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, 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 (§232.405 of this chapter) 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, as of the latest practicable date.

Description						Shares as of August 4, 2021
Common stock, par value $0.01 per share						96,906,988

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Table of Contents

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 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 June 30, 2021 (unaudited) and December 31, 2020 (unaudited)			3
			Consolidated Statements of Operations for the three and six months ended June 30, 2021 (unaudited) and June 30, 2020 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2021 (unaudited) and June 30, 2020 (unaudited)			5
			Consolidated Statements of Cash Flows for the six months ended June 30, 2021 (unaudited) and June 30, 2020 (unaudited)			6
			Consolidated Schedule of Investments as of June 30, 2021 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2020			28
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			47
			Report of Independent Registered Public Accounting Firm			95
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			96
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			138
Item 4.			Controls and Procedures			139
PART II. OTHER INFORMATION						140
Item 1.			Legal Proceedings			140
Item 1A.			Risk Factors			140
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			142
Item 3.			Defaults Upon Senior Securities			142
Item 4.			Mine Safety Disclosures			142
Item 5.			Other Information			142
Item 6.			Exhibits			143
			Signatures			144

2

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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, 2021						December 31, 2020
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,294,920 and $2,281,184, respectively)			$	2,260,701					$	2,249,615
Non-controlled/affiliated investments (cost of $105,573 and $115,543, respectively)			158,056						103,012
Controlled investments (cost of $649,282 and $600,942, respectively)			670,131						600,875
Total investments at fair value (cost of $3,049,775 and $2,997,669, respectively)			3,088,888						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			27,809						78,966
Interest and dividend receivable			32,290						28,411
Receivable from unsettled securities sold			—						9,019
Receivable from affiliates			—						117
Deferred tax asset			—						101
Other assets			9,651						5,981
Total assets			$	3,180,060					$	3,097,519
Liabilities
Borrowings
Unsecured Notes			$	511,500					$	453,250
Holdings Credit Facility			505,163						450,163
SBA-guaranteed debentures			300,000						300,000
DB Credit Facility			223,500						244,000
Convertible Notes			201,469						201,520
NMFC Credit Facility			98,000						165,500
Deferred financing costs (net of accumulated amortization of $37,264 and $33,325, respectively)			(23,044)						(16,839)
Net borrowings			1,816,588						1,797,594
Interest payable			17,250						15,587
Payable for unsettled securities purchased			15,213						26,842
Management fee payable			9,921						10,419
Incentive fee payable			7,298						7,354
Payable to affiliates			945						867
Deferred tax liability			13						—
Other liabilities			1,746						1,967
Total liabilities			1,868,974						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 96,906,988 and 96,827,342 shares issued and outstanding, respectively			969						968
Paid in capital in excess of par			1,270,719						1,269,671
Accumulated undistributed (overdistributed) earnings			20,442						(48,764)
Total net assets of New Mountain Finance Corporation			$	1,292,130					$	1,221,875
Non-controlling interest in New Mountain Net Lease Corporation			18,956						15,014
Total net assets			$	1,311,086					$	1,236,889
Total liabilities and net assets			$	3,180,060					$	3,097,519
Number of shares outstanding			96,906,988						96,827,342
Net asset value per share of New Mountain Finance Corporation			$	13.33					$	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												Six Months Ended
			June 30, 2021						June 30, 2020						June 30, 2021						June 30, 2020
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)			$	39,819					$	45,969					$	79,379					$	102,529
PIK interest income			2,064						2,891						4,598						3,917
Non-cash dividend income			2,967						2,300						5,368						4,624
Other income			1,578						1,117						4,402						2,588
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)			563						570						1,026						1,182
PIK interest income			—						(1,805)						—						(1,348)
Dividend income			—						689						—						1,409
Non-cash dividend income			1,545						—						3,050						(3,418)
Other income			103						284						205						575
From controlled investments:
Interest income (excluding PIK interest income)			1,169						1,596						2,317						2,570
PIK interest income			3,466						2,142						6,770						4,149
Dividend income			11,117						7,725						21,592						15,954
Non-cash dividend income			1,334						1,502						2,615						4,140
Other income			836						987						2,947						1,180
Total investment income			66,561						65,967						134,269						140,051
Expenses
Incentive fee			7,298						6,896						14,546						14,722
Management fee			13,725						13,134						27,145						26,992
Interest and other financing expenses			17,871						19,229						37,256						41,423
Administrative expenses			1,029						1,239						2,158						2,279
Professional fees			764						969						1,490						1,874
Other general and administrative expenses			466						442						908						941
Total expenses			41,153						41,909						83,503						88,231
Less: management fee waived (See Note 5)			(3,804)						(3,183)						(7,441)						(6,726)
Less: expenses waived and reimbursed (See Note 5)			—						(335)						—						(335)
Net expenses			37,349						38,391						76,062						81,170
Net investment income before income taxes			29,212						27,576						58,207						58,881
Income tax expense (benefit)			22						(7)						23						(7)
Net investment income			29,190						27,583						58,184						58,888
Net realized gains (losses):
Non-controlled/non-affiliated investments			157						(3,759)						338						(4,461)
Non-controlled/affiliated investments			1						—						(12,211)						—
Controlled investments			22						3						1,557						7
New Mountain Net Lease Corporation			—						—						—						812
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments			(10,921)						51,466						(2,650)						(88,817)
Non-controlled/affiliated investments			35,972						(2,771)						65,014						(13,607)
Controlled investments			24,757						4,587						20,916						(48,221)
New Mountain Net Lease Corporation			—						—						—						(812)
(Provision) benefit for taxes			—						(377)						(115)						521
Net realized and unrealized gains (losses)			49,988						49,149						72,849						(154,578)
Net increase (decrease) in net assets resulting from operations			79,178						76,732						131,033						(95,690)
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			(3,366)						(251)						(3,731)						(186)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			$	75,812					$	76,481					$	127,302					$	(95,876)
Basic earnings (loss) per share			$	0.78					$	0.79					$	1.31					$	(0.99)
Weighted average shares of common stock outstanding - basic (See Note 11)			96,828,217						96,827,342						96,827,782						96,827,342
Diluted earnings (loss) per share			$	0.71					$	0.72					$	1.20					$	(0.99)
Weighted average shares of common stock outstanding - diluted (See Note 11)			110,085,802						110,084,927						110,085,367						110,084,927
Distributions declared and paid per share			$	0.30					$	0.30					$	0.60					$	0.64

