UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended March 31, 2020
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 May 6, 2020
Common stock, par value $0.01 per share
 
96,827,342
 

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2020
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)
 
March 31, 2020
 
December 31, 2019
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $2,627,761 and $2,619,408, respectively)
$
2,481,871

 
$
2,613,801

Non-controlled/affiliated investments (cost of $79,794 and $82,825, respectively)
59,660

 
73,527

Controlled investments (cost of $478,950 and $449,308, respectively)
449,786

 
472,952

Total investments at fair value (cost of $3,186,505 and $3,151,541, respectively)
2,991,317

 
3,160,280

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
21,422

 
21,422

Cash and cash equivalents
22,108

 
48,574

Interest and dividend receivable
32,650

 
31,800

Receivable from unsettled securities sold
30,964

 
—

Receivable from affiliates
545

 
277

Other assets
4,526

 
3,702

Total assets
$
3,103,532

 
$
3,266,055

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
569,163

 
$
661,563

     Unsecured Notes
453,250

 
453,250

     SBA-guaranteed debentures
300,000

 
225,000

     DB Credit Facility
270,000

 
230,000

     Convertible Notes
201,597

 
201,623

     NMFC Credit Facility
188,500

 
188,500

     Deferred financing costs (net of accumulated amortization of $29,542 and $28,390, respectively)
(18,318
)
 
(17,640
)
Net borrowings
1,964,192

 
1,942,296

Payable for unsettled securities purchased
—

 
1,780

Management fee payable
20,613

 
10,298

Incentive fee payable
15,472

 
7,646

Interest payable
10,965

 
16,484

Payable to affiliates
1,025

 
673

Deferred tax liability
14

 
912

Other liabilities
1,811

 
2,498

Total liabilities
2,014,092

 
1,982,587

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 200,000,000 shares authorized, respectively, and 96,827,342 and 96,827,342 shares issued and outstanding, respectively
968

 
968

Paid in capital in excess of par
1,287,853

 
1,287,853

Accumulated overdistributed earnings
(210,631
)
 
(5,353
)
Total net assets of New Mountain Finance Corporation
1,078,190

 
1,283,468

Non-controlling interest in New Mountain Net Lease Corporation
11,250

 
$
—

Total net assets
$
1,089,440

 
$
1,283,468

Total liabilities and net assets
$
3,103,532

 
$
3,266,055

Number of shares outstanding
96,827,342

 
96,827,342

Net asset value per share of New Mountain Finance Corporation
$
11.14

 
$
13.26


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
 
March 31, 2020
 
March 31, 2019
Investment income
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
Interest income
$
57,586

 
$
44,457

Non-cash dividend income
2,324

 
1,974

Other income
1,471

 
2,254

From non-controlled/affiliated investments:
 
 
 
Interest income
1,069

 
1,004

Dividend income
720

 
726

Non-cash dividend income
(3,418
)
 
291

Other income
291

 
291

From controlled investments:
 
 
 
Interest income
2,981

 
2,463

Dividend income
8,229

 
8,457

Non-cash dividend income
2,638

 
2,045

Other income
193

 
229

Total investment income
74,084

 
64,191

Expenses
 
 
 
Incentive fee
7,826

 
6,863

Management fee
13,858

 
10,975

Interest and other financing expenses
22,194

 
19,146

Administrative expenses
1,040

 
1,095

Professional fees
905

 
766

Other general and administrative expenses
499

 
412

Total expenses
46,322

 
39,257

Less: management fees waived (See Note 5)
(3,543
)
 
(2,533
)
Net expenses
42,779

 
36,724

Net investment income before income taxes
31,305

 
27,467

Income tax expense
—

 
17

Net investment income
31,305

 
27,450

Net realized gains (losses):
 
 
 
Non-controlled/non-affiliated investments
(702
)
 
43

Controlled investments
4

 
3

New Mountain Net Lease Corporation
812

 
—

Net change in unrealized (depreciation) appreciation:
 
 
 
Non-controlled/non-affiliated investments
(140,283
)
 
9,763

Non-controlled/affiliated investments
(10,836
)
 
(891
)
Controlled investments
(52,808
)
 
7,442

New Mountain Net Lease Corporation
(812
)
 
