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 March 31, 2022

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 May 9, 2022
Common stock, par value $0.01 per share						100,716,928

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Table of Contents

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2022

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, 2022 (unaudited) and December 31, 2021 (unaudited)			3
			Consolidated Statements of Operations for the three months ended March 31, 2022 (unaudited) and March 31, 2021 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2022 (unaudited) and March 31, 2021 (unaudited)			5
			Consolidated Statements of Cash Flows for the three months ended March 31, 2022 (unaudited) and March 31, 2021 (unaudited)			6
			Consolidated Schedule of Investments as of March 31, 2022 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2021			33
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			57
			Report of Independent Registered Public Accounting Firm			100
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			101
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			123
Item 4.			Controls and Procedures			124
PART II. OTHER INFORMATION						125
Item 1.			Legal Proceedings			125
Item 1A.			Risk Factors			125
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			126
Item 3.			Defaults Upon Senior Securities			126
Item 4.			Mine Safety Disclosures			126
Item 5.			Other Information			126
Item 6.			Exhibits			127
			Signatures			128

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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)

			March 31, 2022						December 31, 2021
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,423,505 and $2,323,224, respectively)			$	2,378,853					$	2,283,779
Non-controlled/affiliated investments (cost of $82,039 and $80,801, respectively)			146,772						134,775
Controlled investments (cost of $714,165 and $722,467, respectively)			731,340						755,810
Total investments at fair value (cost of $3,219,709 and $3,126,492, respectively)			3,256,965						3,174,364
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)			19,401						21,422
Cash and cash equivalents			35,376						58,077
Interest and dividend receivable			34,760						30,868
Other assets			15,341						11,081
Total assets			$	3,361,843					$	3,295,812
Liabilities
Borrowings
Holdings Credit Facility			$	576,263					$	545,263
Unsecured Notes			511,500						511,500
SBA-guaranteed debentures			300,000						300,000
DB Credit Facility			224,300						226,300
Convertible Notes			201,391						201,417
NMFC Credit Facility			131,860						127,192
NMNLC Credit Facility II			15,200						15,200
Deferred financing costs (net of accumulated amortization of $42,405 and $40,713, respectively)			(17,996)						(19,684)
Net borrowings			1,942,518						1,907,188
Management fee payable			20,625						10,164
Incentive fee payable			14,980						7,503
Interest payable			10,201						17,388
Payable for unsettled securities purchased			2,000						7,910
Payable to affiliates			1,234						556
Deferred tax liability			14						13
Other liabilities			2,431						2,478
Total liabilities			1,994,003						1,953,200
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 99,498,562 and 97,907,441 shares issued and outstanding, respectively			995						979
Paid in capital in excess of par			1,294,300						1,272,796
Accumulated undistributed earnings			54,073						47,470
Total net assets of New Mountain Finance Corporation			$	1,349,368					$	1,321,245
Non-controlling interest in New Mountain Net Lease Corporation			18,472						21,367
Total net assets			$	1,367,840					$	1,342,612
Total liabilities and net assets			$	3,361,843					$	3,295,812
Number of shares outstanding			99,498,562						97,907,441
Net asset value per share of New Mountain Finance Corporation			$	13.56					$	13.49

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, 2022						March 31, 2021
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)			$	37,444					$	39,560
PIK interest income			3,302						2,534
Dividend income			48						—
Non-cash dividend income			3,085						2,401
Other income			1,631						2,824
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)			255						463
PIK interest income			251						—
Non-cash dividend income			982						1,505
Other income			63						102
From controlled investments:
Interest income (excluding PIK interest income)			1,656						1,148
PIK interest income			4,970						3,304
Dividend income			11,645						10,475
Non-cash dividend income			1,012						1,281
Other income			2,619						2,111
Total investment income			68,963						67,708
Expenses
Incentive fee			7,477						7,248
Management fee			11,553						13,420
Interest and other financing expenses			18,637						19,385
Administrative expenses			1,209						1,129
Professional fees			937						726
Other general and administrative expenses			477						442
Total expenses			40,290						42,350
Less: management fee waived (See Note 5)			(1,092)						(3,637)
Less: expenses waived and reimbursed (See Note 5)			(238)						—
Net expenses			38,960						38,713
Net investment income before income taxes			30,003						28,995
Income tax expense			95						1
