2022-08-08 | NDAQ:NMFC | Press Liberate

New Mountain Finance Company (NASDAQ: NMFC) (the “Corporate”, “we”, “us” or “our”) lately introduced its economic outcomes for the quarter ended June 30, 2022 and reported 2d quarter internet funding source of revenue of $0.31 according to weighted moderate percentage. At June 30, 2022, internet asset worth (“NAV”) according to percentage used to be $13.42, in comparison to $13.56 at March 31, 2022, representing a 1% decline quarter over quarter. The Corporate additionally introduced that its board of administrators declared a 3rd quarter distribution of $0.30 according to percentage, which might be payable on September 30, 2022 to holders of document as of September 16, 2022. For extra main points associated with the quarter ended June 30, 2022, please consult with the New Mountain Finance Company Shape 10-Q filed with the SEC and the supplemental investor presentation which will also be discovered at the Corporate’s website online at http://www.newmountainfinance.com.

Decided on Monetary Highlights

(in 1000’s, apart from according to percentage information) June 30, 2022
Funding Portfolio(1)

$

3,319,592

Overall Property

$

3,404,781

Overall Statutory Debt(2)

$

1,716,424

NAV(3)

$

1,351,610

NAV according to Percentage

$

13.42

Internet Funding Source of revenue according to Weighted Reasonable Stocks

$

0.31

Distributions Paid according to Percentage

$

0.30

Statutory Debt/Fairness

1.27x

Statutory Debt/Fairness (internet of to be had coins)

1.25x

_____________________________

(1) Contains collateral for securities bought below collateralized agreements to resell.

(2) Excludes the Corporate’s United States (“U.S.”) Small Industry Management (“SBA”)-guaranteed debentures. Contains top rate gained on further convertible notes issued in June 2019.

(3) Excludes non-controlling passion in New Mountain Internet Hire Company (“NMNLC”).

Control Feedback on 2d Quarter Efficiency

“We consider New Mountain’s process of that specialize in ‘defensive expansion’ industries and on firms that we all know neatly continues to turn out to be a a hit technique”, added Steven B. Klinsky, NMFC Chairman. “We consider considered one of our keys to good fortune is the energy of the workforce, which we proceed to construct over the years, now at over 215 staff and senior advisors.”

Robert A. Hamwee, CEO, commented: “In spite of really extensive financial volatility, NMFC’s portfolio is still neatly located because of our defensive expansion funding technique. We reported Q2 Internet Funding Source of revenue of $0.31 according to percentage, exceeding our prior steering, and over 90% of the portfolio used to be rated inexperienced on our chance score scale, which is an immediate results of our persevered effort to spend money on fine quality firms.”

John R. Kline, President, commented: “We’re happy to announce a 3rd quarter distribution of $0.30 according to percentage according to our expectation that Q3 Internet Funding Source of revenue might be a minimum of $0.30 according to percentage. Given our outlook for constant working efficiency, a emerging rate of interest atmosphere and persevered enhance, if wanted, from our funding guide, we stay assured that our Internet Funding Source of revenue will proceed to satisfy or exceed our quarterly dividend for the foreseeable long run.”

Portfolio and Funding Job1

As of June 30, 2022, the Corporate’s NAV used to be $1,351.6 million and its portfolio had a good worth of $3,319.6 million in 108 portfolio firms, with a weighted moderate YTM at Value2 of roughly 10.3%. For the 3 months ended June 30, 2022, the Corporate generated $103.8 million of originations in 4 new portfolio firms and $116.6 million of originations, together with commitments3 for follow-on investments in nineteen portfolio firms held as of March 31, 2022. For the 3 months ended June 30, 2022, the Corporate had $36.2 million of asset gross sales and coins repayments3 of $102.8 million.

Consolidated Result of Operations4

The Corporate’s overall funding source of revenue for the 3 months ended June 30, 2022 and 2021 used to be $72.8 million and $66.2 million, respectively.

