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WhiteHorse Finance, Inc. Announces Second Quarter 2023 Earnings Results and Declares Quarterly Distribution of $0.37 Per Share

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NEW YORK, Aug. 8, 2023 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the quarter ended June 30, 2023. In addition, the Company's board of directors has declared a distribution of $0.37 per share with respect to the quarter ended June 30, 2023. The distribution will be payable on October 3, 2023 to stockholders of record as of September 19, 2023.

Second Quarter 2023 Summary Highlights

  • Net Asset Value of $325.3 million, or $14.00 per share
  • Investment portfolio(1) totaling $728.4 million
  • STRS JV investment portfolio totaling $324.5 million
  • Gross investment deployments(2) of $23.8 million for the second quarter, including new originations of $19.3 million and $4.5 million of fundings for add-ons to existing investments
  • Net investment income of $10.6 million, or $0.456 per share
  • Core net investment income of $10.6 million, or $0.456 per share(3)
  • Second quarter distribution of $0.37 per share

Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "I am pleased to report that WhiteHorse's core net investment income increased by nearly 35% compared with the second quarter of 2022 and was well in excess of our regular dividend.  While we marked down some assets during the quarter and placed two portfolio companies on non-accrual, activity was limited to consumer-facing portfolio companies and certain portfolio companies that experienced challenges independent of economic conditions largely due to market pricing.  The investments in our existing portfolio were underwritten at modest leverage levels and are generally well positioned to service our debt in a rising interest rate environment.  Additionally, our portfolio remains overwhelmingly represented by non-cyclical or light cyclical borrowers.  The current market environment offers exceptionally attractive terms as terms and conditions in the lower middle market have returned to more normalized conditions and the quality of deals has improved.  Our pipeline has returned to an all-time high, and we continue to derive significant advantages from our three-tier sourcing architecture and our affiliation with H.I.G. Capital, a leader in the low and mid-markets.  The strength of the pipeline enables us to be conservative in our deal selection, and we are being cautious in the face of a weakening economy and remain focused on credits with compelling risk return characteristics.  The deals that we're continuing to work on are mostly non-cyclical or light cyclicals, and we continue to be highly selective about which credits we underwrite."

Portfolio and Investment Activity

As of June 30, 2023, the fair value of WhiteHorse Finance's investment portfolio was $728.4 million, compared with $749.2 million as of March 31, 2023. The portfolio as of June 30, 2023 consisted of 116 positions across 70 companies with a weighted average effective yield of 13.4% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $7.1 million with the overall portfolio comprised of approximately 81.3% first lien secured loans, 2.4% second lien secured loans, 2.2% equity and 14.1% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the London Interbank Offered Rate or Secured Overnight Financing Rate) with fixed rate securities representing only 0.8% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended June 30, 2023, WhiteHorse Finance made investments in three new portfolio companies for a total of $19.3 million and added a total of $4.5 million to existing portfolio companies. Proceeds from sales and repayments totaled approximately $28.8 million for the three months ended June 30, 2023, driven by three full realizations in Arcole Holding Corporation, Lenny & Larry's, LLC and Avision Holdings, LLC and received net repayments of $1.5 million related to revolver loans.

In addition to the transactions discussed above, during the three months ended June 30, 2023, WhiteHorse Finance transferred assets comprised of two new portfolio companies and one add-on investment, totaling $12.6 million to STRS JV in exchange for cash proceeds of $10.8 and a net investment in the STRS JV of $1.8 million.

WHF STRS Ohio Senior Loan Fund LLC

As of June 30, 2023, STRS JV's portfolio totaled $324.5 million, consisted of 32 portfolio companies and had a weighted average effective yield of 12.2%.

Results of Operations

For the three months ended June 30, 2023, the Company's net investment income was approximately $10.6 million, compared with approximately $7.9 million for the same period in the prior year, representing an increase of approximately 34.2%. The increase in net investment income for the year-over-year period was primarily attributable to higher investment income from interest income and STRS JV due to an increase in base rates. This was partially offset by an increase in interest expense, due to higher base rates, and higher incentive fee due to higher pre-incentive fee net investment income in the current period, slightly offset by a reversal of capital gains incentive fee accrual for the three months ended June 30, 2022. For the three months ended June 30, 2023, the Company's investment in STRS JV generated an annualized, gross investment yield of approximately 16.2%.

For the three months ended June 30, 2023, core net investment income(3) was $10.6 million, or $0.456 per share, compared with $7.8 million, or $0.334 per share for the same period in the prior year.

For the three months ended June 30, 2023, WhiteHorse Finance reported a net realized and unrealized loss on investments and foreign currency transactions of $6.7 million. This compares with the three months ended June 30, 2022 net realized and unrealized loss on investments and foreign currency transactions of $0.5 million. The decrease for the year-over-year period was primarily attributable to markdowns on the portfolio in the current quarter.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $3.9 million for the three months ended June 30, 2023, which compares with a net increase of $7.3 million for the three months ended June 30, 2022.

WhiteHorse Finance's net asset value was $325.3 million, or $14.00 per share, as of June 30, 2023, compared with $330.0 million, or $14.20 per share, as of March 31, 2023.

Liquidity and Capital Resources

As of June 30, 2023, WhiteHorse Finance had cash and cash equivalents of $23.1 million, compared with $22.2 million as of March 31, 2023, inclusive of restricted cash. As of June 30, 2023, the Company also had $96.4 million of undrawn capacity under its revolving credit facility. 

Distributions

The Company's board of directors has declared a distribution of $0.37 per share with respect to the quarter ending September 30, 2023. The distributions will be payable on October 3, 2023 to stockholders of record as of September 19, 2023.

On May 9, 2023, the Company declared a distribution of $0.37 per share for the quarter ended June 30, 2023, with distributions declared at or above $0.355 for the forty-third consecutive quarter since the Company's initial public offering. The distribution was paid on July 5, 2023 to stockholders of record as of June 21, 2023.

Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.

Conference Call

WhiteHorse Finance will host a conference call to discuss its second quarter results for the period ended June 30, 2023 at 9:00 a.m. ET on Tuesday, August 8, 2023. To access the teleconference, please dial 800-343-5172 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ223. Investors may also access the call on the investor relations portion of the Company's website www.whitehorsefinance.com.

If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion through August 15, 2023. The teleconference replay can be accessed by dialing 800-839-3012 (domestic and international). A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com.

About WhiteHorse Finance, Inc.

WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, ("H.I.G. Capital"). H.I.G. Capital is a leading global alternative asset manager with $58 billion of capital under management(4) across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling $102.4 million, at fair value.
(2) Excludes investments made in STRS JV.
(3) "Core net investment income" is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.
(4) Based on total capital commitments managed by H.I.G. Capital and affiliates.

SCHEDULE 1

As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses for the quarters ended June 30, 2023 and June 30, 2022.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended June 30, 2023 and June 30, 2022 (in thousands, except per share data):



June 30, 2023



June 30, 2022




Amount



 Per Share



Amount



 Per Share








Amounts







Amounts


Net investment income


$

10,592



$

0.456



$

7,877



$

0.339


Net impact of costs associated with refinancing of indebtedness



-




-




-




-


Accrual for capital gains incentive fee



-




-




(106)




(0.005)


Net impact of excise tax expense related to net realized gains and losses



-




-




-




-


Core net investment income


$

10,592



$

0.456



$

7,771



$

0.334


 

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)





June 30, 2023



December 31, 2022




(Unaudited)




Assets







Investments, at fair value







Non-controlled/non-affiliate company investments


$

607,111


$

650,535

Non-controlled affiliate company investments



6,262



9,533

Controlled affiliate company investments



114,979



100,160

Total investments, at fair value (amortized cost $760,023 and $782,429, respectively)



728,352



760,228

Cash and cash equivalents



10,412



9,508

Restricted cash and cash equivalents



10,624



14,683

Restricted foreign currency (cost of $2,027 and $2,066, respectively)



2,049



2,073

Interest and dividend receivable



7,220



7,814

Amounts receivable on unsettled investment transactions



11,770



283

Escrow receivable



711



711

Prepaid expenses and other receivables



1,039



1,174

Total assets


$

772,177


$

796,474








Liabilities







Debt (net of unamortized debt issuance costs of $3,938 and $4,718, respectively)


$

424,711


$

440,427

Distributions payable



8,600



8,251

Management fees payable



3,705



3,860

Incentive fees payable



5,115



5,618

Interest payable



2,750



2,774

Accounts payable and accrued expenses



1,467



2,329

Advances received from unfunded credit facilities



524



825

Unrealized depreciation on foreign currency forward contracts



9



3

Total liabilities



446,881



464,087








Commitments and contingencies














Net assets







Common stock, 23,243,088 and 23,243,088 shares issued and outstanding, par value
$0.001 per share, respectively, and 100,000,000 shares authorized



23



23

Paid-in capital in excess of par



339,240



339,240

Accumulated earnings (losses)



(13,967)



(6,876)

Total net assets



325,296



332,387

Total liabilities and total net assets


$

772,177


$

796,474

Number of shares outstanding



23,243,088



23,243,088

Net asset value per share


$

14.00


$

14.30

 

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)





Three months ended
June 30, 



Six months ended
June 30, 




2023



2022



2023



2022

Investment income













From non-controlled/non-affiliate company investments













Interest income


$

19,307


$

15,672


$

38,928


$

31,881

Payment-in-kind income



1,073



356



2,305



888

Fee income



920



679



1,953



1,141

Dividend income



17



79



32



168

From non-controlled affiliate company investments













Interest income





3





13

Payment-in-kind income



115



70



66



120

Dividend income





109



84



240

From controlled affiliate company investments













Interest income



2,328



1,459



4,538



2,586

Payment-in-kind income



496





908



Dividend income



1,339



1,573



2,945



2,997

Total investment income



25,595



20,000



51,759



40,034

Expenses













Interest expense



7,334



4,945



14,859



9,719

Base management fees



3,705



3,908



7,416



7,859

Performance-based incentive fees



2,648



1,837



5,324



3,264

Administrative service fees



170



170



341



341

General and administrative expenses



896



1,088



2,023



2,036

Total expenses



14,753



11,948



29,963



23,219

Net investment income before excise tax



10,842



8,052



21,796



16,815

Excise tax



250



175



500



399

Net investment income after excise tax



10,592



7,877



21,296



16,416














Realized and unrealized gains (losses) on investments and foreign currency
transactions













Net realized gains (losses)













Non-controlled/non-affiliate company investments



5



686



336



(17,498)

Non-controlled affiliate company investments



(339)



1,725



(339)



1,725

Foreign currency transactions



41



(61)



402



(342)

Foreign currency forward contracts



4



(8)



(3)



(8)

Net realized gains (losses)



(289)



2,342



396



(16,123)

Net change in unrealized appreciation (depreciation)













Non-controlled/non-affiliate company investments



(2,330)



(4,546)



(4,427)



12,570

Non-controlled affiliate company investments



(3,022)



(586)



(4,522)



(2,206)

Controlled affiliate company investments



(600)



1,502



(521)



1,672

Translation of assets and liabilities in foreign currencies



(458)



756



(829)



727

Foreign currency forward contracts



(12)



4



(6)



Net change in unrealized appreciation (depreciation)



(6,422)



(2,870)



(10,305)



12,763

Net realized and unrealized gains (losses) on investments and foreign currency transactions



(6,711)



(528)



(9,909)



(3,360)

