collateral Custodian. See Note 7. Borrowings, for details.
(3)
Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. Borrowings, for details.
(4)
Investment is held in New Mountain Finance SBIC, L.P.
(5)
Investment is held in New Mountain Finance SBIC II, L.P.
(6)
Investment is held in NMF QID NGL Holdings, Inc.
(7)
Investment is held in New Mountain Net Lease Corporation.
(8)
Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.
(9)
The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.
(10)
Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.
(11)
All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of June 30, 2019.
(12)
The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.
(13)
The Company holds investments in two related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(14)
The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.0% per annum.

The accompanying notes are an integral part of these consolidated financial statements.
20
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


(15)
The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity, and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)
The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.
(17)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.
(18)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.
(19)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.
(20)
The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)
The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.
(22)
The Company holds preferred equity in Avatar Topco, Inc., and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)
The Company holds preferred equity in Symplr Intermediate Holdings, Inc. and holds a first lien term loan investment in Symplr Software Inc, Inc. (fka Caliper Software, Inc.), a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.50% per annum.
(24)
Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)
The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $23,508 as of June 30, 2019. See Note 2. Summary of Significant Accounting Policies, for details.
(26)
Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of June 30, 2019 and December 31, 2018, along with transactions during the six months ended June 30, 2019 in which the issuer was a non-controlled/affiliated investment, is as follows:
Portfolio Company
 
Fair Value at
December 31, 2018
 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at
June 30, 2019
 
Interest
Income
 
Dividend
Income
 
Other
Income
NMFC Senior Loan Program I LLC
 
$
23,000

 
$
—

 
$
—

 
$
—

 
$
—

 
$
23,000

 
$
—

 
$
1,538

 
$
574

Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.
 
41,966

 
1,677

 
(50
)
 
—

 
(1,001
)
 
42,592

 
2,037

 
592

 
18

Sierra Hamilton Holdings Corporation
 
12,527

 
—

 
—

 
—

 
(1,527
)
 
11,000

 
—

 
—

 
—

Total Non-Controlled/Affiliated Investments
 
$
77,493

 
$
1,677

 
$
(50
)
 
$
—

 
$
(2,528
)
 
$
76,592

 
$
2,037

 
$
2,130

 
$
592

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)
Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.

The accompanying notes are an integral part of these consolidated financial statements.
21
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(in thousands, except shares)
(unaudited)


(27)
Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of June 30, 2019 and December 31, 2018, along with transactions during the six months ended June 30, 2019 in which the issuer was a controlled investment, is as follows:
Portfolio Company
 
Fair Value at
December 31, 2018
 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net 
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at
June 30, 2019
 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.
 
$
45,011

 
$
9,508

 
$
(67
)
 
$
8

 
$
9,538

 
$
63,990

 
$
2,757

 
$
—

 
$
4

National HME, Inc./NHME Holdings Corp.
 
22,722

 
1,678

 
—

 
—

 
(592
)
 
23,808

 
1,678

 
—

 
—

NM APP CANADA CORP
 
9,727

 
—

 
—

 
—

 
222

 
9,949

 
—

 
450

 
—

NM APP US LLC
 
5,912

 
—

 
—

 
—

 
189

 
6,101

 
—

 
263

 
—

NM CLFX LP
 
12,770

 
—

 
—

 
—

 
(45
)
 
12,725

 
—

 
785

 
—

NM DRVT LLC
 
5,619

 
—

 
—

 
—

 
85

 
5,704

 
—

 
287

 
—

NM JRA LLC
 
2,537

 
—

 
—

 
—

 
963

 
3,500

 
—

 
125

 
—

NM GLCR LP
 
20,343

 
—

 
—

 
—

 
575

 
20,918

 
—

 
874

 
—

NM KRLN LLC
 
4,205

 
—

 
—

 
—

 
181

 
4,386

 
—

 
420

 
—

NM NL Holdings, L.P.
 
33,392

 
—

 
—

 
—

 
902

 
34,294

 
—

 
1,628

 
—

NM GP Holdco, LLC
 
311

 
—

 
—

 
—

 
6

 
317

 
—

 
15

 
—

NMFC Senior Loan Program II LLC
 
79,400

 
—

 
—

 
—

 
—

 
79,400

 
—

 
5,955

 
—

NMFC Senior Loan Program III LLC
 
78,400

 
1,600

 
—

 
—

 
—

 
80,000

 
—

 
4,920

 
—

UniTek Global Services, Inc.
 
82,788

 
4,172

 
(75
)
 
—

 
(9,607
)
 
77,278

 
612

 
4,173

 
338

Total Controlled Investments
 
$
403,137

 
$
16,958

 
$
(142
)
 
$
8

 
$
2,417

 
$
422,370

 
$
5,047

 
$
19,895

 
$
342

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)
Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
*
All or a portion of interest contains PIK interest.
**
Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of June 30, 2019, 12.81% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.
22
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
June 30, 2019
(unaudited)


 
 
June 30, 2019
Investment Type
 
Percent of Total
Investments at Fair Value
First lien
 
52.76
%
Second lien
 
27.35
%
Subordinated
 
2.63
%
Equity and other
 
17.26
%
Total investments
 
100.00
%
 
 
 
June 30, 2019
Industry Type
 
Percent of Total
Investments at Fair Value
Business Services
 
23.75
%
Software
 
22.42
%
Healthcare Services
 
16.84
%
Education
 
8.44
%
Investment Fund (includes investments in joint ventures)
 
6.90
%
Energy
 
3.98
%
Net Lease
 
3.70
%
Federal Services
 
3.33
%
Distribution & Logistics
 
3.20
%
Consumer Services
 
2.96
%
Healthcare Information Technology
 
2.50
%
Food & Beverage
 
1.06
%
Packaging
 
0.53
%
Business Products
 
0.39
%
Total investments
 
100.00
%
 
 
 