Net investment income			29,908						28,994
Net realized gains (losses):
Non-controlled/non-affiliated investments			(70)						181
Non-controlled/affiliated investments			—						(12,212)
Controlled investments			19,242						1,535
Foreign currency			345						—
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments			(4,524)						8,271
Non-controlled/affiliated investments			10,759						29,042
Controlled investments			(16,168)						(3,841)
Securities purchased under collateralized agreements to resell			(2,021)						—
Foreign currency			(422)						—
Provision for taxes			(2)						(115)
Net realized and unrealized gains			7,139						22,861
Net increase in net assets resulting from operations			37,047						51,855
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			(855)						(365)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation			$	36,192					$	51,490
Basic earnings per share			$	0.37					$	0.53
Weighted average shares of common stock outstanding - basic (See Note 11)			98,413,476						96,827,342
Diluted earnings per share			$	0.34					$	0.49
Weighted average shares of common stock outstanding - diluted (See Note 11)			111,671,062						110,084,927
Distributions declared and paid per share			$	0.30					$	0.30

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, 2022						March 31, 2021
Increase (decrease) in net assets resulting from operations:
Net investment income			$	29,908					$	28,994
Net realized gains (losses) on investments and foreign currency			19,517						(10,496)
Net change in unrealized (depreciation) appreciation of investments and foreign currency			(10,355)						33,472
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell			(2,021)						—
Provision for taxes			(2)						(115)
Net increase in net assets resulting from operations			37,047						51,855
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")			(855)						(365)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation			36,192						51,490
Capital transactions
Net proceeds from shares sold			20,474						—
Offering costs			(52)						—
Distributions declared to stockholders from net investment income			(29,589)						(29,048)
Reinvestment of distributions			1,098						—
Total net decrease in net assets resulting from capital transactions			(8,069)						(29,048)
Net increase in net assets			28,123						22,442
New Mountain Finance Corporation net assets at the beginning of the period			1,321,245						1,221,875
New Mountain Finance Corporation net assets at the end of the period			1,349,368						1,244,317
Non-controlling interest in NMNLC			18,472						18,481
Net assets at the end of the period			$	1,367,840					$	1,262,798
Capital share activity
Shares sold			1,511,836						—
Shares issued from the reinvestment of distributions			79,285						—
Net increase in shares outstanding			1,591,121						—

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, 2022						March 31, 2021
Cash flows from operating activities
Net increase in net assets resulting from operations			$	37,047					$	51,855
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:
Net realized (gains) losses on investments			(19,172)						10,496
Net realized gains on translation of assets and liabilities in foreign currencies			(345)						—
Net change in unrealized depreciation (appreciation) of investments			9,933						(33,472)
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies			422						—
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell			2,021						—
Amortization of purchase discount			(1,393)						(1,978)
Amortization of deferred financing costs			1,692						2,315
Amortization of premium on Convertible Notes			(26)						(26)
Non-cash investment income			(12,122)						(11,091)
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities			(153,863)						(222,985)
Proceeds from sales and paydowns of investments			93,302						197,671
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			83						36
Cash paid for purchase of drawn portion of revolving credit facilities			(32)						(483)
Cash paid on drawn revolvers			(8,438)						(13,806)
Cash repayments on drawn revolvers			8,419						10,502
Deferred tax asset			—						101
Interest and dividend receivable			(3,892)						(4,516)
Receivable from unsettled securities sold			—						9,019
Receivable from affiliates			—						117
Other assets			(4,268)						(2,094)
Increase (decrease) in operating liabilities:
Management fee payable			10,461						9,783
Incentive fee payable			7,477						7,248
Payable for unsettled securities purchased			(5,910)						36,021
Payable to affiliates			678						671
Interest payable			(7,187)						(5,761)
Deferred tax liability			1						14
Other liabilities			(58)						1,550
Contributions related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")			—						3,102
Net cash flows (used in) provided by operating activities			(45,170)						44,289
Cash flows from financing activities
Net proceeds from shares sold			20,474						—
Offering costs paid			(21)						—
Distributions paid			(28,491)						(29,048)
Proceeds from Holdings Credit Facility			55,000						—
Repayment of Holdings Credit Facility			(24,000)						—
Proceeds from Unsecured Notes			—						200,000
Repayment of Unsecured Notes			—						(141,750)
