New Mountain Finance Corp. commenced an underwritten offering of 5 million common shares.
The company plans to grant the underwriters an option to buy up to an additional 750,000 common shares.
Based on the company's April 3 closing price of $14.95 and assuming full exercise of the overallotment option, S&P Global Market Intelligence calculates an aggregate offering size of about $86.0 million.
New Mountain Finance intends to use the net proceeds primarily for new investments in portfolio companies. It may also use a portion of the net proceeds for other general corporate purposes, including to temporarily repay debt, and for other working capital needs.
Wells Fargo Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and Keefe Bruyette & Woods Inc. are the joint lead book-running managers for the offering. The lead manager is Robert W. Baird & Co. Inc., and the co-managers are Janney Montgomery Scott LLC and Oppenheimer & Co. Inc.