WhiteHorse Finance, Inc. Announces Third Quarter 2020 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share
WhiteHorse Finance reported its financial results for Q3 2020, showcasing a net asset value of $314.6 million or $15.31 per share. The company declared a distribution of $0.355 per share for the quarter ending December 31, 2020, payable on January 5, 2021. Despite a 32.2% decline in net investment income year-over-year to $5.9 million, core net investment income stood at $7.8 million. The investment portfolio grew to $595.3 million with a weighted average yield of 9.9%, and a strong pipeline for Q4.
- Net asset value increased to $314.6 million, or $15.31 per share.
- Distribution of $0.355 per share declared for Q4 2020.
- Investment portfolio grew to $595.3 million with a 9.9% yield.
- Core net investment income of $7.8 million, reflecting a strong performance.
- Net investment income fell by 32.2% year-over-year to $5.9 million.
- Core net investment income decreased by 6.0% from the previous year.
NEW YORK, Nov. 9, 2020 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the quarter ended September 30, 2020. Additionally, the Company announced that its board of directors has declared a distribution of
Third Quarter 2020 Summary Highlights
- Net Asset Value of
$314.6 million , or$15.31 per share - Investment portfolio(1) totaling
$595.3 million - STRS JV investment portfolio totaling
$162.6 million - Gross investment additions(2) of
$58.5 million , including new positions of$42.6 million and$15.7 million of fundings for add-ons to existing investments - Net investment income of
$5.9 million , or$0.28 9 per share - Core net investment income of
$7.8 million , or$0.38 0 per share(3) - Third quarter distribution of
$0.35 5 per share
(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling |
(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. |
Stuart Aronson, WhiteHorse Finance's Chief Executive Officer commented, "As the market continues to recover from the effects of the COVID-19 pandemic, our portfolio showed strength and resilience during the third quarter. Core NII meaningfully exceeded our quarterly dividend and NAV increased materially back to pre-COVID levels. Our portfolio grew to a fair value of
Portfolio and Investment Activity
As of September 30, 2020, the fair value of WhiteHorse Finance's investment portfolio was
During the three months ended September 30, 2020, WhiteHorse Finance made investments in three new portfolio companies totaling
In addition to the transactions above, during the three months ended September 30, 2020, WhiteHorse Finance transferred one position totaling
WHF STRS Ohio Senior Loan Fund LLC
As of September 30, 2020, STRS JV's portfolio totaled
Results of Operations
For the three months ended September 30, 2020, the Company's net investment income was approximately
For the three months ended September 30, 2020, core net investment income, a non-GAAP financial measure that excludes capital gains incentive fee accruals, the net effects of excise or other income taxes related to net realized gains and losses, and the associated costs of refinancing the Company's indebtedness, was
For the three months ended September 30, 2020, WhiteHorse Finance reported net realized and unrealized gains on investments and foreign currency transactions of
WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately
WhiteHorse Finance's net asset value was
Liquidity and Capital Resources
As of September 30, 2020, WhiteHorse Finance had cash and cash equivalents of
Distributions
The Company's Board of Directors has declared a distribution of
On August 10, 2020, the Company declared a distribution of
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.
Recent Developments
On October 20, 2020, WhiteHorse Finance entered into an agreement governing the issuance of
Conference Call
WhiteHorse Finance will host a conference call to discuss its third quarter results at 2:00 p.m. ET on Monday, November 9, 2020. To access the teleconference, please dial 706-758-9224 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #4571047. Investors may also access the call on the investor relations portion of the Company's website at 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 November 16, 2020. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #4571047. 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
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.
