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.

View supply model on businesswire.com: https://www.businesswire.com/information/house/20220804006002/en/