Company: NMFCZ
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001496099-25-000035
Chunk: 256

Company: New Mountain Finance Corp
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 256
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 table summarizes the carrying value of the Company's hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of September 30, 2025 and December 31, 2024.As ofSeptember 30, 2025December 31, 2024DescriptionCarrying ValueCumulative Amount of Basis AdjustmentCarrying ValueCumulative Amount of Basis Adjustment6.875% Unsecured Notes$303,026 $(5,101)$296,590 $871 6.200% Unsecured Notes$297,973 $750 $291,913 $6,343 The Company’s derivative instrument contracts are subject to ISDA Master Agreements which contain certain covenants and other provisions upon the occurrence of specific credit-risk-related events which may allow the counterparties to terminate derivatives contracts if the Company fails to maintain sufficient asset coverage for its derivative contracts or upon certain credit events. As a result, the hedging relationship terminates and is immediately accelerated and deemed payable pursuant to the ISDA Master Agreement. The aggregate fair values of all derivative instruments with any credit-risk-related contingent features that were in a net asset position on September 30, 2025 was $5,013 and a net liability position on December 31, 2024 was $7,423, respectively, for which Morgan Stanley Bank N.A. had posted collateral of $13,460 and $3,230, respectively. The Company does not have any derivatives that are not designated as hedging instruments.SBA-guaranteed debentures—On August 1, 2014, August 25, 2017 and July 15, 2025, respectively, SBIC I, SBIC II and SBIC III received licenses from the SBA to operate as SBICs.These SBIC licenses allow each of SBIC I, SBIC II and SBIC III to obtain leverage in the form of SBA-guaranteed debentures, subject to the SBA's customary commitment and draw application procedures. SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten