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 Quarterly Period Ended September 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 November 3, 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 SEPTEMBER 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 September 30, 2021 (unaudited) and December 31, 2020 (unaudited)			3
			Consolidated Statements of Operations for the three and nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)			5
			Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)			6
			Consolidated Schedule of Investments as of September 30, 2021 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2020			30
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			49
			Report of Independent Registered Public Accounting Firm			98
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			99
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			142
Item 4.			Controls and Procedures			143
PART II. OTHER INFORMATION						144
Item 1.			Legal Proceedings			144
Item 1A.			Risk Factors			144
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			146
Item 3.			Defaults Upon Senior Securities			146
Item 4.			Mine Safety Disclosures			146
Item 5.			Other Information			146
Item 6.			Exhibits			147
			Signatures			149

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)

			September 30, 2021						December 31, 2020
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,260,975 and $2,281,184, respectively)			$	2,206,300					$	2,249,615
Non-controlled/affiliated investments (cost of $79,591 and $115,543, respectively)			111,605						103,012
Controlled investments (cost of $663,216 and $600,942, respectively)			693,749						600,875
Total investments at fair value (cost of $3,003,782 and $2,997,669, respectively)			3,011,654						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			83,357						78,966
Interest and dividend receivable			32,773						28,411
Receivable from unsettled securities sold			8,990						9,019
Receivable from affiliates			—						117
Deferred tax asset			—						101
Other assets			9,915						5,981
Total assets			$	3,168,111					$	3,097,519
Liabilities
Borrowings
Unsecured Notes			$	511,500					$	453,250
Holdings Credit Facility			493,263						450,163
SBA-guaranteed debentures			300,000						300,000
Convertible Notes			201,443						201,520
DB Credit Facility			167,800						244,000
NMFC Credit Facility			149,977						165,500
NMNLC Credit Facility II			5,845						—
Deferred financing costs (net of accumulated amortization of $38,985 and $33,325, respectively)			(21,337)						(16,839)
Net borrowings			1,808,491						1,797,594
Payable for unsettled securities purchased			24,658						26,842
Management fee payable			9,988						10,419
Interest payable			9,528						15,587
Incentive fee payable			7,661						7,354
Payable to affiliates			316						867
Deferred tax liability			13						—
Other liabilities			2,498						1,967
Total liabilities			1,863,153						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			13,217						(48,764)
Total net assets of New Mountain Finance Corporation			$	1,284,905					$	1,221,875
Non-controlling interest in New Mountain Net Lease Corporation			20,053						15,014
Total net assets			$	1,304,958					$	1,236,889
Total liabilities and net assets			$	3,168,111					$	3,097,519
Number of shares outstanding			96,906,988						96,827,342
Net asset value per share of New Mountain Finance Corporation			$	13.26					$	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												Nine Months Ended
			September 30, 2021						September 30, 2020						September 30, 2021						September 30, 2020
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)			$	40,540					$	41,854					$	119,919					$	144,383
PIK interest income			1,903						2,547						6,501						6,464
Dividend income			867						—						867						—
Non-cash dividend income			1,956						2,274						7,324						6,898
Other income			5,249						1,497						9,651						4,085
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)			296						781						1,322						1,963
PIK interest income			182						217						182						(1,131)
Dividend income			288						687						288						2,096
Non-cash dividend income			831						—						3,881						(3,418)
Other income			79						427						284						1,002
From controlled investments:
Interest income (excluding PIK interest income)			1,253						2,011						3,570						4,581
PIK interest income			3,614						2,244						10,384						6,393
Dividend income			9,686						8,107						31,278						24,061
Non-cash dividend income			918						1,576						3,533						5,716
Other income			812						1,299						3,759						2,479
Total investment income			68,474						65,521						202,743						205,572
Expenses
Incentive fee			7,661						7,135						22,207						21,857
Management fee			13,740						12,877						40,885						39,869
Interest and other financing expenses			17,693						18,077						54,949						59,500
Administrative expenses			1,082						1,024						3,240						3,303
Professional fees			923						731						2,413						2,605
Other general and administrative expenses			490						442						1,398						1,383
Total expenses			41,589						40,286						125,092						128,517
Less: management and incentive fees waived (See Note 5)			(3,752)						(3,341)						(11,193)						(10,067)
Less: expenses waived and reimbursed (See Note 5)			—						(589)						—						(924)
Net expenses			37,837						36,356						113,899						117,526
Net investment income before income taxes			30,637						29,165						88,844						88,046
Income tax (benefit) expense			(8)						123						15						116
Net investment income			30,645						29,042						88,829						87,930
Net realized gains (losses):
Non-controlled/non-affiliated investments			2,459						30						2,797						(4,431)
Non-controlled/affiliated investments			20,549						12						8,338						12
Controlled investments			—						5						1,557						12
New Mountain Net Lease Corporation			—						—						—						812
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments			(19,951)						21,410						(22,601)						(67,407)
Non-controlled/affiliated investments			(20,469)						(1,111)						44,545						(14,718)
Controlled investments			9,684						39,943						30,600						(8,278)
New Mountain Net Lease Corporation			—						—						—						(812)
Foreign currency			(13)						—						(13)						—
Benefit (provision) for taxes			1						257						(114)						778
Net realized and unrealized (losses) gains			(7,740)						60,546						65,109						(94,032)
Net increase (decrease) in net assets resulting from operations			22,905						89,588						153,938						(6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			(1,058)						(1,398)						(4,789)						(1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			$	21,847					$	88,190					$	149,149					$	(7,686)
Basic earnings (loss) per share			$	0.23					$	0.91					$	1.54					$	(0.08)
Weighted average shares of common stock outstanding - basic (See Note 11)			96,906,988						96,827,342						96,854,474						96,827,342
Diluted earnings (loss) per share			$	0.22					$	0.82					$	1.42					$	(0.08)
Weighted average shares of common stock outstanding - diluted (See Note 11)			110,164,573						110,084,927						110,112,059						110,084,927
Distributions declared and paid per share			$	0.30					$	0.30					$	0.90					$	0.94

