UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarter Ended March 31, 2021

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

1633 Broadway, 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

The NASDAQ Global Select Market

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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý

Accelerated filer o

Non-accelerated filer o

Smaller reporting company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock.

Description						Shares as of May 5, 2021
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 MARCH 31, 2021

TABLE OF CONTENTS

						PAGE
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements
			New Mountain Finance Corporation
			Consolidated Statements of Assets and Liabilities as of March 31, 2021 (unaudited) and December 31, 2020 (unaudited)			3
			Consolidated Statements of Operations for the three months ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)			5
			Consolidated Statements of Cash Flows for the three months ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)			6
			Consolidated Schedule of Investments as of March 31, 2021 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2020			27
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			46
			Report of Independent Registered Public Accounting Firm			91
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			92
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			129
Item 4.			Controls and Procedures			130
PART II. OTHER INFORMATION						131
Item 1.			Legal Proceedings			131
Item 1A.			Risk Factors			131
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			133
Item 3.			Defaults Upon Senior Securities			133
Item 4.			Mine Safety Disclosures			133
Item 5.			Other Information			133
Item 6.			Exhibits			134
			Signatures			135

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)

			March 31, 2021						December 31, 2020
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,275,442 and $2,281,184, respectively)			$	2,252,144					$	2,249,615
Non-controlled/affiliated investments (cost of $104,959 and $115,543, respectively)			121,470						103,012
Controlled investments (cost of $648,906 and $600,942, respectively)			644,998						600,875
Total investments at fair value (cost of $3,029,307 and $2,997,669, respectively)			3,018,612						2,953,502
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)			21,422						21,422
Cash and cash equivalents			47,299						78,966
Interest and dividend receivable			32,927						28,411
Receivable from unsettled securities sold			—						9,019
Receivable from affiliates			—						117
Deferred tax asset			—						101
Other assets			8,075						5,981
Total assets			$	3,128,335					$	3,097,519
Liabilities
Borrowings
Unsecured Notes			$	511,500					$	453,250
Holdings Credit Facility			450,163						450,163
SBA-guaranteed debentures			300,000						300,000
Convertible Notes			201,494						201,520
DB Credit Facility			201,000						244,000
NMFC Credit Facility			107,000						165,500
Deferred financing costs (net of accumulated amortization of $35,513 and $33,325, respectively)			(18,270)						(16,839)
Net borrowings			1,752,887						1,797,594
Payable for unsettled securities purchased			62,863						26,842
Management fee payable			20,202						10,419
Incentive fee payable			14,602						7,354
Interest payable			9,826						15,587
Payable to affiliates			1,538						867
Deferred tax liability			14						—
Other liabilities			3,605						1,967
Total liabilities			1,865,537						1,860,630
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			1,269,671						1,269,671
Accumulated overdistributed earnings			(26,322)						(48,764)
Total net assets of New Mountain Finance Corporation			$	1,244,317					$	1,221,875
Non-controlling interest in New Mountain Net Lease Corporation			18,481						15,014
Total net assets			$	1,262,798					$	1,236,889
Total liabilities and net assets			$	3,128,335					$	3,097,519
Number of shares outstanding			96,827,342						96,827,342
Net asset value per share of New Mountain Finance Corporation			$	12.85					$	12.62

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
															March 31, 2021						March 31, 2020
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)															$	39,560					$	56,560
PIK interest income															2,534						1,026
Non-cash dividend income															2,401						2,324
Other income															2,824						1,471
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)															463						612
PIK interest income															—						457
Dividend income															—						720
Non-cash dividend income															1,505						(3,418)
Other income															102						291
From controlled investments:
Interest income (excluding PIK interest income)															1,148						974
PIK interest income															3,304						2,007
Dividend income															10,475						8,229
Non-cash dividend income															1,281						2,638
Other income															2,111						193
Total investment income															67,708						74,084
Expenses
Incentive fee															7,248						7,826
Management fee															13,420						13,858
Interest and other financing expenses															19,385						22,194
Administrative expenses															1,129						1,040
Professional fees															726						905
Other general and administrative expenses															442						499
Total expenses															42,350						46,322
Less: management fee waived (See Note 5)															(3,637)						(3,543)
Net expenses															38,713						42,779
Net investment income before income taxes															28,995						31,305
Income tax expense															1						—
Net investment income															28,994						31,305
Net realized (losses) gains:
Non-controlled/non-affiliated investments															181						(702)
Non-controlled/affiliated investments															(12,212)						—
Controlled investments															1,535						4
New Mountain Net Lease Corporation															—						812
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments															8,271						(140,283)
Non-controlled/affiliated investments															29,042						(10,836)
Controlled investments															(3,841)						(52,808)
New Mountain Net Lease Corporation															—						(812)
(Provision) benefit for taxes															(115)						898
Net realized and unrealized gains (losses)															22,861						(203,727)
Net increase (decrease) in net assets resulting from operations															51,855						(172,422)
Less: Net (increase) decrease in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation															(365)						65
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation															$	51,490					$	(172,357)
Basic earnings (loss) per share															$	0.53					$	(1.78)
Weighted average shares of common stock outstanding - basic (See Note 11)															96,827,342						96,827,342
Diluted earnings (loss) per share															$	0.49					$	(1.78)
Weighted average shares of common stock outstanding - diluted (See Note 11)															110,084,927						110,084,927
Distributions declared and paid per share															$	0.30					$	0.34

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
															March 31, 2021						March 31, 2020
Increase (decrease) in net assets resulting from operations:
Net investment income															$	28,994					$	31,305
Net realized (losses) gains on investments and New Mountain Net Lease Corporation ("NMNLC")															(10,496)						114
Net change in unrealized appreciation (depreciation) of investments and NMNLC															33,472						(204,739)
(Provision) benefit for taxes															(115)						898
Net increase (decrease) in net assets resulting from operations															51,855						(172,422)
Less: Net (increase) decrease in net assets resulting from operations related to non-controlling interest in NMNLC															(365)						65
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation															51,490						(172,357)
Capital transactions
Distributions declared to stockholders from net investment income															(29,048)						(32,921)
Total net decrease in net assets resulting from capital transactions															(29,048)						(32,921)
Net increase (decrease) in net assets															22,442						(205,278)
New Mountain Finance Corporation net assets at the beginning of the period															1,221,875						1,283,468
New Mountain Finance Corporation net assets at the end of the period															1,244,317						1,078,190
Non-controlling interest in NMNLC															18,481						11,250
Net assets at the end of the period															$	1,262,798					$	1,089,440
Capital share activity
Shares issued from the reinvestment of distributions															—						—
Net increase in shares outstanding															—						—

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)