Net increase in net assets resulting from operations


$

3,881


$

7,349


$

11,387


$

13,056














Per Common Share Data













Basic and diluted earnings per common share


$

0.17


$

0.32


$

0.49


$

0.56

Dividends and distributions declared per common share


$

0.37


$

0.36


$

0.80


$

0.71

Basic and diluted weighted average common shares outstanding



23,243,088



23,240,651



23,243,088



23,215,792

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2023

(in thousands)


Issuer


Investment Type(1)


Floor


Reference
Rate(2)


Spread
Above
Index


Interest
Rate(3)


Acquisition
Date(10)


Maturity
Date


Principal/
Share
Amount


Amortized
Cost


Fair
Value(11)


Fair Value
As A
Percentage
of Net
Assets


Debt Investments


























Advertising


























M&M OpCo. LLC (d/b/a Escalent, Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


8.00 %


13.34 %


04/07/23


04/09/29


4,750


$

4,613


$

4,613


1.42

%

M&M OpCo. LLC (d/b/a Escalent, Inc.)


First Lien Secured Revolving Loan


1.00 %


SOFR


8.00 %


13.34 %


04/07/23


04/09/29



























4,613



4,613


1.42


Air Freight & Logistics


























Gulf Winds International Acquisition LLC (d/b/a Gulf Winds
International, Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


7.00 %


12.19 %


12/16/22


12/18/28


4,829



4,697



4,731


1.45


Gulf Winds International Acquisition LLC (d/b/a Gulf Winds
International, Inc.)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


7.00 %


12.19 %


12/16/22


12/18/28






5



Motivational Marketing, LLC (d/b/a Motivational Fulfillment)


First Lien Secured Term Loan


1.00 %


SOFR


6.25 %


11.43 %


07/12/21


07/12/26


11,091



10,957



10,542


3.24


Motivational Marketing, LLC (d/b/a Motivational Fulfillment)


First Lien Secured Revolving Loan


1.00 %


SOFR


6.25 %


11.48 %


07/12/21


07/12/26


1,182



1,167



1,123


0.35


Transervice Holdings, Inc. (d/b/a Transervice Logistics, Inc.)


First Lien Secured Term Loan


2.00 %


SOFR


7.50 %


12.71 %


06/29/23


06/29/28


9,000



8,730



8,730


2.68





















25,551



25,131


7.72


Alternative Carriers


























Patagonia Holdco LLC (d/b/a Lumen LATAM)


First Lien Secured Term Loan


0.50 %


SOFR


5.75 %


10.79 %


08/05/22


08/01/29


14,515



12,230



12,414


3.82





















12,230



12,414


3.82


Application Software


























Atlas Purchaser, Inc. (d/b/a Aspect Software, Inc.)


First Lien Secured Term Loan


0.75 %


LIBOR


5.25 %


10.39 %


08/29/22


05/08/28


3,082



2,643



2,348


0.72


Atlas Purchaser, Inc. (d/b/a Aspect Software, Inc.)


Second Lien Secured Term Loan


0.75 %


SOFR


9.00 %


14.50 %


05/03/21


05/07/29


15,000



14,670



10,876


3.34


MBS Highway, LLC


First Lien Secured Term Loan


1.00 %


SOFR


7.50 %


12.63 %


10/13/22


10/13/27


9,429



9,227



9,217


2.83


Naviga Inc. (f/k/a Newscycle Solutions, Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


7.00 %


12.34 %


06/14/19


12/29/23


3,164



3,163



3,101


0.95


Naviga Inc. (f/k/a Newscycle Solutions, Inc.)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


7.00 %


12.34 %


06/14/19


12/29/23


267



267



261


0.08


UserZoom Technologies, Inc. (d/b/a UserZoom, Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


7.50 %


12.42 %


01/12/23


04/05/29


9,819



9,546



9,626


2.95





















39,516



35,429


10.87


Asset Management & Custody Banks


























JZ Capital Partners Ltd.⁽⁴⁾⁽⁵⁾⁽²²⁾


First Lien Secured Term Loan


1.00 %


SOFR


7.00 %


12.22 %


01/26/22


01/26/27


10,286



10,139



10,181


3.13


JZ Capital Partners Ltd.⁽⁴⁾⁽⁵⁾⁽⁷⁾⁽²²⁾


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


7.00 %


12.22 %


01/26/22


01/26/27






24


0.01





















10,139



10,205


3.14


Automotive Retail


























Team Car Care Holdings, LLC (Heartland Auto)⁽¹²⁾


First Lien Secured Term Loan


1.00 %


Base Rate


7.48 %


12.74 %


02/16/18


06/28/24


13,902



13,868



13,902


4.27





















13,868



13,902


4.27


Broadcasting


























Coastal Television Broadcasting Group LLC


First Lien Secured Term Loan


1.00 %


SOFR


7.00 %


12.43 %


12/30/21


12/30/26


7,573



7,467



7,417


2.28


Coastal Television Broadcasting Group LLC(7)


First Lien Secured Revolving Loan


1.00 %


SOFR


7.00 %


12.43 %


12/30/21


12/30/26






(2)






















7,467



7,415


2.28


Broadline Retail


























BBQ Buyer, LLC (d/b/a BBQ Guys)


First Lien Secured Term Loan


1.50 %


SOFR


10.50 %


15.70% (13.70%
Cash + 2.00% PIK)


08/28/20


08/28/25


12,837



12,700



12,694


3.90


BBQ Buyer, LLC (d/b/a BBQ Guys)


First Lien Secured Delayed Draw Loan


1.50 %


SOFR


10.50 %


15.70% (13.70%
Cash + 2.00% PIK)


12/02/21


08/28/25


2,617



2,588



2,588


0.80


Luxury Brand Holdings, Inc. (d/b/a Ross-Simons, Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


11.65 %


12/04/20


06/04/26


5,280



5,224



5,266


1.62


Potpourri Group, Inc.


