Twin common stock issues of New Mountain Finance (NYSE:NMFC) are hitting the market. The first is an underwritten public flotation, and the second is a secondary offering on behalf of major stockholder New Mountain Finance AIV Holdings. Both total 3 million shares, and the price is $14.34 per share. Additionally, its underwriters have been granted a purchase option for up to an additional 900,000 shares.
New Mountain Finance said it plans to use the proceeds of the primary issue to acquire units of closely related entity New Mountain Finance Holdings. In turn, the latter will utilize those monies for new portfolio investments. New Mountain Finance Holdings might also use some of the funds for "general corporate purposes" including temporary debt retirement and working capital needs.
New Mountain Finance stressed it will receive no proceeds from the secondary offering, as it is not the selling party.
The joint-lead book-running managers of the issues are Goldman Sachs, Morgan Stanley, and Wells Fargo Securities. The offerings are expected to close on October 17.
Currently, New Mountain Finance has a little more than 38.1 million shares outstanding, and its stock most recently closed at $14.24 per share.