			Three Months Ended
			March 31, 2021						March 31, 2020
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations			$	51,855					$	(172,422)
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 ("NMNLC")			10,496						(114)
Net change in unrealized (appreciation) depreciation of investments and NMNLC			(33,472)						204,739
Amortization of purchase discount			(1,978)						(3,528)
Amortization of deferred financing costs			2,315						1,152
Amortization of premium on Convertible Notes			(26)						(26)
Non-cash investment income			(11,091)						(5,131)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in NMNLC			—						11,315
Purchase of investments and delayed draw facilities			(222,985)						(172,921)
Proceeds from sales and paydowns of investments			197,671						178,722
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			36						211
Cash paid for purchase of drawn portion of revolving credit facilities			(483)						(8,996)
Cash paid on drawn revolvers			(13,806)						(33,639)
Cash repayments on drawn revolvers			10,502						9,620
Deferred tax asset			101						—
Interest and dividend receivable			(4,516)						(850)
Receivable from unsettled securities sold			9,019						(30,964)
Receivable from affiliates			117						(268)
Other assets			(2,094)						(802)
Increase (decrease) in operating liabilities:
Management fee payable			9,783						10,315
Incentive fee payable			7,248						7,826
Payable for unsettled securities purchased			36,021						(1,780)
Payable to affiliates			671						352
Interest payable			(5,761)						(5,519)
Deferred tax liability			14						(898)
Other liabilities			1,550						74
Contributions related to non-controlling interest in NMNLC			3,102						—
Net cash flows provided by (used in) operating activities			44,289						(13,532)
Cash flows from financing activities
Distributions paid			(29,048)						(32,921)
Proceeds from Holdings Credit Facility			—						16,000
Repayment of Holdings Credit Facility			—						(108,400)
Proceeds from Unsecured Notes			200,000						—
Repayment of Unsecured Notes			(141,750)						—
Proceeds from SBA-guaranteed debentures			—						75,000
Proceeds from NMFC Credit Facility			157,000						—
Repayment of NMFC Credit Facility			(215,500)						—
Proceeds from DB Credit Facility			40,000						40,000
Repayment of DB Credit Facility			(83,000)						—
Deferred financing costs paid			(3,658)						(2,613)
Net cash flows used in by financing activities			(75,956)						(12,934)
Net decrease in cash and cash equivalents			(31,667)						(26,466)
Cash and cash equivalents at the beginning of the period			78,966						48,574
Cash and cash equivalents at the end of the period			$	47,299					$	22,108
Supplemental disclosure of cash flow information
Cash interest paid			$	22,245					$	26,301
Income taxes paid			1						—
Non-cash financing activities:
Accrual for offering costs			$	—					$	86
Accrual for deferred financing costs			88						4

