Bryce Rowe's questions to New Mountain Finance Corp (NMFC) leadership • Q3 2024
Question
Bryce Rowe of B. Riley Financial asked about the company's appetite for using its stock buyback program given recent price weakness, the expected impact of a 2025 SBA maturity on regulatory leverage, and the potential for pre-emptively refinancing other upcoming debt maturities.
Answer
CEO John Kline acknowledged the stock's weakness, attributing it to high PIK levels, and stated management has an 'open mind' about using the buyback. COO Laura Holson confirmed the upcoming SBA maturity is factored into their 2025 liquidity planning with no change to the target leverage range. She also noted that recent debt issuances and facility upsizes were executed precisely to get ahead of future maturities.