NMFC Prices $250M 8.250% Notes Due 2028 Public Offering

TL;DR

**NMFC just priced $250M in new debt at 8.250% due 2028.**

AI Summary

New Mountain Finance Corporation (NMFC) filed an 8-K on January 18, 2024, announcing the pricing of a public offering of $250 million in 8.250% Notes due 2028. This move is significant for investors because it indicates the company is raising capital, likely to fund new investments or refinance existing debt, which could impact future earnings and dividend stability. The 8.250% interest rate on these notes reflects the current cost of borrowing for NMFC.

Why It Matters

This filing signals New Mountain Finance is raising capital, which could be used to expand its investment portfolio or manage its debt, directly influencing its future profitability and ability to pay dividends.

Risk Assessment

Risk Level: medium — Issuing new debt increases the company's leverage, which can amplify returns but also increases financial risk if investments underperform or interest rates rise further.

Analyst Insight

An investor should monitor New Mountain Finance's upcoming earnings reports to see how the proceeds from this $250 million debt offering are being deployed and their impact on net investment income and dividend coverage, especially given the 8.250% interest rate.

Key Numbers

• $250 million — Aggregate Principal Amount (The total value of the notes issued by New Mountain Finance Corp.)
• 8.250% — Interest Rate (The annual interest rate New Mountain Finance Corp. will pay on the notes.)
• 2028 — Maturity Year (The year when the principal amount of the notes must be repaid by New Mountain Finance Corp.)

Key Players & Entities

• New Mountain Finance Corporation (company) — the registrant filing the 8-K
• $250 million (dollar_amount) — the aggregate principal amount of notes offered
• 8.250% (dollar_amount) — the interest rate on the notes
• 2028 (date) — the maturity year of the notes
• January 18, 2024 (date) — the date of the earliest event reported and filing date

Forward-Looking Statements

• New Mountain Finance Corporation will use the proceeds from this offering to fund new investments. (New Mountain Finance Corporation) — medium confidence, target: 2024-12-31
• The company's interest expense will increase due to the 8.250% notes. (New Mountain Finance Corporation) — high confidence, target: 2024-03-31

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share NMFC NASDAQ Global Select
• $0.39 — ths ended December 31, 2023 was between $0.39 per share and $0.40 per share, calculat
• $0.40 — 1, 2023 was between $0.39 per share and $0.40 per share, calculated using 101,638,346
• $12.85 — are as of December 31, 2023 was between $12.85 per share and $12.90 per share. This es
• $12.90 — , 2023 was between $12.85 per share and $12.90 per share. This estimate is net of the
• $0.10 — per share. This estimate is net of the $0.10 per share special dividend that was pai

Filing Documents

• tm243476d1_8k.htm (8-K) — 37KB
• tm243476d1_ex99-1.htm (EX-99.1) — 8KB
• 0001104659-24-004666.txt ( ) — 266KB
• nmfc-20240118.xsd (EX-101.SCH) — 3KB
• nmfc-20240118_def.xml (EX-101.DEF) — 26KB
• nmfc-20240118_lab.xml (EX-101.LAB) — 36KB
• nmfc-20240118_pre.xml (EX-101.PRE) — 25KB
• tm243476d1_8k_htm.xml (XML) — 5KB

02

Item 2.02. Results of Operations and Financial Condition. Preliminary Estimates of Results as of December 31, 2023 On January 18, 2024, New Mountain Finance Corporation (the "Company", "we" or "our") issued a press release to announce preliminary estimates of its financial condition and results of operations as of and for the three months ended December 31, 2023, which are estimated as of January 17, 2024 and are set forth below. The press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein. We estimate that our net investment income per share for the three months ended December 31, 2023 was between $0.39 per share and $0.40 per share, calculated using 101,638,346 weighted average shares for the three months ended December 31, 2023. We estimate that our net asset value per share as of December 31, 2023 was between $12.85 per share and $12.90 per share. This estimate is net of the $0.10 per share special dividend that was paid on December 29, 2023. We estimate that our statutory leverage ratio as of December 31, 2023 was 1.14x and our statutory leverage ratio net of available cash was 1.10x. The information disclosed under this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as expressly set forth by specific reference in such filing.

Forward-Looking Statements

Forward-Looking Statements

02 of this Form 8-K

Item 2.02 of this Form 8-K contains forward-looking statements with respect to the business and investments of the Company, including, but not limited to, the preliminary estimates of its financial information and results for the three months ended December 31, 2023, which are based on current information available to the Company as of the date hereof. The preliminary financial estimates furnished above are based on the Company management's preliminary determinations and current expectations as of January 17, 2024, and such information is inherently uncertain. The preliminary financial estimates provided herein have been prepared by, and are the responsibility of, management. Neither Deloitte & Touche LLP, our independent registered public accounting firm, nor any other independent accountants have audited, reviewed, compiled, or performed any procedures with respect to the preliminary financial data set forth above. Accordingly, Deloitte & Touche LLP does not express an opinion or any form of assurance with respect thereto and assumes no responsibility for, and disclaims any association with, this information. The preliminary financial estimates may not align with the Company's actual results of operations for the period, which will not be known until the Company completes its customary financial year-end closing, including the determination of the fair value of the Company's portfolio investments, final adjustments and other developments that arise between now and the time that our financial results for the fiscal year ended December 31, 2023 are finalized. Actual results could differ materially from the current preliminary financial estimates based on adjustments made during the Company's year-end closing and audit procedures, and the Company's reported information in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 may differ from this information, and any such differences may be material. In addition, the information furnished above d

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. The information contained in Item 2.02 of this Current Report on Form 8-K is incorporated by reference herein. The information disclosed under this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing made by the Company under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Financial Statements and Exhibits

Financial Statements and Exhibits. d) Exhibits. Exhibit Number Description 99.1 Press release, dated January 18, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. NEW MOUNTAIN FINANCE CORPORATION Date: January 18, 2024 By: /s/ Joseph W. Hartswell Name: Joseph W. Hartswell Title: Chief Compliance Officer and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR