New Mountain Finance adviser defers collecting fees (NYSE:NMFC)

William Arsn

Though in the early stages of determining March 31 investment values, New Mountain Finance (NYSE:NMFC) sees being well within statutory leverage requirements.

NMFC’s adviser has deferred collection of Q4 management and incentive fees of $17M typically paid in cash in March, has provided a $30M unsecured revolver for NMFC, and intends to buy a minority stake in NMFC’s REIT subsidiary for up to $33M at a price in excess of NMFC’s cost.

Currently has $1.028B outstanding under three secured credit lines, $655M outstanding under various unsecured notes, and $300M under the SBA program.

Expects to have ~$150M of cash and immediately available other liquidity during the current quarter to handle incremental needs from borrowers or lenders.

Has ~$50M of  undrawn revolver commitments across more than 30 borrowers.

Has ~$100 million of undrawn delayed draw term loan exposure outstanding across more than 15 borrowers. 

Says all but two of NFMC’s borrowers paid interest for Q2 2020. One represents under 1{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} of total assets and has paid 50{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} of its cash interest and agrees to pay the rest within days. The other, which the company still hopes may pay interest soon, accounts for just over 1{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} of NMFC’s assets.

Its most impacted loans, about 11{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} of its assets, are in the  dental practice, dermatology and eye care industries, “which we expect will be necessary services again when the pandemic is contained,” the company said.

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