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												Nine Months Ended
			September 30, 2021						September 30, 2020						September 30, 2021						September 30, 2020
Increase (decrease) in net assets resulting from operations:
Net investment income			$	30,645					$	29,042					$	88,829					$	87,930
Net realized gains (losses) on investments and New Mountain Net Lease Corporation ("NMNLC")			23,008						47						12,692						(3,595)
Net change in unrealized (depreciation) appreciation of investments, NMNLC and foreign currency			(30,749)						60,242						52,531						(91,215)
Benefit (provision) for taxes			1						257						(114)						778
Net increase (decrease) in net assets resulting from operations			22,905						89,588						153,938						(6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interest in NMNLC			(1,058)						(1,398)						(4,789)						(1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			21,847						88,190						149,149						(7,686)
Capital transactions
Distributions declared to stockholders from net investment income			(29,072)						(29,049)						(87,168)						(91,018)
Reinvestment of distributions			—						—						1,049						—
Total net decrease in net assets resulting from capital transactions			(29,072)						(29,049)						(86,119)						(91,018)
Net (decrease) increase in net assets			(7,225)						59,141						63,030						(98,704)
New Mountain Finance Corporation net assets at the beginning of the period			1,292,130						1,125,623						1,221,875						1,283,468
New Mountain Finance Corporation net assets at the end of the period			1,284,905						1,184,764						1,284,905						1,184,764
Non-controlling interest in NMNLC			20,053						12,396						20,053						12,396
Net assets at the end of the period			$	1,304,958					$	1,197,160					$	1,304,958					$	1,197,160
Capital share activity
Shares issued from the reinvestment of distributions			—						—						79,646						—
Net increase in shares outstanding			—						—						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)