Proceeds from NMFC Credit Facility			61,349						157,000
Repayment of NMFC Credit Facility			(56,000)						(215,500)
Proceeds from DB Credit Facility			20,000						40,000
Repayment of DB Credit Facility			(22,000)						(83,000)
Distributions related to non-controlling interest in NMNLC			(3,750)						—
Deferred financing costs paid			(14)						(3,658)
Net cash flows provided by (used in) by financing activities			22,547						(75,956)
Net decrease in cash and cash equivalents			(22,623)						(31,667)
Effect of foreign exchange rate changes on cash and cash equivalents			(78)						—
Cash and cash equivalents at the beginning of the period			58,077						78,966
Cash and cash equivalents at the end of the period			$	35,376					$	47,299
Supplemental disclosure of cash flow information
Cash interest paid			$	23,703					$	22,245
Income taxes paid			9						1
Non-cash financing activities:
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan			$	1,098					$	—
Accrual for offering costs			42						—
Accrual for deferred financing costs			1						88

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(15)						7.25% (L + 5.75%/S)						8/7/2019						5/22/2026						$	67,793					$	67,552					$	67,793
						First lien (5)(15)						7.25% (L + 5.75%/S)						8/7/2019						5/22/2026						21,912						21,839						21,912
						First lien (3)(15)(18) - Drawn						7.25% (L + 5.75%/S)						8/7/2019						5/22/2026						5,029						4,998						5,029
																																				94,389						94,734						6.93		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(15)						7.00% (L + 5.50% + 0.50% PIK/Q)*						9/17/2018						8/16/2024						49,551						49,331						49,551
						First lien (3)(15)						7.00% (L + 5.50% + 0.50% PIK/Q)*						9/17/2018						8/16/2024						18,919						18,812						18,919
																																				68,143						68,470						5.01		%
Associations, Inc.
Consumer Services						First lien (2)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						35,113						34,967						34,937
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,644						8,604						8,601
						First lien (3)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,644						8,602						8,600
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						5,221						5,197						5,195
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						4,153						4,134						4,133
																																				61,504						61,466						4.49		%
iCIMS, Inc.
Software						First lien (8)(15)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,635						41,431						41,635
						First lien (8)(15)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,622						8,667
						First lien (3)(15)(18) - Drawn						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						2,915						2,886						2,915
																																				52,939						53,217						3.89		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(15)						6.25% (L + 5.25%/Q)						9/18/2017						9/18/2023						21,662						21,616						21,662
						First lien (2)(15)						6.25% (L + 5.25%/Q)						9/18/2017						9/18/2023						18,256						18,232						18,256
						First lien (2)(15)						6.25% (L + 5.25%/Q)						9/18/2017						9/18/2023						7,536						7,514						7,536
						First lien (2)(15)						6.25% (L + 5.25%/Q)						6/15/2021						9/18/2023						5,019						5,019						5,019
																																				52,381						52,473						3.84		%
CentralSquare Technologies, LLC
Software						Second lien (3)						8.51% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,450						44,370
						Second lien (8)						8.51% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,439						6,956
																																				54,889						51,326						3.75		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
NM GRC Holdco, LLC
Business Services						First lien (2)(15)						8.50% (L + 6.00% + 1.50% PIK/M)*						2/9/2018						2/9/2024						$	38,609					$	38,542					$	38,609
						First lien (2)(15)						8.50% (L + 6.00% + 1.50% PIK/M)*						2/9/2018						2/9/2024						10,731						10,711						10,731
																																				49,253						49,340						3.61		%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services						First lien (8)(15)						6.25% (L + 5.50%/M)						12/22/2021						12/22/2027						20,791						20,591						20,583
						First lien (4)(15)						6.25% (L + 5.50%/M)						1/13/2022						12/22/2027						9,871						9,776						9,773
						Subordinated (3)(15)						11.50% PIK/Q*						12/22/2021						12/22/2031						11,461						11,298						11,290
						Subordinated (4)(15)						11.50% PIK/Q*						1/13/2022						12/22/2031						4,495						4,430						4,427
																																				46,095						46,073						3.37		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(15)						7.03% (L + 6.00%/S)						9/15/2017						9/15/2023						33,194						33,173						33,194
						First lien (4)(15)						7.03% (L + 6.00%/S)						9/17/2019						9/15/2023						10,454						10,454						10,454
						First lien (3)(15)(18) - Drawn						7.00% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,720						1,738
																																				45,347						45,386						3.32		%
Brave Parent Holdings, Inc.