—

Benefit for taxes
898

 
110

Net realized and unrealized (losses) gains
(203,727
)
 
16,470

Net (decrease) increase in net assets resulting from operations
(172,422
)
 
43,920

Less: Net decrease in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation
(65
)
 
—

Net (decrease) increase in net assets resulting from operations related to New Mountain Finance Corporation
$
(172,357
)
 
$
43,920

Basic earnings per share
$
(1.78
)
 
$
0.56

Weighted average shares of common stock outstanding - basic (See Note 11)
96,827,342

 
78,457,641

Diluted earnings per share
$
(1.78
)
 
$
0.49

Weighted average shares of common stock outstanding - diluted (See Note 11)
110,084,927

 
95,857,530

Distributions declared and paid per share
$
0.34

 
$
0.34


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
 
March 31, 2020
 
March 31, 2019
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income
$
31,305

 
$
27,450

Net realized gains on investments and New Mountain Net Lease Corporation
114

 
46

Net change in unrealized (depreciation) appreciation of investments and New Mountain Net Lease Corporation
(204,739
)
 
16,314

Benefit for taxes
898

 
110

Net (decrease) increase in net assets resulting from operations
(172,422
)
 
43,920

Less: Net decrease in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation
(65
)
 
—

Net (decrease) increase in net assets resulting from operations related to New Mountain Finance Corporation
(172,357
)
 
43,920

Capital transactions
 
 
 
Net proceeds from shares sold
—

 
59,297

Deferred offering costs
—

 
(229
)
Distributions declared to stockholders from net investment income
(32,921
)
 
(27,342
)
Reinvestment of distributions
—

 
1,364

Total net (decrease) increase in net assets resulting from capital transactions
(32,921
)
 
33,090

Net (decrease) increase in net assets
(205,278
)
 
77,010

New Mountain Finance Corporation net assets at the beginning of the period
1,283,468

 
1,006,269

New Mountain Finance Corporation net assets at the end of the period
1,078,190

 
1,083,279

Non-controlling interest in New Mountain Net Lease Corporation
11,250

 
—

Net assets at the end of the period
$
1,089,440

 
$
1,083,279

 
 
 
 
Capital share activity
 
 
 
Shares sold
—

 
4,312,500

Shares issued from the reinvestment of distributions
—

 
100,558

Net increase in shares outstanding
—

 
4,413,058




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)
 
Three Months Ended
 
March 31, 2020
 
March 31, 2019
Cash flows from operating activities
 
 
 
Net (decrease) increase in net assets resulting from operations
$
(172,422
)
 
$
43,920

Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash (used in) provided by operating activities:
 
 
 
Net realized (gains) losses on investments and New Mountain Net Lease Corporation
(114
)
 
(46
)
Net change in unrealized depreciation (appreciation) of investments and New Mountain Net Lease Corporation
204,739

 
(16,314
)
Amortization of purchase discount
(3,528
)
 
(835
)
Amortization of deferred financing costs
1,152

 
1,651

Amortization of premium on Convertible Notes
(26
)
 
(27
)
Non-cash investment income
(5,131
)
 
(6,842
)
(Increase) decrease in operating assets:
 
 
 
Proceeds from sale of non-controlling interest in New Mountain Net Lease Corporation
11,315

 
—

Purchase of investments and delayed draw facilities
(172,921
)
 
(158,036
)
Proceeds from sales and paydowns of investments
178,722

 
5,857

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
211

 
46

Cash paid for purchase of drawn portion of revolving credit facilities
(8,996
)
 
(338
)
Cash paid on drawn revolvers
(33,639
)
 
(9,026
)
Cash repayments on drawn revolvers
9,620

 
5,182

Interest and dividend receivable
(850
)
 
(4,289
)
Receivable from unsettled securities sold
(30,964
)
 
—

Receivable from affiliates
(268
)
 
(287
)
Other assets
(802
)
 
(758
)
Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
(1,780
)
 
295

Management fee payable
10,315

 
50

Incentive fee payable
7,826

 
(1
)
Interest payable
(5,519
)
 
(1,884
)
Payable to affiliates
352

 
(223
)
Deferred tax liability
(898
)
 
(110
)
Other liabilities
74

 
2,758

Net cash flows used in operating activities
(13,532
)
 