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, 2021						June 30, 2020						June 30, 2021						June 30, 2020
Increase (decrease) in net assets resulting from operations:
Net investment income			$	29,190					$	27,583					$	58,184					$	58,888
Net realized gains (losses) on investments and New Mountain Net Lease Corporation ("NMNLC")			180						(3,756)						(10,316)						(3,642)
Net change in unrealized appreciation (depreciation) of investments and NMNLC			49,808						53,282						83,280						(151,457)
(Provision) benefit for taxes			—						(377)						(115)						521
Net increase (decrease) in net assets resulting from operations			79,178						76,732						131,033						(95,690)
Less: Net increase in net assets resulting from operations related to non-controlling interest in NMNLC			(3,366)						(251)						(3,731)						(186)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			75,812						76,481						127,302						(95,876)
Capital transactions
Distributions declared to stockholders from net investment income			(29,048)						(29,048)						(58,096)						(61,969)
Reinvestment of distributions			1,049						—						1,049						—
Total net decrease in net assets resulting from capital transactions			(27,999)						(29,048)						(57,047)						(61,969)
Net increase (decrease) in net assets			47,813						47,433						70,255						(157,845)
New Mountain Finance Corporation net assets at the beginning of the period			1,244,317						1,078,190						1,221,875						1,283,468
New Mountain Finance Corporation net assets at the end of the period			1,292,130						1,125,623						1,292,130						1,125,623
Non-controlling interest in NMNLC			18,956						11,243						18,956						11,243
Net assets at the end of the period			$	1,311,086					$	1,136,866					$	1,311,086					$	1,136,866
Capital share activity
Shares issued from the reinvestment of distributions			79,646						—						79,646						—
Net increase in shares outstanding			79,646						—						79,646						—