Software						Second lien (5)(15)						7.96% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,433						22,500
						Second lien (2)(15)						7.96% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,524						16,624
						Second lien (8)(15)						7.96% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,964						6,000
																																				44,921						45,124						3.30		%
Integro Parent Inc.
Insurance Services						First lien (2)(15)						6.75% (L + 5.75%/S)						10/9/2015						10/31/2022						33,986						33,958						31,349
						First lien (3)(15)(18) - Drawn						2.80% (L + 2.50%/S)						6/8/2018						4/30/2022						6,743						6,709						6,219
						Second lien (8)(15)						10.25% (L + 9.25%/S)						10/9/2015						10/30/2023						10,000						9,973						6,500
																																				50,640						44,068						3.22		%
Kaseya Inc.
Software						First lien (8)(15)						7.50% (L + 5.50% + 1.00% PIK/Q)*						5/9/2019						5/2/2025						29,170						29,014						29,170
						First lien (8)(15)						7.50% (L + 5.50% + 1.00% PIK/Q)*						9/8/2021						5/2/2025						7,816						7,757						7,816
						First lien (3)(15)						7.50% (L + 5.50% + 1.00% PIK/Q)*						5/9/2019						5/2/2025						3,414						3,391						3,414
						First lien (3)(15)(18) - Drawn						7.50% (L + 5.50% + 1.00% PIK/Q)*						9/8/2021						5/2/2025						1,908						1,893						1,908
																																				42,055						42,308						3.09		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Deca Dental Holdings LLC
Healthcare Services						First lien (2)(15)						6.76% (L + 5.75%/Q)						8/26/2021						8/28/2028						$	38,148					$	37,793					$	37,766
						First lien (3)(15)(18) - Drawn						6.76% (L + 5.75%/Q)						8/26/2021						8/28/2028						4,016						3,977						3,975
																																				41,770						41,741						3.05		%
GC Waves Holdings, Inc.
Financial Services						First lien (5)(15)						6.25% (L + 5.50%/M)						8/13/2021						8/13/2026						22,053						21,943						22,053
						First lien (2)(15)						6.25% (L + 5.50%/M)						8/13/2021						8/13/2026						13,311						13,220						13,311
						First lien (2)(15)(18) - Drawn						6.28% (L + 5.50%/M)						8/13/2021						8/13/2026						6,301						6,242						6,301
																																				41,405						41,665						3.05		%
Recorded Future, Inc.
Software						First lien (8)(15)						6.26% (L + 5.25%/Q)						8/26/2019						7/3/2025						24,655						24,504						24,532
						First lien (8)(15)						6.26% (L + 5.25%/Q)						3/26/2021						7/3/2025						12,748						12,667						12,685
																																				37,171						37,217						2.72		%
Stamps.com Inc.
