New Mountain Finance Corporation (NASDAQ:NMFC) Q1 2024 Earnings Call Transcript

Erik Zwick: Thanks, that makes sense. And second one for me, it was interesting to note on Slide 21 to see the interest coverage ratio for the portfolio go up and curious, what maybe the major drivers of that certainly on the graph above the average portfolio weighted EBITDA grow. So that helps. And base rates have been stable now for a couple quarters. So curious if there was anything else driving that increase and whether you think we’ve maybe seen the bottom of that ratio for this cycle?

John Kline : Yes, I’m glad you asked that question too. I mean, I really view it as good performance, so it’s reflective of good performance of our underlying portfolio companies. I think it’s also reflective of the new deals that we’re originating, having better coverage than maybe some of the old deals that we had. And that’s a function of just less aggressive gearing in a higher interest rate environment that we’re in right now. I really see those as the two factors, good performance and a positive mix from an interest coverage perspective.

Operator: [Operator Instructions] With no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Kline for any closing remarks.

John Kline : Great. Well, we thank you for your interest in New Mountain Finance Corporation and we very much look forward to speaking to you on the next earnings call. Goodbye.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.