Group 1 - New Mountain Finance (NASDAQ: NMFC) is trading at a double-digit discount to its net asset value (NAV) per share [1] - The company is providing a double-digit dividend yield that is nearly covered by net investment income (NII) [1] - The business development company (BDC) recently declared a quarterly dividend [1] Group 2 - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - New Mountain Finance (NASDAQ: NMFC) is trading at a double-digit discount to its net asset value (NAV) per share [1] - The company is providing a double-digit dividend yield that is nearly covered by net investment income (NII) [1] - The business development company (BDC) recently declared a quarterly dividend [1] Group 2 - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - New Mountain Finance (NMFC) has been recognized as a Top 10 dividend-paying financial stock according to Dividend Channel's latest "DividendRank" report [1] - The report highlights NMFC's attractive valuation metrics and strong profitability, with a current share price of $10.47, a price-to-book ratio of 0.9, and an annual dividend yield of 12.23% [1] - In comparison, the average stock in Dividend Channel's coverage yields 3.9% and has a price-to-book ratio of 2.7, indicating NMFC's superior performance [1] Valuation and Profitability - NMFC's annualized dividend is $1.28 per share, paid quarterly, with the next ex-dividend date on 09/16/2025 [2] - The report emphasizes the importance of NMFC's strong quarterly dividend history and favorable long-term growth rates in key fundamental data points [1][2] Investment Appeal - The DividendRank formula used by Dividend Channel aims to identify the most profitable companies trading at attractive valuations, making NMFC a noteworthy candidate for dividend investors [2] - The historical dividend performance of NMFC is considered a critical factor in assessing the sustainability of its current dividend [2]

Company Overview - Arizona Gold & Silver Inc. is a leading exploration company focused on uncovering precious metal resources in Arizona and Nevada [3] - The company is committed to sustainable practices and innovative exploration techniques, aiming to drive value for stakeholders while prioritizing environmental stewardship [3] - The flagship asset is the Philadelphia gold-silver property, where the company is drilling off an epithermal gold-silver system ahead of an initial resource calculation [3] Stock Options Announcement - The company has granted incentive stock options to purchase a total of 2,222,481 common shares at a price of $0.37 for a period of five years [1] - The stock options will vest immediately and are subject to a four-month hold period [1] - This offering is aimed at the company's officers, directors, and certain consultants, recognizing their leadership and excellence [2]

Group 1: Market Overview - U.S. stock futures were higher, with Dow futures gaining more than 50 points on Monday [1] - New Mountain Finance Corporation shares fell sharply in pre-market trading, dipping 4.4% to $10.01 after a downgrade from Buy to Underperform by B of A Securities analyst Derek Hewett, with a price target cut from $11.75 to $10 [1] Group 2: Notable Stock Movements - Kindly MD Inc shares tumbled 37.1% to $1.75 in pre-market trading after a 30% drop on Friday [3] - aTyr Pharma Inc shares fell 19.7% to $4.84 after gaining around 15% on Friday [3] - GlucoTrack, Inc. shares dipped 17.4% to $8.73 after a significant jump of 117% on Friday due to a purchase agreement announcement [3] - Hang Feng Technology Innovation Co., Ltd. shares declined 17.4% to $10.16 after a 209% gain on Friday following its IPO pricing [3] - Akso Health Group shares fell 16.4% to $1.60 after a more than 4% gain on Friday [3] - YD Bio Ltd shares declined 9.1% to $21.00 after a 13% gain on Friday [3] - Texas Instruments Incorporated shares declined 2.9% to $177.35 amid reports of an anti-dumping investigation by the Chinese Ministry of Commerce into American-made analog IC chips [3] - Analog Devices, Inc. shares fell 2.7% to $238.63, also related to the same anti-dumping investigation [3]

Core Viewpoint - Small-cap companies are rapidly adopting AI technologies, leading to increased efficiency and potential profit growth, while currently being the cheapest sector in the market [2] Group 1: Small-Cap Dividend Stocks - BlackRock TCP Capital (TCPC) has a yield of 15.7% and invests in over 150 companies across 20 industries, but is currently facing restructuring due to credit issues [3] - TCPC is trading at an 18% discount to its net asset value (NAV), with a regular yield of 14% and an additional 1.7% from special dividends [4] - New Mountain Finance (NMFC) offers a 12.1% yield and is also trading at a 14% discount to NAV, focusing on U.S. upper-middle-market businesses [5][6] - NMFC's NAV has declined nearly 2% quarter-over-quarter, with markdowns in healthcare and consumer products, but its credit quality remains stable [8][9] - Kayne Anderson BDC (KBDC) has a yield of 12.6% and targets companies with $10 million to $75 million in EBITDA, with a focus on defensive industries [10] - KBDC has initiated a $100 million buyback program and has seen investments increase in Q3, despite a slight decline in NAV [12] Group 2: Income-Generating Investments - Mach Natural Resources LP (MNR) offers a 16.0% distribution and operates primarily in the Anadarko Basin, with a focus on natural gas [13] - MNR trades at approximately 3.5 times this year's EBITDAX estimates, which is below the average for comparable MLPs [14] - MFA Financial (MFA) has a yield of 14.4% and invests in residential mortgage loans and securities, with a recent 13% QoQ increase in origination fees [15][17] - MFA's distributable earnings are expected to drop significantly this year, but the market does not seem to be pricing in a dividend cut [18] - Armour Residential REIT (ARR) offers a high yield of 19.0% but has a history of dividend cuts, trading at about 90% of book value [19][21]

