A Business Development Company (BDC) is a type of closed-end fund developed by Congress in 1980 to stimulate lending to U.S. middle-market businesses. To qualify as a BDC, companies elect to be regulated under the Investment Company Act of 1940 and comply with various restrictions including a 200% minimum asset coverage ratio. BDCs are typically tax pass-through entities so long as they are registered investment companies for U.S. federal income tax purposes and distribute at least 90% of taxable income to shareholders.
Our investment objective is to generate current income and capital appreciation through investments in debt securities at all levels of the capital structure, including first and second lien debt, unsecured notes and mezzanine securities. In some cases, our investments may also include equity interests.
We are publicly traded on the NASDAQ under the ticker symbol "NMFC."
Yes. We intend to distribute quarterly dividends to shareholders of record. To view our historical dividends, please visit our Dividends page.
Dividends distributed by NMFC are generally taxable to U.S. stockholders as ordinary income or capital gains. After the end of each calendar year, we will send to each of our U.S. registered stockholders a Form 1099-DIV, which details the taxability of the dividends paid in the preceding year and includes a breakdown between ordinary income and capital gains. Participants in the DRIP are taxed on the dividends as if they were received in cash.
Yes. Registered shareholders are automatically enrolled in the dividend reinvestment plan and any cash dividends we declare will be automatically reinvested in additional shares of our common stock.
Note: if you hold your shares through a bank, broker or other intermediary, please contact your bank, broker or other intermediary to inquire about dividend reinvestment options.
A registered stockholder may elect to receive an entire dividend in cash by notifying American Stock Transfer and Trust Company, the plan administrator and our transfer agent and registrar, in writing so that such notice is received by the plan administrator no later than the record date for dividends to stockholders. Registered stockholders can notify the plan administrator via its website at www.astfinancial.com, by filling out the transaction request form located at the bottom of their statement and sending it to the plan administrator at 6201 15th Ave, Brooklyn, NY 11219 or by calling the plan administrator’s Interactive Voice Response System at 800-937-5449.
If you hold your shares through a bank, broker or other intermediary, please contact your bank, broker or other intermediary directly for instruction on how to opt out of the dividend reinvestment plan.