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, 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 August 5, 2020
Common stock, par value $0.01 per share						96,827,342

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Table of Contents

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2020

TABLE OF CONTENTS

									PAGE
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements
			New Mountain Finance Corporation
			Consolidated Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and December 31, 2019 (unaudited)			3
			Consolidated Statements of Operations for the three and six months ended June 30, 2020 (unaudited) and June 30, 2019 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2020 (unaudited) and June 30, 2019 (unaudited)			5
			Consolidated Statements of Cash Flows for the six months ended June 30, 2020 (unaudited) and June 30, 2019 (unaudited)			6
			Consolidated Schedule of Investments as of June 30, 2020 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2019			29
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			48
			Report of Independent Registered Public Accounting Firm			90
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			91
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			125
Item 4.			Controls and Procedures			126
PART II. OTHER INFORMATION									127
Item 1.			Legal Proceedings			127
Item 1A.			Risk Factors			127
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			132
Item 3.			Defaults Upon Senior Securities			132
Item 4.			Mine Safety Disclosures			132
Item 5.			Other Information			132
Item 6.			Exhibits			133
			Signatures			134

2

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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, 2020						December 31, 2019
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,307,414 and $2,619,408, respectively)			$	2,234,933					$	2,613,801
Non-controlled/affiliated investments (cost of $77,989 and $82,825, respectively)			55,084						73,527
Controlled investments (cost of $582,965 and $449,308, respectively)			536,445						472,952
Total investments at fair value (cost of $2,968,368 and $3,151,541, respectively)			2,826,462						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			56,163						48,574
Interest and dividend receivable			33,348						31,800
Receivable from affiliates			259						277
Other assets			5,904						3,702
Total assets			$	2,943,558					$	3,266,055
Liabilities
Borrowings
Holdings Credit Facility			$	500,163					$	661,563
Unsecured Notes			453,250						453,250
SBA-guaranteed debentures			300,000						225,000
DB Credit Facility			215,000						230,000
Convertible Notes			201,571						201,623
NMFC Credit Facility			78,500						188,500
Deferred financing costs (net of accumulated amortization of $30,733 and $28,390, respectively)			(17,263)						(17,640)
Net borrowings			1,731,221						1,942,296
Payable for unsettled securities purchased			3,465						1,780
Management fee payable			30,564						10,298
Incentive fee payable			22,368						7,646
Interest payable			14,640						16,484
Payable to affiliates			2,061						673
Deferred tax liability			391						912
Other liabilities			1,982						2,498
Total liabilities			1,806,692						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 shares authorized, 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			(163,198)						(5,353)
Total net assets of New Mountain Finance Corporation			1,125,623						1,283,468
Non-controlling interest in New Mountain Net Lease Corporation			11,243						—
Total net assets			$	1,136,866					$	1,283,468
Total liabilities and net assets			$	2,943,558					$	3,266,055
Number of shares outstanding			96,827,342						96,827,342
Net asset value per share of New Mountain Finance Corporation			$	11.63					$	13.26

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

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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, 2020						June 30, 2019						June 30, 2020						June 30, 2019
Investment income
From non-controlled/non-affiliated investments:
Interest income			$	48,860					$	48,018					$	106,446					$	92,475
Non-cash dividend income			2,300						2,069						4,624						4,043
Other income			1,117						1,841						2,588						4,095
From non-controlled/affiliated investments:
Interest income			(1,235)						1,033						(166)						2,037
Dividend income			689						812						1,409						1,538
Non-cash dividend income			—						301						(3,418)						592
Other income			284						301						575						592
From controlled investments:
Interest income			3,738						2,584						6,719						5,047
Dividend income			7,725						7,265						15,954						15,722
Non-cash dividend income			1,502						2,128						4,140						4,173
Other income			987						113						1,180						342
Total investment income			65,967						66,465						140,051						130,656
Expenses
Incentive fee			6,896						6,987						14,722						13,850
Management fee			13,134						11,640						26,992						22,615
Interest and other financing expenses			19,229						20,719						41,423						39,865
Administrative expenses			1,239						1,049						2,279						2,144
Professional fees			969						886						1,874						1,652
Other general and administrative expenses			442						398						941						810
Total expenses			41,909						41,679						88,231						80,936
Less: management fees waived (See Note 5)			(3,183)						(2,823)						(6,726)						(5,356)
Less: expenses waived and reimbursed (See Note 5)			(335)						(335)						(335)						(335)
Net expenses			38,391						38,521						81,170						75,245
Net investment income before income taxes			27,576						27,944						58,881						55,411
Income tax (benefit) expense			(7)						(4)						(7)						13
Net investment income			27,583						27,948						58,888						55,398
Net realized (losses) gains:
Non-controlled/non-affiliated investments			(3,759)						47						(4,461)						90
Controlled investments			3						5						7						8
New Mountain Net Lease Corporation			—						—						812						—
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments			51,466						2,677						(88,817)						12,440
Non-controlled/affiliated investments			(2,771)						(1,637)						(13,607)						(2,528)
Controlled investments			4,587						(5,025)						(48,221)						2,417
New Mountain Net Lease Corporation			—						—						(812)						—
(Provision) benefit for taxes			(377)						(270)						521						(160)
Net realized and unrealized gains (losses)			49,149						(4,203)						(154,578)						12,267
Net increase (decrease) in net assets resulting from operations			76,732						23,745						(95,690)						67,665
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			251						—						186						—
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			$	76,481					$	23,745					$	(95,876)					$	67,665
Basic earnings (loss) per share			$	0.79					$	0.29					$	(0.99)					$	0.85
Weighted average shares of common stock outstanding - basic (See Note 11)			96,827,342						80,522,426						96,827,342						79,495,737
Diluted earnings (loss) per share			$	0.72					$	0.27					$	(0.99)					$	0.76
Weighted average shares of common stock outstanding - diluted (See Note 11)			110,084,927						97,693,499						110,084,927						96,780,587
Distributions declared and paid per share			$	0.30					$	0.34					$	0.64					$	0.68

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

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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, 2020						June 30, 2019						June 30, 2020						June 30, 2019
Increase (decrease) in net assets resulting from operations:
Net investment income			$	27,583					$	27,948					$	58,888					$	55,398
Net realized (losses) gains on investments and New Mountain Net Lease Corporation			(3,756)						52						(3,642)						98
Net change in unrealized appreciation (depreciation) of investments and New Mountain Net Lease Corporation			53,282						(3,985)						(151,457)						12,329
(Provision) benefit for taxes			(377)						(270)						521						(160)
Net increase (decrease) in net assets resulting from operations			76,732						23,745						(95,690)						67,665
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			251						—						186						—
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			76,481						23,745						(95,876)						67,665
Capital transactions
Net proceeds from shares sold			—						—						—						59,297
Deferred offering costs			—						—						—						(229)
Distributions declared to stockholders from net investment income			(29,048)						(27,377)						(61,969)						(54,719)
Reinvestment of distributions			—						1,270						—						2,634
Total net (decrease) increase in net assets resulting from capital transactions			(29,048)						(26,107)						(61,969)						6,983
Net increase (decrease) in net assets			47,433						(2,362)						(157,845)						74,648
New Mountain Finance Corporation net assets at the beginning of the period			1,078,190						1,083,279						1,283,468						1,006,269
New Mountain Finance Corporation net assets at the end of the period			1,125,623						1,080,917						1,125,623						1,080,917
Non-controlling interest in New Mountain Net Lease Corporation			11,243						—						11,243						—
Net assets at the end of the period			$	1,136,866					$	1,080,917					$	1,136,866					$	1,080,917
Capital share activity
Shares sold			—						—						—						4,312,500
Shares issued from the reinvestment of distributions			—						90,872						—						191,430
Net increase in shares outstanding			—						90,872						—						4,503,930

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

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New Mountain Finance Corporation