June 30, 2019
Interest Rate Type
 
Percent of Total
Investments at Fair Value
Floating rates
 
93.35
%
Fixed rates
 
6.65
%
Total investments
 
100.00
%


The accompanying notes are an integral part of these consolidated financial statements.
23
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
 December 31, 2018
(in thousands, except shares)

Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Dentalcorp Perfect Smile ULC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)
 
10.02% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
12,130

 
$
12,032

 
$
11,948

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,439

 
7,388

 
 
 
 
Second lien (3)(10) - Drawn
 
10.02% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
2,797

 
2,772

 
2,754

 
 
 
 
 
 
 
 
 
 
 
 
22,427

 
22,243

 
22,090

 
2.20
 %
Total Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
22,427

 
$
22,243

 
$
22,090

 
2.20
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
Second lien (2)
 
10.09% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,648

 
$
36,150

 
 
 
 
Second lien (8)
 
10.09% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,968

 
5,730

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,616

 
41,880

 
4.16
 %
   Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (2)
 
7.14% (L + 4.75%/M)
 
5/25/2018
 
5/31/2024
 
20,125

 
20,079

 
19,987

 
1.99
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
63,978

 
$
63,695

 
$
61,867

 
6.15
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.86% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
63,370

 
$
63,370

 
$
62,261

 
 
 
 
First lien (8)(9)
 
8.86% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
8,578

 
8,578

 
8,428

 
 
 
 
First lien (3)(9)
 
8.86% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
6,970

 
6,970

 
6,848

 
 
 
 
 
 
 
 
 
 
 
 
78,918

 
78,918

 
77,537

 
7.71
 %
   Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.48% (L + 5.75%/Q)
 
10/9/2015
 
10/31/2022
 
51,245

 
50,952

 
51,245

 
 
 
 
Second lien (8)(9)
 
11.97% (L + 9.25%/Q)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,930

 
10,000

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.23% (L + 4.50%/Q)
 
6/8/2018
 
10/30/2021
 
2,057

 
2,046

 
2,057

 
 
 
 
 
 
 
 
 
 
 
 
63,302

 
62,928

 
63,302

 
6.29
 %
   Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
10.79% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
36,000

 
35,560

 
35,657

 
 
 
 
Second lien (3)
 
10.79% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
21,147

 
21,145

 
20,945

 
 
 
 
 
 
 
 
 
 
 
 
57,147

 
56,705

 
56,602

 
5.62
 %
   CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (3)
 
10.02% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
47,838

 
47,241

 
47,838

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,406

 
7,500

 
 
 
 
 
 
 
 
 
 
 
 
55,338

 
54,647

 
55,338

 
5.50
 %
   Dealer Tire, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Distribution & Logistics
 
First lien (2)
 
8.02% (L + 5.50%/M)
 
12/4/2018
 
12/12/2025
 
53,784

 
52,444

 
51,296

 
5.10
 %
   PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.02% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
50,879

 
50,391

 
50,371

 
5.01
 %
   NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.80% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
38,735

 
38,565

 
38,542

 
 
 
 
First lien (2)(9)(10) - Drawn
 
8.80% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,766

 
10,715

 
10,739

 
 
 
 
 
 
 
 
 
 
 
 
49,501

 
49,280

 
49,281

 
4.90
 %
   Nomad Buyer, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The accompanying notes are an integral part of these consolidated financial statements.
24
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
      Healthcare Services
 
First lien (2)
 
7.38% (L + 5.00%/M)
 
8/3/2018
 
8/1/2025
 
$
48,953

 
$
47,538

 
$
46,383

 
4.61
 %
   Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (5)
 
10.02% (L + 7.50%/M)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,394

 
22,416

 
 
 
 
Second lien (2)
 
10.02% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
16,624

 
16,464

 
16,562

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
6,000

 
5,942

 
5,978

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,800

 
44,956

 
4.47
 %
   Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (2)(9)
 
9.40% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
40,855

 
40,613

 
40,599

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.40% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
3,625

 
3,603

 
3,602

 
 
 
 
 
 
 
 
 
 
 
 
44,480

 
44,216

 
44,201

 
4.39
 %
   Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
10.78% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,281

 
43,224

 
4.30
 %
   Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
First lien (3)(9)
 
10.90% (Base + 8.50%/Q)
 
5/12/2014
 
10/30/2024
 
39,500

 
39,442

 
39,500

 
3.93
 %
   Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (4)(9)
 
9.02% (L + 6.50%/M)
 
9/18/2017
 
9/18/2023
 
22,387

 
22,248

 
22,387

 
 
 
 
First lien (2)(9)
 
9.02% (L + 6.50%/M)
 
9/18/2017
 
9/18/2023
 
16,582

 
16,480

 
16,582

 
 
 
 
 
 
 
 
 
 
 
 
38,969

 
38,728

 
38,969

 
3.87
 %
   Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Federal Services
 
First lien (2)
 
8.27% (L + 5.75%/M)
 
1/6/2015
 
2/28/2022
 
38,275

 
37,928

 
37,701

 
3.75
 %
   Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
9.02% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
37,259

 
37,044

 
37,259

 
3.70
 %
   Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Federal Services
 
First lien (2)
 
8.06% (L + 5.25%/Q)
 
4/25/2017
 
4/29/2024
 
37,285

 
37,134

 
36,353

 
3.61
 %
   TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (2)(9)
 
8.30% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
30,112

 
29,974

 
29,962

 
 
 
 
First lien (2)(9)
 
8.30% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
3,354

 
3,338

 
3,337

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.02% (L + 5.50%/M)
 
5/22/2018
 
5/31/2024
 
1,261

 
1,255

 
1,255

 
 
 
 
 
 
 
 
 
 
 
 