(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, nor did the Company incur any costs with refinancing any of its indebtedness for the quarters ended September 30, 2020 and September 30, 2019.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2020 and September 30, 2019 (in thousands, except per share data):
September 30, 2020 | September 30, 2019 | |||||||||||||||
Amount | Per Share | Amount | Per Share | |||||||||||||
Net investment income | $ | 5,930 | $ | 0.289 | $ | 8,655 | $ | 0.421 | ||||||||
Net impact of costs associated with refinancing of indebtedness | - | - | - | - | ||||||||||||
Accrual for capital gains incentive fee | 1,870 | 0.091 | (360) | (0.018) | ||||||||||||
Net impact of excise tax expense related to net realized gains and losses | - | - | - | - | ||||||||||||
Core net investment income | $ | 7,800 | $ | 0.380 | $ | 8,295 | $ | 0.403 | ||||||||
WhiteHorse Finance, Inc. | ||||||||
Consolidated Statements of Assets and Liabilities | ||||||||
(in thousands, except share and per share data) | ||||||||
September 30, | December 31, | |||||||
2020 | 2019 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Investments, at fair value | ||||||||
Non-controlled/non-affiliate company investments | $ | 535,387 | $ | 546,744 | ||||
Non-controlled affiliate company investments | 9,520 | 9,651 | ||||||
Controlled affiliate company investments | 50,388 | 33,293 | ||||||
Total investments, at fair value (amortized cost | 595,295 | 589,688 | ||||||
Cash and cash equivalents | 8,863 | 4,294 | ||||||
Restricted cash and cash equivalents | 13,830 | 23,252 | ||||||
Restricted foreign currency (cost of | 231 | — | ||||||
Interest and dividend receivable | 6,145 | 6,010 | ||||||
Amounts receivable on unsettled investment transactions | 815 | 360 | ||||||
Prepaid expenses and other receivables | 627 | 7,620 | ||||||
Total assets | $ | 625,806 | $ | 631,224 | ||||
Liabilities | ||||||||
Debt | $ | 291,924 | $ | 298,924 | ||||
Distributions payable | 7,294 | 7,294 | ||||||
Management fees payable | 3,069 | 3,060 | ||||||
Incentive fees payable | 7,029 | 5,230 | ||||||
Interest payable | 853 | 1,674 | ||||||
Accounts payable and accrued expenses | 1,035 | 1,944 | ||||||
Advances received from unfunded credit facilities | 39 | 143 | ||||||
Total liabilities | 311,243 | 318,269 | ||||||
Commitments and contingencies | ||||||||
Net assets | ||||||||
Common stock, 20,546,032 and 20,546,032 shares issued and outstanding, par value | 21 | 21 | ||||||
Paid-in capital in excess of par | 300,744 | 300,744 | ||||||
Accumulated earnings | 13,798 | 12,190 | ||||||
Total net assets | 314,563 | 312,955 | ||||||
Total liabilities and total net assets | $ | 625,806 | $ | 631,224 | ||||
Number of shares outstanding | 20,546,032 | 20,546,032 | ||||||
Net asset value per share | $ | 15.31 | $ | 15.23 | ||||
WhiteHorse Finance, Inc. | ||||||||||||||||
Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Investment income | ||||||||||||||||
From non-controlled/non-affiliate company investments | ||||||||||||||||
Interest income | $ | 14,222 | $ | 14,865 | $ | 39,506 | $ | 42,104 | ||||||||
Fee income | 741 | 2,246 | 1,571 | 6,328 | ||||||||||||
Dividend income | 21 | - | 101 | - | ||||||||||||
From non-controlled affiliate company investments | ||||||||||||||||
Dividend income | 263 | 301 | 800 | 888 | ||||||||||||
From controlled affiliate company investments | ||||||||||||||||
Interest income | 682 | 343 | 1,913 | 343 | ||||||||||||
Dividend income | 568 | - | 961 | - | ||||||||||||
Total investment income | 16,497 | 17,755 | 44,852 | 49,663 | ||||||||||||
Expenses | ||||||||||||||||
Interest expense | 2,770 | 3,495 | 9,661 | 9,744 | ||||||||||||