			Nine Months Ended
			September 30, 2021						September 30, 2020
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations			$	153,938					$	(6,102)
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized (gains) losses on investments and New Mountain Net Lease Corporation ("NMNLC")			(12,692)						3,595
Net change in unrealized (appreciation) depreciation of investments and NMNLC			(52,544)						91,215
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies			13						—
Amortization of purchase discount			(6,681)						(7,942)
Amortization of deferred financing costs			5,660						3,549
Amortization of premium on Convertible Notes			(77)						(78)
Non-cash investment income			(33,226)						(22,016)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in NMNLC			—						11,315
Purchase of investments and delayed draw facilities			(769,167)						(259,127)
Proceeds from sales and paydowns of investments			816,218						480,333
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			597						296
Cash paid for purchase of drawn portion of revolving credit facilities			(832)						(13,996)
Cash paid on drawn revolvers			(25,310)						(43,952)
Cash repayments on drawn revolvers			24,980						35,251
Deferred tax asset			101						—
Interest and dividend receivable			(4,362)						(1,768)
Receivable from unsettled securities sold			29						(4,490)
Receivable from affiliates			117						(236)
Other assets			(3,907)						(3,290)
Increase (decrease) in operating liabilities:
Management fee payable			(431)						9,690
Incentive fee payable			307						5,885
Payable for unsettled securities purchased			(2,184)						(1,780)
Payable to affiliates			(551)						490
Interest payable			(6,059)						(6,343)
Deferred tax liability			13						(778)
Other liabilities			490						400
Contributions (distributions) related to non-controlling interest in NMNLC			250						(503)
Net cash flows provided by operating activities			84,690						269,618
Cash flows from financing activities
Distributions paid			(86,119)						(91,018)
Offering costs paid			—						(203)
Proceeds from Holdings Credit Facility			129,000						16,000
Repayment of Holdings Credit Facility			(85,900)						(218,400)
Proceeds from Unsecured Notes			200,000						—
Repayment of Unsecured Notes			(141,750)						—
Proceeds from SBA-guaranteed debentures			—						75,000
Proceeds from NMFC Credit Facility			311,363						97,000
Repayment of NMFC Credit Facility			(326,500)						(135,000)
Proceeds from DB Credit Facility			77,500						67,000
Repayment of DB Credit Facility			(153,700)						(55,000)
Proceeds from NMNLC Credit Facility II			9,025						—
Repayment of NMNLC Credit Facility II			(3,180)						—
Deferred financing costs paid			(10,144)						(4,907)
Net cash flows used in by financing activities			(80,405)						(249,528)
Net increase in cash and cash equivalents			4,285						20,090
Effect of foreign exchange rate changes on cash and cash equivalents			106						—
Cash and cash equivalents at the beginning of the period			78,966						48,574
Cash and cash equivalents at the end of the period			$	83,357					$	68,664
Supplemental disclosure of cash flow information
Cash interest paid			$	53,643					$	60,940
Income taxes paid			15						129
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan			$	1,049					$	—
Accrual for offering costs			27						80
Accrual for deferred financing costs			14						11

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services						First lien (3)(12)(35)						7.33% (Sonia + 7.00%/D)						8/6/2021						8/3/2028						£	12,879					$	17,600					$	17,093
						First lien (3)(12)						7.15% (L + 7.00%/S)						8/6/2021						8/3/2028						$	10,184					10,033						10,032
																																				27,633						27,125						2.08		%
Total Funded Debt Investments - Jersey																																				$	27,633					$	27,125					2.08		%
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						$	10,560					$	10,527					$	10,591					0.81		%
Total Funded Debt Investments - United Arab Emirates																																				$	10,527					$	10,591					0.81		%
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(12)						8.33% (L + 8.25%/M)						10/8/2019						10/8/2027						$	34,459					$	34,234					$	34,459					2.64		%
Total Funded Debt Investments - United Kingdom																																				$	34,234					$	34,459					2.64		%
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						$	26,436					$	26,338					$	26,436
						First lien (2)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						25,754						25,650						25,754
						First lien (5)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						22,024						21,943						22,024
						First lien (2)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						12,554						12,498						12,554
						First lien (2)(12)						6.75% (L + 5.75%/S)						8/13/2021						5/22/2026						3,395						3,387						3,395
																																				89,816						90,163						6.91		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(12)						7.00% (L + 5.50% + 0.50% PIK/M)*						9/17/2018						8/16/2024						49,682						49,417						49,682
						First lien (3)(12)						7.00% (L + 5.50% + 0.50% PIK/M)*						9/17/2018						8/16/2024						19,013						18,884						19,013
																																				68,301						68,695						5.26		%
iCIMS, Inc.
Software						First lien (8)(12)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,636						41,394						41,636
						First lien (8)(12)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,614						8,667
						First lien (3)(12)(13) - Drawn						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						2,915						2,886						2,915
																																				52,894						53,218						4.08		%