First Lien Secured Term Loan


1.50 %


SOFR


8.25 %


13.50 %


07/03/19


07/03/24


13,993



13,930



13,993


4.30





















34,442



34,541


10.62


Building Products


























PFB Holdco, Inc. (d/b/a PFB Corporation)⁽¹³⁾


First Lien Secured Term Loan


1.00 %


CDOR


6.00 %


11.13 %


12/17/21


12/17/26


8,313



6,414



6,277


1.92


PFB Holdco, Inc. (d/b/a PFB Corporation)⁽⁷⁾⁽¹³⁾


First Lien Secured Revolving Loan


1.00 %


CDOR


6.00 %


11.13 %


12/17/21


12/17/26






13



PFB Holdco, Inc. (d/b/a PFB Corporation)


First Lien Secured Term Loan


1.00 %


SOFR


6.00 %


11.23 %


12/17/21


12/17/26


2,025



1,997



2,013


0.62


PFB Holdco, Inc. (d/b/a PFB Corporation)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


6.00 %


11.23 %


12/17/21


12/17/26






2



Trimlite Buyer LLC (d/b/a Trimlite LLC)⁽⁵⁾⁽¹³⁾⁽²³⁾


First Lien Secured Term Loan


1.00 %


CDOR


6.00 %


11.38 %


07/27/21


07/27/26


19,624



15,439



14,661


4.51





















23,850



22,966


7.05


Cable & Satellite


























Bulk Midco, LLC


First Lien Secured Term Loan


1.00 %


SOFR


7.50 %


12.70% (11.70%
Cash + 1.00% PIK)


10/28/22


06/10/24


19,208


$

19,142


$

18,668


5.74

%

Bulk Midco, LLC


First Lien Secured Revolving Loan


1.00 %


SOFR


7.50 %


12.70% (11.70%
Cash + 1.00% PIK)


10/28/22


06/10/24


2,000



1,977



1,944


0.60





















21,119



20,612


6.34


Commodity Chemicals


























FGI Acquisition Corp. (d/b/a Flexitallic Group SAS)


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


11.89 %


10/28/19


10/29/26


16,277



15,795



16,106


4.95


US Methanol Midco LLC (d/b/a US Methanol LLC)⁽²⁴⁾


First Lien Secured Term Loan


1.00 %


SOFR


7.75 %


12.93% PIK


12/20/22


12/20/27


4,972



4,868



4,874


1.50


US Methanol Midco LLC (d/b/a US Methanol LLC)⁽⁴⁾⁽⁷⁾⁽²⁴⁾


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


7.75 %




12/20/22


12/20/27






(81)


(0.02)





















20,663



20,899


6.43


Construction Materials


























Claridge Products and Equipment, LLC


First Lien Secured Term Loan


1.00 %


SOFR


8.00 %


13.39% (11.89%
Cash + 1.50% PIK)


12/30/20


12/29/25


7,409



7,338



6,907


2.12


Claridge Products and Equipment, LLC(7)(12)


First Lien Secured Revolving Loan


1.00 %


Base Rate


8.00 %


13.09% (11.59%
Cash + 1.50% PIK)


12/30/20


12/29/25


632



627



568


0.17





















7,965



7,475


2.29


Data Processing & Outsourced Services


























Future Payment Technologies, L.P.


First Lien Secured Term Loan


1.00 %


SOFR


8.25 %


13.51 %


12/23/16


12/05/25


22,288



22,179



22,129


6.80





















22,179



22,129


6.80


Distributors


























Foodservices Brand Group, LLC (d/b/a Crown Brands Group)


First Lien Secured Term Loan


1.00 %


SOFR


8.00 %


13.29 %


11/22/22


12/09/25


357



357



305


0.09


Foodservices Brand Group, LLC (d/b/a Crown Brands Group)⁽¹⁷⁾⁽¹⁹⁾


Second Lien Secured Term Loan


1.50 %


SOFR


6.50 %


11.70 %


11/22/22


01/08/26


5,171



5,119



1,429


0.44





















5,476



1,734


0.53


Diversified Chemicals


























Manchester Acquisition Sub LLC (d/b/a Draslovka Holding AS)


First Lien Secured Term Loan


0.75 %


SOFR


5.75 %


11.18 %


11/16/21


12/01/26


7,880



7,582



7,102


2.18


Chase Products Co. (f/k/a Starco)⁽⁶⁾⁽²⁶⁾


First Lien Secured Term Loan


N/A


N/A


12.00 %


12.00% PIK


03/16/23


03/16/28


2,790



2,790



2,589


0.80





















10,372



9,691


2.98


Diversified Support Services


























NNA Services, LLC


First Lien Secured Term Loan


1.00 %


SOFR


6.75 %


12.14 %


08/27/21


08/27/26


9,635



9,559



9,262


2.85





















9,559



9,262


2.85


Education Services


























EducationDynamics, LLC


First Lien Secured Term Loan


1.00 %


SOFR


7.00 %


12.20% (11.70%
Cash + 0.50% PIK)


09/15/21


09/15/26


12,919



12,755



12,418


3.81


EducationDynamics, LLC(4)(7)


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


7.00 %


12.20% (11.70%
Cash + 0.50% PIK)


09/15/21


09/15/26






(44)


(0.01)


EducationDynamics, LLC(7)


First Lien Secured Revolving Loan


1.00 %


SOFR


7.00 %


12.20% (11.70%
Cash + 0.50% PIK)


09/15/21


09/15/26






(31)


(0.01)


EducationDynamics, LLC(4)


Subordinated Unsecured Term Loan


N/A


N/A


4.00 %


4.00 %


09/15/21


03/15/27


167



167



167


0.05





















12,922



12,510


3.84


Electric Utilities


























CleanChoice Energy, Inc.