The Corporate’s overall internet bills, after source of revenue tax expense, for the 3 months ended June 30, 2022 and 2021 had been $41.4 million and $37.4 million, respectively. Overall internet bills, after source of revenue tax expense, for the 3 months ended June 30, 2022 and 2021 consisted of $20.7 million and $17.9 million, respectively, of prices related to the Corporate’s borrowings and $18.5 million and $17.2 million, respectively, in internet control and incentive charges. On November 1, 2021, the Corporate entered into Modification No. 1 to the Funding Control Settlement (“Modification No. 1”) which diminished the bottom control price from 1.75% of the Corporate’s gross property to at least one.4% of the Corporate’s gross property. Efficient as of and for the quarter ended March 31, 2021 in the course of the quarter finishing December 31, 2023, the Funding Adviser entered right into a price waiver settlement (the “Rate Waiver Settlement”) pursuant to which the Funding Adviser will waive base control charges with a view to achieve a goal base control price of one.25% on gross property (the “Diminished Base Control Rate”). The Funding Adviser can’t recoup control charges that the Funding Adviser has prior to now waived. For the 3 months ended June 30, 2022 and 2021 control charges waived had been $1.1 million and $3.8 million, respectively. The Corporate’s internet direct and oblique skilled, administrative, different common and administrative and source of revenue tax bills for the 3 months ended June 30, 2022 and 2021 had been $2.2 million and $2.3 million, respectively.

For the 3 months ended June 30, 2022 and 2021, the Corporate recorded $(15.4) million and $47.0 million, respectively, of internet learned and unrealized losses and positive aspects.

Liquidity and Capital Sources

As of June 30, 2022, the Corporate had coins and coins equivalents of $40.7 million and overall statutory debt excellent of $1,716.4 million5, which consisted of $615.4 million of the $730.0 million of overall availability at the Corporate’s secured revolving credit score facility (“the Holdings Credit score Facility”), $120.9 million of the $198.5 million of overall availability at the Corporate’s senior secured revolving credit score facility (the “NMFC Credit score Facility”), $189.3 million of the $280.0 million of overall availability at the Corporate’s secured revolving credit score facility (the “DB Credit score Facility”), $0 of the $50.0 million of overall availability at the uncommitted revolving mortgage settlement (the “Unsecured Control Corporate Revolver”), $2.9 million of the $10.0 million of overall availability at the senior secured revolving credit score facility (the “NMNLC Credit score Facility II”), $201.4 million6 of convertible notes excellent and $586.5 million of unsecured notes excellent. Moreover, the Corporate had $300.0 million of SBA-guaranteed debentures excellent as of June 30, 2022.

Portfolio and Asset High quality1

The Corporate screens the efficiency and monetary tendencies of its portfolio firms on a minimum of a quarterly foundation. The Corporate makes an attempt to spot any trends throughout the portfolio corporate, the trade or the macroeconomic atmosphere that can modify any subject material part of the Corporate’s authentic funding technique. As described extra absolutely within the Shape 10-Q filed with the SEC, the portfolio tracking procedures are designed to supply a easy but complete research of the Corporate’s portfolio firms according to their working efficiency and underlying industry traits, which in flip bureaucracy the foundation of its Possibility Score. The Possibility Score is expressed in classes of Purple, Orange, Yellow and Inexperienced with Purple reflecting an funding appearing materially beneath expectancies and Inexperienced reflecting an funding this is in-line with or above expectancies.

The next desk displays the Possibility Score of the Corporate’s portfolio firms as of June 30, 2022:

(in thousands and thousands)
Possibility Score Value % Honest Worth %
Purple

$

83.9

2.5

%

$

30.6

0.9

%

Orange

57.5

1.7

%

40.6

1.2

%

Yellow

214.3

6.4

%

205.3

6.2

%

Inexperienced

2,971.8

89.4

%

3,043.1

91.7

%

Overall

$

3,327.5

100.0

%

$

3,319.6

100.0

%

As of June 30, 2022, all investments within the Corporate’s portfolio had a Inexperienced Possibility Score apart from 9 portfolio firms that had a Yellow Possibility Score, 3 portfolio firms that had an Orange Possibility Score and 3 portfolio firms that had a Purple Possibility Score.