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						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)						8.50% (L + 7.50%/M)						6/1/2018						6/8/2026						$	28,613					$	28,425					$	28,648
						Second lien (8)						8.50% (L + 7.50%/M)						6/1/2018						6/8/2026						7,500						7,453						7,509
																														36,113						35,878						36,157						2.86		%
Total Funded Debt Investments - Canada																														$	36,113					$	35,878					$	36,157					2.86		%
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						$	15,638					$	15,574					$	15,619					1.24		%
Total Funded Debt Investments - United Arab Emirates																														$	15,638					$	15,574					$	15,619					1.24		%
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(11)						8.36% (L + 8.25%/M)						10/8/2019						10/8/2027						$	34,459					$	34,220					$	34,804					2.76		%
Total Funded Debt Investments - United Kingdom																														$	34,459					$	34,220					$	34,804					2.76		%
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(11)						6.75% (L + 5.75%/Q)						8/7/2019						5/24/2024						$	26,571					$	26,457					$	26,570
						First lien (2)(11)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						25,885						25,762						25,885
						First lien (5)(11)						6.75% (L + 5.75%/Q)						8/7/2019						5/24/2024						22,137						22,041						22,137
						First lien (2)(11)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						12,618						12,551						12,618
						First lien (3)(11)(12) - Drawn						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						2,438						2,423						2,438
																														89,649						89,234						89,648						7.11		%
Associations, Inc.
Business Services						First lien (2)(11)						8.00% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						52,963						52,776						52,963
						First lien (8)(11)						8.00% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						5,314						5,295						5,314
						First lien (2)(11)(12) - Drawn						8.00% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						10,500						10,456						10,500
						First lien (2)(11)(12) - Drawn						7.00% (L + 6.00%/Q)						7/30/2018						7/30/2024						2,033						2,020						2,033
																														70,810						70,547						70,810						5.61		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(11)						7.50% (L + 5.50% + 1.00% PIK/M)*						9/17/2018						8/16/2024						49,744						49,437						49,169
						First lien (3)(11)						7.50% (L + 5.50% + 1.00% PIK/M)*						9/17/2018						8/16/2024						19,080						18,929						18,859
																														68,824						68,366						68,028						5.39		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
ConnectWise, LLC
Software						First lien (2)(11)						6.25% (L + 5.25%/Q)						11/26/2019						2/28/2025						$	54,914					$	54,648					$	54,914
						First lien (3)(11)(12) - Drawn						6.25% (L + 5.25%/M)						11/26/2019						2/28/2025						265						264						265
																														55,179						54,912						55,179						4.38		%
CentralSquare Technologies, LLC
Software						Second lien (3)						7.70% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,377						46,283
						Second lien (8)						7.70% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,428						7,256
																														55,338						54,805						53,539						4.24		%
iCIMS, Inc.
Software						First lien (8)(11)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,636						41,358						41,857
						First lien (8)(11)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,606						8,713
						First lien (3)(11)(12) - Drawn						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						2,915						2,886						2,915
																														53,218						52,850						53,485						4.24		%
Salient CRGT Inc.
Federal Services						First lien (2)(11)						7.50% (L + 6.50%/S)						1/6/2015						2/28/2022						37,348						37,238						37,348
						First lien (8)(11)						7.50% (L + 6.50%/S)						6/6/2019						2/28/2022						12,762						12,576						12,762
																														50,110						49,814						50,110						3.97		%
Integro Parent Inc.
Business Services						First lien (2)(11)						6.75% (L + 5.75%/M)						10/9/2015						10/31/2022						34,364						34,290						34,364
						First lien (3)(11)(12) - Drawn						4.36% (L + 4.25%/M)						6/8/2018						4/30/2022						3,938						3,918						3,938
						Second lien (8)(11)						10.25% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,958						10,000
																														48,302						48,166						48,302						3.82		%
NM GRC Holdco, LLC
Business Services						First lien (2)(11)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						38,414						38,313						37,719
						First lien (2)(11)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						10,677						10,647						10,484
																														49,091						48,960						48,203						3.82		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(11)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						21,884						21,808						21,884
						First lien (2)(11)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						18,443						18,404						18,443
