New Mountain Finance 8.250% Notes Due 2028 Stock Earnings Reports

New Mountain Finance (NMFC) reported Q1 2026 results with adjusted net investment income (NII) of $0.32 per share, which covered the $0.32 dividend paid in March. The Board declared a reduced $0.25 quarterly dividend for Q2 (record June 16, payable June 30), which management says is fully covered by core earnings. NMFC completed a strategic secondary sale (~$470M) at ~94% of Dec 31 book value, used proceeds to delever, reduce PIK exposure, diversify the portfolio, and create liquidity to selectively repurchase shares and opportunistically buy discounted loans. Management executed significant buybacks (roughly $66M+ YTD) and the Board authorized an incremental $50M, leaving about $80M of remaining buyback capacity; each $10M at ~$8/share is estimated to add ~ $0.04 to book value. Portfolio highlights: fair value investments $2.3B, NAV $10.92/share (1Q), loan-to-value ~47%, 91% of portfolio green-rated, nonaccruals modest at 2.6% fair value (concentrated names like Affordable Care and Convey added but expected to improve). Yield on portfolio increased to ~11.1% driven by higher yields on new originations and some discounted secondary purchases (Q1 originations reported ~15.5% weighted yield). Liability management progressed—floating-rate mix now better aligned with assets—and net debt-to-equity ~1.08x (within 1.0–1.25x target). Management emphasized differentiated underwriting, sector focus on defensive growth areas (healthcare, business services, IT infrastructure/security), and conviction in select software credits where quality is high. CFO Kris Corbett will depart end of May; COO Laura Holson will serve as interim CFO. Overall, NMFC is positioning to capitalize on wider spreads and secondary dislocations while balancing buybacks, opportunistic deployments, and maintaining investment-grade ratings.