(139,257
)
Cash flows from financing activities
 
 
 
Net proceeds from shares sold
—

 
59,297

Distributions paid
(32,921
)
 
(25,978
)
Offering costs paid
—

 
(265
)
Proceeds from Holdings Credit Facility
16,000

 
69,500

Repayment of Holdings Credit Facility
(108,400
)
 
(15,000
)
Proceeds from SBA-guaranteed debentures
75,000

 
—

Proceeds from NMFC Credit Facility
—

 
110,000

Repayment of NMFC Credit Facility
—

 
(35,000
)
Proceeds from DB Credit Facility
40,000

 
25,000

Repayment of DB Credit Facility
—

 
(32,000
)
Deferred financing costs paid
(2,613
)
 
(390
)
Net cash flows (used) provided by financing activities
(12,934
)
 
155,164

Net (decrease) increase in cash and cash equivalents
(26,466
)
 
15,907

Cash and cash equivalents at the beginning of the period
48,574

 
49,664

Cash and cash equivalents at the end of the period
$
22,108

 
$
65,571

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
26,301

 
$
19,085

Income taxes paid
—

 
3

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

 
$
1,364

Accrual for offering costs
86

 
92

Accrual for deferred financing costs
4

 
119



The accompanying notes are an integral part of these consolidated financial statements.
7
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
March 31, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (12)
 
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)(10)
 
8.50% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
28,613

 
$
28,396

 
$
26,301

 
 
 
 
Second lien (8)(10)
 
8.50% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,446

 
6,894

 
 
 
 
 
 
 
 
 
 
 
 
36,113

 
35,842

 
33,195

 
3.05
 %
Wolfpack IP Co.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)(10)
 
7.50% (L + 6.50%/M)
 
6/14/2019
 
6/13/2025
 
9,091

 
9,010

 
8,997

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

 
$
44,852

 
$
42,192

 
3.88
 %
Funded Debt Investments - United Arab Emirates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GEMS Menasa (Cayman) Limited**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (8)
 
6.61% (L + 5.00%/Q)

7/30/2019

7/31/2026

$
33,321


$
33,162


$
29,656


2.72
 %
Total Funded Debt Investments - United Arab Emirates
 
 
 






$
33,321


$
33,162


$
29,656


2.72
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (2)(10)
 
8.50% (L + 7.50%/M)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,677

 
$
36,433

 
 
 
 
Second lien (8)(10)
 
8.50% (L + 7.50%/M)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,972

 
5,775

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,649

 
42,208

 
3.87
 %
Aston FinCo S.a r.l. / Aston US Finco, LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (8)(10)
 
10.13% (L + 8.25%/Q)
 
10/8/2019
 
10/8/2027
 
34,459

 
34,193

 
31,982

 
2.94
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
78,312

 
$
77,842

 
$
74,190

 
6.81
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(10)
 
6.50% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
$
50,240

 
$
49,849

 
$
46,487

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.50% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
28,068

 
27,944

 
25,972

 
 
 
 
 
 
 
 
 
 
 
 
78,308

 
77,793

 
72,459

 
6.65
 %
GS Acquisitionco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)(10)
 
6.83% (L + 5.75%/S)
 
8/7/2019
 
5/24/2024
 
26,842

 
26,694

 
26,369

 
 
 
 
First lien (5)(10)
 
6.83% (L + 5.75%/S)
 
8/7/2019
 
5/24/2024
 
22,363

 
22,239

 
21,969

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.83% (L + 5.75%/S)
 
8/7/2019
 
5/24/2024
 
20,868

 
20,742

 
20,501

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.83% (L + 5.75%/S)
 
8/7/2019
 
5/24/2024
 
3,134

 
3,115

 
3,079

 
 
 
 
 
 
 
 
 
 
 
 
73,207

 
72,790

 
71,918

 
6.60
 %

The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (12)
 
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 (2)(10)
 
8.09% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
62,572

 
$
62,572

 
$
46,528

 
 
 
 
First lien (8)(10)
 
8.09% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
15,352

 
15,352

 
11,416

 
 
 
 
First lien (3)(10)
 
7.96% (L + 6.32%/Q)
 
3/29/2019
 
3/15/2024
 
7,665

 
7,665

 
5,699

 
 
 
 
 
 
 
 