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, 2021						June 30, 2020
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations			$	131,033					$	(95,690)
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized losses on investments and New Mountain Net Lease Corporation ("NMNLC")			10,316						3,642
Net change in unrealized (appreciation) depreciation of investments and NMNLC			(83,280)						151,457
Amortization of purchase discount			(3,617)						(6,495)
Amortization of deferred financing costs			3,939						2,343
Amortization of premium on Convertible Notes			(51)						(52)
Non-cash investment income			(22,851)						(13,159)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in NMNLC			—						11,315
Purchase of investments and delayed draw facilities			(299,512)						(215,345)
Proceeds from sales and paydowns of investments			269,522						437,631
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			74						210
Cash paid for purchase of drawn portion of revolving credit facilities			(550)						(13,996)
Cash paid on drawn revolvers			(22,088)						(40,066)
Cash repayments on drawn revolvers			16,600						29,939
Deferred tax asset			101						—
Interest and dividend receivable			(3,879)						(1,548)
Receivable from unsettled securities sold			9,019						—
Receivable from affiliates			117						18
Other assets			(3,670)						(1,983)
Increase (decrease) in operating liabilities:
Management fee payable			(498)						20,266
Incentive fee payable			(56)						14,722
Payable for unsettled securities purchased			(11,629)						1,685
Payable to affiliates			78						1,388
Interest payable			1,663						(1,844)
Deferred tax liability			13						(521)
Other liabilities			(352)						218
Contributions (distributions) related to non-controlling interest in NMNLC			211						(258)
Net cash flows (used in) provided by operating activities			(9,347)						283,877
Cash flows from financing activities
Distributions paid			(57,047)						(61,969)
Offering costs paid			—						(175)
Proceeds from Holdings Credit Facility			57,000						16,000
Repayment of Holdings Credit Facility			(2,000)						(177,400)
Proceeds from Unsecured Notes			200,000						—
Repayment of Unsecured Notes			(141,750)						—
Proceeds from SBA-guaranteed debentures			—						75,000
Proceeds from NMFC Credit Facility			222,000						25,000
Repayment of NMFC Credit Facility			(289,500)						(135,000)
Proceeds from DB Credit Facility			62,500						40,000
Repayment of DB Credit Facility			(83,000)						(55,000)
Deferred financing costs paid			(10,013)						(2,744)
Net cash flows used in by financing activities			(41,810)						(276,288)
Net (decrease) increase in cash and cash equivalents			(51,157)						7,589
Cash and cash equivalents at the beginning of the period			78,966						48,574
Cash and cash equivalents at the end of the period			$	27,809					$	56,163
Supplemental disclosure of cash flow information
Cash interest paid			$	30,515					$	40,183
Income taxes paid			23						6
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan			$	1,049					$	—
Accrual for offering costs			—						108
Accrual for deferred financing costs			131						9

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, 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 - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education						First lien (8)						6.00% (L + 5.00%/S)						7/30/2019						7/31/2026						$	15,599					$	15,537					$	15,674					1.20		%
Total Funded Debt Investments - United Arab Emirates																														$	15,599					$	15,537					$	15,674					1.20		%
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(11)						8.34% (L + 8.25%/M)						10/8/2019						10/8/2027						$	34,459					$	34,227					$	34,804					2.65		%
Total Funded Debt Investments - United Kingdom																														$	34,459					$	34,227					$	34,804					2.65		%
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						$	26,502					$	26,396					$	26,502
						First lien (2)(11)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						25,820						25,706						25,820
						First lien (5)(11)						6.75% (L + 5.75%/Q)						8/7/2019						5/24/2024						22,081						21,992						22,081
						First lien (2)(11)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						12,586						12,525						12,586
						First lien (3)(11)(12) - Drawn						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						2,560						2,544						2,560
																														89,549						89,163						89,549						6.83		%
Associations, Inc.
Business Services						First lien (2)						8.00% (L + 7.00%/Q)						7/30/2018						7/30/2024						53,359						53,185						53,359
						First lien (8)						8.00% (L + 7.00%/Q)						7/30/2018						7/30/2024						5,354						5,337						5,354
						First lien (2)(12) - Drawn						8.00% (L + 7.00%/Q)						7/30/2018						7/30/2024						10,580						10,538						10,580
						First lien (2)(12) - Drawn						7.00% (L + 6.00%/Q)						7/30/2018						7/30/2024						2,033						2,020						2,033
																														71,326						71,080						71,326						5.44		%
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						49,457						49,744
						First lien (3)(11)						7.50% (L + 5.50% + 1.00% PIK/M)*						9/17/2018						8/16/2024						19,058						18,918						19,058
																														68,802						68,375						68,802						5.25		%
ConnectWise, LLC
Software						First lien (2)(11)						6.25% (L + 5.25%/M)						11/26/2019						2/28/2025						54,773						54,524						54,773
						First lien (3)(11)(12) - Drawn						6.25% (L + 5.25%/M)						11/26/2019						2/28/2025						265						264						265
																														55,038						54,788						55,038						4.20		%

