Steven B. Klinsky, a director at New Mountain Finance Corp (NASDAQ:NMFC), recently acquired additional shares of the company, according to a Form 4 filing with the Securities and Exchange Commission. On November 26, Klinsky purchased a total of 2,400 shares of New Mountain Finance Corp at a price of $11.744 per share, amounting to a total transaction value of $28,185. The stock, which currently trades at $11.94 and offers an attractive 11.5% dividend yield, has maintained consistent dividend payments for 14 consecutive years.
These transactions were made through various trusts associated with Klinsky, including the Steven B. Klinsky 2008 Long Term Trust, the Steven B. Klinsky Non-GST Exempt Trust, and the Steven B. Klinsky 2024 Revocable Trusts. The shares are held both directly and indirectly, with Klinsky disclaiming beneficial ownership of some shares except to the extent of his pecuniary interest.
Post-transaction, Klinsky's holdings in New Mountain Finance Corp, including those through trusts and family members, amount to several million shares. The purchases reflect continued investment in the company, which operates as a business development company, providing capital solutions to middle-market companies.
In other recent news, New Mountain Finance Corporation (NMFC) reported a robust Q3 performance, with an adjusted net investment income of $0.34 per share, surpassing the regular dividend of $0.32 per share. The company's net asset value per share showed a slight decrease to $12.62. Additionally, NMFC issued a supplemental dividend of $0.01 per share, scheduled for payment at the end of December.
The company's portfolio, primarily floating rate, is well-positioned against interest rate changes. Management expressed optimism about the direct lending market and anticipates increased M&A activity in early 2025. This activity is expected to provide opportunities for capital deployment and fee income.
NMFC also plans to decrease Payment-in-Kind (PIK) exposure in 2025, replacing PIK repayments with new cash-oriented assets. Despite a minor decrease in net asset value per share and a sequential decrease in dividends from the Senior Loan Program, NMFC maintains strong credit performance with 97.3% of the portfolio rated green.
These recent developments show NMFC's commitment to shareholder returns and strategic planning for future growth. The company's management, which holds approximately 12% of the company's shares, underscores a strong alignment with shareholder interests.
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