 
 
 
 
85,589

 
85,589

 
63,643

 
5.84
 %
Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
8.91% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
44,899

 
44,684

 
43,866

 
 
 
 
First lien (8)(10)
 
8.91% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
5,154

 
5,130

 
5,035

 
 
 
 
First lien (3)(10)(11) - Drawn
 
8.90% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
7,433

 
7,395

 
7,262

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.01% (L + 6.00%/M)
 
7/30/2018
 
7/30/2024
 
2,033

 
2,020

 
1,986

 
 
 
 
 
 
 
 
 
 
 
 
59,519

 
59,229

 
58,149

 
5.34
 %
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(10)
 
7.50% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
46,636

 
46,247

 
46,636

 
 
 
 
First lien (8)(10)
 
7.50% (L + 6.50%/M)
 
6/14/2019
 
9/12/2024
 
8,667

 
8,591

 
8,667

 
 
 
 
 
 
 
 
 
 
 
 
55,303

 
54,838

 
55,303

 
5.08
 %
Nomad Buyer, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(10)
 
5.61% (L + 5.00%/M)
 
8/3/2018
 
8/1/2025
 
56,296

 
54,786

 
54,940

 
5.04
 %
ConnectWise, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)(10)
 
7.07% (L + 6.00%/S)
 
11/26/2019
 
2/28/2025
 
55,473

 
55,145

 
54,031

 
4.96
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)(10)
 
7.57% (L + 6.50%/S)
 
1/6/2015
 
2/28/2022
 
39,031

 
38,798

 
37,177

 
 
 
 
First lien (8)(10)
 
7.57% (L + 6.50%/S)
 
6/6/2019
 
2/28/2022
 
13,338

 
12,942

 
12,704

 
 
 
 
First lien (3)(10)(11) - Drawn
 
8.00% (P + 4.75%/Q)
 
6/26/2018
 
11/29/2021
 
2,100

 
1,932

 
2,000

 
 
 
 
 
 
 
 
 
 
 
 
54,469

 
53,672

 
51,881

 
4.76
 %
CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)(10)
 
8.95% (L + 7.50%/Q)
 
8/15/2018
 
8/31/2026
 
47,838

 
47,312

 
43,762

 
 
 
 
Second lien (8)(10)
 
8.95% (L + 7.50%/Q)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,417

 
6,861

 
 
 
 
 
 
 
 
 
 
 
 
55,338

 
54,729

 
50,623

 
4.65
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(10)
 
6.75% (L + 5.75%/M)
 
9/18/2017
 
9/18/2023
 
22,109

 
22,003

 
21,507

 
 
 
 
First lien (2)(10)
 
6.75% (L + 5.75%/M)
 
9/18/2017
 
9/18/2023
 
18,632

 
18,578

 
18,125

 
 
 
 
First lien (2)(10)
 
6.75% (L + 5.75%/M)
 
9/18/2017
 
9/18/2023
 
7,690

 
7,642

 
7,481

 
 
 
 
 
 
 
 
 
 
 
 
48,431

 
48,223

 
47,113

 
4.31
 %

The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (12)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
7.45% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
$
38,249

 
$
38,116

 
$
36,826

 
 
 
 
First lien (2)(10)
 
7.45% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,631

 
10,591

 
10,235

 
 
 
 
 
 
 
 
 
 
 
 
48,880

 
48,707

 
47,061

 
4.32
 %
Symplr Software Intermediate Holdings, Inc. (24)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Symplr Software, Inc. (fka Caliper Software, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
First lien (2)(10)
 
6.57% (L + 5.50%/S)
 
11/30/2018
 
11/28/2025
 
30,484

 
30,279

 
30,200

 
 
 
 
First lien (4)(10)
 
6.57% (L + 5.50%/S)
 
11/30/2018
 
11/28/2025
 
14,813

 
14,718

 
14,675

 
 
 
 
 
 
 
 
 
 
 
 
45,297

 
44,997

 
44,875

 
4.12
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
6.75% (L + 5.75%/M)
 
10/9/2015
 
10/31/2022
 
34,869

 
34,749

 
34,615

 
 
 
 
Second lien (8)(10)
 
10.25% (L + 9.25%/M)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,945

 
10,000

 
 
 
 
 
 
 
 
