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.)