NMFC Incurs New Debt with 2028 Notes Issuance

TL;DR

**NMFC just took on new debt with notes due in 2028.**

AI Summary

New Mountain Finance Corporation (NMFC) filed an 8-K on January 26, 2024, reporting an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation" on January 25, 2024. This filing indicates that NMFC has issued new notes, specifically the nmfc:A8250NotesDue2028Member, which mature in 2028. For investors, this means NMFC has taken on new debt, which could impact its financial leverage and future interest expenses, potentially affecting dividend sustainability or share price if the debt is not managed effectively.

Why It Matters

This new financial obligation impacts New Mountain Finance Corp's balance sheet and future cash flow, as interest payments will be required until the notes mature in 2028.

Risk Assessment

Risk Level: medium — Taking on new debt increases financial leverage, which can be risky if the company's income streams are not stable enough to cover interest payments and principal repayment.

Analyst Insight

A smart investor would monitor New Mountain Finance Corp's upcoming earnings reports for details on the size and terms of the new notes, and assess the company's ability to manage this increased debt load, especially concerning its impact on net investment income and dividend coverage.

Key Players & Entities

• New Mountain Finance Corporation (company) — the registrant filing the 8-K
• January 25, 2024 (date) — date of the earliest event reported
• January 26, 2024 (date) — date the 8-K was filed
• 2028 (date) — maturity year for the new notes
• NASDAQ Global Select Market (exchange) — where NMFC common stock is registered

Forward-Looking Statements

• NMFC's interest expenses will increase in upcoming financial reports due to the new notes. (New Mountain Finance Corporation) — high confidence, target: Q1 2024 earnings report
• The company will need to maintain strong cash flow to service the debt maturing in 2028. (New Mountain Finance Corporation) — high confidence, target: 2028

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share NMFC NASDAQ Global Select Mar
• $300 million — onnection with the issuance and sale of $300 million aggregate principal amount of the Compa

Filing Documents

• nmfc-20240125.htm (8-K) — 37KB
• exhibit11-8xkunderwritinga.htm (EX-1.1) — 244KB
• 0001628280-24-002377.txt ( ) — 492KB
• nmfc-20240125.xsd (EX-101.SCH) — 3KB
• nmfc-20240125_def.xml (EX-101.DEF) — 15KB
• nmfc-20240125_lab.xml (EX-101.LAB) — 29KB
• nmfc-20240125_pre.xml (EX-101.PRE) — 16KB
• nmfc-20240125_htm.xml (XML) — 4KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 25, 2024 New Mountain Finance Corporation (the "Company") entered into an underwriting agreement (the "Underwriting Agreement") by and among the Company, New Mountain Finance Advisers BDC, L.L.C. (the "Adviser"), and New Mountain Finance Administration, L.L.C. (the "Administrator"), on the one hand, and BofA Securities, Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC as the representatives of the several underwriters named in Schedule I thereto, on the other hand, in connection with the issuance and sale of $300 million aggregate principal amount of the Company's 6.875% Notes due 2029 (the "Notes" and the issuance and sale of the Notes, the "Offering"). The closing of the Offering is expected to occur on February 1, 2024, subject to the satisfaction of customary closing conditions. The Underwriting Agreement includes customary representations, warranties, and covenants by the Company, the Adviser, and the Administrator. It also provides for customary indemnification by each of the Company, the Adviser, the Administrator, and the underwriters against certain liabilities and customary contribution provisions in respect of those liabilities. The Offering was made pursuant to the Company's effective shelf registration statement on Form N-2 (Registration No. 333-272060) previously filed with the Securities and Exchange Commission (the "SEC"), as supplemented by a preliminary prospectus supplement dated January 25, 2024, a final prospectus supplement dated January 25, 2024, and the pricing term sheet filed with the SEC on January 25, 2024. This Current Report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the se

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 1.1 Underwriting Agreement, dated January 2 5 , 2024 , by and among the Company, New Mountain Finance Advisers BDC, L.L.C., and New Mountain Finance Administration, L.L.C., on one hand, and BofA Securities, Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC as the representative s of the several underwriters named in Schedule I thereto, on the other hand. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NEW MOUNTAIN FINANCE CORPORATION By: /s/ Joseph W. Hartswell Name: Joseph W. Hartswell Title: Chief Compliance Officer and Corporate Secretary Date: January 26, 2024

View Full Filing

View this 8-K filing on SEC EDGAR