34,727

 
34,567

 
34,554

 
3.43
 %
   Geo Parent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)
 
8.09% (L + 5.50%/M)
 
12/13/2018
 
12/19/2025
 
33,578

 
33,410

 
33,410

 
3.32
 %
   Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (4)(9)
 
8.03% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,444

 
22,281

 
22,275

 
 
 
 
First lien (2)(9)
 
8.03% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
11,085

 
11,005

 
11,002

 
 
 
 
 
 
 
 
 
 
 
 
33,529

 
33,286

 
33,277

 
3.31
 %
   Navicure, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (2)
 
10.02% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
25,970

 
25,907

 
25,580

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
6,000

 
5,985

 
5,910

 
 
 
 
 
 
 
 
 
 
 
 
31,970

 
31,892

 
31,490

 
3.13
 %
   iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)(9)
 
8.94% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
31,636

 
31,332

 
31,320

 
3.11
 %

The accompanying notes are an integral part of these consolidated financial statements.
25
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)
 
8.27% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
$
28,744

 
$
28,645

 
$
28,615

 
 
 
 
First lien (3)(10) - Drawn
 
8.27% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
1,791

 
1,784

 
1,782

 
 
 
 
 
 
 
 
 
 
 
 
30,535

 
30,429

 
30,397

 
3.02
 %
   Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)
 
8.05% (L + 5.25%/Q)
 
5/10/2017
 
5/1/2024
 
24,732

 
24,597

 
24,238

 
 
 
 
Second lien (2)
 
12.05% (L + 9.25%/Q)
 
5/10/2017
 
5/1/2025
 
4,500

 
4,461

 
4,444

 
 
 
 
 
 
 
 
 
 
 
 
29,232

 
29,058

 
28,682

 
2.85
 %
   Sovos Brands Intermediate, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Food & Beverage
 
First lien (2)
 
7.64% (L + 5.00%/M)
 
11/16/2018
 
11/20/2025
 
28,240

 
28,099

 
27,957

 
2.78
 %
   EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
7.02% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
23,347

 
23,226

 
23,347

 
 
 
 
First lien (2)(9)
 
7.02% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
1,350

 
1,343

 
1,350

 
 
 
 
 
 
 
 
 
 
 
 
24,697

 
24,569

 
24,697

 
2.45
 %
   SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)(9)
 
11.55% (L + 8.75%/Q)
 
6/30/2015
 
12/30/2021
 
18,161

 
18,052

 
18,161

 
 
 
 
Second lien (3)(9)
 
11.55% (L + 8.75%/Q)
 
4/16/2018
 
12/30/2021
 
6,181

 
6,130

 
6,181

 
 
 
 
 
 
 
 
 
 
 
 
24,342

 
24,182

 
24,342

 
2.42
 %
   DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.05% (L + 5.25%/Q)
 
7/2/2015
 
7/2/2021
 
17,274

 
17,194

 
17,274

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.98% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
6,702

 
6,647

 
6,702

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (P + 4.25%/Q)
 
7/2/2015
 
7/2/2021
 
144

 
142

 
144

 
 
 
 
 
 
 
 
 
 
 
 
24,120

 
23,983

 
24,120

 
2.40
 %
   iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (4)(9)
 
7.28% (L + 4.75%/M)
 
8/4/2015
 
8/4/2022
 
17,415

 
17,314

 
17,415

 
 
 
 
First lien (4)(9)
 
7.28% (L + 4.75%/M)
 
6/16/2017
 
8/4/2022
 
4,531

 
4,514

 
4,531

 
 
 
 
First lien (2)(9)
 
7.28% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
1,149

 
1,145

 
1,149

 
 
 
 
First lien (4)(9)
 
7.28% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
506

 
504

 
506

 
 
 
 
 
 
 
 
 
 
 
 
23,601

 
23,477

 
23,601

 
2.35
 %
   CRCI Longhorn Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
9.64% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
14,349

 
14,296

 
14,295

 
 
 
 
Second lien (8)
 
9.64% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
7,500

 
7,473

 
7,472

 
 
 
 
 
 
 
 
 
 
 
 
21,849

 
21,769

 
21,767

 
2.16
 %
   AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (2)(9)
 
10.60% (L + 8.25%/M)
 
9/30/2015
 
9/30/2020
 
22,403

 
22,269

 
21,578

 
2.14
 %
   Avatar Topco, Inc. (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   EAB Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Second lien (3)
 
10.16% (L + 7.50%/Q)
 
11/17/2017
 
11/17/2025
 
13,950

 
13,762

 
13,811

 
 
 
 
Second lien (8)
 
10.16% (L + 7.50%/Q)
 
11/17/2017
 
11/17/2025
 
7,500

 
7,399

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,450

 
21,161

 
21,236

 
2.11
 %
   Help/Systems Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (5)
 
10.27% (L + 7.75%/M)
 
3/23/2018
 
3/27/2026
 
20,231

 
20,136

 
20,029

 
1.99
 %
   Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Caliper Software, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Information Technology
 
First lien (4)(9)
 
8.02% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
15,000

 
14,888

 
14,888

 
 
 
 
First lien (2)(9)
 
8.02% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
5,171

 
5,133

 
5,132

 
 
 
 
 
 
 
 
 
 
 
 
20,171

 
20,021

 
20,020

 
1.99
 %

The accompanying notes are an integral part of these consolidated financial statements.
26
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   SSH Group Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Second lien (2)
 
10.77% (L + 8.25%/Q)
 
7/26/2018
 
7/30/2026
 
$
20,116

 
$
20,019

 
$
19,960

 
1.98
 %
   DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Distribution & Logistics
 
Second lien (3)
 
10.30% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
12,000

 
11,897

 
11,580

 
 
 
 
Second lien (8)
 