 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

			Six Months Ended
			June 30, 2020						June 30, 2019
Cash flows from operating activities
Net (decrease) increase in net assets resulting from operations			$	(95,690)					$	67,665
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized losses (gains) on investments and New Mountain Net Lease Corporation			3,642						(98)
Net change in unrealized depreciation (appreciation) of investments and New Mountain Net Lease Corporation			151,457						(12,329)
Amortization of purchase discount			(6,495)						(2,205)
Amortization of deferred financing costs			2,343						3,247
Amortization of premium on Convertible Notes			(52)						(57)
Non-cash investment income			(13,159)						(14,274)
(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			(215,345)						(341,402)
Proceeds from sales and paydowns of investments			437,631						74,268
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			210						88
Cash paid for purchase of drawn portion of revolving credit facilities			(13,996)						(338)
Cash paid on drawn revolvers			(40,066)						(13,181)
Cash repayments on drawn revolvers			29,939						8,328
Interest and dividend receivable			(1,548)						(3,304)
Receivable from affiliates			18						(9)
Other assets			(1,983)						(802)
Increase (decrease) in operating liabilities:
Management fee payable			20,266						425
Incentive fee payable			14,722						123
Payable for unsettled securities purchased			1,685						64,783
Payable to affiliates			1,388						(570)
Interest payable			(1,844)						3,104
Deferred tax liability			(521)						160
Other liabilities			218						(3,360)
Distributions related to non-controlling interest in New Mountain Net Lease Corporation			(258)						—
Net cash flows provided by (used in) operating activities			283,877						(169,738)
Cash flows from financing activities
Net proceeds from shares sold			—						59,297
Distributions paid			(61,969)						(52,085)
Offering costs paid			(175)						(380)
Proceeds from Holdings Credit Facility			16,000						119,500
Repayment of Holdings Credit Facility			(177,400)						(83,000)
Proceeds from Convertible Notes			—						86,681
Repayment of Convertible Notes			—						(155,250)
Proceeds from Unsecured Notes			—						116,500
Proceeds from SBA-guaranteed debentures			75,000						—
Proceeds from NMFC Credit Facility			25,000						245,000
Repayment of NMFC Credit Facility			(135,000)						(170,000)
Proceeds from DB Credit Facility			40,000						95,000
Repayment of DB Credit Facility			(55,000)						(52,000)
Deferred financing costs paid			(2,744)						(2,028)
Net cash flows (used in) provided by financing activities			(276,288)						207,235
Net increase in cash and cash equivalents			7,589						37,497
Cash and cash equivalents at the beginning of the period			48,574						49,664
Cash and cash equivalents at the end of the period			$	56,163					$	87,161
Supplemental disclosure of cash flow information
Cash interest paid			$	40,183					$	34,452
Income taxes paid			6						10
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan			$	—					$	2,634
Accrual for offering costs			108						40
Accrual for deferred financing costs			9						336

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments

June 30, 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					$	28,403					$	26,120
						Second lien (8)(10)						8.50% (L + 7.50%/M)						6/1/2018						6/8/2026						7,500						7,448						6,847
																														36,113						35,851						32,967						2.90		%
Wolfpack IP Co.**
Software						First lien (2)(10)						7.50% (L + 6.50%/S)						6/14/2019						6/13/2025						9,091						9,013						9,024						0.79		%
Total Funded Debt Investments - Canada																														$	45,204					$	44,864					$	41,991					3.69		%
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education						First lien (8)						6.00% (L + 5.00%/S)						7/30/2019						7/31/2026						$	25,323					$	25,206					$	24,057					2.12		%
Total Funded Debt Investments - United Arab Emirates																														$	25,323					$	25,206					$	24,057					2.12		%
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					$	37,684					$	37,043
						Second lien (8)(10)						8.50% (L + 7.50%/M)						9/25/2017						10/3/2025						6,000						5,973						5,872
																														43,853						43,657						42,915						3.77		%
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(10)						8.44% (L + 8.25%/M)						10/8/2019						10/8/2027						34,459						34,200						34,201						3.01		%
Total Funded Debt Investments - United Kingdom																														$	78,312					$	77,857					$	77,116					6.78		%
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(10)						6.83% (L + 5.75%/S)						8/7/2019						5/24/2024						$	26,774					$	26,634					$	26,607
						First lien (2)(10)						6.84% (L + 5.75%/S)						8/7/2019						5/24/2024						26,081						25,931						25,920
						First lien (5)(10)						6.83% (L + 5.75%/S)						8/7/2019						5/24/2024						22,306						22,190						22,168
						First lien (3)(10)(11) - Drawn						6.83% (L + 5.75%/S)						8/7/2019						5/24/2024						1,881						1,869						1,869
																														77,042						76,624						76,564						6.73		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(10)						6.50% (L + 5.50%/M)						9/17/2018						8/16/2024						50,112						49,743						47,907
						First lien (3)(10)(11) - Drawn						6.50% (L + 5.50%/M)						9/17/2018						8/16/2024						27,998						27,880						26,766
																														78,110						77,623						74,673						6.55		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Associations, Inc.
Business Services						First lien (2)(10)						8.46% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						$	45,239					$	45,035					$	44,424
						First lien (8)(10)						8.46% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						5,193						5,170						5,099
						First lien (2)(10)(11) - Drawn						8.46% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						7,488						7,453						7,354
						First lien (2)(10)(11) - Drawn						7.46% (L + 6.00%/Q)						7/30/2018						7/30/2024						2,033						2,020						1,996
																														59,953						59,678						58,873						5.18		%
ConnectWise, LLC
Software						First lien (2)(10)						7.07% (L + 6.00%/S)						11/26/2019						2/28/2025						55,333						55,020						54,989						4.84		%
CentralSquare Technologies, LLC
Software						Second lien (3)(10)						7.68% (L + 7.50%/M)						8/15/2018						8/31/2026						47,838						47,327						44,628
						Second lien (8)(10)						7.68% (L + 7.50%/M)						8/15/2018						8/31/2026						7,500						7,420						6,997
																														55,338						54,747						51,625						4.54		%
Salient CRGT Inc.
Federal Services						First lien (2)(10)						7.57% (L + 6.50%/S)						1/6/2015						2/28/2022						38,470						38,270						37,370
						First lien (8)(10)						7.57% (L + 6.50%/S)						6/6/2019						2/28/2022						13,146						12,804						12,770
																														51,616						51,074						50,140						4.41		%
iCIMS, Inc.
Software						First lien (8)(10)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,636						41,307						41,011
						First lien (8)(10)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,595						8,537
																														50,303						49,902						49,548						4.36		%
DCA Investment Holding, LLC
Healthcare Services						First lien (3)(10)						6.30% (L + 5.25%/S)						4/16/2019						7/2/2021						20,411						20,264						18,845
						First lien (2)(10)						6.32% (L + 5.25%/S)						7/2/2015						7/2/2021						17,006						16,973						15,701
						First lien (3)(10)						6.32% (L + 5.25%/S)						12/20/2017						7/2/2021						8,845						8,808						8,167
						First lien (2)(10)						6.32% (L + 5.25%/S)						12/20/2017						7/2/2021						4,163						4,149						3,844
						First lien (3)(10)(11) - Drawn						6.25% (L + 5.25%/S)						7/2/2015						7/2/2021						2,056						2,036						1,899
																														52,481						52,230						48,456						4.26		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(10)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						22,051						21,953						21,542
						First lien (2)(10)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						18,583						18,533						18,154
						First lien (2)(10)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						7,671						7,626						7,494
																														48,305						48,112						47,190						4.15		%

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

8

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						$	38,269					$	38,144					$	35,671
						First lien (2)(10)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						10,636						10,599						9,914
																														48,905						48,743						45,585						4.01		%
Integro Parent Inc.
Business Services						First lien (2)(10)						6.75% (L + 5.75%/M)						10/9/2015						10/31/2022						34,743						34,634						34,743
						Second lien (8)(10)						10.25% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,948						10,000
																														44,743						44,582						44,743						3.94		%
Brave Parent Holdings, Inc.
Software						Second lien (5)(10)						7.68% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,410						22,093
						Second lien (2)(10)						7.68% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,488						16,323
						Second lien (8)(10)						7.68% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,951						5,891
																														45,124						44,849						44,307						3.90		%
Quest Software US Holdings Inc.
Software						Second lien (2)(10)						9.01% (L + 8.25%/Q)						5/17/2018						5/18/2026						43,697						43,342						42,662						3.75		%
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						38,800						38,754						38,800						3.41		%
Trader Interactive, LLC
Business Services						First lien (2)(10)						7.57% (L + 6.50%/S)						6/15/2017						6/17/2024						31,769						31,628						31,327
						First lien (8)(10)						7.57% (L + 6.50%/S)						6/15/2017						6/17/2024						4,924						4,902						4,856
																														36,693						36,530						36,183						3.18		%
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
Federal Services						First lien (2)						6.25% (L + 5.25%/Q)						4/25/2017						4/29/2024						36,717						36,605						35,432						3.12		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(10)						9.30% (L + 8.00%/S)						9/15/2017						9/15/2023						26,960						26,910						23,882
						First lien (4)(10)						9.30% (L + 8.00%/S)						9/17/2019						9/15/2023						10,890						10,890						9,646
						First lien (3)(10)						9.00% (P + 7.00%/Q)						9/15/2017						3/15/2023						1,738						1,720						1,539
																														39,588						39,520						35,067						3.08		%
CoolSys, Inc.
Industrial Services						First lien (5)(10)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						22,388						22,282						22,276
						First lien (2)(10)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						10,348						10,299						10,296
						First lien (3)(10)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						2,234						2,223						2,223
																														34,970						34,804						34,795						3.06		%