Base management fees | 3,069 | 2,834 | 9,110 | 8,240 | ||||||||||||
Performance-based incentive fees | 3,819 | 1,714 | 5,571 | 5,520 | ||||||||||||
Administrative service fees | 171 | 159 | 512 | 475 | ||||||||||||
General and administrative expenses | 601 | 660 | 2,212 | 1,875 | ||||||||||||
Total expenses, before fees waived | 10,430 | 8,862 | 27,066 | 25,854 | ||||||||||||
Base management fee waived | - | - | - | (397) | ||||||||||||
Total expenses, net of fees waived | 10,430 | 8,862 | 27,066 | 25,457 | ||||||||||||
Net investment income before excise tax | 6,067 | 8,893 | 17,786 | 24,206 | ||||||||||||
Excise tax | 137 | 238 | 513 | 712 | ||||||||||||
Net investment income after excise tax | 5,930 | 8,655 | 17,273 | 23,494 | ||||||||||||
Realized and unrealized gains (losses) on investments and foreign currency transactions | ||||||||||||||||
Net realized gains (losses) | ||||||||||||||||
Non-controlled/non-affiliate company investments | 635 | (2) | 1,069 | (2,020) | ||||||||||||
Foreign currency transactions | (1) | - | 66 | - | ||||||||||||
Foreign currency forward contracts | (25) | - | (25) | - | ||||||||||||
Net realized gains (losses) | 609 | (2) | 1,110 | (2,020) | ||||||||||||
Net change in unrealized appreciation (depreciation) | ||||||||||||||||
Non-controlled/non-affiliate company investments | 12,659 | (1,882) | 6,303 | 1,042 | ||||||||||||
Non-controlled affiliate company investments | 999 | 28 | (131) | (492) | ||||||||||||
Controlled affiliate company investments | 1,526 | 56 | (1,316) | 56 | ||||||||||||
Translation of assets and liabilities in foreign currencies | (92) | - | 251 | - | ||||||||||||
Foreign currency forward contracts | 3 | - | - | - | ||||||||||||
Net change in unrealized appreciation (depreciation) | 15,095 | (1,798) | 5,107 | 606 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 15,704 | (1,800) | 6,217 | (1,414) | ||||||||||||
Net increase in net assets resulting from operations | $ | 21,634 | $ | 6,855 | $ | 23,490 | $ | 22,080 | ||||||||
Per Common Share Data | ||||||||||||||||
Basic and diluted earnings per common share | $ | 1.06 | $ | 0.34 | $ | 1.15 | $ | 1.08 | ||||||||
Dividends and distributions declared per common share | $ | 0.36 | $ | 0.36 | $ | 1.07 | $ | 1.07 | ||||||||
Basic and diluted weighted average common shares outstanding | 20,546,032 | 20,546,032 | 20,546,032 | 20,546,032 | ||||||||||||
WhiteHorse Finance, Inc. | |||||||||||||||||||
Consolidated Schedule of Investments (Unaudited) | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Investment Type(1) | Spread | Interest Rate(3) | Acquisition Date(10) | Maturity Date | Principal/ Share Amount | Amortized Cost | Fair Value(11) | Fair Value Percentage of Net Assets | |||||||||||
North America | |||||||||||||||||||
Debt Investments | |||||||||||||||||||
Advertising | |||||||||||||||||||
Fluent, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 03/26/18 | 03/27/23 | 7,609 | $ | 7,609 | $ | 7,609 | 2.42 | % | |||||||||
( | |||||||||||||||||||
SmartSign Holdings LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 08/21/20 | 10/11/24 | 7,763 | 7,612 | 7,763 | 2.47 | ||||||||||||
( | 15,372 | 15,221 | 15,372 | 4.89 | |||||||||||||||
Agricultural & Farm Machinery | |||||||||||||||||||
Bad Boy Mowers Acquisition, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 12/19/19 | 12/06/25 | 10,307 | 10,037 | 10,152 | 3.23 | ||||||||||||
( | |||||||||||||||||||
Air Freight & Logistics | |||||||||||||||||||
Access USA Shipping, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 02/08/19 | 02/08/24 | 5,432 | 5,378 | 5,398 | 1.72 | ||||||||||||
( | |||||||||||||||||||
Application Software | |||||||||||||||||||