10.30% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
7,500

 
7,436

 
7,238

 
 
 
 
 
 
 
 
 
 
 
 
19,500

 
19,333

 
18,818

 
1.87
 %
   FR Arsenal Holdings II Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
10.06% (L + 7.25%/Q)
 
9/29/2016
 
9/8/2022
 
18,545

 
18,404

 
18,545

 
1.84
 %
   Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)(9)
 
9.78% (L + 6.00% + 1.25% PIK/M)*
 
7/19/2018
 
7/19/2024
 
18,678

 
18,503

 
18,491

 
1.84
 %
   The Kleinfelder Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (4)
 
7.17% (L + 4.75%/M)
 
12/18/2018
 
11/29/2024
 
17,500

 
17,413

 
17,413

 
1.73
 %
   Navex Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
9.53% (L + 7.00%/M)
 
8/9/2018
 
9/4/2026
 
16,807

 
16,725

 
16,218

 
1.61
 %
   TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Subordinated (3)
 
11.38%/S
 
11/24/2014
 
12/1/2021
 
15,000

 
14,776

 
15,750

 
1.57
 %
   Hill International, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
6/21/2017
 
6/21/2023
 
15,563

 
15,502

 
15,563

 
1.55
 %
   QC McKissock Investment, LLC (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   McKissock, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
6,351

 
6,330

 
6,351

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/24/2018
 
8/5/2021
 
3,649

 
3,616

 
3,649

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
3,028

 
3,019

 
3,028

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
977

 
974

 
977

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/3/2018
 
8/5/2021
 
842

 
835

 
842

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
5/23/2018
 
8/5/2021
 
572

 
564

 
572

 
 
 
 
 
 
 
 
 
 
 
 
15,419

 
15,338

 
15,419

 
1.53
 %
   OEConnection LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
10.53% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,660

 
7,564

 
7,602

 
 
 
 
Second lien (8)
 
10.53% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,500

 
7,407

 
7,443

 
 
 
 
 
 
 
 
 
 
 
 
15,160

 
14,971

 
15,045

 
1.49
 %
   Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Information Technology
 
Second lien (2)
 
10.03% (L + 7.50%/Q)
 
4/18/2016
 
10/19/2023
 
15,000

 
14,727

 
14,925

 
1.48
 %
   Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (4)(9)
 
9.78% (L + 7.25%/M)
 
7/31/2017
 
7/29/2022
 
14,690

 
14,577

 
14,690

 
1.46
 %
   Transcendia Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Packaging
 
Second lien (8)
 
10.52% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
7,500

 
7,411

 
7,385

 
 
 
 
Second lien (3)
 
10.52% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
7,000

 
6,917

 
6,893

 
 
 
 
 
 
 
 
 
 
 
 
14,500

 
14,328

 
14,278

 
1.42
 %
   Alegeus Technologies Holdings Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.66% (L + 6.25%/Q)
 
9/5/2018
 
9/5/2024
 
13,444

 
13,378

 
13,376

 
1.33
 %
   NorthStar Financial Services Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (5)
 
10.10% (L + 7.50%/M)
 
5/23/2018
 
5/25/2026
 
13,450

 
13,418

 
13,316

 
1.32
 %
   Project Accelerate Parent, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (8)(9)
 
10.89% (L + 8.50%/M)
 
1/2/2018
 
1/2/2026
 
7,500

 
7,414

 
7,406

 
 
 
 
Second lien (3)(9)
 
10.89% (L + 8.50%/M)
 
1/2/2018
 
1/2/2026
 
5,973

 
5,905

 
5,898

 
 
 
 
 
 
 
 
 
 
 
 
13,473

 
13,319

 
13,304

 
1.32
 %

The accompanying notes are an integral part of these consolidated financial statements.
27
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Castle Management Borrower LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.87% (L + 6.25%/Q)
 
5/31/2018
 
2/15/2024
 
$
13,347

 
$
13,286

 
$
13,281

 
1.32
 %
   Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (2)
 
6.52% (L + 4.00%/M)
 
12/7/2016
 
12/2/2022
 
2,962

 
2,952

 
2,962

 
 
 
 
Second lien (8)(9)
 
11.77% (L + 9.25%/M)
 
12/7/2016
 
6/2/2023
 
7,840

 
7,796

 
7,840

 
 
 
 
Second lien (3)(9)
 
11.77% (L + 9.25%/M)
 
12/7/2016
 
6/2/2023
 
2,160

 
2,148

 
2,160

 
 
 
 
 
 
 
 
 
 
 
 
12,962

 
12,896

 
12,962

 
1.29
 %
   BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
13.03% (L + 10.50%/M)
 
8/25/2017
 
8/25/2023
 
13,262

 
13,169

 
12,477

 
 
 
 
First lien (3)(9)(10) - Drawn
 
13.03% (L + 7.50% + 3.00% PIK/M)*
 
8/25/2017
 
8/25/2023
 
17

 
17

 
16

 
 
 
 
 
 
 
 
 
 
 
 
13,279

 
13,186

 
12,493

 
1.24
 %
   Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (4)(9)
 
11.65% (L + 9.00%/Q)
 
11/22/2016
 
11/17/2023
 
11,000

 
10,936

 
11,000

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.52% (L + 5.00%/M)
 
11/22/2016
 
11/17/2022
 
1,200

 
1,191

 
1,200

 
 
 
 
 
 
 
 
 
 
 
 
12,200

 
12,127

 
12,200

 
1.21
 %
   CHA Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)
 
11.55% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
7,012

 
6,946

 
7,103

 
 
 
 
Second lien (3)
 
11.55% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
4,453

 
4,411

 
4,511

 
 
 
 
 
 
 
 
 
 
 
 
11,465

 
11,357

 
11,614

 
1.15
 %
   PPVA Black Elk (Equity) LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Subordinated (3)(9)
 