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

9

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Definitive Healthcare Holdings, LLC
Healthcare Information Technology						First lien (8)(10)						7.50% (L + 5.50% + 1.00% PIK/Q)*						8/7/2019						7/16/2026						$	33,558					$	33,409					$	32,977
						First lien (3)(10)(11) - Drawn						6.50% (L + 5.50%/M)						8/7/2019						7/16/2024						1,848						1,839						1,816
																														35,406						35,248						34,793						3.06		%
KAMC Holdings, Inc
Business Services						Second lien (2)(10)						8.42% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,620						16,971
						Second lien (8)(10)						8.42% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,620						16,971
																														37,500						37,240						33,942						2.99		%
Finalsite Holdings, Inc.
Software						First lien (4)(10)						6.50% (L + 5.50%/Q)						9/28/2018						9/25/2024						22,106						21,982						21,775
						First lien (2)(10)						6.50% (L + 5.50%/Q)						9/28/2018						9/25/2024						10,919						10,857						10,755
																														33,025						32,839						32,530						2.86		%
TDG Group Holding Company
Consumer Services						First lien (2)(10)						6.32% (L + 5.25%/S)						5/22/2018						5/31/2024						24,734						24,647						24,061
						First lien (8)(10)						6.32% (L + 5.25%/S)						5/22/2018						5/31/2024						4,925						4,907						4,790
						First lien (2)(10)						6.32% (L + 5.25%/S)						5/22/2018						5/31/2024						3,304						3,292						3,214
																														32,963						32,846						32,065						2.82		%
GC Waves Holdings, Inc.**
Business Services						First lien (5)(10)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						22,444						22,290						22,275
						First lien (2)(10)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						3,664						3,639						3,636
						First lien (3)(10)(11) - Drawn						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						5,438						5,384						5,397
																														31,546						31,313						31,308						2.75		%
Integral Ad Science, Inc.
Software						First lien (8)(10)						8.25% (L + 6.00% + 1.25% PIK/S)*						7/19/2018						7/19/2024						27,013						26,807						27,013
						First lien (3)(10)						8.25% (L + 6.00% + 1.25% PIK/S)*						8/27/2019						7/19/2024						3,529						3,499						3,529
																														30,542						30,306						30,542						2.69		%
Kaseya Inc.
Software						First lien (8)(10)						8.09% (L + 4.00% + 3.00% PIK/S)*						5/9/2019						5/2/2025						27,800						27,568						27,644
						First lien (3)(10)(11) - Drawn						7.50% (L + 6.50%/S)						5/9/2019						5/2/2025						2,288						2,266						2,276
						First lien (3)(10)(11) - Drawn						8.09% (L + 4.00% + 3.00% PIK/S)*						5/9/2019						5/2/2025						434						431						432
																														30,522						30,265						30,352						2.67		%
Ansira Holdings, Inc.
Business Services						First lien (8)(10)						7.50% (L + 6.50% PIK/Q)*						12/19/2016						12/20/2024						28,405						28,340						23,395
						First lien (3)(10)						7.50% (L + 6.50% PIK/Q)*						12/19/2016						12/20/2024						7,174						7,160						5,908
																														35,579						35,500						29,303						2.58		%

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

10

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Keystone Acquisition Corp.
Healthcare Services						First lien (2)(10)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						$	24,357					$	24,256					$	23,348
						Second lien (2)(10)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,468						4,399
																														28,857						28,724						27,747						2.44		%
MRI Software LLC
Software						First lien (5)(10)						6.57% (L + 5.50%/S)						1/31/2020						2/10/2026						22,448						22,342						22,336
						First lien (3)(10)						6.57% (L + 5.50%/S)						1/31/2020						2/10/2026						3,436						3,419						3,419
						First lien (2)(10)						6.57% (L + 5.50%/S)						1/31/2020						2/10/2026						1,623						1,616						1,615
																														27,507						27,377						27,370						2.41		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)(10)						9.00% (L + 8.00%/Q)						11/14/2019						11/19/2027						22,500						22,385						22,388
						Second lien (2)(10)						9.00% (L + 8.00%/Q)						11/14/2019						11/19/2027						4,208						4,168						4,187
																														26,708						26,553						26,575						2.34		%
Confluent Health, LLC
Healthcare Services						First lien (2)(10)						5.44% (L + 5.00%/M)						6/21/2019						6/24/2026						27,225						27,104						25,782						2.27		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)						4.58% (L + 3.50%/S)						6/24/2019						8/28/2024						16,822						14,628						12,855
						First lien (8)						4.58% (L + 3.50%/S)						10/23/2019						8/28/2024						16,225						13,571						12,398
																														33,047						28,199						25,253						2.22		%
Instructure, Inc. **
Software						First lien (8)(10)						8.00% (L + 7.00%/M)						3/24/2020						3/24/2026						24,211						24,065						24,061						2.12		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.56% (L + 8.25%/Q)						7/26/2018						7/30/2026						24,533						24,479						23,061						2.03		%
AAC Holding Corp.
Education						First lien (2)(10)						9.25% (L + 5.00% + 3.25% PIK/M)*						9/30/2015						9/30/2022						25,982						25,907						22,355						1.97		%
Idera, Inc.
Software						Second lien (4)(10)						10.08% (L + 9.00%/S)						6/27/2019						6/28/2027						22,500						22,345						22,331						1.96		%
Astra Acquisition Corp.
Software						First lien (5)(10)						6.50% (L + 5.50%/M)						2/26/2020						3/1/2027						22,444						22,281						22,275						1.96		%
Convey Health Solutions, Inc.
Healthcare Services						First lien (4)(10)						6.25% (L + 5.25%/Q)						9/9/2019						9/4/2026						22,331						22,104						22,081						1.94		%
Avatar Topco, Inc. (23)
EAB Global, Inc.
Education						Second lien (3)(10)						8.64% (L + 7.50%/Q)						11/17/2017						11/17/2025						13,950						13,793						13,575
						Second lien (8)(10)						8.64% (L + 7.50%/Q)						11/17/2017						11/17/2025						7,500						7,416						7,298
																														21,450						21,209						20,873						1.84		%
Institutional Shareholder Services, Inc.
Business Services						Second lien (3)(10)						9.57% (L + 8.50%/S)						3/5/2019						3/5/2027						20,372						20,101						19,924						1.75		%

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

11

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
MED Parentco, LP
Healthcare Services						Second lien (8)(10)						8.61% (L + 8.25%/Q)						8/2/2019						8/30/2027						$	20,857					$	20,710					$	19,639					1.73		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)						7.43% (L + 7.25%/M)						8/2/2018						8/10/2026						14,349						14,304						12,842
						Second lien (8)						7.43% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,477						6,713
																														21,849						21,781						19,555						1.72		%
YLG Holdings, Inc.
Business Services						First lien (5)(10)						6.75% (L + 5.75%/S)						11/1/2019						10/31/2025						18,321						18,237						18,229
						First lien (5)(10)(11) - Drawn						6.75% (L + 5.75%/Q)						11/1/2019						10/31/2025						1,032						1,027						1,027
																														19,353						19,264						19,256						1.69		%
Xactly Corporation
Software						First lien (4)(10)						8.25% (L + 7.25%/S)						7/31/2017						7/29/2022						19,047						18,947						18,948						1.67		%
DiversiTech Holdings, Inc.
Distribution & Logistics						Second lien (2)(10)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						12,000						11,916						11,344
						Second lien (8)(10)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						7,500						7,448						7,090
																														19,500						19,364						18,434						1.62		%
Bullhorn, Inc.
Software						First lien (2)(10)						6.57% (L + 5.50%/S)						9/24/2019						10/1/2025						17,088						16,973						16,960
						First lien (3)(10)						6.57% (L + 5.50%/S)						9/24/2019						10/1/2025						282						280						280
						First lien (3)(10)(11) - Drawn						6.50% (L + 5.50%/Q)						9/24/2019						10/1/2025						852						845						845
						First lien (3)(10)(11) - Drawn						6.57% (L + 5.50%/S)						9/24/2019						10/1/2025						212						211						211
																														18,434						18,309						18,296						1.61		%
Bluefin Holding, LLC
Software						Second lien (8)(10)						7.93% (L + 7.75%/M)						9/6/2019						9/6/2027						18,000						18,000						18,000						1.58		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(10)						8.25% (L + 7.25%/S)						9/29/2016						9/8/2022						18,260						18,173						17,322						1.52		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(10)						5.75% (L + 4.75%/Q)						12/18/2018						11/29/2024						17,238						17,170						17,015						1.50		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(10)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						16,192						16,114						16,111
						First lien (3)(10)(11) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						270						269						269
																														16,462						16,383						16,380						1.44		%