Connexity, Inc. | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 05/21/20 | 05/21/25 | 10,931 | 10,627 | 10,771 | 3.42 | ||||||||||||
( | |||||||||||||||||||
Newscycle Solutions, Inc. | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 06/14/19 | 12/29/22 | 5,114 | 5,050 | 4,774 | 1.52 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Revolving Loan | L+ | 06/14/19 | 12/29/22 | 301 | 298 | 281 | 0.09 | ||||||||||||
( | 16,346 | 15,975 | 15,826 | 5.03 | |||||||||||||||
Automotive Retail | |||||||||||||||||||
Team Car Care Holdings, LLC | |||||||||||||||||||
First Lien Secured Term Loan(12) | base rate+ | 02/26/18 | 02/23/23 | 16,330 | 16,154 | 15,953 | 5.07 | ||||||||||||
( | |||||||||||||||||||
BW Gas & Convenience Holdings, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 11/15/19 | 11/18/24 | 8,181 | 7,908 | 8,181 | 2.60 | ||||||||||||
( | 24,511 | 24,062 | 24,134 | 7.67 | |||||||||||||||
Broadcasting | |||||||||||||||||||
Alpha Media, LLC | |||||||||||||||||||
First Lien Secured Term Loan | P+ | 08/14/18 | 02/25/22 | 5,075 | 5,010 | 4,849 | 1.54 | ||||||||||||
( | |||||||||||||||||||
Building Products | |||||||||||||||||||
LHS Borrower, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 09/30/20 | 09/30/25 | 19,499 | 19,063 | 19,062 | 6.06 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ | 09/30/20 | 09/30/25 | - | - | - | - | ||||||||||||
( | 19,499 | 19,063 | 19,062 | 6.06 | |||||||||||||||
Cable & Satellite | |||||||||||||||||||
Bulk Midco, LLC | |||||||||||||||||||
First Lien Secured Term Loan(15) | L+ | 06/08/18 | 06/08/23 | 15,000 | 14,879 | 14,250 | 4.53 | ||||||||||||
( | |||||||||||||||||||
Communications Equipment | |||||||||||||||||||
Ribbon Communications Operating Company, Inc.(5) | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 08/14/20 | 03/03/26 | 12,469 | 12,011 | 12,011 | 3.82 | ||||||||||||
( | |||||||||||||||||||
Sorenson Communications, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 03/15/19 | 04/29/24 | 3,971 | 3,886 | 3,950 | 1.26 | ||||||||||||
( | 16,440 | 15,897 | 15,961 | 5.08 | |||||||||||||||
Construction & Engineering | |||||||||||||||||||
Atlas Intermediate Holdings LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 05/26/20 | 02/13/26 | 15,269 | 14,404 | 14,810 | 4.71 | ||||||||||||
( | |||||||||||||||||||
Data Processing & Outsourced Services | |||||||||||||||||||
FPT Operating Company, LLC/ | |||||||||||||||||||
TLabs Operating Company, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 12/23/16 | 06/07/24 | 24,441 | 24,200 | 23,431 | 7.45 | ||||||||||||
( | ( | ||||||||||||||||||
Geo Logic Systems Ltd. (5) | |||||||||||||||||||
First Lien Secured Term Loan (13) | C + | 12/19/19 | 12/19/24 | 6,752 | 5,062 | 4,903 | 1.56 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Revolving Loan (7)(13) | C + | 12/19/19 | 12/19/24 | - | - | (4) | - | ||||||||||||
( | ` | 31,193 | 29,262 | 28,330 | 9.01 | ||||||||||||||
Department Stores | |||||||||||||||||||
Mills Fleet Farm Group, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 10/24/18 | 10/24/24 | 13,543 | 13,280 | 13,272 | 4.22 | ||||||||||||
( | |||||||||||||||||||
Distributors | |||||||||||||||||||
Crown Brands, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 01/28/19 | 01/25/24 | 5,727 | 5,632 | 4,868 | 1.55 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Delayed Draw Loan | L+ | 06/10/20 | 01/25/24 | 850 | 850 | 723 | 0.23 | ||||||||||||
( | 6,577 | 6,482 | 5,591 | 1.78 | |||||||||||||||
Diversified Chemicals | |||||||||||||||||||
Sklar Holdings, Inc. | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 11/13/19 | 05/13/23 | 8,903 | 8,726 | 8,790 | 2.79 | ||||||||||||