						First lien (2)(11)						6.75% (L + 5.75%/M)						9/18/2017						9/18/2023						7,613						7,578						7,613
																														47,940						47,790						47,940						3.80		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						7.61% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,420						22,500
						Second lien (2)						7.61% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,503						16,624
						Second lien (8)						7.61% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,956						6,000
																														45,124						44,879						45,124						3.57		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
Quest Software US Holdings Inc.
Software						Second lien (2)						8.46% (L + 8.25%/Q)						5/17/2018						5/18/2026						$	43,697					$	43,379					$	43,685					3.46		%
Tenawa Resource Holdings LLC (15)
Tenawa Resource Management LLC
Specialty Chemicals & Materials						First lien (3)(11)						10.50% (Base + 8.00%/Q)						5/12/2014						10/30/2024						38,500						38,461						38,309						3.03		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(11)						7.00% (L + 6.00%/S)						9/15/2017						9/15/2023						26,153						26,117						26,153
						First lien (4)(11)						7.00% (L + 6.00%/S)						9/17/2019						9/15/2023						10,564						10,564						10,564
						First lien (3)(11)(12) - Drawn						7.00% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,720						1,738
																														38,455						38,401						38,455						3.05		%
KAMC Holdings, Inc
Business Services						Second lien (2)(11)						8.20% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,630						18,655
						Second lien (8)(11)						8.20% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,630						18,656
																														37,500						37,260						37,311						2.95		%
CoolSys, Inc.
Industrial Services						First lien (5)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						22,219						22,124						22,219
						First lien (2)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						10,270						10,226						10,270
						First lien (3)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						4,163						4,144						4,163
																														36,652						36,494						36,652						2.90		%
Trader Interactive, LLC
Business Services						First lien (2)(11)						7.25% (L + 6.25%/Q)						6/15/2017						6/17/2024						31,524						31,408						31,524
						First lien (8)(11)						7.25% (L + 6.25%/Q)						6/15/2017						6/17/2024						4,886						4,868						4,886
						First lien (3)(11)(12) - Drawn						7.25% (L + 6.25%/M)						6/15/2017						6/15/2023						112						111						112
																														36,522						36,387						36,522						2.89		%
GC Waves Holdings, Inc.**
Business Services						First lien (5)(11)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						22,275						22,141						22,397
						First lien (3)(11)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						9,810						9,721						9,864
						First lien (2)(11)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						3,636						3,614						3,656
																														35,721						35,476						35,917						2.84		%
Definitive Healthcare Holdings, LLC
Healthcare Information Technology						First lien (8)(11)						6.50% (L + 5.50%/Q)						8/7/2019						7/16/2026						33,532						33,400						33,531
						First lien (3)(11)(12) - Drawn						6.50% (L + 5.50%/Q)						8/7/2019						7/16/2026						1,324						1,318						1,324
																														34,856						34,718						34,855						2.76		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
Diligent Corporation
Software						First lien (2)(11)						6.75% (L + 5.75%/Q)						3/30/2021						8/4/2025						$	17,896					$	17,807					$	17,807
						First lien (2)(11)						6.75% (L + 5.75%/Q)						3/4/2021						8/4/2025						9,980						9,930						9,930
						First lien (3)(11)						7.25% (L + 6.25%/S)						12/19/2018						8/4/2025						5,932						5,899						5,959
																														33,808						33,636						33,696						2.67		%
Kaseya Inc.
Software						First lien (8)(11)						8.00% (L + 4.00% + 3.00% PIK/S)*						5/9/2019						5/2/2025						28,449						28,248						28,448
						First lien (3)(11)						8.00% (L + 4.00% + 3.00% PIK/S)*						5/9/2019						5/2/2025						3,330						3,300						3,330
						First lien (3)(11)(12) - Drawn						7.50% (L + 6.50%/S)						5/9/2019						5/2/2025						1,133						1,121						1,133
																														32,912						32,669						32,911						2.61		%
Finalsite Holdings, Inc.
Software						First lien (4)(11)						7.50% (L + 6.50%/S)						9/28/2018						9/25/2024						21,938						21,834						21,938
						First lien (2)(11)						7.50% (L + 6.50%/S)						9/28/2018						9/25/2024						10,835						10,784						10,835
																														32,773						32,618						32,773						2.60		%
Ansira Holdings, Inc.
Business Services						First lien (8)(11)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						30,052						29,996						24,588
						First lien (3)(11)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						7,592						7,580						6,212