First Lien Secured Term Loan


1.00 %


SOFR


7.58 %


12.73 %


10/12/21


10/12/26


15,955



15,672



15,743


4.84





















15,672



15,743


4.84


Environmental & Facilities Services


























Industrial Specialty Services USA LLC


First Lien Secured Term Loan


1.00 %


SOFR


6.75 %


12.14 %


12/31/21


12/31/26


11,827



11,661



11,408


3.51





















11,661



11,408


3.51


Health Care Facilities


























Bridgepoint Healthcare, LLC


First Lien Secured Term Loan


1.00 %


LIBOR


7.75 %


12.90 %


10/05/21


10/05/26


10,145


$

10,012


$

9,902


3.04

%

Bridgepoint Healthcare, LLC(7)


First Lien Secured Delayed Draw Loan


1.00 %


LIBOR


7.75 %


12.90 %


10/05/21


10/05/26






(14)



Bridgepoint Healthcare, LLC(7)


First Lien Secured Revolving Loan


1.00 %


LIBOR


7.75 %


12.90 %


10/05/21


10/05/26






(17)


(0.01)





















10,012



9,871


3.03


Health Care Services


























Lab Logistics, LLC


First Lien Secured Term Loan


1.00 %


SOFR


9.25 %


14.44 %


10/16/19


09/25/23


5,462



5,449



5,462


1.68


Lab Logistics, LLC


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


9.25 %


14.43 %


10/16/19


09/25/23


5,104



5,102



5,104


1.57


PG Dental New Jersey Parent, LLC


First Lien Secured Term Loan


1.00 %


LIBOR


9.50 %


14.69% (13.44%
Cash + 1.25% PIK)


11/25/20


11/25/25


13,276



13,137



12,483


3.84


PG Dental New Jersey Parent, LLC⁽¹²⁾


First Lien Secured Revolving Loan


1.00 %


Base Rate


9.00 %


15.85% (14.60%
Cash + 1.25% PIK)


11/25/20


11/25/25


704



696



662


0.20





















24,384



23,711


7.29


Health Care Supplies


























ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group,
LLC)


First Lien Secured Term Loan


0.75 %


SOFR


7.50 %


12.88 %


02/23/22


02/23/28


20,358



19,964



19,333


5.94





















19,964



19,333


5.94


Heavy Electrical Equipment


























Power Service Group CR Acquisition Inc. (d/b/a Power Plant
Services)


First Lien Secured Term Loan


1.00 %


SOFR


6.25 %


11.64 %


06/25/21


06/25/26


13,572



13,400



13,352


4.10


Power Service Group CR Acquisition Inc. (d/b/a Power Plant
Services)


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


6.25 %


11.64 %


07/11/22


06/25/26


2,090



2,053



2,056


0.63


Power Service Group CR Acquisition Inc. (d/b/a Power Plant
Services)⁽⁷⁾⁽¹²⁾


First Lien Secured Revolving Loan


1.00 %


Base Rate


6.25 %


11.58 %


06/25/21


06/25/24


1,045



1,039



1,041


0.32





















16,492



16,449


5.05


Home Furnishings


























Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


11.61 %


10/12/21


10/12/26


20,721



20,447



20,505


6.30


Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


6.50 %


11.75 %


10/12/21


10/12/26


832



821



828


0.25


Hollander Intermediate LLC (d/b/a Hollander Sleep Products,
LLC)


First Lien Secured Term Loan


2.00 %


SOFR


8.75 %


13.97 %


09/19/22


09/21/26


4,800



4,766



4,301


1.32





















26,034



25,634


7.87


Household Appliances


























Token Buyer, Inc. (d/b/a Therm-O-Disc, Inc.)


First Lien Secured Term Loan


0.50 %


SOFR


6.00 %


11.20 %


05/26/22


05/31/29


7,178



6,688



6,171


1.90





















6,688



6,171


1.90


Household Products


























The Kyjen Company, LLC (d/b/a Outward Hound)


First Lien Secured Term Loan


1.00 %


SOFR


7.50 %


13.14% (12.14%
Cash + 1.00% PIK)


04/05/21


04/05/26


11,357



11,264



10,564


3.25


The Kyjen Company, LLC (d/b/a Outward Hound)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


7.50 %


13.14% (12.14%
Cash + 1.00% PIK)


04/05/21


04/05/26






(58)


(0.02)





















11,264



10,506


3.23


Industrial Machinery & Supplies & Components


























Project Castle, Inc. (d/b/a Material Handling Systems, Inc.)


First Lien Secured Term Loan


0.50 %


SOFR


5.50 %


10.41 %


06/09/22


06/01/29


8,313



7,560



6,899


2.12





















7,560



6,899


2.12


Interactive Media & Services


























MSI Information Services, Inc.


First Lien Secured Term Loan


1.00 %


SOFR


7.75 %


12.95 %


04/25/22


04/24/26


7,531



7,425



7,157


2.20


MSI Information Services, Inc.(7)(12)


First Lien Secured Revolving Loan


1.00 %


Base Rate


6.95 %


14.60 %


04/25/22


04/24/26


375



370



332


0.10





















7,795



7,489


2.30


Investment Banking & Brokerage


























JVMC Holdings Corp. (fka RJO Holdings Corp)


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


11.71 %


02/28/19


02/28/24


9,325



9,312



9,325


2.87





















9,312



9,325


2.87


IT Consulting & Other Services


























ATSG, Inc.


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


11.72 %


11/12/21


11/12/26


3,809


$

3,758


$

3,735


1.15

%




















3,758



3,735


1.15


Leisure Facilities


























Honors Holdings, LLC (d/b/a Orange Theory)⁽¹⁵⁾⁽¹⁶⁾


First Lien Secured Term Loan


1.00 %


SOFR


8.85 %


14.24 %


09/06/19


09/06/24


9,440



9,359



9,286


2.85


Honors Holdings, LLC (d/b/a Orange Theory)⁽¹⁵⁾⁽¹⁶⁾


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


6.91 %


12.32 %


09/06/19


09/06/24


4,649



4,625



4,573


1.41


Lift Brands, Inc.


