New Mountain Finance Corporation announced the pricing of an underwritten public offering of $300 million in aggregate principal amount of 6.200% unsecured notes due 2027. These notes will mature on October 15, 2027, and will bear interest at a rate of 6.200% per year, payable semi-annually on April 15 and October 15 of each year. The offering is expected to close on September 26, 2024, subject to customary closing conditions.
The company intends to use the net proceeds from this offering to repay existing indebtedness outstanding under its senior secured revolving credit facilities. Specifically, the funds will be used to address obligations under the Holdings Credit Facility, the NMFC Credit Facility, and the DB Credit Facility. This strategic move aims to optimize the company's capital structure and manage its debt profile.
This financing event is significant for investors as it demonstrates NMFC's ability to access the unsecured debt market to manage its liabilities. By refinancing existing indebtedness, the company can potentially reduce its overall financing costs and enhance its financial flexibility. The 6.200% interest rate provides a clear cost of capital for this portion of its debt, contributing to its liability management strategy.
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