The next desk displays the Corporate’s funding portfolio composition as of June 30, 2022:

(in 1000’s, apart from according to percentage information)
Funding Portfolio Composition June 30, 2022 % of Overall
First Lien

$

1,857,335

56.0

%

2d Lien(1)

602,795

18.2

%

Subordinated

55,968

1.7

%

Most popular Fairness

177,078

5.3

%

Funding Fund

252,400

7.6

%

Commonplace Fairness and Different(7)

374,016

11.2

%

Overall

$

3,319,592

100.0

%

Contemporary Traits

On July 15, 2022, the Corporate led to notices to be issued to holders of the 2017A Unsecured Notes in regards to the workout of the Corporate’s technique to pay off the entire $55.0 million in combination essential quantity of issued and excellent 2017A Unsecured Notes, which used to be repaid on July 14, 2022.

On August 3, 2022, the Corporate’s board of administrators declared a 3rd quarter 2022 distribution of $0.30 according to percentage payable on September 30, 2022 to holders of document as of September 16, 2022.

_________________________________

1 Contains collateral for securities bought below collateralized agreements to resell.

2 References to “YTM at Value” think the accruing investments, together with secured collateralized agreements, in our portfolio as of a undeniable date, the ‘‘Portfolio Date’’, are bought at value on that date and held till their respective maturities without a prepayments or losses and are exited at par at adulthood. This calculation excludes the affect of current leverage. YTM at Value makes use of the London Interbank Presented Price (“LIBOR”), Sterling In a single day Interbank Reasonable Price (“SONIA”) and Secured In a single day Financing Price (“SOFR”) curves at each and every quarter’s respective finish date. The real yield to adulthood is also upper or decrease because of the longer term number of LIBOR, SONIA and SOFR contracts by means of the person firms within the Corporate’s portfolio or different elements.

3 Originations exclude payment-in-kind (“PIK”); originations, repayments, and gross sales excludes revolvers, unfunded commitments, bridges, go back of capital, and learned positive aspects / losses.

4 Excludes internet source of revenue associated with non-controlling pursuits in NMNLC. For the quarter ended June 30, 2022 and 2021, $0.3 million and $0.4 million, respectively, of dividend source of revenue is excluded from funding source of revenue, $0.0 million and $0.0 million, respectively, of internet direct and oblique skilled, administrative, different common and administrative is excluded from internet bills, and $(1.1) million and $2.9 million, respectively, of learned and unrealized losses and positive aspects, is excluded from internet learned and unrealized positive aspects and losses.

5 Excludes the Corporate’s United States (“U.S.”) Small Industry Management (“SBA”)-guaranteed debentures.

6 Contains top rate gained on further convertible notes issued in June 2019.

7 Contains investments held in NMNLC.

Convention Name

New Mountain Finance Company will host a convention name at 10 a.m. Jap Time on Tuesday, August 9, 2022, to speak about its 2d quarter 2022 economic outcomes. All events might take part within the convention name by means of dialing +1 (844) 200-6205 roughly quarter-hour previous to the decision. Canadian callers will have to dial +1 (833) 950-0062. World callers will have to dial +1 (929) 526-1599. The get entry to code for this convention name is 898806. This convention name can be broadcast reside over the Web and will also be accessed by means of all events in the course of the Corporate’s website online, http://ir.newmountainfinance.com. To hear the reside name, please move to the Corporate’s website online a minimum of quarter-hour previous to the beginning of the decision to sign up and obtain any important audio instrument. Following the decision, you might get entry to a replay of the development by way of audio webcast on our website online. We can be using a presentation all through the convention name and we’ve posted the presentation to the investor family members segment of our website online.

New Mountain Finance Company
Consolidated Statements of Property and Liabilities
(in 1000’s, apart from stocks and according to percentage information)
(unaudited)
June 30, 2022 December 31, 2021
Property
Investments at truthful worth
Non-controlled/non-affiliated investments (value of $2,523,515 and $2,323,224 respectively) $

2,456,609

$

2,283,779

Non-controlled/affiliated investments (value of $83,313 and $80,801, respectively)

151,045

134,775

Managed investments (value of $690,628 and $722,467, respectively)

692,537

755,810

Overall investments at truthful worth (value of $3,297,456 and $3,126,492, respectively)

3,300,191

3,174,364

Securities bought below collateralized agreements to resell (value of $30,000 and $30,000, respectively)

