Company: NMFCZ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001496099-25-000010
Chunk: 155

Company: New Mountain Finance Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 155
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 our common stockholders. In addition, holders of our common stock will, indirectly, bear the burden of any increase in our expenses as a result of leverage, including any increase in the management fee payable to the Investment Adviser.The following tables summarizes our indebtedness outstanding at principal value and the weighted average interest rates of each credit facility for the year ended December 31, 2024:BorrowingTotal Outstanding (in millions)Weighted Average Interest RateUnsecured Notes$990.0 6.6 %SBA-guaranteed debentures300.02.7 %Holdings Credit Facility294.47.5 %2022 Convertible Notes260.07.5 %NMFC Credit Facility27.97.0 %

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Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of interest expense and adjusted for unsettled securities purchased. The calculations in the table below are hypothetical. Actual returns may be higher or lower than those appearing below. The calculation assumes (i) $3,246.7 million in total assets as of December 31, 2024, (ii) a weighted average cost of borrowings of 6.2%, which assumes the weighted average interest rates as of December 31, 2024 for the Unsecured Notes, the SBA-guaranteed debentures, the Holdings Credit Facility and the NMFC Credit Facility, and the interest rate as of December 31, 2024 for the 2022 Convertible Notes, (iii) $1,860.9 million in debt outstanding and (iv) $1,353.3 million in net assets.Assumed Return on Our Portfolio (Net of Interest Expense)(10.0)%(5.0)%0.0%5.0%10.0%Corresponding Return to Stockholder(32.7)%(20.7)%(8.7)%3.3%15.3%

If we are unable to comply with the covenants or restrictions in our borrowings, our business could be materially adversely affected.The Holdings Credit Facility includes covenants that, subject to exceptions, restrict our ability to pay distributions, create liens on assets, make investments, make acquisitions and engage in mergers or consolidations. The Holdings Credit Facility also includes a change of control provision that accelerates the indebtedness under the facility in the event of certain change of control events. Complying with these restrictions may