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, 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
iCIMS, Inc.
Software						First lien (8)(11)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						$	41,636					$	41,376					$	41,822
						First lien (8)(11)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,610						8,706
						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						52,872						53,443						4.07		%
CentralSquare Technologies, LLC
Software						Second lien (3)						7.65% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,395						46,044
						Second lien (8)						7.65% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,431						7,219
																														55,338						54,826						53,263						4.06		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(11)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						21,829						21,760						21,829
						First lien (2)(11)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						18,396						18,361						18,396
						First lien (2)(11)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						7,594						7,562						7,594
						First lien (2)(11)						6.75% (L + 5.75%/Q)						6/15/2021						9/18/2023						5,057						5,057						5,057
																														52,876						52,740						52,876						4.03		%
Integro Parent Inc.
Business Services						First lien (2)(11)						6.75% (L + 5.75%/M)						10/9/2015						10/31/2022						34,238						34,176						34,238
						First lien (3)(11)(12) - Drawn						4.33% (L + 4.25%/M)						6/8/2018						4/30/2022						6,743						6,709						6,743
						Second lien (8)(11)						10.25% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,962						10,000
																														50,981						50,847						50,981						3.88		%
Salient CRGT Inc.
Federal Services						First lien (2)						7.50% (L + 6.50%/S)						1/6/2015						2/28/2022						36,786						36,707						36,511
						First lien (8)						7.50% (L + 6.50%/S)						6/6/2019						2/28/2022						12,571						12,437						12,476
																														49,357						49,144						48,987						3.74		%
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						38,462						38,369						37,931
						First lien (2)(11)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						10,690						10,662						10,542
																														49,152						49,031						48,473						3.70		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						7.60% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,423						22,613
						Second lien (2)						7.60% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,508						16,707
						Second lien (8)						7.60% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,958						6,030
																														45,124						44,889						45,350						3.46		%
Quest Software US Holdings Inc.
Software						Second lien (2)						8.44% (L + 8.25%/Q)						5/17/2018						5/18/2026						43,697						43,391						43,738						3.34		%
CoolSys, Inc.
Industrial Services						First lien (5)						7.00% (L + 6.00%/M)						11/20/2019						11/20/2026						22,219						22,128						22,163
						First lien (2)						7.00% (L + 6.00%/M)						11/20/2019						11/20/2026						15,270						15,203						15,232
						First lien (3)						7.00% (L + 6.00%/M)						11/20/2019						11/20/2026						4,163						4,144						4,152
																														41,652						41,475						41,547						3.17		%

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, 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
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(11)						7.00% (L + 6.00%/S)						9/15/2017						9/15/2023						$	26,084					$	26,053					$	26,084
						First lien (4)(11)						7.00% (L + 6.00%/S)						9/17/2019						9/15/2023						10,537						10,537						10,537
						First lien (3)(11)(12) - Drawn						7.00% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,720						1,738
																														38,359						38,310						38,359						2.93		%
Trader Interactive, LLC
Business Services						First lien (2)(11)						7.00% (L + 6.00%/M)						6/15/2017						6/17/2024						31,442						31,335						31,442
						First lien (8)(11)						7.00% (L + 6.00%/M)						6/15/2017						6/17/2024						4,873						4,857						4,873
																														36,315						36,192						36,315						2.77		%
GC Waves Holdings, Inc.**
Business Services						First lien (5)(11)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						22,219						22,092						22,342
						First lien (2)(11)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						9,785						9,701						9,839
						First lien (2)(11)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						3,627						3,607						3,647
																														35,631						35,400						35,828						2.73		%
KAMC Holdings, Inc
Business Services						Second lien (2)(11)						8.16% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,634						17,471
						Second lien (8)(11)						8.16% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,634						17,471
																														37,500						37,268						34,942						2.67		%
Definitive Healthcare Holdings, LLC
Healthcare Information Technology						First lien (8)(11)						6.25% (L + 5.25%/Q)						8/7/2019						7/16/2026						33,449						33,322						33,449
						First lien (3)(11)(12) - Drawn						6.25% (L + 5.25%/Q)						8/7/2019						7/16/2026						1,320						1,315						1,320
																														34,769						34,637						34,769						2.65		%
Finalsite Holdings, Inc.
Software						First lien (4)(11)						7.50% (L + 6.50%/Q)						9/28/2018						9/25/2024						21,881						21,784						22,099
						First lien (2)(11)						7.50% (L + 6.50%/Q)						9/28/2018						9/25/2024						10,808						10,760						10,916
						First lien (3)(11)(12) - Drawn						8.75% (P + 5.50%/Q)						9/25/2018						9/25/2024						756						750						756
																														33,445						33,294						33,771						2.58		%
Diligent Corporation
Software						First lien (2)(11)						6.75% (L + 5.75%/Q)						3/30/2021						8/4/2025						17,852						17,767						17,762
						First lien (2)(11)						6.75% (L + 5.75%/Q)						3/4/2021						8/4/2025						9,955						9,908						9,905
						First lien (3)(11)						7.25% (L + 6.25%/Q)						12/19/2018						8/4/2025						5,917						5,886						6,003
																														33,724						33,561						33,670						2.57		%