First Lien Secured Term Loan A


1.00 %


SOFR


7.50 %


12.70 %


06/29/20


06/29/25


5,546



5,512



5,517


1.70


Lift Brands, Inc.


First Lien Secured Term Loan B


N/A


N/A


9.50 %


9.50% PIK


06/29/20


06/29/25


1,383



1,371



1,314


0.40


Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁹⁾


First Lien Secured Term Loan C


N/A


N/A


9.50 %


9.50% PIK


06/29/20


N/A


1,580



1,577



1,563


0.48





















22,444



22,253


6.84


Leisure Products


























Playmonster Group LLC(6)(20)


Priority First Lien Secured Term Loan


1.00 %


SOFR


6.75 %


12.02% PIK


12/09/22


06/08/26


1,073



1,045



1,030


0.32


Playmonster Group LLC⁽⁶⁾⁽¹⁷⁾⁽²⁰⁾


First Lien Secured Term Loan


1.00 %


SOFR


9.00 %


14.22% PIK


01/24/22


06/08/26


3,930



3,661



2,396


0.74


Leviathan Intermediate Holdco, LLC


First Lien Secured Term Loan


1.50 %


SOFR


7.50 %


12.89 %


12/27/22


12/27/27


10,398



10,118



10,242


3.15


Leviathan Intermediate Holdco, LLC⁽⁷⁾


First Lien Secured Revolving Loan


1.50 %


SOFR


7.50 %


12.89 %


12/27/22


12/27/27


76



74



81


0.02





















14,898



13,749


4.23


Life Sciences Tools & Services


























LSCS Holdings, Inc. (d/b/a Eversana Life Science Services, LLC)


Second Lien Secured Term Loan


0.50 %


LIBOR


8.00 %


13.19 %


11/23/21


12/16/29


5,000



4,939



4,827


1.48





















4,939



4,827


1.48


Office Services & Supplies


























American Crafts, LC⁽¹⁴⁾⁽²⁵⁾


Priority First Lien Secured Term Loan


1.00 %


SOFR


8.50 %


13.69% PIK


12/22/22


05/28/26


4,750



4,750



4,605


1.42


American Crafts, LC⁽¹⁴⁾⁽²⁵⁾


First Lien Secured Term Loan


1.00 %


SOFR


8.50 %


13.69% PIK


05/28/21


05/28/26


8,791



8,720



6,827


2.10


American Crafts, LC⁽¹⁴⁾⁽²⁵⁾


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


8.50 %


13.69% PIK


01/25/22


05/28/26


1,476



1,458



1,146


0.35


Empire Office, Inc.


First Lien Secured Term Loan


1.50 %


SOFR


6.75 %


12.00 %


04/12/19


04/12/24


11,342



11,296



11,342


3.49


Empire Office, Inc.


First Lien Secured Delayed Draw Loan


1.50 %


SOFR


6.75 %


12.00 %


08/17/21


04/12/24


4,640



4,608



4,640


1.43





















30,832



28,560


8.79


Personal Care Products


























Inspired Beauty Brands, Inc.


First Lien Secured Term Loan


1.00 %


LIBOR


7.00 %


12.32 %


12/30/20


12/30/25


11,205



11,093



11,094


3.41


Inspired Beauty Brands, Inc.(7)


First Lien Secured Revolving Loan


1.00 %


LIBOR


7.00 %


12.21 %


12/30/20


12/30/25


88



88



88


0.03





















11,181



11,182


3.44


Real Estate Development


























StoicLane MidCo, LLC (d/b/a StoicLane Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


7.50 %


12.89 %


11/04/22


11/04/27


4,630



4,529



4,584


1.41


StoicLane MidCo, LLC (d/b/a StoicLane Inc.)⁽⁷⁾


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


7.50 %


12.89 %


11/04/22


11/04/27


5,573



5,483



5,556


1.71





















10,012



10,140


3.12


Real Estate Operating Companies


























Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)


First Lien Secured Term Loan


1.00 %


SOFR


8.00 %


13.20% (12.70%
Cash + 0.50% PIK)


12/02/22


12/02/27


5,139



5,003



5,012


1.54


Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾


First Lien Secured Delayed Draw Loan


1.00 %


SOFR


8.00 %


13.23% (12.73%
Cash + 0.50% PIK)


12/02/22


12/02/27


468



460



442


0.14


Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


8.00 %


13.24% (12.74%
Cash + 0.50% PIK)


12/02/22


12/02/27


474



462



463


0.14





















5,925



5,917


1.82


Research & Consulting Services


























Aeyon LLC⁽¹⁵⁾


First Lien Secured Term Loan


1.00 %


SOFR


8.88 %


13.97 %


02/10/22


02/10/27


8,865



8,737



8,860


2.72


ALM Media, LLC


First Lien Secured Term Loan


1.00 %


SOFR


6.00 %


11.39 %


11/25/19


11/25/24


12,932



12,859



12,853


3.95





















21,596



21,713


6.67


Specialized Consumer Services


























Camp Facility Services Holdings, LLC (d/b/a Camp Construction
Services, Inc.)


