New Mountain Finance (US:NMFC)2025-11-03 21:44Financial Position - As of September 30, 2025, the company's net asset value was approximately $1,256.6 million, with a portfolio fair value of approximately $2,943.6 million across 126 portfolio companies[430]. - The company raised approximately $1,034.6 million in net proceeds from additional offerings of common stock since its IPO[422]. - As of September 30, 2025, the asset coverage ratio was 179.1%, allowing the company to borrow $2 for every $1 of equity[506]. - The company had outstanding commitments to fund investments totaling $255.9 million as of September 30, 2025[512]. - Total contractual obligations amount to $1,784.1 million, with $476.7 million due in less than 1 year[518]. - Cash and cash equivalents were approximately $63.7 million as of September 30, 2025, down from $80.3 million as of December 31, 2024[508]. Investment Performance - The weighted average yield to maturity at cost for income-producing investments was approximately 10.4%, while the overall yield to maturity at cost for all investments was approximately 10.0%[430]. - As of September 30, 2025, the fair value of the company's investments was approximately $2,943.6 million across 126 portfolio companies, down from approximately $3,091.0 million in 120 portfolio companies at December 31, 2024[492]. - Total investment income for the three months ended September 30, 2025, was approximately $80.5 million, a decrease of about $14.8 million or 16% compared to $95.3 million for the same period in 2024[494]. - For the nine months ended September 30, 2025, total investment income was approximately $249.7 million, reflecting a decrease of about $30.8 million or 11% from $280.5 million in the same period in 2024[499]. - The company reported net realized and unrealized losses of approximately $21.7 million for the three months ended September 30, 2025, compared to a net loss of approximately $11.5 million for the same period in 2024[496]. - Net realized gains on investments were $51.2 million for the nine months ended September 30, 2025, compared to net realized losses of $43.5 million for the same period in 2024[501]. - The company reported a net loss of approximately $59.5 million for the nine months ended September 30, 2025, compared to a net loss of $24.6 million for the same period in 2024[501]. Portfolio Composition - As of September 30, 2025, the top five industry concentrations in the company's portfolio were software, business services, healthcare, investment funds, and consumer services[429]. - The company primarily invests in senior secured debt of U.S. sponsor-backed middle market companies, defined as those with annual EBITDA of $10 million to $200 million[428]. - SLP III had total investments with an aggregate fair value of approximately $758.0 million, up from $715.1 million as of December 31, 2024[458]. - SLP IV had total investments with a fair value of approximately $525.3 million, up from $469.3 million as of December 31, 2024, representing a growth of 11.5%[466]. - The number of portfolio companies in SLP III decreased slightly to 89 from 90 year-over-year[459]. - The number of portfolio companies in SLP IV increased to 87 as of September 30, 2025, compared to 79 as of December 31, 2024, indicating a growth of 10.1%[467]. Debt and Financing - On October 15, 2025, the company repaid the outstanding principal of $258.7 million on the 2022 Convertible Notes[433]. - The board of directors authorized a stock repurchase program of up to $100.0 million, expected to be in place until December 31, 2026, or until the full amount is repurchased[434]. - The company entered into a Third Amended and Restated Uncommitted Revolving Loan Agreement, extending the maturity date from December 31, 2027, to December 31, 2030[435]. - SLP IV's maximum borrowing capacity was increased to $600.0 million as of July 11, 2025, up from $370.0 million prior to the amendment[465]. - The Holdings Credit Facility had outstanding borrowings of $308.1 million as of September 30, 2025, with approximately $421.9 million of available capacity remaining[514]. Interest Rate Exposure - Approximately 85.39% of the company's investments at fair value are floating-rate investments, while 14.61% are fixed-rate investments as of September 30, 2025[531]. - The company's senior secured revolving credit facilities are subject to floating interest rates based on SOFR, SONIA, or EURIBOR rates[531]. - A decrease of 200 basis points in interest rates could lead to a 15.77% reduction in interest and dividend income net of interest expense[534]. - An increase of 200 basis points in interest rates could result in a 15.77% increase in interest and dividend income net of interest expense[534]. - The potential impact of interest rate changes on net investment income is significant, with a high interest rate environment potentially increasing income[531]. - A prolonged low interest rate environment could compress the difference between interest income and interest expense, adversely affecting operating results[531]. Distributions and Dividends - Distributions declared and paid to stockholders for the nine months ended September 30, 2025, totaled approximately $102.8 million[519]. - The company declared a total of $0.96 per share in distributions for the fiscal year ended December 31, 2025[519]. - For the fiscal year ended December 31, 2024, total distributions were $147.2 million, with 75.68% classified as ordinary income[519]. - The company has a dividend reinvestment plan allowing stockholders to reinvest cash distributions in additional shares[522]. - The company intends to distribute approximately all of its net investment income on a quarterly basis and substantially all of its taxable income annually[521]. Management and Fees - Management fees for the three months ended September 30, 2025, totaled $9.6 million, down from $10.7 million in the same period in 2024, primarily due to a lower invested asset base[495]. - The company has entered into a fee waiver agreement with the Investment Adviser, reducing management fees through December 31, 2024[525].