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, 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
Kaseya Inc.
Software						First lien (8)(11)						8.00% (L + 4.00% + 3.00% PIK/Q)*						5/9/2019						5/2/2025						$	28,655					$	28,465					$	28,655
						First lien (3)(11)						8.00% (L + 4.00% + 3.00% PIK/Q)*						5/9/2019						5/2/2025						3,354						3,325						3,354
						First lien (3)(11)(12) - Drawn						7.50% (L + 6.50%/Q)						5/9/2019						5/2/2025						1,133						1,121						1,133
																														33,142						32,911						33,142						2.53		%
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						38,463						32,101						2.45		%
Ansira Holdings, Inc.
Business Services						First lien (8)(11)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						30,609						30,556						25,105
						First lien (3)(11)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						7,735						7,723						6,344
																														38,344						38,279						31,449						2.40		%
Integral Ad Science, Inc.
Software						First lien (8)(11)						6.00% (L + 5.00%/S)						7/19/2018						7/19/2024						27,216						27,056						27,216
						First lien (3)(11)						6.00% (L + 5.00%/S)						8/27/2019						7/19/2024						3,556						3,532						3,556
																														30,772						30,588						30,772						2.35		%
MRI Software LLC
Software						First lien (5)(11)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						22,217						22,128						22,332
						First lien (2)(11)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						6,237						6,211						6,269
																														28,454						28,339						28,601						2.18		%
Keystone Acquisition Corp.
Healthcare Services						First lien (2)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						24,106						24,030						23,805
						Second lien (2)(11)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,473						4,500
																														28,606						28,503						28,305						2.16		%
Confluent Health, LLC
Healthcare Services						First lien (2)						5.10% (L + 5.00%/M)						6/21/2019						6/24/2026						26,950						26,848						27,186						2.07		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)						7.50% (L + 6.75%/Q)						11/14/2019						11/19/2027						22,500						22,397						22,725
						Second lien (2)						7.50% (L + 6.75%/Q)						11/14/2019						11/19/2027						4,208						4,172						4,250
																														26,708						26,569						26,975						2.06		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)						7.75% (L + 7.25%/M)						1/22/2021						1/5/2029						26,762						26,633						26,694						2.04		%
Granicus, Inc.
Software						First lien (4)(11)						7.25% (L + 6.25%/M)						1/27/2021						1/29/2027						15,600						15,489						15,483
						First lien (3)(11)						7.25% (L + 6.25%/M)						1/27/2021						1/29/2027						4,972						4,935						4,935
						First lien (2)(11)						7.25% (L + 6.25%/M)						1/27/2021						1/29/2027						5,952						5,909						5,907
																														26,524						26,333						26,325						2.01		%