																														37,644						37,576						30,800						2.44		%
Integral Ad Science, Inc.
Software						First lien (8)(11)						6.00% (L + 5.00%/S)						7/19/2018						7/19/2024						27,216						27,043						27,216
						First lien (3)(11)						6.00% (L + 5.00%/S)						8/27/2019						7/19/2024						3,556						3,531						3,556
																														30,772						30,574						30,772						2.44		%
MRI Software LLC
Software						First lien (5)(11)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						22,273						22,180						22,388
						First lien (3)(11)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						4,642						4,621						4,666
						First lien (2)(11)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						1,611						1,604						1,619
						First lien (3)(11)(12) - Drawn						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						100						100						100
																														28,626						28,505						28,773						2.28		%
Keystone Acquisition Corp.
Healthcare Services						First lien (2)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						24,169						24,087						23,323
						Second lien (2)(11)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,472						4,500
																														28,669						28,559						27,823						2.20		%
Confluent Health, LLC
Healthcare Services						First lien (2)						5.11% (L + 5.00%/M)						6/21/2019						6/24/2026						27,019						26,912						27,019						2.14		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)(11)						9.00% (L + 8.00%/Q)						11/14/2019						11/19/2027						$	22,500					$	22,394					$	22,613
						Second lien (2)(11)						9.00% (L + 8.00%/Q)						11/14/2019						11/19/2027						4,208						4,171						4,229
																														26,708						26,565						26,842						2.13		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)						7.75% (L + 7.25%/M)						1/22/2021						1/5/2029						26,762						26,630						26,762						2.12		%
RealPage, Inc.**
Business Services						Second lien (2)						7.25% (L + 6.50%/Q)						2/18/2021						4/23/2029						25,000						24,813						25,750						2.04		%
Convey Health Solutions, Inc.
Healthcare Services						First lien (4)(11)						7.00% (L + 6.00%/Q)						9/9/2019						9/4/2026						22,163						21,960						22,384
						First lien (2)(11)						7.00% (L + 6.00%/Q)						2/12/2021						9/4/2026						2,643						2,617						2,670
																														24,806						24,577						25,054						1.98		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)						6.75% (L + 6.00%/S)						3/1/2021						3/1/2028						19,259						18,973						18,970
						First lien (2)						6.75% (L + 6.00%/S)						3/2/2021						3/1/2028						4,913						4,840						4,839
																														24,172						23,813						23,809						1.89		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(11)						3.61% (L + 3.50%/M)						6/24/2019						8/28/2024						16,692						14,866						12,062
						First lien (8)(11)						3.61% (L + 3.50%/M)						10/23/2019						8/28/2024						16,100						13,883						11,634
																														32,792						28,749						23,696						1.88		%
Instructure, Inc.
Software						First lien (8)(11)						8.00% (L + 7.00%/Q)						3/24/2020						3/24/2026						22,667						22,546						23,007						1.82		%
Idera, Inc.
Software						Second lien (4)						7.50% (L + 6.75%/S)						6/27/2019						3/2/2029						22,500						22,189						22,669						1.80		%
Syndigo LLC
Software						Second lien (4)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,335						22,613						1.79		%
Astra Acquisition Corp.
Software						First lien (5)						5.50% (L + 4.75%/M)						2/26/2020						3/1/2027						22,331						22,184						22,499						1.78		%
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/S)						10/30/2020						11/12/2027						12,188						12,100						12,256
						Second lien (4)(11)						8.50% (L + 7.75%/S)						11/12/2020						11/13/2028						9,767						9,672						9,962
																														21,955						21,772						22,218						1.76		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(11)						7.36% (L + 7.25%/M)						8/2/2018						8/10/2026						14,349						14,308						14,349
						Second lien (8)(11)						7.36% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,479						7,500
																														21,849						21,787						21,849						1.73		%
Avatar Topco, Inc. (23)
EAB Global, Inc.
Education						Second lien (3)(11)						8.50% (L + 7.50%/S)						11/17/2017						11/17/2025						13,950						13,811						13,950
						Second lien (8)(11)						8.50% (L + 7.50%/S)						11/17/2017						11/17/2025						7,500						7,425						7,500
																														21,450						21,236						21,450						1.70		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
Granicus, Inc.
Software						First lien (4)(11)						7.50% (L + 6.50%/S)						1/27/2021						1/29/2027						$	15,600					$	15,485					$	15,483
						First lien (2)(11)						7.50% (L + 6.50%/S)						1/27/2021						1/29/2027						5,952						5,908						5,907
																														21,552						21,393						21,390						1.69		%
MED Parentco, LP
Healthcare Services						Second lien (8)						8.36% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,722						20,831						1.65		%