19,401

21,422

Money and coins equivalents

40,712

58,077

Hobby and dividend receivable

33,827

30,868

Different property

10,650

11,081

Overall property $

3,404,781

$

3,295,812

Liabilities
Borrowings
Holdings Credit score Facility $

615,463

$

545,263

Unsecured Notes

586,500

511,500

SBA-guaranteed debentures

300,000

300,000

Convertible Notes

201,366

201,417

DB Credit score Facility

189,300

226,300

NMFC Credit score Facility

120,895

127,192

NMNLC Credit score Facility II

2,900

15,200

Deferred financing prices (internet of collected amortization of $44,092 and $40,713, respectively)

(16,910)

(19,684)

Internet borrowings

1,999,514

1,907,188

Control price payable

10,628

10,164

Incentive price payable

7,926

7,503

Hobby payable

18,450

17,388

Payable for unsettled securities bought

7,910

Payable to associates

796

556

Deferred tax legal responsibility

169

13

Different liabilities

2,097

2,478

Overall liabilities

2,039,580

1,953,200

Commitments and contingencies
Internet Property
Most popular inventory, par worth $0.01 according to percentage, 2,000,000 stocks licensed, none issued

Commonplace inventory, par worth $0.01 according to percentage, 200,000,000 stocks licensed, and 100,716,928 and 97,907,441 stocks issued and excellent, respectively

1,007

979

Paid in capital in way over par

1,310,791

1,272,796

Accrued undistributed income

39,812

47,470

Overall internet property of New Mountain Finance Company $

1,351,610

$

1,321,245

Non-controlling passion in New Mountain Internet Hire Company

13,591

21,367

Overall internet property $

1,365,201

$

1,342,612

Overall liabilities and internet property $

3,404,781

$

3,295,812

Selection of stocks excellent

100,716,928

97,907,441

Internet asset worth according to percentage of New Mountain Finance Company $

13.42

$

13.49

New Mountain Finance Company
Consolidated Statements of Operations
(in 1000’s, apart from stocks and according to percentage information)
(unaudited)
3 Months Ended Six Months Ended
June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Funding source of revenue
From non-controlled/non-affiliated investments:
Hobby source of revenue (except Cost-in-kind (“PIK”) passion source of revenue) $

41,089

$

39,819

$

78,533

79,379

PIK passion source of revenue

2,934

2,064

6,236

4,598

Dividend source of revenue

87

135

Non-cash dividend source of revenue

3,189

2,967

6,274

5,368

Different source of revenue

4,287

1,578

5,918

4,402

From non-controlled/affiliated investments:
Hobby source of revenue (except PIK passion source of revenue)

263

563

518

1,026

PIK passion source of revenue

258

509

Non-cash dividend source of revenue

1,012

1,545

1,994

3,050

Different source of revenue

62

103

125

205

From managed investments:
Hobby source of revenue (except PIK passion source of revenue)

1,715

1,169

3,371

2,317

PIK passion source of revenue

4,085

3,466

9,055

6,770

Dividend source of revenue

10,671

11,117

22,316

21,592

Non-cash dividend source of revenue

1,063

1,334

2,075

2,615

Different source of revenue

2,395

836

5,014

2,947

Overall funding source of revenue

73,110

66,561

142,073

134,269

Bills
Incentive price

7,926

7,298

15,403

14,546

Control price

11,770

13,725

23,323

27,145

Hobby and different financing bills

20,672

17,871

39,309

37,256

Administrative bills

932

1,029

2,141

2,158

Skilled charges

817

764

1,754

1,490

Different common and administrative bills

518

466

995

908

Overall bills

42,635

41,153

82,925

83,503

Much less: control price waived

(1,142)

(3,804)

(2,234)

(7,441)

Much less: bills waived and reimbursed

(238)

Internet bills

41,493

37,349

80,453

76,062

Internet funding source of revenue earlier than source of revenue taxes

31,617

29,212

61,620

58,207

Source of revenue tax (receive advantages) expense

(87)

22

8

23

Internet funding source of revenue

31,704

29,190

61,612

58,184

Internet learned positive aspects (losses):
Non-controlled/non-affiliated investments

(594)

157

(664)

338

Non-controlled/affiliated investments

1

(12,211)

