New Mountain Finance Corporation Announces Financial Results For The Quarter Ended September 30, 2016

New Mountain Finance Corporation (NYSE: NMFC) (the "Company", "we", "us" or "our") today announced its financial results for the quarter ended September 30, 2016 and reported third quarter net investment income and adjusted net investment income 1 of $0.34 per weighted average share. At September 30, 2016, net asset value ("NAV") per share was $13.28, an increase of $0.05 per share from June 30, 2016. The Company also announced that its board of directors declared a fourth quarter dividend of $0.34 per share, which will be payable on December 29, 2016 to holders of record as of December 15, 2016.

During the third quarter, the Company closed a public offering of an additional $40.25 million in aggregate principal amount of the Company's 5.00% convertible notes due 2019 (the "Convertible Notes"). In addition, the Company entered into an amended and restated note purchase agreement and issued an additional $40.0 million in aggregate principal amount of the Company's 5.313% unsecured notes (the "Unsecured Notes") to institutional investors in a private placement.

Selected Financial Highlights
   
(in thousands, except per share data) September 30, 2016
Investment Portfolio (1) $ 1,547,652
Total Assets $ 1,617,180
Total Statutory Debt (2) $ 596,965
NAV $ 848,212
 
NAV per Share $ 13.28
Statutory Debt/Equity 0.70x
 
Investment Portfolio Composition September 30, 2016 Percent of Total
First Lien $ 648,743 41.9%
Second Lien (1) 618,500 40.0%
Subordinated 86,614 5.6%
Preferred Equity 78,047 5.0%
Common Equity and Other 45,108 2.9%
Investment Fund   70,640 4.6%
Total $ 1,547,652 100.0%
 
Three Months Ended September 30, 2016
(in millions, except per share data) GAAP  

Non-Cash Adjustments (3)
  Adjusted (3)
Net investment income ("NII") $21.7 ($0.0) $21.7
 
Net investment income per weighted average share $0.34 $0.34
 

 
(1)   Includes collateral for securities purchased under collateralized agreements to resell.
(2) Excludes the Company's U.S. Small Business Administration ("SBA")-guaranteed debentures.

(3)

Refer to "Use of Non-GAAP Financial Measures", "Reconciliation of Adjusted Net Investment Income" and "Adjusted Net Investment Income" below for additional details.

We believe that the strength of the Company's unique investment strategy - which focuses on acyclical "defensive growth" companies that are well researched by New Mountain Capital, L.L.C. ("New Mountain"), a leading alternative investment firm - is underscored by continued stable credit performance. The Company has had only six portfolio companies, representing approximately $84.4 million of the cost of all investments made since inception in October 2008, or approximately 2.1%, go on non-accrual.

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