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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(12)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						$	21,773					$	21,712					$	21,773
						First lien (2)(12)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						18,349						18,318						18,349
						First lien (2)(12)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						7,575						7,546						7,575
						First lien (2)(12)						6.75% (L + 5.75%/Q)						6/15/2021						9/18/2023						5,044						5,044						5,044
																																				52,620						52,741						4.04		%
Integro Parent Inc.
Business Services						First lien (2)(12)						6.75% (L + 5.75%/M)						10/9/2015						10/31/2022						34,112						34,062						34,112
						First lien (3)(12)(13) - Drawn						4.33% (L + 4.25%/M)						6/8/2018						4/30/2022						6,743						6,709						6,743
						Second lien (8)(12)						10.25% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,966						10,000
																																				50,737						50,855						3.90		%
CentralSquare Technologies, LLC
Software						Second lien (3)						7.63% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,413						43,652
						Second lien (8)						7.63% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,433						6,844
																																				54,846						50,496						3.87		%
NM GRC Holdco, LLC
Business Services						First lien (2)(12)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						38,512						38,428						38,512
						First lien (2)(12)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						10,704						10,679						10,704
																																				49,107						49,216						3.77		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						7.58% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,426						22,613
						Second lien (2)						7.58% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,513						16,707
						Second lien (8)						7.58% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,960						6,030
																																				44,899						45,350						3.48		%
Quest Software US Holdings Inc.
Software						Second lien (2)						8.38% (L + 8.25%/Q)						5/17/2018						5/18/2026						43,697						43,404						43,675						3.35		%
Kaseya Inc.
Software						First lien (8)(12)						8.00% (L + 4.00% + 3.00% PIK/Q)*						5/9/2019						5/2/2025						28,872						28,693						28,872
						First lien (8)(12)						8.00% (L + 4.00% + 3.00% PIK/M)*						9/8/2021						5/2/2025						7,780						7,713						7,780
						First lien (3)(12)						8.00% (L + 4.00% + 3.00% PIK/Q)*						5/9/2019						5/2/2025						3,379						3,352						3,379
																																				39,758						40,031						3.07		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(12)						7.00% (L + 6.00%/S)						9/15/2017						9/15/2023						26,017						25,990						26,017
						First lien (4)(12)						7.00% (L + 6.00%/S)						9/17/2019						9/15/2023						10,509						10,509						10,509
						First lien (3)(12)(13) - Drawn						7.00% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,721						1,738
																																				38,220						38,264						2.93		%

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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Deca Dental Holdings LLC
Healthcare Services						First lien (2)(12)						6.50% (L + 5.75%/Q)						8/26/2021						8/28/2028						$	38,340					$	37,961					$	37,956					2.91		%
Associations, Inc.
Business Services						First lien (2)(12)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						30,000						29,854						29,850
						First lien (3)(12)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						5,154						5,129						5,128
						First lien (3)(12)(13) - Drawn						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						618						615						615
																																				35,598						35,593						2.73		%
GC Waves Holdings, Inc.**
Business Services						First lien (5)(12)						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						22,163						22,042						22,163
						First lien (2)(12)						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						13,379						13,278						13,379
																																				35,320						35,542						2.72		%
KAMC Holdings, Inc
Business Services						Second lien (2)(12)						8.12% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,638						16,827
						Second lien (8)(12)						8.12% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,638						16,827
																																				37,276						33,654						2.58		%
Diamond Parent Holdings Corp. (30)
Diligent Corporation
Software						First lien (2)(12)						6.75% (L + 5.75%/Q)						3/30/2021						8/4/2025						17,807						17,728						17,718
						First lien (2)(12)						6.75% (L + 5.75%/Q)						3/4/2021						8/4/2025						9,930						9,886						9,880
						First lien (3)(12)						7.25% (L + 6.25%/Q)						12/19/2018						8/4/2025						5,902						5,873						5,980
																																				33,487						33,578						2.57		%
EAB Global, Inc.
Education						Second lien (2)(12)						7.00% (L + 6.50%/M)						8/16/2021						8/16/2029						33,452						32,957						32,951						2.53		%
Finalsite Holdings, Inc.
Software						First lien (4)(12)						7.50% (L + 6.50%/Q)						9/28/2018						9/25/2024						21,256						21,169						21,469
						First lien (2)(12)						7.50% (L + 6.50%/Q)						9/28/2018						9/25/2024						10,499						10,456						10,604
																																				31,625						32,073						2.46		%
Ansira Holdings, Inc.
Business Services						First lien (8)(12)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						31,195						31,146						25,325
						First lien (3)(12)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						7,883						7,873						6,399
																																				39,019						31,724						2.43		%

