BDC New Mountain Finance to Offer Baby Bonds

New Mountain Finance (NYSE:NMFC) has announced their intention to sell an issue of baby bonds with a maturity date in 2023.  The permanent ticker symbol will be NMFX when trading begins in a week or two.

No details have been released yet, but the preliminary prospectus can be read here.

New Mountain had previously voted to reduced their asset coverage ratio needs from 200% to 150%.

 

 

2 thoughts on “BDC New Mountain Finance to Offer Baby Bonds”

  1. Hi Tim, the new Duke Energy baby bonds have begun trading ($24.75/share) and the symbol is DUKB.

  2. For what it’s worth, deep diving analyst Nicholas Marshi (who writes as “The BDC Reporter”) gave NMFC’s reduction in required asset coverage ratio a cautious thumbs up for shareholders back in April.

    Since the cost of this financing will no doubt be higher than the 4%-ish discussed in that article, I suspect that Marshi will have a more jaundiced view of this deal as it applies to common holders; but IMHO it should not change the picture much for debt investors.

    Disclosure: I am long NMFC common but my trigger finger is getting itchy to sell it.

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