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

12

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Symplr Software Intermediate Holdings, Inc. (24)
Symplr Software, Inc. (fka Caliper Software, Inc.)
Healthcare Information Technology						First lien (4)(10)						6.57% (L + 5.50%/S)						11/30/2018						11/28/2025						$	14,775					$	14,684					$	14,775
						First lien (2)(10)						6.57% (L + 5.50%/S)						11/30/2018						11/28/2025						482						479						482
																														15,257						15,163						15,257						1.34		%
Hill International, Inc.**
Business Services						First lien (2)(10)						6.75% (L + 5.75%/M)						6/21/2017						6/21/2023						15,326						15,284						15,190						1.34		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(10)						7.00% (L + 6.00%/Q)						3/13/2020						2/6/2026						14,150						14,081						14,079
						First lien (3)(10)(11) - Drawn						7.29% (L + 6.00%/Q)						3/13/2020						2/6/2025						608						605						605
																														14,758						14,686						14,684						1.29		%
Bleriot US Bidco Inc.
Federal Services						Second lien (2)(10)						8.81% (L + 8.50%/Q)						10/24/2019						10/29/2027						15,000						14,858						14,593						1.28		%
Netsmart Inc. / Netsmart Technologies, Inc.
Healthcare Information Technology						Second lien (2)(10)						8.50% (L + 7.50%/Q)						4/18/2016						10/19/2023						15,000						14,800						14,037						1.23		%
BackOffice Associates Holdings, LLC
Business Services						First lien (2)(10)						11.50% (L + 7.50% + 3.00% PIK/Q)*						8/25/2017						8/25/2023						13,131						13,066						12,879
						First lien (3)(10)(11) - Drawn						11.50% (L + 7.50% + 3.00% PIK/Q)*						8/25/2017						8/25/2023						907						899						890
																														14,038						13,965						13,769						1.21		%
Ministry Brands, LLC
Software						First lien (2)(10)						5.00% (L + 4.00%/Q)						12/7/2016						12/2/2022						2,917						2,911						2,852
						First lien (3)(10)(11) - Drawn						6.00% (L + 5.00%/S)						12/7/2016						12/2/2022						575						572						562
						Second lien (8)(10)						10.25% (L + 9.25%/S)						12/7/2016						6/2/2023						7,840						7,808						7,840
						Second lien (3)(10)						10.25% (L + 9.25%/S)						12/7/2016						6/2/2023						2,160						2,151						2,160
																														13,492						13,442						13,414						1.18		%
JAMF Holdings, Inc.
Software						First lien (8)(10)						8.00% (L + 7.00%/S)						11/13/2017						11/11/2022						8,757						8,711						8,757
						First lien (2)(10)						8.00% (L + 7.00%/S)						11/8/2019						11/11/2022						4,582						4,555						4,582
																														13,339						13,266						13,339						1.17		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(10)						7.25% (L + 6.25%/S)						9/5/2018						9/5/2024						13,444						13,393						13,132						1.16		%
Geo Parent Corporation
Business Services						First lien (2)(10)						5.43% (L + 5.25%/M)						12/13/2018						12/19/2025						13,000						12,946						12,925						1.14		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(10)						9.07% (L + 8.00%/S)						6/28/2017						5/30/2025						14,500						14,359						12,231						1.08		%

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

13

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
PaySimple, Inc.
Software						First lien (2)(10)						5.69% (L + 5.50%/M)						8/19/2019						8/23/2025						$	9,808					$	9,721					$	9,201
						First lien (2)(10)(11) - Drawn						5.69% (L + 5.50%/M)						8/19/2019						8/23/2025						3,010						2,954						2,824
																														12,818						12,675						12,025						1.06		%
OEConnection LLC
Business Services						Second lien (2)(10)						9.32% (L + 8.25%/S)						9/25/2019						9/25/2027						12,044						11,932						11,555						1.02		%
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business Services						First lien (8)(10)						5.82% (L + 5.50%/M)						5/24/2019						5/29/2026						10,998						10,915						10,998
						First lien (3)(10)(11) - Drawn						5.68% (L + 5.50%/M)						5/24/2019						5/30/2025						460						455						460
																														11,458						11,370						11,458						1.01		%
CHA Holdings, Inc.
Business Services						Second lien (4)(10)						9.82% (L + 8.75%/S)						4/3/2018						4/10/2026						7,012						6,955						6,915
						Second lien (3)(10)						9.82% (L + 8.75%/S)						4/3/2018						4/10/2026						4,453						4,417						4,391
																														11,465						11,372						11,306						0.99		%
Apptio, Inc.
Software						First lien (8)(10)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						11,203						11,021						11,203						0.99		%
Castle Management Borrower LLC
Business Services						First lien (2)(10)						7.25% (L + 6.25% PIK/Q)*						5/31/2018						2/15/2024						13,479						13,434						11,035						0.97		%
CFS Management, LLC
Healthcare Services						First lien (2)(10)						7.34% (L + 5.75%/S)						8/6/2019						7/1/2024						11,674						11,625						10,939						0.96		%
NorthStar Financial Services Group, LLC
Software						Second lien (5)(10)						8.25% (L + 7.50%/Q)						5/23/2018						5/25/2026						10,607						10,586						10,607						0.93		%
Vectra Co.
Business Products						Second lien (8)(10)						7.43% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,757						10,377						0.91		%
PPVA Black Elk (Equity) LLC
Business Services						Subordinated (3)(10)						—						5/3/2013						—						14,500						14,500						10,354						0.91		%
Masergy Holdings, Inc.
Business Services						Second lien (2)(10)						8.56% (L + 7.50%/S)						12/14/2016						12/16/2024						10,500						10,462						10,094						0.89		%
Quartz Holding Company
Software						Second lien (3)(10)						8.18% (L + 8.00%/M)						4/2/2019						4/2/2027						10,000						9,822						9,903						0.87		%
Teneo Holdings, LLC
Business Services						First lien (2)(10)						6.25% (L + 5.25%/M)						7/15/2019						7/11/2025						9,925						9,753						9,672						0.85		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (4)(10)						5.82% (L + 4.75%/S)						11/30/2018						7/21/2023						9,308						9,276						9,303						0.82		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
VT Topco, Inc.
Business Services						Second lien (4)(10)						7.18% (L + 7.00%/M)						8/14/2018						7/31/2026						$	10,000					$	9,979					$	9,182					0.81		%
Affordable Care Holding Corp.
Healthcare Services						First lien (2)(10)						5.75% (L + 4.75%/Q)						3/18/2019						10/24/2022						9,845						9,713						9,161						0.81		%
Stats Intermediate Holdings, LLC**
Business Services						First lien (2)						5.44% (L + 5.25%/M)						5/22/2019						7/10/2026						9,950						9,839						9,096						0.80		%
Amerijet Holdings, Inc.
Distribution & Logistics						First lien (4)(10)						9.00% (L + 8.00%/M)						7/15/2016						7/15/2021						7,352						7,339						7,352
						First lien (4)(10)						9.00% (L + 8.00%/M)						7/15/2016						7/15/2021						1,225						1,223						1,225
																														8,577						8,562						8,577						0.75		%
Zywave, Inc.
Software						Second lien (4)(10)						10.10% (L + 9.00%/Q)						11/22/2016						11/17/2023						6,980						6,950						6,914
						Second lien (4)(10)						10.10% (L + 9.00%/Q)						12/3/2019						11/17/2023						600						596						594
						First lien (2)(10)(11) - Drawn						6.00% (L + 5.00%/M)						11/22/2016						11/17/2022						500						496						499
																														8,080						8,042						8,007						0.70		%
AG Parent Holdings, LLC
Healthcare Services						First lien (2)						5.18% (L + 5.00%/M)						7/30/2019						7/31/2026						6,958						6,926						6,871						0.60		%
Recorded Future, Inc.
Software						First lien (8)(10)						7.25% (L + 6.25%/S)						8/26/2019						7/3/2025						6,250						6,222						6,219
						First lien (3)(10)(11) - Drawn						7.25% (L + 6.25%/S)						8/26/2019						7/3/2025						500						498						498
																														6,750						6,720						6,717						0.59		%
DealerSocket, Inc.
Software						First lien (2)(10)						6.34% (L + 4.75%/S)						4/16/2018						4/26/2023						6,577						6,547						6,387						0.56		%
CP VI Bella Midco, LLC
Healthcare Services						Second lien (3)(10)						6.93% (L + 6.75%/M)						1/25/2018						12/29/2025						6,732						6,707						6,323						0.56		%
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
Business Services						Second lien (3)(10)						7.50% (L + 6.75%/M)						1/29/2018						2/2/2026						6,732						6,707						6,246						0.55		%
Restaurant Technologies, Inc.
Business Services						Second lien (4)(10)						6.68% (L + 6.50%/M)						9/24/2018						10/1/2026						6,722						6,708						6,030						0.53		%
ADG, LLC
Healthcare Services						Second lien (3)(10)						11.00% (L + 10.00% PIK/S)*						10/3/2016						3/28/2024						5,586						5,541						2,814						0.25		%
Sphera Solutions, Inc.
Software						First lien (2)(10)						8.00% (L + 7.00%/Q)						9/10/2019						6/14/2022						2,476						2,458						2,452						0.22		%

