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New Mountain Finance Corporation Prices Reopening of $60 Million of 7.50% Convertible Notes Due 2025
NEW YORK--(BUSINESS WIRE)-- New Mountain Finance Corporation (the “Company”) (NASDAQ: NMFC) announced today the pricing of an additional $60 million in
About this update from New Mountain Finance Corporation
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nNew Mountain Finance Corporation (the “Company”) (NASDAQ: NMFC) announced today the pricing of an additional $60 million in aggregate principal amount of 7.50% convertible notes due 2025 (the “Notes”). In connection with the offering, the Company entered into private placement purchase agreements (the “Purchase Agreement”) with the several purchasers, each of whom is an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) or a “qualified institutional buyer” within the meaning of Rule 144A promulgated under the Securities Act. The Notes are being issued at 100.5% of the principal amount per note. The closing of the offering is subject to customary closing conditions and is expected to take place on March 14, 2023.\n\nThe Notes are an additional issuance of the 7.50% convertible notes due 2025 that the Company issued on November 2, 2022 in an aggregate principal amount of $200 million (the “Existing Notes”). The Notes will be treated as a single series with the Existing Notes under the indenture governing the Existing Notes and will have the same terms as the Existing Notes. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing Notes. Upon the issuance of the Notes, the outstanding aggregate principal amount of the Company’s 7.50% convertible notes due 2025 will be $260 million.\n\nThe Notes will be convertible into shares of the Company’s common stock (together with cash in lieu of fractional shares) at a conversion rate of 70.5365 shares of the Company’s common stock per $1,000 principal amount of Notes (subject to additional adjustments by the Company as provided in the indenture), which is equal to a conversion price of approximately $14.18 per share of the Company’s common stock. The conversion price represents a 12.5% conversion premium over the last reported sale price of the Company’s common stock on March 8, 2023, which was $12.60 per share. This conversion rate and conversion price reflect an adjustment to the initial conversion rate of 70.4225 and resulting conversion price of $14.20 as a result of the Company’s fourth quarter dividend to stockholders of record as of December 16, 2022 in the amount of $0.32 per share. A holder may convert its Notes in whole or in part ...