New Mountain Finance ( NMFC ) said Tuesday that it has priced an underwritten offering of 3,750,000 shares of its common stock at a public offering price of $13.57 per share.
That price represents a discount of about 2.2% from the stock's price of $13.88 at the close of the regular session on Monday.
The company's investment adviser, New Mountain Finance Advisers BDC, L.L.C. has agreed to bear the sales load of $0.42 per share payable to the underwriters. The adviser also has agreed to pay the underwriters an additional supplemental payment of $0.18 per share, which reflects the difference between the actual public offering price of $13.57 per share and the net proceeds of $13.75 per share received by the company in this offering.
The net amount received by the company is believed to be in excess of book value and is therefore accretive to shareholders.
The closing of the offering is subject to customary closing conditions and is expected to take place on Feb. 14, 2019.
In connection with the offering, the company has granted the underwriters for the offering an option to purchase up to an additional 562,500 shares of the company's common stock.
New Mountain Finance said it intends to use the net proceeds from the offering primarily for new investments in portfolio companies in accordance with its investment objective and strategies.
NMFC shares fell nearly 3% in the pre-market session.
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