Company: NMFCZ
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001496099-25-000035
Chunk: 406

Company: New Mountain Finance Corp
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 406
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 value, with changes in fair value recognized in net change in unrealized appreciation (depreciation).The following table presents the effect of hedging derivative instruments on the Consolidated Statements of Operations and the total amounts for the respective line items affected:Three Months EndedNine Months EndedSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024(Losses) gains on fair value hedging relationship:Interest rate swap contract:Interest expense recognized on derivative$(1,182)$(1,189)$(3,184)$(2,270)Gains (losses) recognized on derivative719 9,092 12,436 7,539 (Losses) gains recognized on hedged item(698)(9,350)(11,564)(8,175)Net expense recognized on fair value hedge$(1,161)$(1,447)$(2,312)$(2,906)The following 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