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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Granicus, Inc.
Software						First lien (4)(12)						7.25% (L + 6.25%/Q)						1/27/2021						1/29/2027						$	15,561					$	15,454					$	15,444
						First lien (3)(12)						7.25% (L + 6.25%/Q)						1/27/2021						1/29/2027						6,019						5,976						5,974
						First lien (2)(12)						7.25% (L + 6.25%/Q)						1/27/2021						1/29/2027						5,937						5,896						5,892
						First lien (3)(12)(13) - Drawn						7.00% (L + 6.00%/Q)						4/23/2021						1/29/2027						2,778						2,751						2,751
																																				30,077						30,061						2.30		%
IG Investments Holdings, LLC
Business Services						First lien (2)						6.75% (L + 6.00%/Q)						9/22/2021						9/22/2028						29,502						29,208						29,207						2.24		%
MRI Software LLC
Software						First lien (5)(12)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						22,160						22,076						22,160
						First lien (2)(12)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						6,221						6,196						6,221
						First lien (3)(12)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						320						318						320
																																				28,590						28,701						2.20		%
Keystone Acquisition Corp.
Healthcare Services						First lien (2)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						24,044						23,974						23,608
						Second lien (2)(12)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,475						4,500
																																				28,449						28,108						2.15		%
Foundational Education Group, Inc.
Education						Second lien (5)(12)						7.00% (L + 6.50%/S)						8/19/2021						8/31/2029						22,500						22,388						22,388
						Second lien (2)(12)						7.00% (L + 6.50%/S)						8/19/2021						8/31/2029						5,009						4,984						4,984
																																				27,372						27,372						2.10		%
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						22,400						22,781
						Second lien (2)						7.50% (L + 6.75%/Q)						11/14/2019						11/19/2027						4,208						4,173						4,261
																																				26,573						27,042						2.07		%
Confluent Health, LLC
Healthcare Services						First lien (2)						5.08% (L + 5.00%/M)						6/21/2019						6/24/2026						26,881						26,784						26,948						2.07		%
Tenawa Resource Holdings LLC (16)
Tenawa Resource Management LLC
Specialty Chemicals & Materials						First lien (3)(12)						10.50% (Base + 8.00%/Q)(33)						5/12/2014						10/30/2024						38,500						38,465						24,166
						First lien (3)(12)						10.50% (Base + 8.00%/Q)(33)						7/6/2021						10/30/2024						4,400						4,400						2,762
																																				42,865						26,928						2.06		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)						7.75% (L + 7.25%/Q)						1/22/2021						1/5/2029						26,762						26,637						26,829						2.06		%