—
 
5/3/2013
 
—
 
14,500

 
14,500

 
11,362

 
1.13
 %
   Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Distribution & Logistics
 
First lien (4)(9)
 
10.52% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
8,972

 
8,935

 
8,972

 
 
 
 
First lien (4)(9)
 
10.52% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
1,495

 
1,489

 
1,495

 
 
 
 
 
 
 
 
 
 
 
 
10,467

 
10,424

 
10,467

 
1.04
 %
   Vectra Co.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Products
 
Second lien (8)
 
9.77% (L + 7.25%/M)
 
2/23/2018
 
3/8/2026
 
10,788

 
10,751

 
10,465

 
1.04
 %
   Masergy Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (2)
 
10.31% (L + 7.50%/Q)
 
12/14/2016
 
12/16/2024
 
10,500

 
10,452

 
10,290

 
1.02
 %
   VT Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)
 
9.80% (L + 7.00%/Q)
 
8/14/2018
 
7/31/2026
 
10,000

 
9,976

 
9,987

 
0.99
 %
   Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.57% (L + 6.00%/S)
 
9/15/2017
 
9/15/2023
 
4,344

 
4,308

 
4,344

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.61% (L + 6.00%/S)
 
9/15/2017
 
9/15/2023
 
5,277

 
5,240

 
5,277

 
 
 
 
 
 
 
 
 
 
 
 
9,621

 
9,548

 
9,621

 
0.96
 %
   AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First Lien (4)
 
7.27% (L + 4.75%/Q)
 
11/30/2018
 
7/23/2023
 
9,450

 
9,403

 
9,426

 
0.94
 %
   WD Wolverine Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)
 
8.02% (L + 5.50%/M)
 
2/22/2017
 
8/16/2022
 
9,488

 
9,269

 
9,179

 
0.91
 %
   Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)
 
9.28% (L + 6.75%/M)
 
12/31/2018
 
12/31/2024
 
9,067

 
8,976

 
8,976

 
0.89
 %
   JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)(9)
 
10.61% (L + 8.00%/Q)
 
11/13/2017
 
11/11/2022
 
8,757

 
8,686

 
8,757

 
0.87
 %
   Idera, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (4)
 
11.53% (L + 9.00%/M)
 
6/27/2017
 
6/27/2025
 
8,000

 
7,895

 
8,020

 
0.80
 %

The accompanying notes are an integral part of these consolidated financial statements.
28
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   J.D. Power (fka J.D. Power and Associates)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
11.02% (L + 8.50%/M)
 
6/9/2016
 
9/7/2024
 
$
7,583

 
$
7,508

 
$
7,508

 
0.75
 %
   CP VI Bella Midco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)
 
9.27% (L + 6.75%/M)
 
1/25/2018
 
12/29/2025
 
6,732

 
6,701

 
6,631

 
0.66
 %
   DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (2)
 
7.27% (L + 4.75%/M)
 
4/16/2018
 
4/26/2023
 
6,678

 
6,633

 
6,597

 
0.66
 %
   MH Sub I, LLC (Micro Holding Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
8/16/2017
 
9/15/2025
 
7,000

 
6,938

 
6,545

 
0.65
 %
   Restaurant Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)
 
8.90% (L + 6.50%/Q)
 
9/24/2018
 
10/1/2026
 
6,722

 
6,705

 
6,520

 
0.65
 %
   DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
9.27% (L + 6.75%/M)
 
1/29/2018
 
2/2/2026
 
6,732

 
6,702

 
6,429

 
0.64
 %
   First American Payment Systems, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)
 
7.29% (L + 4.75%/Q)
 
1/3/2017
 
1/5/2024
 
6,391

 
6,342

 
6,359

 
0.63
 %
   Solera LLC / Solera Finance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Subordinated (3)
 
10.50%/S
 
2/29/2016
 
3/1/2024
 
5,000

 
4,816

 
5,350

 
0.53
 %
   ADG, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)(9)
 
11.88% (L + 9.00%/S)
 
10/3/2016
 
3/28/2024
 
5,000

 
4,942

 
4,578

 
0.45
 %
   York Risk Services Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Subordinated (3)
 
8.50%/S
 
9/17/2014
 
10/1/2022
 
3,000

 
3,000

 
2,100

 
0.20
 %
   Ensemble S Merger Sub, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Subordinated (3)
 
9.00%/S
 
9/21/2015
 
9/30/2023
 
2,000

 
1,953

 
2,010

 
0.20
 %
   Education Management Corporation (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Education Management II LLC
 
First Lien (2)
 
11.00% (P + 5.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
211

 
205

 
15

 
 
      Education
 
First Lien (3)
 
11.00% (P + 5.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
119

 
116

 
8

 
 
 
 
First Lien (2)
 
14.00% (P + 8.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
475

 
437

 
19

 
 
 
 
First Lien (3)
 
14.00% (P + 8.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
268

 
246

 
11

 
 
 
 
 
 
 
 
 
 
 
 
1,073

 
1,004

 
53

 
0.01
 %
   PPVA Fund, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Collateralized Financing (25)
 
—
 
11/7/2014
 
—
 
—

 
—

 
—

 
—
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
1,733,369

 
$
1,719,771

 
$
1,709,641

 
169.89
 %
Total Funded Debt Investments
 
 
 
 
 
 
 
 
 
$
1,819,774

 
$
1,805,709

 
$
1,793,598

 
178.24
 %
Equity - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Bach Special Limited (Bach Preference Limited)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Preferred shares (3)(9)(21)
 
—
 
9/1/2017
 
—
 
66,528

 
$
6,573

 
$
6,653

 
0.66
 %
Total Shares - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
$
6,573

 
$
6,653

 
0.66
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Avatar Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Preferred shares (3)(9)(22)
 