 
 
 
 
44,869

 
44,694

 
44,615

 
4.10
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)(10)
 
9.28% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,407

 
20,977

 
 
 
 
Second lien (2)(10)
 
9.28% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
16,624

 
16,484

 
15,498

 
 
 
 
Second lien (8)(10)
 
9.28% (L + 7.50%/Q)
 
4/17/2018
 
4/17/2026
 
6,000

 
5,949

 
5,594

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,840

 
42,069

 
3.86
 %
Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)(10)
 
10.03% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,331

 
40,927

 
3.76
 %
Tenawa Resource Holdings LLC (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specialty Chemicals & Materials
 
First lien (3)(10)
 
10.50% (Base + 8.00%/Q)
 
5/12/2014
 
10/30/2024
 
38,900

 
38,852

 
38,900

 
3.57
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
7.57% (L + 6.50%/S)
 
6/15/2017
 
6/17/2024
 
31,850

 
31,702

 
30,943

 
 
 
 
First lien (8)(10)
 
7.57% (L + 6.50%/S)
 
6/15/2017
 
6/17/2024
 
4,937

 
4,914

 
4,796

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.72% (L + 6.50%/Q)
 
6/15/2017
 
6/15/2023
 
669

 
664

 
651

 
 
 
 
 
 
 
 
 
 
 
 
37,456

 
37,280

 
36,390

 
3.34
 %
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)(10)
 
6.57% (L + 5.50%/S)
 
5/22/2018
 
5/31/2024
 
24,797

 
24,705

 
23,693

 
 
 
 
First lien (8)(10)
 
6.57% (L + 5.50%/S)
 
5/22/2018
 
5/31/2024
 
4,937

 
4,919

 
4,717

 
 
 
 
First lien (2)(10)
 
6.57% (L + 5.50%/S)
 
5/22/2018
 
5/31/2024
 
3,312

 
3,300

 
3,165

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.35% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
4,987

 
4,962

 
4,766

 
 
 
 
 
 
 
 
 
 
 
 
38,033

 
37,886

 
36,341

 
3.34
 %

The accompanying notes are an integral part of these consolidated financial statements.
10
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (12)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.01% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
$
26,148

 
$
26,163

 
$
24,658

 
 
 
 
Second lien (8)
 
10.01% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
11,147

 
11,147

 
10,511

 
 
 
 
 
 
 
 
 
 
 
 
37,295

 
37,310

 
35,169

 
3.23
 %
Definitive Healthcare Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
First lien (8)(10)
 
8.19% (L + 5.50% + 1.00% PIK/Q)*
 
8/7/2019
 
7/16/2026
 
33,483

 
33,329

 
33,034

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.70% (L + 5.50%/Q)
 
8/7/2019
 
7/16/2024
 
1,848

 
1,839

 
1,823

 
 
 
 
 
 
 
 
 
 
 
 
35,331

 
35,168

 
34,857

 
3.20
 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
6.87% (L + 5.25%/Q)
 
4/25/2017
 
4/29/2024
 
36,812

 
36,693

 
34,419

 
3.16
 %
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(10)
 
8.25% (L + 7.25%/M)
 
1/10/2019
 
1/10/2025
 
34,076

 
33,497

 
34,076

 
3.13
 %
KAMC Holdings, Inc
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)(10)
 
9.70% (L + 8.00%/Q)
 
8/14/2019
 
8/13/2027
 
18,750

 
18,617

 
16,910

 
 
 
 
Second lien (8)(10)
 
9.70% (L + 8.00%/Q)
 
8/14/2019
 
8/13/2027
 
18,750

 
18,617

 
16,910

 
 
 
 
 
 
 
 
 
 
 
 
37,500

 
37,234

 
33,820

 
3.10
 %
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(10)
 
7.28% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,163

 
22,031

 
21,834

 
 
 
 
First lien (2)(10)
 
7.28% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
10,947

 
10,882

 
10,785

 
 
 
 
 
 
 
 
 
 
 
 
33,110

 
32,913

 
32,619

 
2.99
 %
Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(10)
 
7.41% (L + 6.00%/Q)
 
9/15/2017
 
9/15/2023
 
27,028

 
26,974

 
22,158

 
 
 
 
First lien (4)(10)
 
