WhiteHorse Finance, Inc. - WHF STOCK NEWS

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WhiteHorse Finance, Inc. (Nasdaq: WHF) is a non-diversified, closed-end management investment company that focuses on making debt investments in privately held, small-cap companies across the United States. The company's investment objective is to generate attractive risk-adjusted returns for investors, primarily by originating senior secured loans to small-cap companies spanning a broad range of industries. Managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, WhiteHorse Finance leverages its affiliation with a leading global alternative asset manager to source high-quality investment opportunities.

As of June 30, 2023, the fair value of WhiteHorse Finance's investment portfolio was $728.4 million, comprising 116 positions across 70 companies with a weighted average effective yield of 13.4% on income-producing debt investments. The portfolio is predominantly made up of first lien secured loans (81.3%), reflecting the company's conservative investment strategy. The loans are primarily variable rate investments indexed to benchmarks such as the London Interbank Offered Rate and the Secured Overnight Financing Rate, providing resilience in fluctuating interest rate environments.

WhiteHorse Finance recently reported a 34.2% year-over-year increase in net investment income for the quarter ended June 30, 2023, achieving $10.6 million. This performance underscores the company's strategic focus on well-positioned, non-cyclical, or lightly cyclical borrowers. The company continues to benefit from its three-tier sourcing architecture and affiliation with H.I.G. Capital, which provides a strong pipeline of investment opportunities. Furthermore, WhiteHorse Finance's board of directors has declared a distribution of $0.37 per share for the quarter, payable on October 3, 2023, marking the 44th consecutive quarter since its IPO with distributions declared at or above $0.355 per share.

In addition to its core investment activities, WhiteHorse Finance has undertaken several key initiatives, including a public offering of $30 million in notes due 2028, priced at 7.875% and tradable on The Nasdaq Global Select Market under the symbol WHFCL. The company aims to use the proceeds to repay amounts under its existing revolving credit facility and fund new investments. Another highlight is the company's involvement in the WHF STRS Ohio Senior Loan Fund LLC (STRS JV), an unconsolidated joint venture with a fair value of $324.5 million and a weighted average effective yield of 12.2% as of June 30, 2023.

WhiteHorse Finance continues to strategically position its portfolio to mitigate market risks and capitalize on emerging investment opportunities. The company's disciplined approach to credit selection and risk management, coupled with its robust financial performance, positions it well for continued growth and value creation for shareholders.