New Mountain Finance Corporation (NYSE:NMFC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET


New Mountain Finance Corporation (NYSE:NMFC) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the New Mountain Finance Corporation Third Quarter 2019 Earnings Call and Webcast. [Operator Instructions].

I would now like to introduce Mr. Robert Hamwee Chief Executive Officer. Please go ahead.

Robert A. Hamwee

Thank you. And good morning everyone and welcome to New Mountain Finance Corporation's Third Quarter Earnings Call for 2019. On the line with me here today are Steve Klinsky Chairman of NMFC and the CEO of New Mountain Capital; John Kline President and COO of NMFC; and Shiraz Kajee CFO of NMFC. Steve Klinsky is going to make some introductory remarks.

Before he does I'd like to ask Shiraz to make some important statements regarding today's call.

Shiraz Y. Kajee

Thanks Rob. Good morning everyone. Before we get into the presentation. I would like to invite everyone to today's call and webcast are being recorded. Please note that they have a copy of the mountain Finance Corporation, and it's funny any unauthorized broadcast many forms strictly prohibited. Information about the audio replay of this call is available in our November 6 earnings press release. I'd also like to call the attention to the customers safe harbor disclosure in our press release. Now page two of the slide presentation was our info looking statements. Today's conference call and webcast may include the forward looking statements and projections Can we ask you to refer to our most recent filings with the SEC for pulling factors that could cause actual results to differ materially from those statements and projections, We do not undertake to update our forward-looking statements or projections unless required to by law. To obtain copies of our latest SEC filings and to access the slide presentation that we will be referencing throughout call please visit our website at

At this time I'd like to turn the call over to Steve Klinsky NMFC's Chairman who will give some highlights beginning on Page four of the slide presentation. Steve?

Steven B. Klinsky

The team will go through the details in a moment but let me start by presenting the highlights of another strong quarter for New Mountain Finance. New Mountain Finance's net investment income for the quarter ended September 30 2019 was $0.36 per share above the high end of our guidance of $0.33 to $0.35 per share and more than covering our quarterly dividend of $0.34 per share. New Mountain Finance's book value was down $0.06 to $13.35 per share reflecting generally stable financial market conditions and limited portfolio company valuation changes. We are also able to announce our regular dividend which for the 31st straight quarter will again be $0.34 per share an annualized yield of approximately 10% based on last Friday's close. The company had a record quarter of net deal generation investing $452 million in gross originations versus moderate repayments of $67 million. This continued significant balance sheet growth was in part funded by our recent equity issuance and keeps us fully levered in our target range. Credit quality remains strong with no new nonaccruals for the fifth consecutive quarter.