Software						First lien (8)(15)						6.50% (L + 5.75%/Q)						10/5/2021						10/5/2028						37,273						36,922						36,900						2.70		%
OEC Holdco, LLC (22)
OEConnection LLC
Business Services						Second lien (2)(15)						7.50% (L + 7.00%/M)						12/17/2021						9/25/2027						23,406						23,181						23,171
						Second lien (2)(15)						7.50% (L + 7.00%/M)						9/25/2019						9/25/2027						12,044						11,953						11,924
																																				35,134						35,095						2.57		%
MRI Software LLC
Software						First lien (5)(15)						6.51% (L + 5.50%/Q)						1/31/2020						2/10/2026						22,048						21,972						22,048
						First lien (2)(15)						6.51% (L + 5.50%/Q)						3/24/2021						2/10/2026						7,785						7,766						7,785
						First lien (2)(15)						6.51% (L + 5.50%/Q)						1/31/2020						2/10/2026						3,197						3,186						3,197
						First lien (3)(15)						6.51% (L + 5.50%/Q)						1/31/2020						2/10/2026						816						812						816
																																				33,736						33,846						2.47		%
IG Investments Holdings, LLC
Business Services						First lien (2)(15)						7.01% (L + 6.00%/Q)						9/22/2021						9/22/2028						29,355						29,079						29,061
						First lien (2)(15)						7.01% (L + 6.00%/Q)						2/25/2022						9/22/2028						4,289						4,268						4,246
						First lien (3)(15)(18) - Drawn						8.50% (P + 5.00%/Q)						9/22/2021						9/22/2027						460						455						455
																																				33,802						33,762						2.47		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software						First lien (2)(15)						6.76% (L + 5.75%/Q)						3/30/2021						8/4/2025						$	17,717					$	17,647					$	17,717
						First lien (2)(15)						6.76% (L + 5.75%/Q)						3/4/2021						8/4/2025						9,880						9,841						9,880
						First lien (3)(15)						7.26% (L + 6.25%/Q)						12/19/2018						8/4/2025						5,872						5,846						5,907
																																				33,334						33,504						2.45		%
EAB Global, Inc.
Education						Second lien (2)(15)						7.00% (L + 6.50%/S)						8/16/2021						8/16/2029						33,452						32,981						32,951						2.41		%
KAMC Holdings, Inc
Business Services						Second lien (2)(15)						8.47% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,646						16,279
						Second lien (8)(15)						8.47% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,646						16,279
																																				37,292						32,558						2.38		%
Ansira Holdings, Inc.
Business Services						First lien (8)(15)						7.50% (L + 6.50% PIK/Q)*						12/19/2016						12/20/2024						32,553						32,511						24,599
						First lien (3)(15)						7.50% (L + 6.50% PIK/Q)*						12/19/2016						12/20/2024						8,182						8,173						6,182
																																				40,684						30,781						2.25		%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)(15)						6.75% (SOFR + 6.00%/S)						3/12/2021						4/3/2028						19,823						19,696						19,823
						First lien (2)(15)						6.75% (SOFR + 6.00%/S)						2/25/2022						4/3/2028						7,099						7,064						7,099
						First lien (3)(15)						6.75% (SOFR + 6.00%/S)						3/12/2021						4/3/2028						3,298						3,273						3,298
																																				30,033						30,220						2.21		%
Granicus, Inc.
Software						First lien (4)(15)						7.50% (L + 6.50%/Q)						1/27/2021						1/29/2027						15,483						15,385						15,483
						First lien (8)(15)						7.50% (L + 6.50%/Q)						1/27/2021						1/29/2027						5,989						5,949						5,989
						First lien (2)(15)						7.50% (L + 6.50%/Q)						1/27/2021						1/29/2027						5,907						5,870						5,907
						First lien (3)(15)(18) - Drawn						7.01% (L + 6.00%/Q)						4/23/2021						1/29/2027						2,771						2,746						2,744
																																				29,950						30,123						2.20		%
TigerConnect, Inc.
Healthcare Services						First lien (2)(15)						7.75% (SOFR + 6.75%/Q)						2/16/2022						2/16/2028						29,868						29,574						29,570						2.16		%
Foundational Education Group, Inc.
