Steven B. Klinsky, a director at New Mountain Finance Corp (NASDAQ:NMFC), recently acquired shares in the company valued at approximately $399,435. The purchases occurred over two days, with Klinsky buying 22,420 shares at prices ranging from $11.7416 to $11.7422 per share. The company, currently valued at $1.28 billion, offers an attractive dividend yield of 11.6% and has maintained dividend payments for 14 consecutive years.
These transactions, recorded on December 5 and 6, 2024, were made through various trusts and personal accounts associated with Klinsky. The acquisitions have increased his indirect ownership in the company, as noted in the latest SEC filings.
Footnotes in the filing indicate that the shares were purchased by trusts and family members, with Klinsky disclaiming beneficial ownership except where he has a pecuniary interest. This strategic move suggests a continued confidence in New Mountain Finance Corp's potential growth and performance.
In other recent news, New Mountain Finance Corporation (NMFC) reported a strong Q3 earnings, surpassing regular dividends with an adjusted net investment income of $0.34 per share. The company's net asset value per share saw a slight decrease to $12.62, but a supplemental dividend of $0.01 per share was issued, scheduled for end-of-December payment. NMFC's portfolio, primarily floating rate, is expected to perform well against interest rate changes. The company's management expressed optimism about the direct lending market and M&A activity in early 2025.
NMFC also plans to reduce Payment-in-Kind (PIK) exposure in 2025, replacing PIK repayments with new cash-oriented assets. The company's strong credit performance is evidenced by 97.3% of the portfolio rated green, and since its IPO, NMFC has returned over $1.3 billion to shareholders. The portfolio's average yield is at 10.5%, with a robust weighted average EBITDA of $189 million among borrowers.
The company's future outlook anticipates increased opportunities for capital deployment and fee income in early 2025, driven by M&A activity. Management holds approximately 12% of the company's shares, indicating a strong alignment with shareholder interests. These are recent developments that investors should consider while making investment decisions.
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