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, 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
RealPage, Inc.
Business Services						Second lien (2)						7.25% (L + 6.50%/Q)						2/18/2021						4/23/2029						$	25,000					$	24,815					$	25,875					1.97		%
Idera, Inc.
Software						Second lien (4)						7.50% (L + 6.75%/S)						6/27/2019						3/2/2029						22,500						22,197						22,613
						Second lien (3)						7.50% (L + 6.75%/S)						4/29/2021						3/2/2029						3,000						2,985						3,015
																														25,500						25,182						25,628						1.95		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(11)						3.60% (L + 3.50%/M)						6/24/2019						8/28/2024						16,649						14,948						12,250
						First lien (8)(11)						3.60% (L + 3.50%/M)						10/23/2019						8/28/2024						16,058						13,992						11,816
																														32,707						28,940						24,066						1.84		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(11)						6.75% (L + 6.00%/Q)						3/1/2021						3/1/2028						19,259						18,981						18,970
						First lien (2)(11)						6.75% (L + 6.00%/Q)						3/2/2021						3/1/2028						4,913						4,842						4,839
																														24,172						23,823						23,809						1.82		%
Instructure, Inc.
Software						First lien (8)(11)						6.50% (L + 5.50%/M)						3/24/2020						3/24/2026						22,610						22,494						22,728						1.73		%
Syndigo LLC
Software						Second lien (4)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,339						22,613						1.72		%
Astra Acquisition Corp.
Software						First lien (5)						5.50% (L + 4.75%/M)						2/26/2020						3/1/2027						22,275						22,134						22,303						1.70		%
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/Q)						10/30/2020						11/12/2027						12,157						12,072						12,185
						Second lien (4)(11)						8.50% (L + 7.75%/Q)						11/12/2020						11/13/2028						9,767						9,675						9,962
																														21,924						21,747						22,147						1.69		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(11)						7.33% (L + 7.25%/M)						8/2/2018						8/10/2026						14,349						14,310						14,349
						Second lien (8)(11)						7.33% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,480						7,500
																														21,849						21,790						21,849						1.67		%
Avatar Topco, Inc. (24)
EAB Global, Inc.
Education						Second lien (3)(11)						8.50% (L + 7.50%/Q)						11/17/2017						11/17/2025						13,950						13,817						13,950
						Second lien (8)(11)						8.50% (L + 7.50%/Q)						11/17/2017						11/17/2025						7,500						7,429						7,500
																														21,450						21,246						21,450						1.64		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.40% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,917						20,916						1.60		%
MED Parentco, LP
Healthcare Services						Second lien (8)						8.35% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,726						20,857						1.59		%

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, 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
YLG Holdings, Inc.
Business Services						First lien (5)(11)						7.00% (L + 6.00%/S)						11/1/2019						10/31/2025						$	18,137					$	18,068					$	18,137
						First lien (5)(11)						7.00% (L + 6.00%/S)						11/1/2019						10/31/2025						2,362						2,352						2,362
																														20,499						20,420						20,499						1.56		%
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						20,263						20,414						1.56		%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)						7.00% (L + 6.25%/S)						3/12/2021						3/12/2027						19,978						19,834						19,903						1.52		%
DiversiTech Holdings, Inc.
Distribution & Logistics						Second lien (2)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						12,000						11,931						12,075
						Second lien (8)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						7,500						7,457						7,547
																														19,500						19,388						19,622						1.50		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(11)						6.25% (L + 5.25%/Q)						9/9/2019						9/4/2026						19,263						19,094						19,456						1.48		%
Xactly Corporation
Software						First lien (4)(11)						8.25% (L + 7.25%/S)						7/31/2017						7/31/2023						19,047						18,993						19,047						1.45		%
Bluefin Holding, LLC
Software						Second lien (8)(11)						7.85% (L + 7.75%/M)						9/6/2019						9/3/2027						18,000						18,000						18,180						1.39		%
AAC Lender Holdings, LLC (27)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(11)						7.25% (L + 5.75% PIK + 0.50%/M)*						9/30/2015						9/30/2026						27,030						26,975						17,340
						First lien (3)(11)						15.00% (L + 13.50% PIK + 0.50%/M)*						6/10/2021						9/30/2026						1,515						1,515						376
						Subordinated (3)(11)						2.00% (L + 1.00% PIK/Q)*						3/16/2021						9/30/2026						5,234						5						—
																														33,779						28,495						17,716						1.35		%
Bullhorn, Inc.
Software						First lien (2)(11)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,916						16,818						16,916
						First lien (3)(11)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						351						349						351
						First lien (3)(11)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						280						278						280
																														17,547						17,445						17,547						1.34		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(11)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						16,030						15,965						16,191
						First lien (3)(11)(12) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						1,214						1,208						1,214
																														17,244						17,173						17,405						1.33		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(11)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						17,063						17,010						17,063						1.30		%