YLG Holdings, Inc.
Business Services						First lien (5)(11)						7.25% (L + 6.25%/S)						11/1/2019						10/31/2025						18,183						18,110						18,183
						First lien (5)(11)						7.25% (L + 6.25%/S)						11/1/2019						10/31/2025						2,368						2,357						2,368
																														20,551						20,467						20,551						1.63		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.45% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,916						20,450						1.62		%
DG Investment Intermediate Holdings 2, Inc.
Business Services						Second lien (3)						7.50% (L + 6.75%/M)						3/18/2021						3/30/2029						20,313						20,262						20,262						1.60		%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)						7.00% (L + 6.25%/S)						3/12/2021						3/12/2027						19,978						19,829						19,828						1.57		%
DiversiTech Holdings, Inc.
Distribution & Logistics						Second lien (2)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						12,000						11,927						12,060
						Second lien (8)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						7,500						7,454						7,538
																														19,500						19,381						19,598						1.55		%
AAC Lender Holdings, LLC (26)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(11)						7.25% (L + 3.25% PIK + 3.00%/M)*						9/30/2015						9/30/2026						26,738						26,681						18,208
						First lien (3)(11)(12) - Drawn						7.25% (L + 6.25%/M)						1/25/2021						9/30/2026						1,052						1,052						1,052
						Subordinated (3)(11)						2.00% (L + 1.00% PIK/M)*						3/16/2021						9/30/2026						5,230						—						—
																														33,020						27,733						19,260						1.52		%
Xactly Corporation
Software						First lien (4)(11)						8.25% (L + 7.25%/S)						7/31/2017						7/29/2022						19,047						18,981						19,047						1.51		%
Bluefin Holding, LLC
Software						Second lien (8)(11)						7.86% (L + 7.75%/M)						9/6/2019						9/3/2027						18,000						18,000						18,180						1.44		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(11)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						16,071						16,002						16,231
						First lien (3)(11)(12) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						1,507						1,499						1,507
																														17,578						17,501						17,738						1.40		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
Bullhorn, Inc.
Software						First lien (2)(11)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						$	16,959					$	16,857					$	16,959
						First lien (3)(11)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						352						349						352
						First lien (3)(11)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						280						279						280
																														17,591						17,485						17,591						1.39		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(11)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						17,106						17,050						17,106						1.35		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(11)						7.00% (L + 6.00%/Q)						3/13/2020						2/6/2026						14,043						13,983						14,043
						First lien (5)(11)						9.00% (L + 8.00%/Q)						10/15/2020						8/6/2026						2,527						2,503						2,527
																														16,570						16,486						16,570						1.31		%
Hill International, Inc.**
Business Services						First lien (2)(11)						6.75% (L + 5.75%/Q)						6/21/2017						6/21/2023						15,208						15,175						15,208						1.20		%
Bleriot US Bidco Inc.
Federal Services						Second lien (2)						8.70% (L + 8.50%/Q)						10/24/2019						10/29/2027						15,000						14,869						15,113						1.20		%
CFS Management, LLC
Healthcare Services						First lien (2)(11)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						11,585						11,545						11,585
						First lien (3)(11)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						3,451						3,436						3,451
																														15,036						14,981						15,036						1.19		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(11)						8.50% (L + 7.50%/S)						9/29/2016						9/8/2022						15,229						15,180						14,860						1.18		%
BackOffice Associates Holdings, LLC
Business Services						First lien (2)(11)						13.50% (L + 9.50% + 3.00% PIK/Q)*						8/25/2017						8/25/2023						12,623						12,574						12,623
						First lien (3)(11)(12) - Drawn						13.50% (L + 9.50% + 3.00% PIK/Q)*						8/25/2017						8/25/2023						928						920						928
																														13,551						13,494						13,551						1.07		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(11)						9.25% (L + 8.25%/Q)						9/5/2018						9/5/2024						13,444						13,401						13,444						1.06		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(11)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,377						13,086						1.04		%
PaySimple, Inc.
Software						First lien (2)(11)						5.61% (L + 5.50%/M)						8/19/2019						8/23/2025						9,734						9,659						9,734
						First lien (2)(11)						5.61% (L + 5.50%/M)						8/19/2019						8/23/2025						3,187						3,134						3,187
																														12,921						12,793						12,921						1.02		%

