Good morning and welcome to the New Mountain Finance Corporation First Quarter 2015 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Rob Hamwee CEO and President. Please go ahead.

Thank you and good morning everyone and welcome to New Mountain Finance Corporation’s first quarter earnings call for 2015. On the line with me here today are Steve Klinsky, Chairman of NMFC and CEO of New Mountain Capital; and Dave Cordova, CFO of NMFC. Steve is going to make some introductory remarks. But before he does, I would like to ask Dave to make some important statements regarding today’s call.

Thank you, Rob. I would like to advise everyone that today’s call and webcast are being recorded. Please note that they are the property of New Mountain Finance Corporation and that any unauthorized broadcast in any form is strictly prohibited. Information about the audio replay of this call is available on our earnings press release. I would also like to call your attention to the customary Safe Harbor disclosure and our in our May 05, 2015 press release and on page two of the slide presentation regarding forward-looking statements. Today’s conference call and webcast may include forward-looking statements and projections, and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those statements and projections. We do not undertake to update our forward-looking statements or projections unless required to by law. Any references to New Mountain Capital or New Mountain are referring to New Mountain Capital, LLC or its affiliates and may be referring to our investment advisor, New Mountain Finance Advisors BDC, L.L.C. where appropriate. To obtain copies of our latest SEC filings and to access the slide presentation that we will be referencing throughout this call, please visit our website at www.newmountainfinance.com or call us at 212-720-0300. At this time, I’d like to turn the call over to Steve Klinsky who will give some highlights beginning on page four of the slide presentation. Steve?

Thanks David. Rob and Dave will go through the details in a moment but let me start by presenting the highlights of another strong quarter for New Mountain Finance. New Mountain Finance’s adjusted net investment income for the quarter ended March 31, 2015 was $0.34 per share. The middle of our guidance of $0.33 to $0.35 per share. This once again covers our Q1 dividend of $0.34 per share. The company’s book value on March 31 was $13.89 per share an increase of $0.06 from last quarter. We are also able to announce our regular dividend for the quarter ending June 30, 2015. The regular dividend will again be $0.34 per share, consistent with our previously communicated view that we have reached a fully ramped steady state dividend level. The overall credit quality of the company's loan portfolio continues to be strong beside Edmentum which we discussed on last quarter's call. No new loans placed on nonaccrual this quarter. Since the inception of our debt effort in 2008 we have had only two issues with a realized default loss representing less than 0.2% of cumulative investments made to date. The company invested $65 million in gross originations in Q1 and $15 million net of repayments maintaining leverage at the high end of our range. In summary, we are pleased with NMFC’s continued performance and progress. With that, let me turn the call back over to Rob Hamwee, NMFC’s CEO.

Thank you, Steve. Before diving into the details of the quarter, as always, I’d like to give everyone a brief review of NMFC and our strategy. As outlined on page 6 of our presentation NMFC is externally managed by New Mountain Capital, a leading private equity firm with over $15 billion of assets under management and 100 staff members, including 60 investment professionals. Since the inception of our debt investment program in 2008, we have taken New Mountain’s approach to private equity and applied it to corporate credit with a consistent focus on defensive growth business models and extensive fundamental research within industries that are already well-known to New Mountain. Or, more simply put, we invest in recession resistant businesses that we really know and that we really like. We believe this approach results in a differentiated and sustainable model that allows us to generate attractive risk-adjusted rates of return across changing cycles and market conditions. To achieve our mandate, we utilize the existing New Mountain investment team as our primary underwriting resource. Turning to page 7 you can see our total return performance from our IPO and May 2011 to May 1, 2015. In the four since our IPO we have generated a compounded annual return to our investors of 13.2%, significantly above our regular dividend yield and dramatically higher than our peers. Page 8 goes into a little more detail around relative performance against our peer set benchmarking against the 10 largest externally managed BDCs that have been public at least as long as we have. We attribute the success to, one, our differentiated underwriting platform two our ability to consistently generate the vast majority of our NII from stable cash interest income and an amount that covers our dividend; three, our focus on running the business with…

Thank you, Rob. For more details on the financial results in today's commentary please refer to the Form 10-Q that was filed last evening with the SEC. Now, I would like to turn your attention to slide 22. The portfolio had just over $1.4 billion in investment to fair value at March 31, 2015 and total assets of just over 1.5 billion. We had total liabilities of 681.1 million of which, total statutory debt outstanding was 626.4 million, excluding 37.5 million of drawn SBA-guaranteed debentures. Net asset value of 806.5 million or $13.89 per share was up $0.06 from the prior quarter. As of March 31, our statutory debt-to-equity ratio was 0.78 to 1. On Slide 23, we show the historical NAV per share and leverage ratios, which are broadly consistent with our current target leverage of between 0.7 to 0.8 to 1. We also show the NAV adjusted for the cumulative impact of special dividends, which portrays a more accurate reflection of true economic value creation. On Slide 24, we show our quarterly income statement results. We believe that our adjusted NII, is the most appropriate measure of our quarterly performance. This slide highlights that while realizations and unrealized appreciation/depreciation can be volatile below the line, we continue to generate stable net investment income above the line. Focusing on the quarter ended March 31, 2015, we earned total investment income of approximately $36.5 million in line with the prior quarter. Total net expenses of $17 million decreased $0.5 million from the prior quarter primarily due to lower G&A expense. As mentioned on the last call due to the merger of our Wells Fargo credit facilities in the prior quarter and consistent with the methodology since IPO the investment advisory will wage management fees on the leverage associated with those…