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


11.70 %


11/16/21


11/16/27


11,733


$

11,561


$

11,308


3.48

%

HC Salon Holdings, Inc. (d/b/a Hair Cuttery)


First Lien Secured Term Loan


1.00 %


SOFR


6.50 %


12.00 %


09/30/21


09/30/26


11,463



11,313



11,463


3.52


HC Salon Holdings, Inc. (d/b/a Hair Cuttery)⁽⁷⁾


First Lien Secured Revolving Loan


1.00 %


SOFR


6.50 %


12.00 %


09/30/21


09/30/26






9






















22,874



22,780


7.00


Specialized Finance


























WHF STRS Ohio Senior Loan Fund LLC(4)(5)(7)(9)(14)(18)


Subordinated Note


N/A


LIBOR


6.50 %


11.66 %


07/19/19


N/A


81,472



81,472



81,472


25.05





















81,472



81,472


25.05


Systems Software


























Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC⁽¹⁷⁾


First Lien Secured Term Loan


1.00 %


SOFR


7.50 %


12.70% (8.95%
Cash + 3.75% PIK)


03/16/21


03/16/27


20,237



19,568



15,188


4.67





















19,568



15,188


4.67


Technology Hardware, Storage & Peripherals


























Telestream Holdings Corporation


First Lien Secured Term Loan


1.00 %


SOFR


9.75 %


14.99 %


10/15/20


10/15/25


15,844



15,607



15,758


4.84


Telestream Holdings Corporation(7)


First Lien Secured Revolving Loan


1.00 %


SOFR


9.75 %


14.94 %


10/15/20


10/15/25


932



918



930


0.29





















16,525



16,688


5.13




























Total Debt Investments


















$

714,793


$

691,671


212.59

%



























Equity Investments(21)


























Advertising


























Avision Holdings, LLC (d/b/a Avision Sales Group)⁽⁴⁾


Class A LLC Interests


N/A


N/A


N/A


N/A


12/15/21


N/A


218


$

268


$

296


0.09

%

Merriman Holdings LP (d/b/a Escalent, Inc.)⁽⁴⁾


Class A Units


N/A


N/A


N/A


N/A


04/07/23


N/A


277



333



333


0.10





















601



629


0.19


Air Freight & Logistics


























Motivational CIV, LLC (d/b/a Motivational Fulfillment)⁽⁴⁾


Class B Units


N/A


N/A


N/A


N/A


07/12/21


N/A


1,250



1,250



424


0.13





















1,250



424


0.13


Broadline Retail


























BBQ Buyer, LLC (d/b/a BBQGuys)⁽⁴⁾


Shares


N/A


N/A


N/A


N/A


08/28/20


N/A


1,100



1,100



1,176


0.36


Ross-Simons Topco, LP (d/b/a Ross-Simons, Inc.)⁽⁴⁾


Preferred Units


N/A


N/A


8.00 %


8.00% PIK


12/04/20


N/A


600



514



731


0.22





















1,614



1,907


0.58


Building Products


























PFB Holding Company, LLC (d/b/a PFB Corporation)⁽⁴⁾⁽¹³⁾


Class A Units


N/A


N/A


N/A


N/A


12/17/21


N/A


1



423



1,143


0.35





















423



1,143


0.35


Diversified Chemicals


























Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽²⁶⁾


Common Units


N/A


N/A


N/A


N/A


03/16/23


N/A








Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽²⁶⁾


Preferred Units


N/A


N/A


N/A


14.00% PIK


03/16/23


N/A




4,537



247


0.08





















4,537



247


0.08


Diversified Financial Services


























SFS Global Holding Company (d/b/a Sigue Corporation)⁽⁴⁾


Warrants


N/A


N/A


N/A


N/A


06/28/18


12/28/25








Sigue Corporation(4)


Warrants


N/A


N/A


N/A


N/A


06/28/18


12/28/25


22



2,890



3,397


1.04





















2,890



3,397


1.04


Diversified Support Services


























Quest Events, LLC(4)


Preferred Units


N/A


N/A


N/A


N/A


12/28/18


12/08/25


350



350



200


0.06


ImageOne Industries, LLC(4)


Common A Units


N/A


N/A


N/A


N/A


09/20/19


N/A


232



6



21


0.01





















356



221


0.07


Education Services


























Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC)⁽⁴⁾


Preferred Units


N/A


N/A


12.00 %


12.00 %


09/15/21


N/A


167



167



73


0.02





















167



73


0.02


Environmental & Facilities Services


























BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings
LLC)⁽⁴⁾


Class A Units


N/A


N/A


N/A


N/A


12/29/21


N/A


83


$

825


$

972


0.30

%




















825



972


0.30


Industrial Machinery & Supplies & Components


























BL Products Parent, LP (d/b/a Bishop Lifting Products, Inc.)⁽⁴⁾


Class A Units


N/A


N/A


N/A


N/A


02/01/22


N/A


733



788



1,190


0.37





















788



1,190


0.37


Interactive Media & Services


























What If Media Group, LLC(4)


Common Units


N/A


N/A


N/A


N/A


07/02/21


N/A


851



851



1,618


0.50





















851



1,618


0.50


IT Consulting & Other Services


























CX Holdco LLC (d/b/a Cennox Inc.)⁽⁴⁾


Common Units


N/A


N/A


N/A


N/A


05/04/21


N/A


1,068



1,116



1,406


0.43


Keras Holdings, LLC (d/b/a KSM Consulting, LLC)⁽⁴⁾


Shares


N/A


N/A


N/A


N/A


12/31/20


N/A


496



496



425


0.13


Vistria Blocked MGT Investor, LP (d/b/a MGT Consulting
Group)⁽⁴⁾


Series A Units


N/A


N/A


N/A


N/A


04/10/23


N/A




314



314


0.10





















1,926



2,145


0.66


Leisure Facilities


























Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁴⁾


Class A Common Stock


N/A


N/A


N/A


N/A


06/29/20


N/A


2



1,941



182


0.06


Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁴⁾


Warrants


N/A


N/A


N/A


N/A


06/29/20


06/28/28


1



793



74


0.02





















2,734



256


0.08


Leisure Products


























Playmonster Group Equity, Inc. (d/b/a Playmonster Group
LLC)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽²⁰⁾