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)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (13)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares						Cost						Fair  Value						Percent of Net Assets
Ministry Brands, LLC
Software						First lien (2)(11)						5.00% (L + 4.00%/M)						12/7/2016						12/2/2022						$	2,895					$	2,890					$	2,887
						Second lien (8)(11)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						7,840						7,816						7,840
						Second lien (3)(11)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						2,160						2,153						2,160
																														12,895						12,859						12,887						1.02		%
Geo Parent Corporation
Business Services						First lien (2)						5.36% (L + 5.25%/M)						12/13/2018						12/19/2025						12,901						12,854						12,868						1.02		%
OEConnection LLC
Business Services						Second lien (2)(11)						8.36% (L + 8.25%/M)						9/25/2019						9/25/2027						12,044						11,941						12,164						0.96		%
Apptio, Inc.
Software						First lien (8)(11)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						11,203						11,047						11,203
						First lien (3)(11)(12) - Drawn						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						827						810						827
																														12,030						11,857						12,030						0.95		%
Castle Management Borrower LLC
Business Services						First lien (2)(11)						7.50% (L + 6.50% PIK/Q)*						5/31/2018						2/15/2024						14,261						14,224						11,959						0.95		%
CHA Holdings, Inc.
Business Services						Second lien (4)(11)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,962						7,012
						Second lien (3)(11)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,421						4,453
																														11,465						11,383						11,465						0.91		%
Recorded Future, Inc.
Software						First lien (8)(11)						7.00% (L + 6.00%/S)						8/26/2019						7/3/2025						6,250						6,226						6,266
						First lien (8)(11)						7.00% (L + 6.00%/Q)						3/26/2021						7/3/2025						4,800						4,769						4,812
																														11,050						10,995						11,078						0.88		%
Alert Holding Company, Inc. (16)
Appriss Holdings, Inc.
Business Services						First lien (8)(11)						5.70% (L + 5.50%/Q)						5/24/2019						5/29/2026						10,915						10,842						11,024						0.87		%
Vectra Co.
Business Products						Second lien (8)(11)						7.36% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,760						10,788						0.85		%
Masergy Holdings, Inc.
Business Services						Second lien (2)						8.50% (L + 7.50%/Q)						12/14/2016						12/16/2024						10,500						10,467						10,474						0.83		%
PPVA Black Elk (Equity) LLC
Business Services						Subordinated (3)(11)						—						5/3/2013						—						14,500						14,500						10,354						0.82		%
VT Topco, Inc.
Business Services						Second lien (4)(11)						7.11% (L + 7.00%/M)						8/14/2018						7/31/2026						10,000						9,981						10,000						0.79		%
Quartz Holding Company
Software						Second lien (3)(11)						8.11% (L + 8.00%/M)						4/2/2019						4/2/2027						10,000						9,838						10,000						0.79		%

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

14

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)

Type of Investment

Interest Rate (13)

Acquisition Date

Maturity / Expiration Date

Principal  Amount,  Par Value  or Shares

Cost

Fair  Value

Percent of Net Assets

Stats Intermediate Holdings, LLC**

Business Services

First lien (2)

5.45% (L + 5.25%/Q)

5/22/2019

7/10/2026

$

9,875

$

9,777

$

9,875

0.78

%

Affordable Care Holding Corp.

Healthcare Services

First lien (2)

5.75% (L + 4.75%/Q)

3/18/2019

10/24/2022

9,768

9,678

9,622

0.76

%

AgKnowledge Holdings Company, Inc.

Business Services

First lien (2)(11)

5.75% (L + 4.75%/S)

11/30/2018

7/21/2023

9,237

9,212

9,237

0.73

%

AG Parent Holdings, LLC

Healthcare Services

First lien (2)

5.11% (L + 5.00%/M)

7/30/2019

7/31/2026

6,905

6,877

6,879

0.54

%

CP VI Bella Midco, LLC

Healthcare Services

Second lien (3)(11)

6.86% (L + 6.75%/M)

1/25/2018

12/29/2025

6,732