—
 
11/17/2017
 
—
 
35,750

 
$
40,247

 
$
39,890

 
3.96
 %

The accompanying notes are an integral part of these consolidated financial statements.
29
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   QID NGL LLC
 
Preferred shares (6)(9)
 
—
 
10/30/2017
 
—
 
1,623,385

 
$
1,623

 
$
2,717

 
 
      Energy
 
Ordinary shares (6)(9)
 
—
 
5/12/2014
 
—
 
5,290,997

 
5,291

 
8,412

 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,914

 
11,129

 
1.11
 %
   Symplr Software Intermediate Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Information Technology
 
Preferred Shares (4)(9)(23)
 
—
 
11/30/2018
 
—
 
7,500

 
7,470

 
7,469

 
 
 
 
Preferred Shares (3)(9)(23)
 
—
 
11/30/2018
 
—
 
2,586

 
2,575

 
2,575

 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,045

 
10,044

 
1.00
 %
   Education Management Corporation (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Preferred shares (2)
 
—
 
1/5/2015
 
—
 
3,331

 
200

 
—

 
 
 
 
Preferred shares (3)
 
—
 
1/5/2015
 
—
 
1,879

 
113

 
—

 
 
 
 
Ordinary shares (2)
 
—
 
1/5/2015
 
—
 
2,994,065

 
100

 
—

 
 
 
 
Ordinary shares (3)
 
—
 
1/5/2015
 
—
 
1,688,976

 
56

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
469

 
—

 
—
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
57,675

 
$
61,063

 
6.07
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
64,248

 
$
67,716

 
6.73
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   ASP LCG Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Warrants (3)(9)
 
—
 
5/5/2014
 
5/5/2026
 
622

 
$
37

 
$
664

 
0.07
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
37

 
$
664

 
0.07
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
1,869,994

 
$
1,861,978

 
185.04
 %
Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Dentalcorp Perfect Smile ULC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)(10) - Undrawn
 
—
 
6/1/2018
 
6/6/2020
 
$
2,110

 
$
2

 
$
(32
)
 
(0.00
)%
Total Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
2,110

 
$
2

 
$
(32
)
 
(0.00
)%
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/20/2017
 
12/20/2019
 
$
6,755

 
$
(59
)
 
$
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/2/2015
 
7/2/2021
 
1,956

 
(20
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
8,711

 
(79
)
 
—

 
—
 %
   iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/4/2015
 
8/4/2021
 
1,000

 
(10
)
 
—

 
—
 %
   Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(10) - Undrawn
 
—
 
12/7/2016
 
12/2/2022
 
1,000

 
(5
)
 
—

 
—
 %
   Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/22/2016
 
11/17/2022
 
800

 
(6
)
 
—

 
—
 %

The accompanying notes are an integral part of these consolidated financial statements.
30
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/15/2017
 
6/15/2023
 
$
1,673

 
$
(13
)
 
$
—

 
—
 %
   Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/31/2017
 
7/29/2022
 
992

 
(10
)
 
—

 
—
 %
   Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/8/2018
 
10/30/2021
 
4,686

 
(23
)
 
—

 
—
 %
   Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/15/2017
 
3/15/2019
 
6,307

 
(16
)
 
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/15/2017
 
3/15/2023
 
1,738

 
(17
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
8,045

 
(33
)
 
—

 
—
 %
   Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Education
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/18/2017
 
9/18/2019
 
7,738

 
(58
)
 
—

 
—
 %
   JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/13/2017
 
11/11/2022
 
750

 
(8
)
 
—

 
—
 %
   AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(10) - Undrawn
 
—
 
11/30/2018
 
7/21/2023
 
526

 
(3
)
 
(1
)
 
(0.00
)%
   NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)(10) - Undrawn
 
—
 
2/9/2018
 
2/9/2020
 
771

 
(2
)
 
(2
)
 
(0.00
)%
   DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(10) - Undrawn
 
—
 
4/16/2018
 
4/26/2023
 
560

 
(4
)
 
(7
)
 
(0.00
)%
   Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(10) - Undrawn
 
—
 
12/31/2018
 
12/31/2024
 
933

 
(9
)
 
(9
)
 
(0.00
)%
   Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/19/2018
 
7/19/2023
 
1,429

 
(14
)
 
(14
)
 
(0.00
)%
   Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/25/2018
 
9/25/2024
 
2,521

 
(19
)
 
(19
)
 
(0.00
)%
   TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
5/22/2018
 
5/31/2024
 
3,783

 
(19
)
 
(19
)
 
(0.00
)%
   iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/12/2018
 
9/12/2024
 
1,977

 
(20
)
 
(20
)
 
(0.00
)%
   Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(10) - Undrawn
 
—
 
12/19/2016
 
4/16/2020
 
5,433

 
(14
)
 
(24
)
 
(0.00
)%
   BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/25/2017
 
8/25/2023
 
862

 
(7
)
 
(51
)
 
(0.01
)%

The accompanying notes are an integral part of these consolidated financial statements.
31
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2021
 
$
6,557

 
$
(41
)
 
$
(41
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2024
 
2,033

 
(13
)
 
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
8,590

 
(54
)
 
(54
)
 
(0.01
)%
   Diligent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/19/2018
 
12/19/2020
 
13,431

 
(84
)
 
(84
)
 
(0.01
)%
   Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Federal Services
 
First lien (3)(10) - Undrawn
 
—
 
6/26/2018
 
11/29/2021
 
6,125

 
(490
)
 
(92
)
 
(0.01
)%
   PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/17/2018
 
8/16/2020
 
45,305

 
(227
)
 
(227
)
 
(0.02
)%
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
127,641

 
$
(1,211
)
 
$
(623
)
 
(0.06
)%
Total Unfunded Debt Investments
 
 
 
 
 
 
 
 
 