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

15

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Education Management Corporation (13)
Education Management II LLC
Education						First lien (2)						9.75% (L + 6.50%/Q)(26)						1/5/2015						7/2/2020						$	208					$	202					$	2
						First lien (3)						9.75% (L + 6.50%/Q)(26)						1/5/2015						7/2/2020						117						114						1
						First lien (2)						13.00% (L + 7.50%/M)(26)						1/5/2015						7/2/2020						300						292						—
						First lien (3)						13.00% (L + 7.50%/M)(26)						1/5/2015						7/2/2020						169						165						—
						First lien (2)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						142						117						—
						First lien (3)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						80						66						—
						First lien (2)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						4						3						—
						First lien (3)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						2						2						—
																														1,022						961						3						—		%
PPVA Fund, L.P.
Business Services						Collateralized Financing (26)(27)						—						11/7/2014						—						—						—						—						—		%
Total Funded Debt Investments - United States																														$	2,093,898					$	2,077,002					$	2,007,268					176.55		%
Total Funded Debt Investments																														$	2,242,737					$	2,224,929					$	2,150,432					189.14		%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education						Preferred shares (3)(10)(22)						—						9/1/2017						—						79,938						$	7,914					$	8,234					0.72		%
Total Shares - Hong Kong																																				$	7,914					$	8,234					0.72		%
Equity - United States
Avatar Topco, Inc.(23)
Education						Preferred shares (3)(10)						—						11/17/2017						—						35,750						$	49,135					$	50,207					4.42		%
Symplr Software Intermediate Holdings, Inc. (24)
Healthcare Information Technology						Preferred shares (4)(10)						—						11/30/2018						—						7,500						9,035						8,891
						Preferred shares (3)(10)						—						11/30/2018						—						2,586						3,115						3,065
																																				12,150						11,956						1.05		%
Tenawa Resource Holdings LLC (14)
QID NGL LLC
Specialty Chemicals & Materials						Preferred shares (6)(10)						—						10/30/2017						—						1,623,385						1,623						2,017
						Ordinary shares (6)(10)						—						5/12/2014						—						5,290,997						5,291						6,244
																																				6,914						8,261						0.73		%
Alert Holding Company, Inc. (15)
Alert Intermediate Holdings I, Inc.
Business Services						Preferred shares (3)(10)						—						5/31/2019						—						6,111						6,839						6,928						0.61		%

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

16

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Ancora Acquisition LLC
Education						Preferred shares (9)(10)						—						8/12/2013						—						372						$	83					$	158					0.01		%
Education Management Corporation (13)
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																																				$	75,590					$	77,510					6.82		%
Total Shares																																				$	83,504					$	85,744					7.54		%
Warrants - United States																																				.
ASP LCG Holdings, Inc.
Education						Warrants (3)(10)						—						5/5/2014						5/5/2026						622						$	37					$	762					0.07		%
Ancora Acquisition LLC
Education						Warrants (9)(10)						—						8/12/2013						8/12/2020						20						—						—						—		%
Total Warrants - United States																																				$	37					$	762					0.07		%
Total Funded Investments																																				$	2,308,470					$	2,236,938					196.75		%
Unfunded Debt Investments - Canada
Wolfpack IP Co.**
Software						First lien (3)(10)(11) - Undrawn						—						6/14/2019						6/13/2025						$	909					$	(9)					$	(7)					(0.00)		%
Total Unfunded Debt Investments - Canada																														$	909					$	(9)					$	(7)					(0.00)		%
Unfunded Debt Investments - United States																																				`
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						5/24/2019						5/30/2025						$	470					$	(5)					$	—					—		%
Wrike, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						12/31/2018						12/31/2024						933						(9)						—						—		%
JAMF Holdings, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						11/13/2017						11/11/2022						1,086						(10)						—						—		%
Integral Ad Science, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						7/19/2018						7/19/2023						1,807						(18)						—						—		%
Integro Parent Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						6/8/2018						4/30/2022						6,743						(34)						—						—		%

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

17

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Apptio, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						1/10/2019						1/10/2025						$	2,066					$	(41)					$	—					—		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						11/30/2018						7/21/2023						526						(3)						—						—		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (3)(10)(11) - Undrawn						—						3/13/2020						2/6/2025						405						(2)						(2)						(0.00)		%
Zywave, Inc.
Software						First lien (2)(10)(11) - Undrawn						—						11/22/2016						11/17/2022						1,500						(11)						(3)						(0.00)		%
DCA Investment Holding, LLC
Healthcare Services						First lien (3)(10)(11) - Undrawn						—						7/2/2015						7/2/2021						44						—						(3)						(0.00)		%
Recorded Future, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						8/26/2019						1/3/2021						500						(3)						(3)
						First lien (3)(10)(11) - Undrawn						—						8/26/2019						7/3/2025						250						(1)						(1)
																														750						(4)						(4)						(0.00)		%
Xactly Corporation
Software						First lien (3)(10)(11) - Undrawn						—						7/31/2017						7/29/2022						992						(10)						(5)						(0.00)		%
Bullhorn, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						9/24/2019						10/1/2021						923						(7)						(7)						(0.00)		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (3)(10)(11) - Undrawn						—						2/20/2020						2/20/2026						1,529						(8)						(8)						(0.00)		%
Ministry Brands, LLC
Software						First lien (3)(10)(11) - Undrawn						—						12/7/2016						12/2/2022						425						(2)						(9)						(0.00)		%
PaySimple, Inc.
Software						First lien (2)(10)(11) - Undrawn						—						8/19/2019						8/24/2020						201						—						(12)						(0.00)		%
Instructure, Inc. **
Software						First lien (3)(10)(11) - Undrawn						—						3/24/2020						3/24/2026						2,036						(13)						(13)						(0.00)		%
DealerSocket, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						4/16/2018						4/26/2023						560						(4)						(16)						(0.00)		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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 Inc.
Software						First lien (3)(10)(11) - Undrawn						—						5/9/2019						5/2/2025						$	23					$	—					$	—
						First lien (3)(10)(11) - Undrawn						—						5/9/2019						5/3/2021						2,873						—						(16)
																														2,896						—						(16)						(0.00)		%
CoolSys, Inc.
Industrial Services						First lien (3)(10)(11) - Undrawn						—						11/20/2019						11/19/2021						3,360						—						(17)						(0.00)		%
MRI Software LLC
Software						First lien (3)(10)(11) - Undrawn						—						1/31/2020						2/10/2026						2,002						(10)						(10)
						First lien (3)(10)(11) - Undrawn						—						1/31/2020						2/10/2022						2,062						—						(10)
																														4,064						(10)						(20)						(0.00)		%
Trader Interactive, LLC
Business Services						First lien (3)(10)(11) - Undrawn						—						6/15/2017						6/15/2023						1,673						(13)						(23)						(0.00)		%
ConnectWise, LLC
Software						First lien (3)(10)(11) - Undrawn						—						11/26/2019						2/28/2025						4,248						(27)						(26)						(0.00)		%
YLG Holdings, Inc.
Business Services						First lien (5)(10)(11) - Undrawn						—						11/1/2019						4/30/2021						1,349						—						(7)
						First lien (3)(10)(11) - Undrawn						—						11/1/2019						10/31/2025						3,968						(20)						(20)
																														5,317						(20)						(27)						(0.00)		%
Bluefin Holding, LLC
Software						First lien (3)(11) - Undrawn						—						9/6/2019						9/6/2024						1,515						(23)						(37)						(0.00)		%
Finalsite Holdings, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						9/25/2018						9/25/2024						2,521						(19)						(38)						(0.00)		%
Diligent Corporation
Software						First lien (3)(10)(11) - Undrawn						—						12/19/2018						12/19/2020						5,977						(37)						(42)						(0.00)		%
iCIMS, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						9/12/2018						9/12/2024						2,915						(29)						(44)						(0.01)		%
Associations, Inc.
Business Services						First lien (2)(10)(11) - Undrawn						—						7/30/2018						7/30/2021						2,948						(18)						(53)						(0.01)		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
GC Waves Holdings, Inc.**
Business Services						First lien (3)(10)(11) - Undrawn						—						10/31/2019						10/31/2025						$	3,951					$	(30)					$	(30)
						First lien (3)(10)(11) - Undrawn						—						10/31/2019						11/1/2021						4,435						—						(33)
																														8,386						(30)						(63)						(0.01)		%
GS Acquisitionco, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						8/7/2019						5/24/2024						3,604						(23)						(22)
						First lien (3)(10)(11) - Undrawn						—						8/7/2019						8/2/2021						12,681						—						(79)
																														16,285						(23)						(101)						(0.01)		%
Definitive Healthcare Holdings, LLC
Healthcare Information Technology						First lien (3)(10)(11) - Undrawn						—						8/7/2019						7/16/2021						7,391						—						(128)						(0.01)		%
TDG Group Holding Company
Consumer Services						First lien (2)(10)(11) - Undrawn						—						5/22/2018						5/31/2024						5,044						(25)						(137)						(0.01)		%
Salient CRGT Inc.
Federal Services						First lien (3)(10)(11) - Undrawn						—						6/26/2018						11/29/2021						6,125						(490)						(175)						(0.02)		%
CFS Management, LLC
Healthcare Services						First lien (3)(10)(11) - Undrawn						—						8/6/2019						7/1/2021						3,468						(17)						(218)						(0.02)		%
PhyNet Dermatology LLC
Healthcare Services						First lien (3)(10)(11) - Undrawn						—						9/17/2018						8/16/2020						17,077						(85)						(751)						(0.07)		%
Total Unfunded Debt Investments - United States																														$	124,206					$	(1,047)					$	(1,998)					(0.17)		%
Total Unfunded Debt Investments																														$	125,115					$	(1,056)					$	(2,005)					(0.17)		%
Total Non-Controlled/Non-Affiliated Investments																																				$	2,307,414					$	2,234,933					196.58		%

