New Mountain Finance Corp. plans to commence a public offering of $50 million of 5.75% unsecured convertible notes due 2023.
The company also expects to grant the underwriters an option to purchase up to an additional $7.5 million of the notes, which constitute a further issuance of and form a single series with the $115 million of notes that the company issued in August 2018.
The notes will mature Aug. 15, 2023, unless previously converted into New Mountain Finance common shares. Interest will be paid semiannually in arrears on Feb. 15 and Aug. 15 of each year, starting Aug. 15.
New Mountain Finance intends to use the net proceeds to repay outstanding debt under its credit facilities. But through re-borrowing under such credit facilities, the company plans to make new investments and use available capital for other general corporate purposes, including working capital requirements.
Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are serving as the offering's joint-lead book runners.