$
129,751

 
$
(1,209
)
 
$
(655
)
 
(0.06
)%
Total Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
1,868,785

 
$
1,861,323

 
184.98
 %
Non-Controlled/Affiliated Investments(26)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 2, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
First lien (3)(9)(10) - Drawn
 
8.87% (L + 6.50%/M)
 
6/14/2018
 
6/30/2022
 
$
17,750

 
$
17,750

 
$
17,750

 
 
 
 
First lien (3)(9)
 
14.85% (L + 7.50% + 5.00% PIK/Q)*
 
6/14/2018
 
6/30/2022
 
10,101

 
10,101

 
10,101

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
2,303

 
2,303

 
2,187

 
 
 
 
Subordinated (3)(9)
 
18.00% PIK/Q*
 
12/26/2018
 
6/30/2022
 
2,054

 
2,054

 
2,054

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
1,186

 
1,186

 
1,127

 
 
 
 
 
 
 
 
 
 
 
 
33,394

 
33,394

 
33,219

 
3.30
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
33,394

 
$
33,394

 
$
33,219

 
3.30
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   NMFC Senior Loan Program I LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment Fund
 
Membership interest (3)(9)
 
—
 
6/13/2014
 
—
 
—

 
$
23,000

 
$
23,000

 
2.29
 %
   Sierra Hamilton Holdings Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
Ordinary shares (2)(9)
 
—
 
7/31/2017
 
—
 
25,000,000

 
11,501

 
11,271

 
 
 
 
Ordinary shares (3)(9)
 
—
 
7/31/2017
 
—
 
2,786,000

 
1,281

 
1,256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,782

 
12,527

 
1.24
 %
   Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
Preferred shares (3)(9)(16)
 
—
 
10/31/2016
 
—
 
1,766,177

 
7,912

 
8,257

 
 
 
 
Ordinary shares (3)(9)
 
—
 
10/31/2016
 
—
 
1,366,452

 
1,350

 
490

 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,262

 
8,747

 
0.87
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
45,044

 
$
44,274

 
4.40
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
78,438

 
$
77,493

 
7.70
 %

The accompanying notes are an integral part of these consolidated financial statements.
32
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/14/2018
 
6/30/2022
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Non-Controlled/Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
78,438

 
$
77,493

 
7.70
 %
Controlled Investments(27)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (2)
 
11.03% (L + 4.50% + 4.00% PIK/Q)*
 
8/6/2018
 
6/9/2021
 
$
8,490

 
$
7,245

 
$
7,004

 
 
 
 
Second lien (3)(9)
 
7.00% PIK/Q*
 
2/23/2018
 
12/9/2021
 
11,184

 
10,569

 
10,346

 
 
 
 
Second lien (3)(9)(10) - Drawn
 
5.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
1,671

 
1,671

 
1,671

 
 
 
 
Subordinated (3)(9)
 
8.50% PIK/Q*
 
6/9/2015
 
6/9/2020
 
4,891

 
4,889

 
4,891

 
 
 
 
Subordinated (2)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
6/9/2020
 
18,525

 
18,525

 
14,820

 
 
 
 
Subordinated (3)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
6/9/2020
 
4,557

 
4,557

 
3,646

 
 
 
 
 
 
 
 
 
 
 
 
49,318

 
47,456

 
42,378

 
4.21
 %
   NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   National HME, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
14,664

 
10,718

 
10,631

 
 
 
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
8,104

 
7,115

 
7,091

 
 
 
 
 
 
 
 
 
 
 
 
22,768

 
17,833

 
17,722

 
1.76
 %
   UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.02% (L + 5.50%/M)
 
6/29/2018
 
8/20/2024
 
12,542

 
12,542

 
12,542

 
 
 
 
First lien (2)(9)
 
7.96% (L + 5.50%/M)
 
6/29/2018
 
8/20/2024
 
2,508

 
2,508

 
2,508

 
 
 
 
 
 
 
 
 
 
 
 
15,050

 
15,050

 
15,050

 
1.50
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
87,136

 
$
80,339

 
$
75,150

 
7.47
 %
Equity - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  NM APP Canada Corp.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—

 
$
7,345

 
$
9,727

 
0.97
 %
Total Shares - Canada
 
 
 
 
 
 
 
 
 
 
 
$
7,345

 
$
9,727

 
0.97
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   NMFC Senior Loan Program II LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment Fund
 
Membership interest (3)(9)
 
—
 
5/3/2016
 
—
 
—

 
$
79,400

 
$
79,400

 
7.89
 %
   NMFC Senior Loan Program III LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment Fund
 
Membership interest (3)(9)
 
—
 
5/4/2018
 
—
 
—

 
78,400

 
78,400

 
7.79
 %

The accompanying notes are an integral part of these consolidated financial statements.
33
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Preferred shares (2)(9)(17)
 
—
 
1/13/2015
 
—
 
24,841,813

 
$
22,462

 
$
22,012

 
 
 
 
Preferred shares (3)(9)(17)
 
—
 
1/13/2015
 
—
 
6,865,095

 
6,207

 
6,083

 
 
 
 
Preferred shares (3)(9)(18)
 
—
 
6/30/2017
 
—
 
13,079,442

 
13,079

 
13,036

 
 
 
 
Preferred shares (3)(9)(19)
 
—
 
8/17/2018
 
—
 
7,070,545

 
7,071

 
7,071

 
 
 
 
Ordinary shares (2)(9)
 
—
 
1/13/2015
 
—
 
2,096,477

 
1,925

 
10,013

 
 
 
 
Ordinary shares (3)(9)
 
—
 
1/13/2015
 
—
 
1,993,749

 
532

 
9,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
51,276

 
67,738

 
6.73
 %
   NM NL Holdings, L.P.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—