Education						Second lien (5)						7.00% (L + 6.50%/M)						8/19/2021						8/31/2029						22,500						22,393						22,373
						Second lien (2)						7.00% (L + 6.50%/M)						8/19/2021						8/31/2029						7,009						6,985						6,969
																																				29,378						29,342						2.15		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Syndigo LLC
Software						Second lien (4)(15)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						$	22,500					$	22,351					$	22,500
						Second lien (2)(15)						8.75% (L + 8.00%/S)						2/16/2022						12/15/2028						5,697						5,711						5,697
																																				28,062						28,197						2.06		%
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology						First lien (2)(15)						6.75% (L + 6.00%/M)						12/20/2021						12/20/2028						28,201						27,927						27,918						2.04		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)						4.50% (L + 3.50%/M)						6/24/2019						8/28/2024						16,521						15,206						14,125
						First lien (8)						4.50% (L + 3.50%/M)						10/23/2019						8/28/2024						15,934						14,332						13,624
																																				29,538						27,749						2.03		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)(15)						7.75% (L + 7.25%/M)						1/22/2021						1/5/2029						26,762						26,643						26,762						1.96		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)						7.50% (L + 6.75%/M)						11/14/2019						11/19/2027						22,500						22,407						22,317
						Second lien (2)						7.50% (L + 6.75%/M)						11/14/2019						11/19/2027						4,208						4,176						4,174
																																				26,583						26,491						1.94		%
VT Topco, Inc.
Business Services						Second lien (2)(15)						7.76% (L + 6.75%/Q)						7/30/2021						7/31/2026						16,183						16,129						16,183
						Second lien (4)(15)						7.76% (L + 6.75%/Q)						8/14/2018						7/31/2026						10,000						9,984						10,000
																																				26,113						26,183						1.91		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(15)						7.70% (L + 7.25%/M)						8/2/2018						8/10/2026						18,266						18,223						18,266
						Second lien (8)(15)						7.70% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,482						7,500
																																				25,705						25,766						1.88		%
Idera, Inc.
Software						Second lien (4)(15)						7.50% (L + 6.75%/S)						6/27/2019						3/2/2029						22,500						22,220						22,500
						Second lien (3)(15)						7.50% (L + 6.75%/S)						4/29/2021						3/2/2029						3,000						2,986						3,000
																																				25,206						25,500						1.86		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(15)						6.75% (L + 6.00%/M)						3/1/2021						3/1/2028						19,259						19,006						19,259
						First lien (2)(15)						6.75% (L + 6.00%/M)						3/2/2021						3/1/2028						4,913						4,848						4,913
																																				23,854						24,172						1.77		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(15)						5.50% (L + 4.75%/M)						9/9/2019						9/4/2026						19,263						19,116						19,263
						First lien (4)(15)						5.50% (L + 4.75%/M)						2/1/2022						9/4/2026						3,233						3,186						3,233
																																				22,302						22,496						1.64		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
AmeriVet Partners Management, Inc.
Consumer Services						First lien (2)(15)						6.30% (SOFR + 5.50%/Q)						2/25/2022						2/25/2028						$	22,490					$	22,379					$	22,378					1.64		%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services						First lien (2)(15)						6.51% (L + 5.50%/Q)						8/2/2021						8/2/2028						22,250						22,045						22,028
						First lien (3)(15)(18) - Drawn						6.51% (L + 5.50%/Q)						8/2/2021						8/2/2028						59						58						58
																																				22,103						22,086						1.61		%
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/Q)						10/30/2020						11/12/2027						12,066						11,990						12,052
						Second lien (4)(15)						8.50% (L + 7.75%/Q)						11/12/2020						11/13/2028						9,767						9,682						9,864
																																				21,672						21,916						1.60		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						9.26% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,922						21,337						1.56		%
MED Parentco, LP
Healthcare Services						Second lien (8)						8.71% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,739						20,788						1.52		%
Bullhorn, Inc.
Software						First lien (2)(15)						6.76% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,788						16,702						16,788
						First lien (3)(15)						6.76% (L + 5.75%/Q)						10/5/2021						9/30/2026						1,171						1,168						1,171
						First lien (2)(15)						6.76% (L + 5.75%/Q)						10/5/2021						9/30/2026						1,073						1,070						1,073
						First lien (3)(15)						6.76% (L + 5.75%/Q)						9/24/2019						9/30/2026						777						771						777
						First lien (3)(15)						6.76% (L + 5.75%/Q)						9/24/2019						9/30/2026						348						346						348
						First lien (3)(15)						6.76% (L + 5.75%/Q)						9/24/2019						9/30/2026						277						276						277
																																				20,333						20,434						1.49		%
YLG Holdings, Inc.