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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
VT Topco, Inc.
Business Services						Second lien (2)(12)						7.50% (L + 6.75%/M)						7/30/2021						7/31/2026						$	16,183					$	16,124					$	16,124
						Second lien (4)(12)						6.83% (L + 6.75%/M)						8/14/2018						7/31/2026						10,000						9,983						10,000
																																				26,107						26,124						2.00		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(12)						7.34% (L + 7.25%/M)						8/2/2018						8/10/2026						18,266						18,219						18,266
						Second lien (8)(12)						7.34% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,481						7,500
																																				25,700						25,766						1.97		%
Idera, Inc.
Software						Second lien (4)						7.50% (L + 6.75%/M)						6/27/2019						3/2/2029						22,500						22,204						22,613
						Second lien (3)						7.50% (L + 6.75%/M)						4/29/2021						3/2/2029						3,000						2,986						3,015
																																				25,190						25,628						1.96		%
RealPage, Inc.
Business Services						Second lien (2)						7.25% (L + 6.50%/M)						2/18/2021						4/23/2029						25,000						24,820						25,614						1.96		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(12)						3.58% (L + 3.50%/M)						6/24/2019						8/28/2024						16,606						15,034						12,993
						First lien (8)(12)						3.58% (L + 3.50%/M)						10/23/2019						8/28/2024						16,016						14,104						12,533
																																				29,138						25,526						1.96		%
Galway Borrower LLC
Financial Services						First lien (2)						6.00% (L + 5.25%/Q)						9/30/2021						9/29/2028						24,340						24,096						24,096						1.85		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(12)						6.75% (L + 6.00%/S)						3/1/2021						3/1/2028						19,259						18,989						19,028
						First lien (2)(12)						6.75% (L + 6.00%/S)						3/2/2021						3/1/2028						4,913						4,844						4,854
																																				23,833						23,882						1.83		%
Syndigo LLC
Software						Second lien (4)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,343						22,528						1.73		%
Astra Acquisition Corp.
Software						First lien (5)(12)						5.50% (L + 4.75%/M)						2/26/2020						3/1/2027						22,220						22,084						22,220						1.70		%
ACI Parent Inc. (31)
ACI Group Holdings, Inc.
Healthcare Services						First lien (2)(12)						6.25% (L + 5.50%/Q)						8/2/2021						8/2/2028						22,362						22,142						22,138						1.70		%
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/Q)						10/30/2020						11/12/2027						12,127						12,045						12,112
						Second lien (4)(12)						8.50% (L + 7.75%/Q)						11/12/2020						11/13/2028						9,767						9,677						9,962
																																				21,722						22,074						1.69		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.38% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,919						21,667						1.66		%

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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
MED Parentco, LP
Healthcare Services						Second lien (8)						8.33% (L + 8.25%/M)						8/2/2019						8/30/2027						$	20,857					$	20,730					$	21,014					1.61		%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)						7.00% (L + 6.25%/Q)						3/12/2021						3/12/2027						19,928						19,790						19,853
						First lien (3)(13) - Drawn						7.00% (L + 6.25%/Q)						3/12/2021						3/12/2027						962						955						959
																																				20,745						20,812						1.59		%
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						20,264						20,465						1.57		%
YLG Holdings, Inc.
Business Services						First lien (5)(12)						7.00% (L + 6.00%/S)						11/1/2019						10/31/2025						18,091						18,026						18,091
						First lien (5)(12)						7.00% (L + 6.00%/S)						11/1/2019						10/31/2025						2,357						2,346						2,357
																																				20,372						20,448						1.57		%
DiversiTech Holdings, Inc.
Distribution & Logistics						Second lien (2)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						12,000						11,934						12,030
						Second lien (8)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						7,500						7,459						7,519
																																				19,393						19,549						1.50		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(12)						5.50% (L + 4.75%/Q)						9/9/2019						9/4/2026						19,263						19,101						19,456						1.49		%
Xactly Corporation
Software						First lien (4)(12)						8.25% (L + 7.25%/S)						7/31/2017						7/31/2023						19,047						18,999						19,047						1.46		%
Infogain Corporation
Software						First lien (2)(12)						6.75% (L + 5.75%/Q)						7/30/2021						7/28/2028						19,137						18,997						18,994						1.46		%
Bluefin Holding, LLC
Software						Second lien (8)(12)						7.83% (L + 7.75%/M)						9/6/2019						9/3/2027						18,000						18,000						18,000
						First lien (3)(12)(13) - Drawn						4.38% (L + 4.25%/Q)						9/6/2019						9/6/2024						909						895						909
																																				18,895						18,909						1.45		%
Bullhorn, Inc.
Software						First lien (2)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,873						16,780						16,873
						First lien (3)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						781						775						781
						First lien (3)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						350						348						350
						First lien (3)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						279						277						279
																																				18,180						18,283						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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
AAC Lender Holdings, LLC (28)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(12)						7.25% (L + 5.75% PIK + 0.50%/M)(33)*						9/30/2015						9/30/2026						$	27,343					$	27,290					$	17,218
						First lien (3)(12)						15.00% (L + 13.50% PIK + 0.50%/M)(33)*						6/10/2021						9/30/2026						1,527						1,527						370
						Subordinated (3)(12)						2.00% (L + 1.00% PIK/Q)(33)*						3/16/2021						9/30/2026						5,230						—						—
																																				28,817						17,588						1.35		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(12)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						15,990						15,928						15,990
						First lien (3)(12)(13) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						967						962						967
																																				16,890						16,957						1.30		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(12)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						16,751						16,703						16,751						1.28		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(12)						7.00% (L + 6.00%/S)						3/13/2020						2/6/2026						13,972						13,918						13,972
						First lien (5)(12)						9.00% (L + 8.00%/S)						10/15/2020						8/6/2026						2,514						2,492						2,514
																																				16,410						16,486						1.26		%
Mamba Purchaser, Inc.
Healthcare Services						Second lien (3)						7.00% (L + 6.50%/M)						9/29/2021						10/14/2029						16,291						16,185						16,185						1.24		%
Instructure, Inc. **
Software						First lien (8)(12)						6.50% (L + 5.50%/M)						3/24/2020						3/24/2026						15,252						15,177						15,252						1.17		%
Trinity Air Consultants Holdings Corporation
Business Services						First lien (2)(12)						6.00% (L + 5.25%/M)						6/30/2021						6/29/2027						15,382						15,232						15,229						1.17		%
Hill International, Inc.
Business Services						First lien (2)(12)						6.75% (L + 5.75%/M)						6/21/2017						6/21/2023						15,129						15,103						15,129						1.16		%
CFS Management, LLC
Healthcare Services						First lien (2)(12)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						11,527						11,492						11,527
						First lien (3)(12)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						3,433						3,421						3,433
																																				14,913						14,960						1.15		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(12)						8.50% (L + 7.50%/S)						9/29/2016						9/8/2022						14,999						14,968						14,662						1.12		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(12)						9.25% (L + 8.25%/S)						9/5/2018						9/5/2024						13,444						13,406						13,444						1.03		%

