Key Takeaways
- • New Mountain Finance Corporation (NASDAQ: NMFC) extended its stock repurchase program through December 31, 2027, from its original December 31, 2026 expiration, per a board authorization dated October 20, 2026.
- • The program authorizes repurchases of up to $150 million of common stock at management's discretion, with approximately $70 million already repurchased to date.
- • The board cited sustained market volatility and uncertainty as reasons it believes NMFC's common stock may be undervalued from time to time.
- • Repurchases are discretionary, not obligatory, and will follow Rule 10b-18 constraints and the Investment Company Act of 1940, with timing dependent on market conditions and alternative investment opportunities.
Summary
New Mountain Finance Corporation, a business development company listed on NASDAQ under the ticker NMFC, announced that its board of directors authorized an extension of its previously established stock repurchase program on October 20, 2026, according to a Business Wire press release. The program was scheduled to expire on December 31, 2026, and has now been extended through December 31, 2027.
Under the program, the company may repurchase up to $150 million of its common stock at the discretion of its management team. As of the announcement, approximately $70 million of repurchases had been completed under the program. The company stated that it is not obligated to repurchase shares and that any purchases will be made in the open market in line with the prohibitions of its Code of Ethics, the guidelines of Rule 10b-18 under the Securities Exchange Act of 1934, and the Investment Company Act of 1940. The program will remain in effect until the earlier of December 31, 2027, or the completion of the $150 million repurchase limit, unless further extended by the board.
The board justified the extension by stating it believes sustained market volatility and uncertainty may cause NMFC's common stock to be undervalued from time to time. The company cautioned that the timing and number of shares repurchased will depend on factors including market conditions and alternative investment opportunities, and that there is no assurance additional repurchases will occur.
New Mountain Finance describes itself as a leading BDC providing direct lending to U.S. middle market companies backed by top private equity sponsors, with a portfolio consisting primarily of senior secured loans and select junior capital positions. It is supported by New Mountain Capital, a New York-based investment firm with over $60 billion in assets under management across private equity, credit and net lease strategies.
Under the program, the company may repurchase up to $150 million of its common stock at the discretion of its management team. As of the announcement, approximately $70 million of repurchases had been completed under the program. The company stated that it is not obligated to repurchase shares and that any purchases will be made in the open market in line with the prohibitions of its Code of Ethics, the guidelines of Rule 10b-18 under the Securities Exchange Act of 1934, and the Investment Company Act of 1940. The program will remain in effect until the earlier of December 31, 2027, or the completion of the $150 million repurchase limit, unless further extended by the board.
The board justified the extension by stating it believes sustained market volatility and uncertainty may cause NMFC's common stock to be undervalued from time to time. The company cautioned that the timing and number of shares repurchased will depend on factors including market conditions and alternative investment opportunities, and that there is no assurance additional repurchases will occur.
New Mountain Finance describes itself as a leading BDC providing direct lending to U.S. middle market companies backed by top private equity sponsors, with a portfolio consisting primarily of senior secured loans and select junior capital positions. It is supported by New Mountain Capital, a New York-based investment firm with over $60 billion in assets under management across private equity, credit and net lease strategies.
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