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, 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
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(11)						7.00% (L + 6.00%/Q)						3/13/2020						2/6/2026						$	14,008					$	13,951					$	14,008
						First lien (5)(11)						9.00% (L + 8.00%/S)						10/15/2020						8/6/2026						2,520						2,497						2,520
																														16,528						16,448						16,528						1.26		%
Trinity Air Consultants Holdings Corporation
Business Services						First lien (2)						6.00% (L + 5.25%/Q)						6/30/2021						6/29/2027						15,382						15,229						15,228						1.16		%
Hill International, Inc.**
Business Services						First lien (2)(11)						6.75% (L + 5.75%/M)						6/21/2017						6/21/2023						15,168						15,139						15,168						1.16		%
Bleriot US Bidco Inc.
Federal Services						Second lien (2)						8.65% (L + 8.50%/Q)						10/24/2019						10/29/2027						15,000						14,873						15,094						1.15		%
CFS Management, LLC
Healthcare Services						First lien (2)(11)						6.25% (L + 5.25%/S)						8/6/2019						7/1/2024						11,556						11,518						11,556
						First lien (3)(11)						6.25% (L + 5.25%/S)						8/6/2019						7/1/2024						3,442						3,428						3,442
																														14,998						14,946						14,998						1.14		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(11)						8.50% (L + 7.50%/S)						9/29/2016						9/8/2022						15,114						15,073						14,788						1.13		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(11)						9.25% (L + 8.25%/S)						9/5/2018						9/5/2024						13,444						13,403						13,444						1.03		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(11)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,383						13,321						1.02		%
PaySimple, Inc.
Software						First lien (2)(11)						5.61% (L + 5.50%/M)						8/19/2019						8/23/2025						9,709						9,638						9,709
						First lien (2)(11)						5.61% (L + 5.50%/M)						8/19/2019						8/23/2025						3,179						3,129						3,179
																														12,888						12,767						12,888						0.98		%
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software						First lien (2)(11)						5.00% (L + 4.00%/M)						12/7/2016						12/2/2022						2,887						2,883						2,887
						Second lien (8)(11)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						7,840						7,818						7,840
						Second lien (3)(11)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						2,160						2,154						2,160
																														12,887						12,855						12,887						0.98		%
Geo Parent Corporation
Business Services						First lien (2)						5.35% (L + 5.25%/M)						12/13/2018						12/19/2025						12,868						12,824						12,868						0.98		%
Castle Management Borrower LLC
Business Services						First lien (2)(11)						3.19% (L + 2.19%/Q)						5/31/2018						2/15/2025						14,590						14,556						12,566						0.96		%
Calabrio, Inc.
Software						First lien (5)(11)						8.00% (L + 7.00%/Q)						4/16/2021						4/16/2027						12,347						12,257						12,255						0.93		%
OEConnection LLC
Business Services						Second lien (2)(11)						8.35% (L + 8.25%/M)						9/25/2019						9/25/2027						12,044						11,943						12,165						0.93		%

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, 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
Apptio, Inc.
Software						First lien (8)(11)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						$	11,203					$	11,056					$	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						11,866						12,030						0.92		%
CHA Holdings, Inc.
Business Services						Second lien (4)(11)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,963						6,934
						Second lien (3)(11)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,422						4,403
																														11,465						11,385						11,337						0.86		%
Alert Holding Company, Inc. (16)
Appriss Holdings, Inc.
Business Services						First lien (8)(11)						7.00% (L + 6.00%/Q)						5/24/2019						5/29/2026						10,887						10,817						10,996
						First lien (3)(11)(12) - Drawn						8.25% (P + 5.00%/Q)						5/24/2019						5/30/2025						230						228						230
																														11,117						11,045						11,226						0.86		%
Recorded Future, Inc.
Software						First lien (8)(11)						7.00% (L + 6.00%/Q)						8/26/2019						7/3/2025						6,250						6,227						6,263
						First lien (8)(11)						7.00% (L + 6.00%/Q)						3/26/2021						7/3/2025						4,800						4,771						4,810
																														11,050						10,998						11,073						0.84		%
Vectra Co.
Business Products						Second lien (8)(11)						7.35% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,761						10,788						0.82		%
Masergy Holdings, Inc.
Business Services						Second lien (2)						8.50% (L + 7.50%/Q)						12/14/2016						12/16/2024						10,500						10,469						10,461						0.80		%
PPVA Black Elk (Equity) LLC