By Devika Patel
Knoxville, Tenn., Oct. 3 – New Mountain Finance Corp. issued another $50 million of 5.313% five-year senior notes to Sun Life & Health Insurance Co. and Sun Life Assurance Co. of Canada in a private placement on Sept. 30, according to an 8-K filed Monday with the Securities and Exchange Commission. The investor bought $50 million of the notes on May 6 in a deal that priced on May 4.
As previously reported, Incapital LLC was the agent.
The interest rate will increase to 6.313% if, subject to certain exceptions, the notes or the company fall below investment grade or the aggregate amount of the company’s unsecured debt falls below $150 million. In each such event, the company also has the option to offer to prepay the notes at par.
The notes have a make-whole call option at Treasuries plus 50 basis points. They then become freely callable at par on Feb. 15, 2021.
The company is obligated to offer to prepay the notes at par if New Mountain Finance Advisers BDC, LLC ceases to be the company’s investment adviser or if certain change-in-control events occur with respect to the investment adviser.
The note purchase agreement contains customary terms and conditions including a minimum asset coverage ratio.
Proceeds will be used to repay debt and/or for other general corporate purposes.
The New York-based closed-end, non-diversified and externally managed investment company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities, including first- and second-lien debt, notes, bonds and mezzanine securities.
| Issuer: | New Mountain Finance Corp.
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| Issue: | Senior notes
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| Amount: | $90 million
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| Maturity: | May 15, 2021
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| Coupon: | 5.313%, subject to increase t o6.313% if notes or company fall below investment grade or aggregate amount of company’s unsecured debt falls below $150 million
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| Price: | Par
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| Call option: | Make-whole call option at Treasuries plus 50 bps, then freely callable at par beginning Feb. 15, 2021
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| Agent: | Incapital LLC
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| Purchasers: | Sun Life & Health Insurance Co. and Sun Life Assurance Co.
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| Pricing date: | May 4
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| Settlement date: | May 6 (for $50 million), Sept. 30 (for $40 million)
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| Distribution: | Private placement
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