By Marisa Wong
Morgantown, W.Va., July 11 – New Mountain Finance Corp. issued $50 million of 5.36% series 2018B senior notes due June 28, 2023 to Teachers Insurance and Annuity Association of America in a private placement on July 5, according to an 8-K filing with the Securities and Exchange Commission.
Goldman Sachs & Co. LLC acted as agent.
The notes have the same terms as the $90 million of 5.313% senior notes due May 15, 2021, $55 million of 4.76% series 2017A senior notes due July 15, 2022 and $90 million of 4.87% series 2018A senior notes due Jan. 30, 2023 that the company previously issued under the note purchase agreement dated Sept. 30, 2016.
The company entered into a third supplement to that note purchase agreement on July 5 to issue the latest notes and to add some covenants and terms, namely a requirement that the company not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional debt and a requirement that the company not exceed a secured debt ratio of 0.70 to 1.00 at any time.
The interest rate on the new notes is subject to increase if the notes or the company cease to have an investment-grade rating or the aggregate amount of the company’s unsecured debt falls below $150 million. In those cases, the company would have the option to offer to prepay the notes at par and noteholders who accept the offer would not receive the increased interest rate.
The notes have a make-whole call option at Treasuries plus 50 basis points, as disclosed for the previous note issues.
The business development company is based in New York.
| Issuer: | New Mountain Finance Corp.
|
| Issue: | Senior notes
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| Amount: | $50 million
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| Maturity: | June 28, 2023
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| Coupon: | 5.36%; subject to increase if notes or the company cease to have an investment-grade rating or the aggregate amount of the company’s unsecured debt falls below $150 million
|
| Price: | Par
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| Call option: | Make-whole call at Treasuries plus 50 bps
|
| Agent: | Goldman Sachs & Co. LLC
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| Purchaser: | Teachers Insurance and Annuity Association of America
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| Settlement date: | July 5
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| Distribution: | Private placement
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