( | |||||||||||||||||||
WhiteHorse Finance, Inc. | |||||||||||||||||||
Consolidated Schedule of Investments (Unaudited) - (continued) | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Diversified Support Services | |||||||||||||||||||
ImageOne Industries, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 01/11/18 | 01/11/23 | 6,497 | $ | 6,355 | $ | 6,444 | 2.05 | % | |||||||||
( | ( | ||||||||||||||||||
First Lien Secured Revolving Loan(4)(7) | L+ | 07/22/19 | 12/12/22 | 731 | 731 | 731 | 0.23 | ||||||||||||
( | ( | ||||||||||||||||||
NNA Services, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 10/16/18 | 10/16/23 | 13,442 | 13,249 | 13,308 | 4.23 | ||||||||||||
( | 20,670 | 20,335 | 20,483 | 6.51 | |||||||||||||||
Education Services | |||||||||||||||||||
EducationDynamics, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 11/26/19 | 11/26/24 | 13,936 | 13,697 | 13,936 | 4.43 | ||||||||||||
( | |||||||||||||||||||
Food Retail | |||||||||||||||||||
AG Kings Holdings, Inc. | |||||||||||||||||||
First Lien Secured Term Loan(4)(8) | P+ | 08/10/16 | 08/10/21 | 21,644 | 8,612 | 8,541 | 2.72 | ||||||||||||
( | ( | ||||||||||||||||||
Superpriority Secured Debtor-In-Possession Term Loan(4)(18) | L+ | 08/26/20 | 08/10/21 | 14,222 | 5,663 | 14,222 | 4.52 | ||||||||||||
( | 35,866 | 14,275 | 22,763 | 7.24 | |||||||||||||||
Health Care Facilities | |||||||||||||||||||
Grupo HIMA San Pablo, Inc. | |||||||||||||||||||
First Lien Secured Term Loan A | L+ | 05/15/19 | 04/30/19 | 3,855 | 3,855 | 2,621 | 0.83 | ||||||||||||
First Lien Secured Term Loan B | L+ | 02/01/13 | 04/30/19 | 13,511 | 13,511 | 9,188 | 2.92 | ||||||||||||
( | |||||||||||||||||||
Second Lien Secured Term Loan(8) | N/A | 02/01/13 | 07/31/18 | 1,028 | 1,024 | - | - | ||||||||||||
( | 18,394 | 18,390 | 11,809 | 3.75 | |||||||||||||||
Health Care Services | |||||||||||||||||||
CHS Therapy, LLC | |||||||||||||||||||
First Lien Secured Term Loan A | L+ | 06/14/19 | 06/14/24 | 7,470 | 7,365 | 7,470 | 2.37 | ||||||||||||
( | |||||||||||||||||||
Lab Logistics, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 10/16/19 | 09/25/23 | 106 | 105 | 106 | 0.03 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Delayed Draw Loan | L+ | 10/16/19 | 09/25/23 | 5,249 | 5,219 | 5,249 | 1.67 | ||||||||||||
( | 12,825 | 12,689 | 12,825 | 4.07 | |||||||||||||||
Home Furnishings | |||||||||||||||||||
Sure Fit Home Products, LLC | |||||||||||||||||||
First Lien Secured Term Loan(8) | L+ | 10/26/18 | 07/13/22 | 5,228 | 5,111 | 3,778 | 1.20 | ||||||||||||
( | |||||||||||||||||||
Interactive Media & Services | |||||||||||||||||||
What If Media Group, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 10/02/19 | 10/02/24 | 12,675 | 12,472 | 12,675 | 4.03 | ||||||||||||
( | |||||||||||||||||||
Internet & Direct Marketing Retail | |||||||||||||||||||
BBQ Buyer, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 08/28/20 | 08/28/25 | 10,696 | 10,434 | 10,432 | 3.32 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Revolving Loan (7) | L+ | 08/28/20 | 02/28/21 | - | - | - | - | ||||||||||||
( | |||||||||||||||||||
Potpourri Group, Inc. | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 07/03/19 | 07/03/24 | 18,034 | 17,732 | 17,855 | 5.68 | ||||||||||||
( | 28,730 | 28,166 | 28,287 | 9.00 | |||||||||||||||
Investment Banking & Brokerage | |||||||||||||||||||
Arcole Acquisition Corp(5) | |||||||||||||||||||
First Lien Secured Term Loan A(4)(8)(19) | L+ | 11/29/18 | 11/30/23 | 5,231 | 5,159 | 4,708 | 1.50 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Term Loan B(4)(8)(19) | L+ | 11/29/18 | 11/30/23 | 1,826 | 1,785 | 1,643 | 0.52 | ||||||||||||