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

20

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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/Affiliated Investments (28)
Funded Debt Investments - United States
Permian Holdco 1, Inc.
Permian Holdco 2, Inc.
Permian Holdco 3, Inc.
Energy						First lien (3)(10)						13.50% (L + 7.50% + 5.00% PIK/M)*						6/14/2018						6/30/2022						$	10,766					$	10,766					$	9,066
						First lien (3)(10)(11) - Drawn						7.50% (L + 6.50%/M)						6/14/2018						6/30/2022						17,700						17,700						15,598
						Subordinated (3)(10)						18.00% PIK/Q (26)*						12/26/2018						6/30/2022						2,417						2,417						2,195
						Subordinated (3)(10)						14.00% PIK/Q (26)*						10/31/2016						10/15/2021						1,708						1,708						—
						Subordinated (3)(10)						14.00% PIK/Q (26)*						10/31/2016						10/15/2021						1,025						1,025						—
																														33,616						33,616						26,859						2.37		%
Sierra Hamilton Holdings Corporation
Energy						Second lien (3)(10)						15.00% PIK/Q*						9/12/2019						9/12/2023						1,555						1,526						1,400						0.12		%
Total Funded Debt Investments - United States																														$	35,171					$	35,142					$	28,259					2.49		%
Equity - United States
NMFC Senior Loan Program I LLC**
Investment Fund						Membership interest (3)(10)						—						6/13/2014						—						—						$	23,000					$	23,000					2.02		%
Sierra Hamilton Holdings Corporation
Energy						Ordinary shares (2)(10)						—						7/31/2017						—						25,000,000						11,501						3,687
						Ordinary shares (3)(10)						—						7/31/2017						—						2,786,000						1,282						411
																																				12,783						4,098						0.36		%
Permian Holdco 1, Inc.
Energy						Preferred shares (3)(10)(17)(26)						—						10/31/2016						—						1,366,452						5,714						—
						Ordinary shares (3)(10)						—						10/31/2016						—						1,366,452						1,350						—
																																				7,064						$	—					—		%
Total Shares - United States																																				$	42,847					$	27,098					2.38		%
Total Funded Investments																																				$	77,989					$	55,357					4.87		%
Unfunded Debt Investments - United States
Permian Holdco 3, Inc.
Energy						First lien (3)(10)(11) - Undrawn						—						6/14/2018						6/30/2022						$	2,300					$	—					$	(273)					(0.02)		%
Total Unfunded Debt Investments - United States																														$	2,300					$	—					$	(273)					(0.02)		%
Total Non-Controlled/Affiliated Investments																																				$	77,989					$	55,084					4.85		%

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

21

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Controlled Investments (29)
Funded Debt Investments - United Kingdom
Edmentum Ultimate Holdings, LLC (16)
EducationCity Limited**
Education						First lien (3)(10)(11) - Drawn						10.00%/S						1/24/2020						8/31/2020						$	3,000					$	3,000					$	3,000					0.26		%
Total Funded Debt Investments - United Kingdom																														$	3,000					$	3,000					$	3,000					0.26		%
Funded Debt Investments - United States
Edmentum Ultimate Holdings, LLC (16)
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
Education						First lien (2)(10)						9.50% (L + 4.50% + 4.00% PIK/Q)*						8/6/2018						6/9/2021						$	10,226					$	9,599					$	10,226
						First lien (3)(10)(11) - Drawn						10.00%/S						1/24/2020						8/31/2020						5,000						5,000						5,000
						Second lien (3)(10)						7.00% PIK/Q*						2/23/2018						12/9/2021						12,426						12,111						12,426
						Second lien (3)(10)(11) - Drawn						5.00% PIK/Q*						6/9/2015						12/9/2021						8,067						8,067						8,067
						Second lien (3)(10)(11) - Drawn						5.00% PIK/Q*						4/15/2020						12/9/2021						7,637						7,637						7,637
						Subordinated (2)(10)						10.00% PIK/Q*						6/9/2015						12/9/2021						21,524						21,524						18,806
						Subordinated (3)(10)						8.50% PIK/Q*						6/9/2015						12/9/2021						5,557						5,556						5,381
						Subordinated (3)(10)						10.00% PIK/Q*						6/9/2015						12/9/2021						5,295						5,295						4,626
																														75,732						74,789						72,169						6.35		%
New LT Smile Holdings, LLC (25)
Benevis Holding Corp.
Healthcare Services						First lien (2)(10)						7.32% (L + 6.32%/Q)(26)						3/15/2018						3/15/2024						62,572						62,572						49,594
						First lien (8)(10)						7.32% (L + 6.32%/Q)(26)						3/15/2018						3/15/2024						15,352						15,352						12,168
						First lien (3)(10)						7.35% (L + 6.32%/Q)(26)						3/29/2019						3/15/2024						7,586						7,586						6,013
						First lien (3)(10)(11) - Drawn						7.32% (L + 6.32%/Q)						6/5/2020						3/15/2024						1,383						1,383						1,383
																														86,893						86,893						69,158						6.08		%
UniTek Global Services, Inc.
Business Services						First lien (2)(10)						7.50% (L + 5.50% + 1.00% PIK/S)*						6/29/2018						8/20/2024						12,448						12,448						10,619
						First lien (3)(10)						7.50% (L + 5.50% + 1.00% PIK/S)*						3/16/2020						8/20/2024						10,251						9,573						8,744
						First lien (2)(10)						7.50% (L + 5.50% + 1.00% PIK/S)*						6/29/2018						8/20/2024						2,490						2,490						2,124
						First lien (3)(10)						7.50% (L + 5.50% + 1.00% PIK/S)*						6/29/2018						8/20/2024						713						577						608
																														25,902						25,088						22,095						1.94		%

