Company: NMFCZ
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001496099-25-000018
Chunk: 335

Company: New Mountain Finance Corp
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 335
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548 %0.222 %September 25, 2019September 1, 202919,000 2.283 %0.222 %March 25, 2020March 1, 203041,000 2.078 %0.222 %March 25, 2020March 1, 203024,000 2.078 %0.275 %September 23, 2020September 1, 203051,000 1.034 %0.275 %Total SBA-guaranteed debentures $262,500   (1)SBA-guaranteed debentures are held by SBIC I.(2)SBA-guaranteed debentures are held by SBIC II.Prior to pooling, the SBA-guaranteed debentures bear interest at an interim interest rate equal to the Federal Home Loan Bank of Chicago's Fixed Regular Advance Rate (Bank Advance Rate), plus 41 basis points. Once pooled, which occurs in March and September each year, the SBA-guaranteed debentures bear interest at a fixed rate that is set to the current 10-year treasury rate plus a spread at each pooling date.The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three months ended March 31, 2025 and March 31, 2024: Three Months EndedMarch 31, 2025March 31, 2024Interest expense$1,907 $2,020 Amortization of financing costs$237 $250 Weighted average interest rate2.7 %2.7 %Effective interest rate3.0 %3.0 %Average debt outstanding$287,083 $300,000 The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by SBA regulations that, among other things: require SBICs to invest in eligible small businesses and invest at least 25.0% of investment capital in eligible smaller enterprises (as defined by the SBA regulations), place certain limitations on the financing terms of investments, regulate the types of financing provided by an SBIC, prohibit investments in small businesses with certain characteristics or in certain industries and require capitalization thresholds that limit distributions to the Company. SBICs are subject to an annual periodic examination by an SBA