New Mountain greenshoe lifts 5.75% convertibles to $115 million

By Wendy Van Sickle

Columbus, Ohio, Aug. 30 – The underwriter for New Mountain Finance Corp.’s 5.75% five-year convertible notes fully exercised its $15 million over-allotment option, increasing the total deal size to $115 million, according to a press release.

The company priced $100 million of the convertibles prior to the market open on Aug. 16 at par at the cheap end of talk with an initial conversion premium of 10%, as previously reported.

Price talk had been for a coupon of 5.5% to 5.75% and fixed initial conversion premium of 10%, according to a market source.

Wells Fargo Securities LLC is the bookrunner for the registered deal.

The notes are non-callable until May 15, 2023 and then are freely callable at par with a make-whole. There is takeover and dividend protection.

The notes are subject to a debt-to-equity ratio covenant and a secured debt ratio covenant.

The company’s debt to equity ratio may be no more than 1.65 to 1.00, and the secured debt ratio may be no more than 0.70 to 1.00.

Proceeds will be used to repay debt and make new investments.

New Mountain Finance is a New York-based closed-end, non-diversified management investment company regulated as a business development company.

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