Business Services						First lien (5)(15)						6.25% (L + 5.25%/S)						11/1/2019						10/31/2025						17,999						17,941						17,999
						First lien (5)(15)						6.25% (L + 5.25%/S)						11/1/2019						10/31/2025						2,344						2,335						2,344
																																				20,276						20,343						1.49		%
Fortis Solutions Group, LLC
Packaging						First lien (8)(15)						6.51% (L + 5.50%/Q)						10/15/2021						10/13/2028						10,273						10,175						10,170
						First lien (2)(15)						6.51% (L + 5.50%/Q)						10/15/2021						10/13/2028						10,273						10,175						10,170
																																				20,350						20,340						1.49		%
DG Investment Intermediate Holdings 2, Inc.
Business Services						Second lien (3)(15)						7.50% (L + 6.75%/M)						3/18/2021						3/30/2029						20,313						20,266						20,313						1.49		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Infogain Corporation
Software						First lien (2)(15)						6.75% (L + 5.75%/S)						7/30/2021						7/28/2028						$	19,042					$	18,910					$	18,899
						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/Q)						7/30/2021						7/30/2026						765						760						760
																																				19,670						19,659						1.44		%
Xactly Corporation
Software						First lien (4)(15)						8.25% (L + 7.25%/S)						7/31/2017						7/31/2023						19,047						19,011						19,047						1.39		%
Bluefin Holding, LLC
Software						Second lien (8)(15)						8.26% (L + 7.75%/Q)						9/6/2019						9/3/2027						18,000						18,000						18,000						1.32		%
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(15)						7.25% (L + 5.75% PIK + 0.50%/M) (41)*						9/30/2015						9/30/2026						27,876						27,829						17,554
						First lien (3)(15)						15.00% (L + 13.50% PIK + 0.50%/M) (41)*						6/10/2021						9/30/2026						1,527						1,527						—
						Subordinated (3)(15)						2.00% (L + 1.00% PIK/Q) (41)*						3/16/2021						9/30/2026						5,230						—						—
																																				29,356						17,554						1.28		%
Trinity Air Consultants Holdings Corporation
Business Services						First lien (2)(15)						6.00% (L + 5.25%/S)						6/30/2021						6/29/2027						15,382						15,244						15,326
						First lien (3)(15)(18) - Drawn						6.15% (L + 5.25%/S)						6/30/2021						6/29/2027						1,876						1,857						1,869
																																				17,101						17,195						1.26		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(15)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						16,664						16,623						16,664						1.22		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(15)						6.75% (L + 5.75%/M)						2/20/2020						2/20/2026						15,909						15,853						15,909
						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/M)						2/20/2020						2/20/2026						630						627						630
																																				16,480						16,539						1.21		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(15)						7.00% (L + 6.00%/S)						3/13/2020						2/6/2026						13,901						13,853						13,901
						First lien (5)(15)						9.00% (L + 8.00%/S)						10/15/2020						8/6/2026						2,502						2,482						2,502
																																				16,335						16,403						1.20		%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software						First lien (8)(15)						7.75% (L + 7.00% PIK/Q)*						11/1/2021						11/1/2028						13,892						13,764						13,753
						First lien (8)(15)						7.75% (L + 7.00% PIK/Q)*						3/11/2022						11/1/2028						1,904						1,885						1,885
																																				15,649						15,638						1.14		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Hill International, Inc.