Company Overview - New Mountain Finance (NASDAQ: NMFC) operates as a business development company focused on providing attractive total returns through a portfolio of debt investments [1] Investment Strategy - The company generates earnings by lending capital, aiming to create a hybrid investment strategy that combines growth and income [1] - The approach includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Group 1 - New Mountain Finance Corporation held its Second Quarter 2025 Earnings Conference Call, with key participants including the President, CEO, CFO, and COO [1][2] - The call was initiated by John Kline, who welcomed attendees and introduced other executives present on the call [2] - Kris Corbett, CFO, provided preliminary statements regarding the call, emphasizing that it is being recorded and that unauthorized broadcasts are prohibited [3] Group 2 - The company highlighted the importance of customary safe harbor disclosures related to forward-looking statements in their press release and presentation slides [3]

Financial Data and Key Metrics Changes - Adjusted net investment income for the quarter was $0.32 per share, covering the $0.32 per share dividend paid on June 30 [5] - Net asset value per share declined by $0.24 to $12.21 compared to Q1 [5][16] - Total investment income for the quarter was $83 million, a 12% decrease over the prior year [29] Business Line Data and Key Metrics Changes - The portfolio loan-to-value ratio stands at 45%, with nearly 80% exposure to senior-oriented assets [6][25] - The average yield of NMFC's portfolio decreased slightly to 10.6% for Q2 [25] - In Q2, the company originated $122 million of assets, offset by $155 million of repayments and sales [18] Market Data and Key Metrics Changes - The company noted a stabilization in direct lending spreads, with most unitranche loans pricing at SOFR plus $4.75 to $5.25 [21] - Approximately 78% of investments are senior in nature, up from 75% in the prior year [24] - The weighted average EBITDA of portfolio companies increased slightly to $176 million [25] Company Strategy and Development Direction - The company focuses on improving the quality and diversity of its asset base and optimizing liabilities with low-cost floating rate debt [13] - NMFC is committed to its dividend protection program through 2026, which aims to stabilize dividends during tighter market conditions [7][48] - The company is actively working on refinancing its 7.5% convertible notes and 8.25% unsecured notes maturing in Q4 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for deal flow to normalize as market conditions improve [8][20] - The company is focused on optimizing leverage and enhancing income quality, with expectations for increased portfolio activity in Q3 and Q4 [49] - Management acknowledged challenges in certain sectors, particularly in dental and consumer products, but remains positive about overall portfolio performance [15][60] Other Important Information - NMFC has repurchased approximately $16 million of shares year-to-date, with an additional $31 million of Board authorization remaining [9] - The company has maintained a strong credit performance with only $38 million or 1.2% of the portfolio on non-accrual [18] Q&A Session Summary Question: Concerns about healthcare names and industry headwinds - Management noted that while the dental downgrade was idiosyncratic, the sector has good secular tailwinds, but operational execution is critical [42][44] Question: Dividend protection program and future outlook - The dividend protection program is designed to provide visibility and support to shareholders, with management committed to maintaining it through 2026 [48][51] Question: Risks related to tariff exposure in consumer products - Management confirmed that the consumer products business had been flagged for tariff exposure, and while it was already underperforming, tariffs exacerbated the situation [56][60] Question: Trends in the education space and Edmentum's performance - Management indicated that Edmentum remains well-positioned to address learning loss post-COVID, despite some capital structure challenges [70][72]

Financial Performance - Q2 2025 adjusted net investment income ("NII") was $0.32 per share, covering the dividend of $0.32 per share[15] - June 30, 2025 net asset value ("NAV") was $12.21 per share, compared to $12.45 per share as of March 31, 2025[15] - The company repurchased approximately $16 million of NMFC shares year-to-date, including $10 million in Q2 at a weighted average purchase price of $10.42 per share[15] - Total dividends paid to shareholders is approximately $1.4 billion since IPO[27] Portfolio Composition and Risk - Approximately 95% of the portfolio is rated green on the company's heatmap, indicating strong credit quality[15] - Nearly 80% of the portfolio is senior in nature, including First Lien, SLPs, and Net Lease assets[15] - Realized Total Net Loss Rate for NMFC since IPO is 1bp[19] - Top 10 portfolio companies represent $759.4 million, or 25.2%, of consolidated investments[67] Investment Activity - Gross originations for Q2 2025 were $122.2 million, while repayments were $141.4 million and sales were $13.7 million, resulting in net less sales originations of $(32.9) million[17, 55] Leverage and Liquidity - Statutory leverage ratio is 1.13x debt to equity as of June 30, 2025[16] - The company has $1,789 million in outstanding debt with a weighted average interest rate of 6.04%[53, 82]