Preferred Stock


N/A


N/A


14.00 %


14.00% PIK


01/24/22


N/A


36



3,600





Playmonster Group Equity, Inc. (d/b/a Playmonster Group
LLC)⁽⁴⁾⁽⁶⁾⁽²⁰⁾


Common Stock


N/A


N/A


N/A


N/A


01/24/22


N/A


72



460
























4,060





Office Services & Supplies


























American Crafts Holdings, LLC (d/b/a American Crafts,
LC)⁽⁴⁾⁽¹⁴⁾⁽²⁵⁾


Warrants


N/A


N/A


N/A


N/A


12/22/22


12/22/32








New American Crafts Holdings, LLC (d/b/a American Crafts,
LC)⁽⁴⁾⁽¹⁴⁾⁽²⁵⁾


Class A Units


N/A


N/A


N/A


N/A


03/16/23


N/A


1






























Paper & Plastic Packaging Products & Materials


























Max Solutions Inc.(4)


Common Stock


N/A


N/A


N/A


N/A


09/29/22


N/A


4



400



123


0.04





















400



123


0.04


Real Estate Operating Companies


























Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾⁽⁸⁾


Preferred Stock


N/A


N/A


N/A


8.00% PIK


12/02/22


N/A


200



200



200


0.06


Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾


Common Stock


N/A


N/A


N/A


N/A


12/02/22


N/A


400



400



233


0.07





















600



433


0.13


Specialized Consumer Services


























Camp Facility Services Parent, LLC (d/b/a Camp Construction
Services, Inc.)⁽⁴⁾⁽⁸⁾


Preferred Units


N/A


N/A


10.00 %


10.00% PIK


11/16/21


N/A


15



840



974


0.30





















840



974


0.30


Specialized Finance


























WHF STRS Ohio Senior Loan Fund(4)(5)(7)(14)(18)


LLC Interests


N/A


N/A


N/A


N/A


07/19/19


N/A


20,368



20,368



20,929


6.43





















20,368



20,929


6.43




























Total Equity Investments


















$

45,230


$

36,681


11.27

%



























Total Investments


















$

760,023


$

728,352


223.86

%

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2023

(in thousands)


Counterparty


Currency to be sold


Currency to be purchased


Settlement date


Unrealized
appreciation


Unrealized
depreciation

Morgan Stanley


C$

554

CAD


$

410

USD


 8/4/23


$


$

(9)

Total












$


$

(9)



(1)

Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the "1940 Act"), provide collateral for the Company's credit facility, and are domiciled in the United States.

(2)

The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L"), the Secured Overnight Financing Rate ("SOFR" or "SF"), the Canadian Dollar Offered Rate ("CDOR" or "C"), the Sterling Overnight Index Average ("SONIA" or "S"), or the U.S. Prime Rate ("Prime" or "P") which may reset monthly, quarterly or semiannually.

(3)

The interest rate is the "all-in-rate" including the current index and spread, the fixed rate, and the payment-in-kind ("PIK") interest rate, as the case may be.

(4)

The investment or a portion of the investment does not provide collateral for the Company's credit facility.

(5)

Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 83.5% of total assets as of the date of the consolidated schedule of investments.

(6)

Investment is a non-controlled/affiliate investment as defined by the 1940 Act.

(7)

The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of June 30, 2023.

(8)

Preferred equity investment is a non-income producing security.

(9)

Security is perpetual with no defined maturity date.

(10)

Except as otherwise noted, all of the Company's portfolio company investments, which as of the date of the consolidated schedule of investments represented 223.86% of the Company's net assets or 94.3% of the Company's total assets, are subject to legal restrictions on sales.

(11)

The fair value of each investment was determined using significant unobservable inputs.

(12)

The investment was comprised of two contracts, which were indexed to different base rates, L or SF and P, respectively. The Floor, Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(13)

Principal amount is non-USD denominated and is based in Canadian dollars.

(14)

Investment is a controlled affiliate investment as defined by the 1940 Act.

(15)

Investment is structured as a unitranche loan in which the Company may receive additional interest on its "last out" tranche of the portfolio company's senior term debt, which was previously syndicated into "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.

(16)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.50% on its "last out" tranche of the portfolio company's senior term debt, which was previously syndicated into "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.

(17)

The investment is on non-accrual status.

(18)

On January 14, 2019, the Company entered into an agreement with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law ("STRS Ohio"), to create WHF STRS Ohio Senior Loan Fund, LLC ("STRS JV"), a joint venture, which invests primarily in senior secured first and second lien term loans.

(19)

At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 1.50% PIK.

(20)

On January 24, 2022, as part of a restructuring agreement between the Company and PlayMonster LLC, the Company's first lien secured term loan and delayed draw loan investments to PlayMonster LLC were converted into a new first lien secured term loan, preferred stock and common stock of Playmonster Group LLC.

(21)

Ownership of certain equity investments may occur through a holding company or partnership.

(22)

The issuer is domiciled in Guernsey.

(23)

The issuer is domiciled in Canada.

(24)

Investment is structured with a PIK period beginning with the first interest payment date through December 20, 2023, whereby accrued interest due on the loan is capitalized and added to the unpaid principal balance of the loan.

(25)

In March 2023, as a result of a restructuring agreement between the Company and American Crafts, LC, the Company's investments are controlled affiliate investments, as defined by the 1940 Act.

(26)

In March 2023, as part of a restructuring agreement between the Company and Sklar Holdings, Inc (d/b/a Starco), the Company's first lien secured term loan investment was converted into a new first lien secured term loan to Chase Products Co. (f/k/a Starco) and preferred units and common units of Pressurized Holdings, LLC (f/k/a Starco).

 

Contacts

Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
saronson@higwhitehorse.com

or

Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
jthomas@higwhitehorse.com

or

Robert Brinberg
Rose & Company
212-257-5932
whitehorse@roseandco.com

Cision View original content:https://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-second-quarter-2023-earnings-results-and-declares-quarterly-distribution-of-0-37-per-share-301895204.html

SOURCE WhiteHorse Finance, Inc.

WhiteHorse Finance, Inc.

NASDAQ:WHF

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269.62M
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Asset Management
Financial Services
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United States of America
Miami