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

22

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
NHME Holdings Corp. (21)
National HME, Inc.
Healthcare Services						Second lien (3)(10)						12.00% PIK/Q*						11/27/2018						5/27/2024						$	17,550					$	14,346					$	12,723
						Second lien (3)(10)						12.00% PIK/Q*						11/27/2018						5/27/2024						9,698						8,915						8,486
																														27,248						23,261						21,209						1.87		%
Total Funded Debt Investments - United States																														$	215,775					$	210,031					$	184,631					16.24		%
Total Funded Debt Investments																														$	218,775					$	213,031					$	187,631					16.50		%
Equity - Canada
NM APP Canada Corp.**
Net Lease						Membership interest (7)(10)						—						9/13/2016						—						—						$	7,345					$	10,579					0.93		%
Total Shares - Canada																																				$	7,345					$	10,579					0.93		%
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund						Membership interest (3)(10)						—						5/4/2018						—						—						$	110,000					$	110,000					9.69		%
NMFC Senior Loan Program II LLC**
Investment Fund						Membership interest (3)(10)						—						5/3/2016						—						—						79,400						78,828						6.93		%
NM NL Holdings, L.P.**
Net Lease						Membership interest (7)(10)						—						6/20/2018						—						—						44,070						45,521						4.00		%
UniTek Global Services, Inc.
Business Services						Preferred shares (3)(10)(20)						—						8/17/2018						—						9,475,206						9,475						7,947
						Preferred shares (3)(10)(20)						—						8/29/2019						—						5,631,560						5,632						5,059
						Preferred shares (3)(10)(19)						—						6/30/2017						—						17,278,793						17,279						12,387
						Preferred shares (2)(10)(18)(26)						—						1/13/2015						—						29,326,545						26,946						10,247
						Preferred shares (3)(10)(18)(26)						—						1/13/2015						—						8,104,462						7,447						2,832
						Ordinary shares (2)(10)						—						1/13/2015						—						2,096,477						1,925						319
						Ordinary shares (3)(10)						—						1/13/2015						—						1,993,749						532						304
																																				69,236						39,095						3.44		%
NM GLCR LP
Net Lease						Membership interest (7)(10)						—						2/1/2018						—						—						14,750						22,282						1.96		%
NM CLFX LP
Net Lease						Membership interest (7)(10)						—						10/6/2017						—						—						12,538						11,717						1.03		%
NM APP US LLC
Net Lease						Membership interest (7)(10)						—						9/13/2016						—						—						5,080						6,633						0.58		%

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

23

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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 DRVT LLC
Net Lease						Membership interest (7)(10)						—						11/18/2016						—						—						$	5,152					$	5,876					0.53		%
NM YI, LLC
Net Lease						Membership interest (7)(10)						—						9/30/2019						—						—						6,272						5,713						0.50		%
NHME Holdings Corp. (21)
Healthcare Services						Ordinary shares (3)(10)						—						11/27/2018						—						640,000						4,000						4,000						0.35		%
NM JRA LLC
Net Lease						Membership interest (7)(10)						—						8/12/2016						—						—						2,043						3,555						0.31		%
NM KRLN LLC
Net Lease						Membership interest (7)(10)						—						11/15/2016						—						—						7,807						976						0.09		%
NM GP Holdco, LLC**
Net Lease						Membership interest (7)(10)						—						6/20/2018						—						—						452						456						0.04		%
Edmentum Ultimate Holdings, LLC (16)
Education						Ordinary shares (3)(10)						—						6/9/2015						—						123,968						11						233
						Ordinary shares (2)(10)						—						6/9/2015						—						107,143						9						202
																																				20						435						0.03		%
New LT Smile Holdings, LLC(25)
Healthcare Services						Ordinary shares (3)(10)						—						6/5/2020						—						68						—						—
						Ordinary shares (8)(10)						—						6/5/2020						—						136						—						—
						Ordinary shares (2)(10)						—						6/5/2020						—						556						—						—
																																				—						—						—		%
Total Shares - United States																																				$	360,820					$	335,087					29.48		%
Total Shares																																				$	368,165					$	345,666					30.41		%
Warrants - United States
Edmentum Ultimate Holdings, LLC (16)
Education						Warrants (3)(10)						—						2/23/2018						5/5/2026						1,141,846						$	769					$	2,148					0.19		%
NHME Holdings Corp. (21)
Healthcare Services						Warrants (3)(10)						—						11/27/2018						—						160,000						1,000						1,000						0.09		%
Total Warrants - United States																																				$	1,769					$	3,148					0.28		%
Total Funded Investments																																				$	582,965					$	536,445					47.19		%
Unfunded Debt Investments - United States
New LT Smile Holdings, LLC (25)
Benevis Holding Corp.
Healthcare Services						First lien (3)(10)(11) - Undrawn						—						6/5/2020						7/31/2020						$	2,074					$	—					$	—					—		%

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

24

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 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
Edmentum Ultimate Holdings, LLC (16)
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
Education						Second lien (3)(10)(11) - Undrawn						—						4/15/2020						12/9/2021						$	2,000					$	—					$	—					—		%
Total Unfunded Debt Investments - United States																														$	4,074					$	—					$	—					—		%
Total Controlled Investments																																				$	582,965					$	536,445					47.19		%
Total Investments																																				$	2,968,368					$	2,826,462					248.62		%

(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., Stifel Bank & Trust and MUFG Union Bank, N.A. 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)Investment is held in NMF Ancora Holdings, Inc.

(10)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.

(11)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.

(12)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, 2020.

(13)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 tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.

(14)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.

(15)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.

(16)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, holds a first lien promissory note in EducationCity Limited and holds a first lien term loan, first lien promissory note, second lien revolvers and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.

(17)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.

(18)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.

(19)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.

(20)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.

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

25

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 2020

(in thousands, except shares)

(unaudited)

(21)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.

(22)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.

(23)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.

(24)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.

(25)The Company holds common equity in New LT Smile Holdings, LLC. and holds first lien term loans in Benevis Holding Corp., a wholly-owned subsidiary of New LT Smile Holdings, LLC.

(26)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.

(27)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 $21,422 as of June 30, 2020. See Note 2. Summary of Significant Accounting Policies, for details.

(28)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, 2020 and December 31, 2019, along with transactions during the six months ended June 30, 2020 in which the issuer was a non-controlled/affiliated investment, is as follows:

Portfolio Company						Fair Value at December 31, 2019						Gross Additions (A)						Gross Redemptions (B)						Net Realized Gains (Losses)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at June 30, 2020						Interest Income						Dividend Income						Other Income
NMFC Senior Loan Program I LLC						$	23,000					$	—					$	—					$	—					$	—					$	23,000					$	—					$	1,409					$	527
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.						40,621						(4,877)						(75)						—						(9,083)						26,586						(282)						(3,418)						31
Sierra Hamilton Holdings Corporation						9,906						116						—						—						(4,524)						5,498						116						—						17
Total Non-Controlled/Affiliated Investments						$	73,527					$	(4,761)					$	(75)					$	—					$	(13,607)					$	55,084					$	(166)					$	(2,009)					$	575

(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.

26

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 2020

(in thousands, except shares)

(unaudited)

(29) Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of June 30, 2020 and December 31, 2019, along with transactions during the six months ended June 30, 2020 in which the issuer was a controlled investment, is as follows:

Portfolio Company						Fair Value at December 31, 2019						Gross Additions (A)						Gross Redemptions (B)						Net  Realized Gains (Losses)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at June 30, 2020						Interest Income						Dividend Income						Other Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.						$	79,112					$	18,698					$	(84)					$	7					$	(19,974)					$	77,752					$	3,547					$	—					$	955
National HME, Inc./NHME Holdings Corp.						24,979						1,928						—						—						(698)						26,209						1,928						—						—
New LT Smile Holdings, LLC / Benevis Holdings Corp. (C)						—						65,026						(78)						—						4,210						69,158						512						—						—
NM APP CANADA CORP						10,774						—						—						—						(195)						10,579						—						481						—
NM APP US LLC						6,834						—						—						—						(201)						6,633						—						277						—
NM CLFX LP						12,723						—						—						—						(1,006)						11,717						—						784						—
NM DRVT LLC						6,016						—						—						—						(140)						5,876						—						237						—
NM JRA LLC						3,700						—						—						—						(145)						3,555						—						134						—
NM GLCR LP						23,800						—						—						—						(1,518)						22,282						—						923						—
NM KRLN LLC						2,379						297						—						—						(1,700)						976						—						—						—
NM NL Holdings, L.P.						48,308						—						—						—						(2,787)						45,521						—						2,416						—
NM GP Holdco, LLC						487						—						—						—						(31)						456						—						25						—
NM YI LLC						6,339						—						—						—						(626)						5,713						—						355						—
NMFC Senior Loan Program II LLC						79,400						—						—						—						(572)						78,828						—						4,698						—
NMFC Senior Loan Program III LLC						100,000						10,000						—						—						—						110,000						—						5,624						—
UniTek Global Services, Inc.						68,101						16,030						(103)						—						(22,838)						61,190						732						4,140						225
Total Controlled Investments						$	472,952					$	111,979					$	(265)					$	7					$	(48,221)					$	536,445					$	6,719					$	20,094					$	1,180

(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.

(C)Portfolio company moved into the controlled investment category from the non-controlled/non-affiliated investment 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, 2020, 17.1% 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.

