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New Mountain Finance Corp (NASDAQ:NMFC), a $1.18 billion market cap company known for its impressive 20.65% dividend yield and 15-year track record of consistent dividend payments, has entered into an amendment of its loan and security agreement, extending the maturity date and adjusting the interest rate, as per the company’s recent 8-K filing with the SEC.
On March 28, 2025, the company, which operates as a closed-end, non-diversified management investment company trading at a P/E ratio of 10.32, amended its existing agreement to push the Revolving Period End Date to March 28, 2028, and the Facility Maturity Date to March 28, 2030. Alongside the extension, the applicable interest rate spread was reduced to 1.95% from the previous 2.15%. According to InvestingPro data, the company’s current ratio of 0.33 indicates that short-term obligations exceed liquid assets, making this refinancing particularly significant.
These changes were made through the Thirteenth Amendment to the Loan and Security Agreement, originally dated October 24, 2017, involving New Mountain Finance Holdings, L.L.C. as the borrower, New Mountain Finance Corporation as the collateral manager, and Wells Fargo (NYSE:WFC) Bank, National Association as the administrative agent and lender.
This strategic amendment aims to provide the company with a longer time horizon to manage its financial obligations under more favorable terms. The full details of the Thirteenth Amendment will be filed with the company’s upcoming Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2025.
Investors and stakeholders can anticipate the official documentation of this amendment to be accessible for review upon the filing of the said quarterly report. The information contained in this article is based on a press release statement. Currently trading near its 52-week low of $10.62, detailed analysis and additional insights are available through InvestingPro, which offers comprehensive research reports and real-time metrics for over 1,400 US stocks.
In other recent news, New Mountain Finance Corporation reported fourth quarter earnings that did not meet analyst expectations. The company posted net investment income of $0.32 per share, falling short of the consensus estimate of $0.33 per share, and down from $0.40 per share in the same quarter the previous year. Despite this earnings miss, New Mountain Finance declared a first quarter 2025 distribution of $0.32 per share, with an annualized dividend yield of 10.7%. The company’s net asset value per share slightly declined to $12.55 from $12.62 at the end of the previous quarter. New Mountain Finance’s total investment portfolio reached $3.10 billion by year-end, with a weighted average yield to maturity of approximately 11.0%. The portfolio’s risk assessment showed that 97% of investments were performing in-line with or above expectations. The company also reported an improved statutory debt-to-equity ratio of 1.15x at year-end, down from 1.26x in the third quarter. CEO John R. Kline emphasized the company’s steady results and progress in increasing its senior-oriented asset mix throughout 2024.
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