 
32,575

 
33,392

 
3.32
 %
   NM GLCR LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
2/1/2018
 
—
 
—

 
14,750

 
20,343

 
2.02
 %
   NM CLFX LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
10/6/2017
 
—
 
—

 
12,538

 
12,770

 
1.27
 %
   NM APP US LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—

 
5,080

 
5,912

 
0.59
 %
   NM DRVT LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
11/18/2016
 
—
 
—

 
5,152

 
5,619

 
0.56
 %
   NM KRLN LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
11/15/2016
 
—
 
—

 
7,510

 
4,205

 
0.42
 %
   NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Ordinary Shares (3)(9)
 
—
 
11/27/2018
 
—
 
640,000

 
4,000

 
4,000

 
0.40
 %
   NM JRA LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
8/12/2016
 
—
 
—

 
2,043

 
2,537

 
0.25
 %
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Ordinary shares (3)(9)
 
—
 
6/9/2015
 
—
 
123,968

 
11

 
238

 
 
 
 
Ordinary shares (2)(9)
 
—
 
6/9/2015
 
—
 
107,143

 
9

 
205

 
 
 
 
 
 
 
 
 
 
 
 
 
 
20

 
443

 
0.04
 %
   NM GP Holdco, LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—

 
306

 
311

 
0.03
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
293,050

 
$
315,070

 
31.31
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
300,395

 
$
324,797

 
32.28
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Warrants (3)(9)
 
—
 
2/23/2018
 
5/5/2026
 
1,141,846

 
$
769

 
$
2,190

 
0.22
 %
   NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Warrants (3)(9)
 
—
 
11/27/2018
 
—
 
160,000

 
1,000

 
1,000

 
0.10
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
1,769

 
$
3,190

 
0.32
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
382,503

 
$
403,137

 
40.07
 %

The accompanying notes are an integral part of these consolidated financial statements.
34
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Second lien (3)(9)(10) - Undrawn
 
—
 
6/9/2015
 
12/9/2021
 
$
5,945

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
5,945

 
$
—

 
$
—

 
—
 %
Total Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
$
382,503

 
$
403,137

 
40.07
 %
Total Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,329,726

 
$
2,341,953

 
232.75
 %
 
(1)
New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.
(2)
Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings, for details.
(3)
Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. Borrowings, for details.
(4)
Investment is held in New Mountain Finance SBIC, L.P.
(5)
Investment is held in New Mountain Finance SBIC II, L.P.
(6)
Investment is held in NMF QID NGL Holdings, Inc.
(7)
Investment is held in New Mountain Net Lease Corporation.
(8)
Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.
(9)
The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.
(10)
Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.
(11)
All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of December 31, 2018.
(12)
The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.
(13)
The Company holds investments in three related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(14)
The Company holds investments in QC McKissock Investment, LLC and one related entity of QC McKissock Investment, LLC. The Company holds a first lien term loan in QC McKissock Investment, LLC (which at closing represented 71.1% of the ownership in the Series A common units of McKissock Investment Holdings, LLC) and holds first lien term loans and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC.
(15)
The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)
The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.

The accompanying notes are an integral part of these consolidated financial statements.
35
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


(17)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.
(18)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.
(19)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.
(20)
The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)
The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.
(22)
The Company holds preferred equity in Avatar Topco, Inc. and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)
The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. and holds a first lien term loan investment in Caliper Software, Inc., a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.
(24)
Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)
The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $23,508 as of December 31, 2018. See Note 2. Summary of Significant Accounting Policies, for details.
(26)
Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2018 and December 31, 2017 along with transactions during the year ended December 31, 2018 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio Company
 
Fair Value at December 31, 2017
 
Gross
Additions (A)
 
Gross
Redemptions
(B)
 
Net
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at December 31, 2018
 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.
 
$
24,858

 
$
—

 
$
(24,858
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

HI Technology Corp.
 
105,155

 
—

 
(105,155
)
 
8,387

 
—

 
—

 
—

 
14,791

 
—

NMFC Senior Loan Program I LLC
 
23,000

 
—

 
—

 
—

 
—

 
23,000

 
—

 
3,173

 
1,179

Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.
 
12,733

 
31,824

 
(50
)
 
—

 
(2,541
)
 
41,966

 
2,028

 
1,083

 
653

Sierra Hamilton Holdings Corporation
 
12,330

 
—

 
—

 
—

 
197

 
12,527

 
—

 
—

 
—

Total Non-Controlled/Affiliated Investments
 
$
178,076

 
$
31,824

 
$
(130,063
)
 
$
8,387

 
$
(2,344
)
 
$
77,493

 
$
2,028

 
$
19,047

 
$
1,832

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category.
(B)
Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.










The accompanying notes are an integral part of these consolidated financial statements.
36
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)



(27)
Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of December 31, 2018 and December 31, 2017 along with transactions during the year ended December 31, 2018 in which the issuer was a controlled investment, is as follows:
Portfolio Company
 
Fair Value at
December 31, 2017
 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net 
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at
December 31, 2018
 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.
 
$
—

 
$
51,478

 
$
(6,937
)
 
$
3

 
$
470

 
$
45,011

 
$
4,077

 
$
—

 
$
424

National HME, Inc./NHME Holdings Corp.
 
—

 
22,832

 
—

 
—

 
(110
)
 
22,722

 
306

 
—

 
—

NM APP CANADA CORP
 
7,962

 
—

 
—

 
—

 
1,765

 
9,727

 
—

 
841

 
—

NM APP US LLC
 
5,138

 
—

 
—

 
—

 
774

 
5,912

 
—

 
563

 
—

NM CLFX LP
 
12,538

 
—

 
—

 
—

 
232

 
12,770

 
—

 
1,507

 
—

NM DRVT LLC
 
5,385

 
—

 
—

 
—

 
234