Business Services						First lien (2)(15)						6.76% (L + 5.75%/Q)						6/21/2017						11/5/2023						$	15,050					$	15,031					$	15,050					1.10		%
CFS Management, LLC
Healthcare Services						First lien (2)(15)						7.25% (SOFR + 6.25%/Q)						8/6/2019						7/1/2024						11,468						11,440						11,468
						First lien (3)(15)						7.25% (SOFR + 6.25%/Q)						8/6/2019						7/1/2024						3,416						3,406						3,416
																																				14,846						14,884						1.09		%
Wealth Enhancement Group, LLC
Financial Services						First lien (3)(15)						6.75% (L + 5.75%/S)						1/10/2022						10/4/2027						1,263						1,251						1,263
						First lien (3)(15)						6.75% (L + 5.75%/M)						1/10/2022						10/4/2027						847						839						847
						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/M)						8/13/2021						10/4/2027						11,821						11,799						11,821
						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/M)						8/13/2021						10/4/2027						293						292						293
																																				14,181						14,224						1.04		%
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services						First lien (5)(15)						6.76% (L + 5.75%/Q)						12/20/2021						12/21/2027						10,474						10,373						10,369
						First lien (5)(15)						6.71% (L + 5.75%/Q)						12/20/2021						12/21/2027						3,493						3,460						3,459
						First lien (3)(15)(18) - Drawn						6.50% (L + 5.75%/Q)						12/20/2021						12/21/2027						357						353						353
																																				14,186						14,181						1.04		%
Galway Borrower LLC
Insurance Services						First lien (2)(15)						6.26% (L + 5.25%/Q)						9/30/2021						9/29/2028						13,652						13,523						13,515
						First lien (3)(15)(18) - Drawn						6.26% (L + 5.25%/Q)						9/30/2021						9/29/2028						186						185						185
																																				13,708						13,700						1.00		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(15)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,403						13,447						0.98		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(15)						9.25% (L + 8.25%/S)						9/5/2018						9/5/2024						13,444						13,412						13,444						0.98		%
Castle Management Borrower LLC
Business Services						First lien (2)(15)						3.19% (L + 2.19%/Q)						5/31/2018						2/15/2025						14,590						14,563						13,433						0.98		%

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, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Daxko Acquisition Corporation
Software						First lien (8)(15)						6.25% (L + 5.50%/Q)						10/15/2021						10/16/2028						$	13,244					$	13,118					$	13,111
						First lien (3)(15)(18) - Drawn						6.25% (L + 5.50%/S)						10/15/2021						10/16/2028						295						292						292
																																				13,410						13,403						0.98		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(15)						8.50% (L + 7.50%/S)						9/29/2016						9/8/2022						14,770						14,755						13,201						0.97		%
USRP Holdings, Inc.
Federal Services						First lien (2)(15)						6.50% (L + 5.50%/Q)						7/22/2021						7/23/2027						11,397						11,294						11,283
						First lien (3)(15)						6.50% (L + 5.50%/Q)						7/22/2021						7/23/2027						1,484						1,469						1,469
						First lien (3)(15)(18) - Drawn						6.51% (L + 5.50%/Q)						7/22/2021						7/23/2027						15						15						15
																																				12,778						12,767						0.93		%
Calabrio, Inc.
Software						First lien (5)(15)						8.01% (L + 7.00%/Q)						4/16/2021						4/16/2027						12,347						12,267						12,267						0.90		%
Apptio, Inc.
Software						First lien (8)(15)						8.25% (L + 7.25%/Q)						1/10/2019						1/10/2025						11,203						11,084						11,203
						First lien (3)(15)(18) - Drawn						8.25% (L + 7.25%/Q)						1/10/2019						1/10/2025						827						810						827
																																				11,894						12,030						0.88		%
CHA Holdings, Inc.
Business Services						Second lien (4)(15)						9.76% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,969						7,012
						Second lien (3)(15)						9.76% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,426						4,453
																																				11,395						11,465						0.84		%
Specialtycare, Inc.
Healthcare Services						First lien (2)(15)						6.75% (L + 5.75%/Q)						6/18/2021						6/18/2028						10,537						10,407						10,411						0.76		%
Vectra Co.
Business Products						Second lien (8)						7.71% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,765						10,393						0.76		%
Notorious Topco, LLC
Consumer Products						First lien (8)(15)						8.00% (L + 6.50%/S)						11/23/2021						11/23/2027						10,127						10,055						10,051
						First lien (3)(15)(18) - Drawn						8.00% (L + 6.50%/S)						11/23/2021						5/24/2027						235						233						233