Thanks, Dave. Once again we do not plan to give exquisite forward guidance. We continue to remain our intention to consistently pay at $0.34 per share on a quarterly basis for future quarters so long as the adjusted NII covers the dividend in line with our current expectations. In closing I would just like to say that we continue to be extremely pleased with our performance to date. Most importantly from a credit perspective our portfolio continues to be very healthy once again we like to thank you for your support and interest and at this point turns things back to the operator to begin Q&A. Operator?

[Operator Instruction] Our first question comes from Greg Nelson with Wells Fargo Securities. Please go ahead.

So just a few questions, first of on UniTek. Obviously you had a big portion of that convert to equity and then the equity was written up back towards the original cost base after the debt was written off. So it's about $25 of equity and just kind turn to get out how you're thinking about that position whether you're looking or eventually look roll out to equity into interesting assets just what your plans are there?

I think if you take a step back on UniTek its very cash generated business -- will be once we are finish doing the things we’re doing as we talked about in the past. So whether that position generates cash through cash extraction in the form of dividend or just us restructuring our position into interest bearing securities or whether we just monetize it and redeploy. I think one way or the other we're going to see so along as the business perform with our expectations we're going to see cash coming off with that position. Maybe not in the next one or two quarters but looking beyond that.

And then obviously there are couples of write downs in the energy portfolio. These are order investments, so I'm just trying to get sense what's going on, and what the progress is been with the five stage alliance and is there any opportunity to help leverage the expertise with five states with assets have been written down?

I don’t think in a material because there is still passive debt positions. We don’t have influence over what goes on when we do active dialogue with the companies, that being said you're really referring to Permian and to [CR] Hamilton. We continue to feel pretty good about those we're obviously taking because they're both bond positions that are quoted although they don’t trade very often. We are taking those quotes we don’t necessarily -- let me just put it this way; I feel that those are very conservative although appropriate mark and as I said in the past we don’t see any near term risk or even medium term risk of non-accrual on those positions despite the market.

And just one last one. So obviously when you talked last quarter on the call about the senior loan program and how -- as you see it's unlikely to continue building that out. So I just want to hear thoughts around pursuing more traditional senior loans on JV like other BDCs have.

In progress, I believe lot more to talk about or not next call.

The next question comes from Greg Mason with KBW. Please go ahead.

The follow up on Greg Nelson's on UniTek, the right up and fair value of $12 million in the equity; can you just walk us through kind of why you do that? I mean it just came out of bankruptcy, you converted your debt to equity at certain cost basis and then it get written up pretty significant this seems kind of surprising directly after coming out of bankruptcy.

I think what it primary reflects is prior to the 12/31 having not implementing the restructuring, there was risk around the company’s major customer which is [DirecTV], which accounts for 100% of the cash flow and in the first quarter we really materially de-risked it with the emergence and the signing of the affirmation of the new four year contract with [DirecTV]. So we do our internal valuation we look at comparable and have multiples and just to put it into context even of the current 3/31 valuation the enterprise value multiple is -- 5.5 times which in this market are pretty low multiple, and that’s before taking into account tax -- material tax attribute that the business has. So just mechanically there was meaningful risk factor discount applies to the 12/31 valuation and I think appropriately but that get remove when you signed the new contract and take away what was driving the risk factor which was big companies like [DirecTV] don’t necessarily want to deal with companies that are going through restructuring but we were able to preserve that relationship and that was the key to value enhancement. So that makes sense?

Yes perfect sense. Thanks for that color and then on Edmentum, in your slide deck you said that a portion of that’s going be converted a pick that security and then a portion to equity of $30 million. How much of that’s going to be on now performing debt going forward? Do have a dollar amount your [showing] in the share?

Yes half and half, so 15 and 15.

And then one last question just on expectations of continued draw of SBIC debentures, there is no additional draw this quarter, anything technical slowing that down or any expectations for drawing more debentures?

Nothing technical slowing down and we do have a number of things in the pipeline that could result in near term draws. But as always until deals cross the finish line there is no assurance about that. But in the long view I think we still believe consistent with past discussion that over the next four to six quarters we will materially drive the SBA facility.

As there are no further questions this concludes our question and answer session. I would like to turn the conference back over to Robert Hamwee for any closing remark.

I just want to thank everyone continued interest and support and look forward to speaking again next quarter and as always in the interim feel free to contact us with any questions or thought. Thank you.

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