By Devika Patel
Knoxville, Tenn., Feb. 5 – New Mountain Finance Corp. issued $90 million of 4.87% senior notes due July 15, 2022 on Jan. 30, with the same terms as a previous private placement, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold $55 million of 4.76% notes on June 30, 2017. The debt was sold under the same note purchase agreement under which New Mountain issued $90 million of notes in 2016.
In those transactions, Sun Life & Health Insurance Co. and Sun Life Assurance Co. of Canada bought $50 million of 5.313% five-year senior notes on May 6, 2016 and $40 million more of those notes on Sept. 30, 2016 in a deal that priced on May 4, 2016.
As previously reported, Incapital LLC is the agent.
The new notes’ interest rate will increase if the company falls below investment grade or the aggregate amount of the company’s unsecured debt falls below $150 million.
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.
Proceeds will be used to repay debt and make new investments.
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: | July 15, 2022
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| Coupon: | 4.87%, subject to increase if 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 April 15, 2022
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| Agent: | Incapital LLC
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| Settlement date: | Jan. 30
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| Distribution: | Private placement
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