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

June 30, 2020

(unaudited)

						June 30, 2020
Investment Type						Percent of Total Investments at Fair Value
First lien						57.80		%
Second lien						24.38		%
Subordinated						1.46		%
Equity and other						16.36		%
Total investments						100.00		%

 

						June 30, 2020
Industry Type						Percent of Total Investments at Fair Value
Software						27.42		%
Business Services						21.16		%
Healthcare Services						15.22		%
Education						8.05		%
Investment Fund (includes investments in joint ventures)						7.49		%
Net Lease						4.01		%
Federal Services						3.54		%
Healthcare Information Technology						2.69		%
Consumer Services						2.64		%
Distribution & Logistics						2.43		%
Specialty Chemicals & Materials						2.18		%
Industrial Services						1.23		%
Energy						1.14		%
Packaging						0.43		%
Business Products						0.37		%
Total investments						100.00		%

 

						June 30, 2020
Interest Rate Type						Percent of Total Investments at Fair Value
Floating rates						94.81		%
Fixed rates						5.19		%
Total investments						100.00		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments

 December 31, 2019

(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 Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
Healthcare Services						Second lien (3)						9.30% (L + 7.50%/M)						6/1/2018						6/8/2026						$	28,613					$	28,390					$	27,754
						Second lien (8)						9.30% (L + 7.50%/M)						6/1/2018						6/8/2026						7,500						7,445						7,275
																														36,113						35,835						35,029						2.73		%
Wolfpack IP Co.**
Software						First lien (2)(9)						8.29% (L + 6.50%/M)						6/14/2019						6/13/2025						9,091						9,007						9,000						0.70		%
Total Funded Debt Investments - Canada																														$	45,204					$	44,842					$	44,029					3.43		%
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education						First lien (8)						6.91% (L + 5.00%/Q)						7/30/2019						7/31/2026						$	33,405					$	33,240					$	33,488					2.61		%
Total Funded Debt Investments - United Arab Emirates																														$	33,405					$	33,240					$	33,488					2.61		%
Funded Debt Investments - United Kingdom
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
Consumer Services						Second lien (2)						9.24% (L + 7.50%/M)						9/25/2017						10/3/2025						$	37,853					$	37,671					$	36,717
						Second lien (8)						9.24% (L + 7.50%/M)						9/25/2017						10/3/2025						6,000						5,971						5,820
																														43,853						43,642						42,537						3.32		%
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(9)						10.26% (L + 8.25%/Q)						10/8/2019						10/8/2027						34,459						34,187						34,201						2.66		%
Total Funded Debt Investments - United Kingdom																														$	78,312					$	77,829					$	76,738					5.98		%
Funded Debt Investments - United States
Benevis Holding Corp.
Healthcare Services						First lien (2)(9)						8.25% (L + 6.32%/Q)						3/15/2018						3/15/2024						$	62,731					$	62,731					$	62,323
						First lien (8)(9)						8.25% (L + 6.32%/Q)						3/15/2018						3/15/2024						15,391						15,391						15,291
						First lien (3)(9)						8.25% (L + 6.32%/Q)						3/29/2019						3/15/2024						7,743						7,743						7,693
																														85,865						85,865						85,307						6.64		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(9)						7.30% (L + 5.50%/M)						9/17/2018						8/16/2024						50,368						49,956						50,368
						First lien (3)(9)(10) - Drawn						7.30% (L + 5.50%/M)						9/17/2018						8/16/2024						28,139						28,009						28,139
																														78,507						77,965						78,507						6.11		%
Kronos Incorporated
Software						Second lien (2)						10.16% (L + 8.25%/Q)						10/26/2012						11/1/2024						49,210						48,955						50,563
						Second lien (8)						10.16% (L + 8.25%/Q)						10/26/2012						11/1/2024						11,147						11,147						11,453
																														60,357						60,102						62,016						4.83		%
Associations, Inc.
Business Services						First lien (2)(9)						9.09% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						44,557						44,332						44,557
						First lien (8)(9)						9.09% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						5,115						5,090						5,115
						First lien (3)(9)(10) - Drawn						9.06% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						7,171						7,133						7,171
																														56,843						56,555						56,843						4.43		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2019

(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
Nomad Buyer, Inc.
Healthcare Services						First lien (2)						6.74% (L + 5.00%/M)						8/3/2018						8/1/2025						$	56,439					$	54,867					$	56,298					4.39		%
GS Acquisitionco, Inc.
Software						First lien (2)(9)						7.55% (L + 5.75%/M)						8/7/2019						5/24/2024						26,894						26,738						26,725
						First lien (5)(9)						7.55% (L + 5.75%/M)						8/7/2019						5/24/2024						22,406						22,276						22,266
						First lien (3)(9)(10) - Drawn						7.55% (L + 5.75%/M)						8/7/2019						5/25/2024						3,720						3,698						3,697
						First lien (3)(9)(10) - Drawn						7.55% (L + 5.75%/M)						8/7/2019						5/25/2024						3,510						3,488						3,488
																														56,530						56,200						56,176						4.38		%
iCIMS, Inc.
Software						First lien (8)(9)						8.29% (L + 6.50%/M)						9/12/2018						9/12/2024						46,636						46,229						46,636
						First lien (8)(9)						8.29% (L + 6.50%/M)						6/14/2019						9/12/2024						8,667						8,587						8,667
																														55,303						54,816						55,303						4.31		%
ConnectWise, LLC
Software						First lien (2)(9)						7.94% (L + 6.00%/Q)						11/26/2019						2/28/2025						55,613						55,270						55,265						4.31		%
CentralSquare Technologies, LLC
Software						Second lien (3)						9.30% (L + 7.50%/M)						8/15/2018						8/31/2026						47,838						47,297						45,087
						Second lien (8)						9.30% (L + 7.50%/M)						8/15/2018						8/31/2026						7,500						7,415						7,069
																														55,338						54,712						52,156						4.06		%
Dealer Tire, LLC
Distribution & Logistics						First lien (2)						7.30% (L + 5.50%/M)						12/4/2018						12/12/2025						51,386						50,251						51,577						4.02		%
Salient CRGT Inc.
Federal Services						First lien (2)						8.29% (L + 6.50%/M)						1/6/2015						2/28/2022						39,312						39,049						37,445
						First lien (8)						8.29% (L + 6.50%/M)						6/6/2019						2/28/2022						13,434						12,987						12,795
																														52,746						52,036						50,240						3.91		%
NM GRC Holdco, LLC
Business Services						First lien (2)(9)						7.94% (L + 6.00%/Q)						2/9/2018						2/9/2024						38,346						38,206						38,346
						First lien (2)(9)(10) - Drawn						7.94% (L + 6.00%/Q)						2/9/2018						2/9/2024						10,658						10,616						10,658
																														49,004						48,822						49,004						3.82		%
Frontline Technologies Group Holdings, LLC
Education						First lien (4)(9)						7.55% (L + 5.75%/M)						9/18/2017						9/18/2023						22,162						22,050						22,162
						First lien (2)(9)						7.55% (L + 5.75%/M)						9/18/2017						9/18/2023						18,677						18,619						18,677
						First lien (2)(9)						7.55% (L + 5.75%/M)						9/18/2017						9/18/2023						7,710						7,658						7,710
																														48,549						48,327						48,549						3.78		%
Integro Parent Inc.
Business Services						First lien (2)(9)						7.54% (L + 5.75%/M)						10/9/2015						10/31/2022						35,024						34,892						35,024
						Second lien (8)(9)						11.04% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,941						10,000
																														45,024						44,833						45,024						3.51		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						9.43% (L + 7.50%/Q)						4/17/2018						4/17/2026						22,500						22,404						21,825
						Second lien (2)						9.43% (L + 7.50%/Q)						4/17/2018						4/17/2026						16,624						16,480						16,125
						Second lien (8)						9.43% (L + 7.50%/Q)						4/17/2018						4/17/2026						6,000						5,948						5,820
																														45,124						44,832						43,770						3.41		%
Quest Software US Holdings Inc.
Software						Second lien (2)						10.18% (L + 8.25%/Q)						5/17/2018						5/18/2026						43,697						43,320						42,851						3.35		%

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

30

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2019

(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
Symplr Software Intermediate Holdings, Inc. (23)
Symplr Software, Inc. (fka Caliper Software, Inc.)
Healthcare Information Technology						First lien (2)(9)						7.94% (L + 6.00%/Q)						11/30/2018						11/28/2025						$	25,561					$	25,387					$	25,561
						First lien (4)(9)						7.94% (L + 6.00%/Q)						11/30/2018						11/28/2025						14,850						14,752						14,850
																														40,411						40,139						40,411						3.15		%
Tenawa Resource Holdings LLC (13)
Tenawa Resource Management LLC
Energy						First lien (3)(9)						10.50% (Base + 8.00%/Q)						5/12/2014						10/30/2024						39,000						38,950						39,000						3.04		%
KAMC Holdings, Inc
Business Services						Second lien (2)(9)						9.91% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,614						18,609
						Second lien (8)(9)						9.91% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,614						18,609
																														37,500						37,228						37,218						2.90		%
Trader Interactive, LLC