Managed investments

17,112

22

36,354

1,557

Foreign currencies

40

385

Internet exchange in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments

(20,507)

(10,921)

(25,031)

(2,650)

Non-controlled/affiliated investments

2,999

35,972

13,758

65,014

Managed investments

(15,266)

24,757

(31,434)

20,916

Securities bought below collateralized agreements to resell

(2,021)

Foreign currencies

(193)

(615)

(Provision) receive advantages for taxes

(155)

(157)

(115)

Internet learned and unrealized (losses) positive aspects

(16,564)

49,988

(9,425)

72,849

Internet build up in internet property attributable to operations

15,140

79,178

52,187

131,033

Much less: Internet lower (build up) in internet property attributable to operations associated with non-controlling pursuits in New Mountain Internet Hire Company

814

(3,366)

(41)

(3,731)

Internet build up in internet property attributable to operations associated with New Mountain Finance Company $

15,954

$

75,812

$

52,146

$

127,302

Fundamental income (loss) according to percentage $

0.16

$

0.78

$

0.52

1.31

Weighted moderate stocks of not unusual inventory outstanding-basic

100,596,188

96,828,217

99,510,862

96,827,782

Diluted income according to percentage $

0.16

$

0.71

$

0.50

1.20

Weighted moderate stocks of not unusual inventory outstanding-diluted

113,853,773

110,085,802

112,768,447

110,085,367

Distributions declared and paid according to percentage $

0.30

$

0.30

$

0.60

0.60

ABOUT NEW MOUNTAIN FINANCE CORPORATION

New Mountain Finance Company is a closed-end, non-diversified and externally controlled funding corporate that has elected to be regulated as a industry building corporate below the Funding Corporate Act of 1940, as amended. The Corporate’s funding goal is to generate present source of revenue and capital appreciation in the course of the sourcing and origination of debt securities in any respect ranges of the capital construction, together with first and 2d lien debt, notes, bonds and mezzanine securities. The Corporate’s first lien debt might come with conventional first lien senior secured loans or unitranche loans. Unitranche loans mix traits of conventional first lien senior secured loans in addition to 2d lien and subordinated loans. Unitranche loans will disclose the Corporate to the dangers related to 2d lien and subordinated loans to the level it invests within the “remaining out” tranche. In some circumstances, the investments may additionally come with small fairness pursuits. The Corporate’s funding actions are controlled by means of its Funding Adviser, New Mountain Finance Advisers BDC, L.L.C., which is an funding adviser registered below the Funding Advisers Act of 1940, as amended. Extra details about New Mountain Finance Company will also be discovered at the Corporate’s website online at http://www.newmountainfinance.com.

ABOUT NEW MOUNTAIN CAPITAL

New Mountain Capital is a New York-based funding company that emphasizes industry construction and expansion, fairly than debt, because it pursues long-term capital appreciation. The company lately manages non-public fairness, credit score and internet hire funding methods with over $37 billion in property below control. New Mountain seeks out what it believes to be the very best quality expansion leaders in in moderation decided on trade sectors after which works intensively with control to construct the price of those firms. For more info on New Mountain Capital, please seek advice from http://www.newmountaincapital.com.

FORWARD-LOOKING STATEMENTS

Statements incorporated herein might include “forward-looking statements”, which relate to our long run operations, long run efficiency or our economic situation. Ahead-looking statements don’t seem to be promises of long run efficiency, situation or outcomes and contain quite a lot of dangers and uncertainties, together with the affect of COVID-19, the present warfare between Russia and Ukraine, and similar adjustments in base rates of interest and critical volatility on our industry, portfolio firms, our trade and the worldwide financial system. Exact outcomes and results might range materially from the ones expected within the forward-looking statements because of a lot of elements, together with the ones described once in a while in our filings with the Securities and Alternate Fee or elements which are past our keep an eye on. New Mountain Finance Company undertakes no legal responsibility to publicly replace or revise any forward-looking statements made herein, apart from as is also required by means of regulation. All forward-looking statements talk best as of the time of this press free up.

https://stockhouse.com/information/press-releases/2022/08/08/new-mountain-finance-corporation-announces-financial-results-for-the-quarter

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