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New Mountain Finance expands ATM program

Published 01/08/2024, 22:20
NMFC
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New Mountain Finance (NASDAQ:NMFC) Corporation (NASDAQ:NMFC) has expanded its "at-the-market" (ATM) offering program by adding Citizens JMP Securities, LLC as an additional distribution agent, according to a recent SEC filing. The amendment to the Equity Distribution Agreement, effective today, allows the company to potentially sell more shares of its common stock over time.

The ATM program, which was initially established on November 3, 2021, enables New Mountain Finance to issue new shares at prevailing market prices through distribution agents B. Riley Securities, Inc., Raymond James & Associates, Inc., and now Citizens JMP Securities, LLC. The program's amendments on May 18, 2023, August 23, 2024, and June 27, 2024, have been detailed in previous filings and prospectus supplements.

Details of the fourth amendment to the Equity Distribution Agreement were outlined in the company's prospectus supplement dated June 27, 2024, and the first supplement to the ATM Prospectus Supplement, dated August 1, 2024. The ATM program is part of the company's broader shelf registration statement on Form N-2, which was filed on June 26, 2024.

The addition of Citizens as a distribution agent suggests that New Mountain Finance is looking to increase its financial flexibility and access to capital. The company's common stock and 8.250% Notes due 2028 are both listed on the NASDAQ Global Select Market under the symbols NMFC and NMFCZ, respectively.

In other recent news, New Mountain Finance Corporation has been actively making strategic financial adjustments. The company expanded its "at-the-market" offering program, potentially allowing for the sale of more shares of its common stock over time, with Citizens JMP Securities added as an additional distribution agent. Furthermore, New Mountain Finance increased its credit facility from $525 million to $600 million, providing increased financial flexibility.

In the earnings sphere, New Mountain Finance reported steady earnings for the first quarter of 2024, with its adjusted net investment income reaching $0.36 per share, covering the regular dividend of $0.32 per share. Despite a slight decrease in net asset value per share to $12.77, the firm announced the continuation of its variable supplemental dividend payment, projecting an additional $0.02 per share for the upcoming quarter.

InvestingPro Insights

As New Mountain Finance Corporation (NASDAQ:NMFC) broadens its "at-the-market" offering program, investors may find value in the latest metrics and insights from InvestingPro. With a market capitalization of $1.34 billion and a P/E ratio of 10.7, NMFC is positioned in the market as a company with a solid earnings base. The firm's revenue has grown by 17.57% in the last twelve months as of Q1 2024, showcasing its ability to expand financially during this period.

From an investor's perspective, NMFC's consistent dividend payments, which have been maintained for 14 consecutive years, are a significant draw, especially with a high dividend yield of 12.26%. This is particularly relevant for those seeking regular income streams from their investments. Moreover, NMFC's stock trades with low price volatility, which might appeal to investors looking for stability in their portfolio.

For those considering an investment in NMFC, there are additional InvestingPro Tips to consider, including the company's recent performance trading near its 52-week low and its profitability over the last twelve months. To explore further tips and detailed analysis, interested parties can visit InvestingPro for a total of seven unique insights on NMFC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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