7.41% (L + 6.00%/Q)
 
9/17/2019
 
9/15/2023
 
10,917

 
10,917

 
8,950

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.00% (P + 5.00%/M)
 
9/15/2017
 
3/15/2023
 
1,738

 
1,720

 
1,424

 
 
 
 
 
 
 
 
 
 
 
 
39,683

 
39,611

 
32,532

 
2.99
 %
CoolSys, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Industrial Services
 
First lien (5)(10)
 
7.00% (L + 6.00%/M)
 
11/20/2019
 
11/20/2026
 
22,444

 
22,335

 
21,932

 
 
 
 
First lien (2)(10)
 
7.00% (L + 6.00%/M)
 
11/20/2019
 
11/20/2026
 
10,374

 
10,324

 
10,138

 
 
 
 
 
 
 
 
 
 
 
 
32,818

 
32,659

 
32,070

 
2.94
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(10)
 
6.32% (L + 5.25%/S)
 
7/2/2015
 
7/2/2021
 
17,051

 
17,010

 
15,511

 
 
 
 
First lien (3)(10)
 
6.32% (L + 5.25%/S)
 
12/20/2017
 
7/2/2021
 
8,868

 
8,821

 
8,067

 
 
 
 
First lien (2)(10)
 
6.32% (L + 5.25%/S)
 
12/20/2017
 
7/2/2021
 
4,174

 
4,156

 
3,797

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.32% (L + 5.25%/S)
 
4/16/2019
 
7/2/2021
 
3,030

 
2,855

 
2,756

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.25% (L + 5.25%/M)
 
7/2/2015
 
7/2/2021
 
2,050

 
2,030

 
1,865

 
 
 
 
 
 
 
 
 
 
 
 
35,173

 
34,872

 
31,996

 
2.94
 %

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)
March 31, 2020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (12)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Kaseya Traverse Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(10)
 
8.91% (L + 4.00% + 3.00% PIK/S)*
 
5/9/2019
 
5/2/2025
 
$
27,595

 
$
27,354

 
$
27,220

 
 
 
 
First lien (3)(10)(11) - Drawn
 
7.50% (L + 6.50%/M)
 
5/9/2019
 
5/2/2025
 
2,288

 
2,266

 
2,257

 
 
 
 
First lien (3)(10)(11) - Drawn
 
8.91% (L + 4.00% + 3.00% PIK/S)*
 
5/9/2019
 
5/2/2025
 
431

 
427

 
425

 
 
 
 
 
 
 
 
 
 
 
 
30,314

 
30,047

 
29,902

 
2.73
 %
Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(10)
 
8.25% (L + 6.00% + 1.25% PIK/M)*
 
7/19/2018
 
7/19/2024
 
26,927

 
26,711

 
26,443

 
 
 
 
First lien (3)(10)
 
8.25% (L + 6.00% + 1.25% PIK/M)*
 
8/27/2019
 
7/19/2024
 
3,518

 
3,486

 
3,454

 
 
 
 
 
 
 
 
 
 
 
 
30,445

 
30,197

 
29,897

 
2.74
 %
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(10)
 
6.51% (L + 5.25%/Q)
 
1/3/2019
 
11/29/2024
 
25,247

 
25,143

 
24,924

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.51% (L + 5.25%/Q)
 
1/3/2019
 
11/29/2024
 
4,407

 
4,388

 
4,351

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.30% (L + 5.25%/Q)
 
1/3/2019
 
11/29/2024
 
442

 
440

 
437

 
 
 
 
 
 
 
 
 
 
 
 
30,096

 
29,971

 
29,712

 
2.73
 %
GC Waves Holdings, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (5)(10)
 
7.20% (L + 5.75%/Q)
 
10/31/2019
 
10/31/2025
 
22,500

 
22,340

 
22,331

 
 
 
 
First lien (2)(10)
 
7.20% (L + 5.75%/Q)
 
10/31/2019
 
10/31/2025
 
3,673

 
3,647

 
3,645

 
 
 
 
First lien (3)(10)(11) - Drawn
 
6.20% (L + 4.75%/Q)
 
10/31/2019
 
10/31/2025
 
1,481

 
1,467

 
1,470

 
 
 
 
 
 
 
 
 
 
 
 
27,654

 
27,454

 
27,446