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)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software						First lien (2)(12)						5.00% (L + 4.00%/M)						12/7/2016						12/2/2022						$	2,880					$	2,876					$	2,880
						Second lien (8)(12)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						7,840						7,821						7,840
						Second lien (3)(12)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						2,160						2,155						2,160
																																				12,852						12,880						0.99		%
Castle Management Borrower LLC
Business Services						First lien (2)(12)						3.19% (L + 2.19%/Q)						5/31/2018						2/15/2025						14,590						14,559						12,843						0.98		%
Geo Parent Corporation
Business Services						First lien (2)						5.33% (L + 5.25%/M)						12/13/2018						12/19/2025						12,835						12,793						12,771						0.98		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(12)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,389						12,634						0.97		%
Calabrio, Inc.
Software						First lien (5)(12)						8.00% (L + 7.00%/Q)						4/16/2021						4/16/2027						12,347						12,260						12,366						0.95		%
OEConnection LLC
Business Services						Second lien (2)(12)						8.33% (L + 8.25%/M)						9/25/2019						9/25/2027						12,044						11,947						12,044						0.92		%
Apptio, Inc.
Software						First lien (8)(12)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						11,203						11,065						11,203
						First lien (3)(12)(13) - Drawn						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						827						810						827
																																				11,875						12,030						0.92		%
CHA Holdings, Inc.
Business Services						Second lien (4)(12)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,965						7,036
						Second lien (3)(12)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,423						4,468
																																				11,388						11,504						0.88		%
USRP Holdings, Inc.
Federal Services						First lien (2)(12)						6.25% (L + 5.50%/Q)						7/22/2021						7/23/2027						11,454						11,342						11,340						0.87		%
Alert Holding Company, Inc. (17)
Appriss Holdings, Inc.
Business Services						First lien (8)						7.00% (L + 6.00%/Q)						5/24/2019						5/29/2026						10,887						10,821						10,887
						First lien (3)(13) - Drawn						8.25% (P + 5.00%/Q)						5/24/2019						5/30/2025						230						228						230
																																				11,049						11,117						0.85		%
Recorded Future, Inc.
Software						First lien (8)(12)						7.00% (L + 6.00%/Q)						8/26/2019						7/3/2025						6,234						6,213						6,234
						First lien (8)(12)						7.00% (L + 6.00%/Q)						3/26/2021						7/3/2025						4,788						4,760						4,788
																																				10,973						11,022						0.84		%

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

14

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