New Mountain Finance reported third-quarter adjusted net investment income of $0.26 per share and declared a fourth-quarter distribution of $0.25 per share. The business development company’s net asset value fell from $10.89 to $10.67 per share during the quarter, while its portfolio and leverage also edged lower and higher, respectively.
The company also said it funded a $150 million unsecured-note placement on October 1 and extended its stock-repurchase program through the end of 2027.
Quarterly results and capital position
- Adjusted net investment income was $24.1 million, or $0.26 per weighted-average share. That included one cent per share of non-recurring adjustments; reported net investment income was $0.25 per share.
- A year earlier, both reported and adjusted net investment income were $0.32 per share.
- Net asset value was $10.67 per share at September 30, down from $10.89 at June 30.
- The investment portfolio totaled $2.27 billion, compared with $2.30 billion at the end of June.
- Statutory debt-to-equity was 1.19 times, up from 1.16 times. After available cash, the ratio was 1.15 times, compared with 1.11 times.
- New Mountain said 86% of its portfolio was rated “green” on its internal heatmap.
Distribution and other capital actions
- The company declared a $0.25-per-share distribution for the fourth quarter, payable December 31 to shareholders of record on December 17.
- New Mountain reported a 14.2% annualized dividend yield for the third quarter, compared with 13.2% a year earlier.
- It funded a $150 million private placement of unsecured notes on October 1.
- The company extended its $150 million stock-repurchase program through December 31, 2027. About $79.5 million remained available under the program.
What changes for shareholders
The newly declared distribution matches the $0.25 per share paid during the third quarter. Adjusted third-quarter income of $0.26 per share exceeded that distribution by one cent, while net asset value declined by $0.22 per share from the prior quarter.