( | ( | ||||||||||||||||||
Subordinated Unsecured Term Loan(4) | L+ | 07/31/20 | 10/31/20 | 291 | 291 | 291 | 0.09 | ||||||||||||
( | |||||||||||||||||||
JVMC Holdings Corp. (f/k/a RJO Holdings Corp) | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 02/28/19 | 02/28/24 | 13,815 | 13,721 | 13,815 | 4.39 | ||||||||||||
( | 21,163 | 20,956 | 20,457 | 6.50 | |||||||||||||||
IT Consulting & Other Services | |||||||||||||||||||
AST-Applications Software Technology LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 01/10/17 | 01/10/23 | 4,034 | 3,999 | 4,034 | 1.28 | ||||||||||||
( | ( | ||||||||||||||||||
Leisure Facilities | |||||||||||||||||||
Honors Holdings, LLC | |||||||||||||||||||
First Lien Secured Term Loan (16) | L+ | 09/06/19 | 09/06/24 | 9,414 | 9,265 | 8,284 | 2.63 | ||||||||||||
( | ( | ||||||||||||||||||
First Lien Secured Delayed Draw Loan(16) | L+ | 09/06/19 | 09/06/24 | 4,638 | 4,591 | 4,081 | 1.30 | ||||||||||||
( | ( | ||||||||||||||||||
Lift Brands, Inc.(aka Snap Fitness Holdings, Inc.) | ` | ||||||||||||||||||
First Lien Secured Term Loan A | L+ | 06/29/20 | 06/29/25 | 5,659 | 5,576 | 5,571 | 1.77 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Term Loan B | N/A | 06/29/20 | 06/29/25 | 1,136 | 1,109 | 1,107 | 0.35 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Term Loan C (9) | N/A | 06/29/20 | N/A | 1,268 | 1,265 | 1,265 | 0.40 | ||||||||||||
( | 22,115 | 21,806 | 20,308 | 6.45 | |||||||||||||||
Office Services & Supplies | |||||||||||||||||||
Empire Office, Inc. | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 04/12/19 | 04/12/24 | 10,895 | 10,741 | 10,644 | 3.38 | ||||||||||||
( | |||||||||||||||||||
Packaged Foods & Meats | |||||||||||||||||||
Lenny & Larry's, LLC | |||||||||||||||||||
First Lien Secured Term Loan(17) | L+ | 05/15/18 | 05/15/23 | 11,271 | 11,155 | 10,779 | 3.43 | ||||||||||||
( | ( | ||||||||||||||||||
Property & Casualty Insurance | |||||||||||||||||||
Policy Services Company, LLC (5) | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 03/06/20 | 05/31/24 | 6,256 | 5,983 | 6,131 | 1.95 | ||||||||||||
( | |||||||||||||||||||
WhiteHorse Finance, Inc. | |||||||||||||||||||
Consolidated Schedule of Investments (Unaudited) - (continued) | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Research & Consulting Services | |||||||||||||||||||
Nelson Worldwide, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 01/09/18 | 01/09/23 | 12,708 | $ | 12,563 | $ | 12,453 | 3.96 | % | |||||||||
( | |||||||||||||||||||
ALM Media, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 11/25/19 | 11/25/24 | 15,159 | 14,908 | 14,401 | 4.58 | ||||||||||||
( | 27,867 | 27,471 | 26,854 | 8.54 | |||||||||||||||
Restaurants | |||||||||||||||||||
LS GFG Holdings Inc. | |||||||||||||||||||
First Lien Secured Term Loan | P+ | 11/30/18 | 11/19/25 | 10,159 | 9,934 | 8,534 | 2.71 | ||||||||||||
Specialized Consumer Services | |||||||||||||||||||
True Blue Car Wash, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 10/17/19 | 10/17/24 | 4,377 | 4,306 | 4,377 | 1.39 | ||||||||||||
( | |||||||||||||||||||
First Lien Secured Delayed Draw Loan | L+ | 10/17/19 | 10/17/24 | 2,018 | 2,000 | 2,018 | 0.64 | ||||||||||||
( | 6,395 | 6,306 | 6,395 | 2.03 | |||||||||||||||
Specialized Finance | |||||||||||||||||||
Golden Pear Funding Assetco, LLC(5) | |||||||||||||||||||
Second Lien Secured Term Loan | L+ | 09/20/18 | 03/20/24 | 17,500 | 17,279 | 17,500 | 5.56 | ||||||||||||
( | |||||||||||||||||||
Oasis Legal Finance, LLC(5) | |||||||||||||||||||
Second Lien Secured Term Loan | L+ | 09/09/16 | 03/09/22 | 12,500 | 12,435 | 12,500 | 3.97 | ||||||||||||
( | |||||||||||||||||||
WHF STRS Ohio Senior Loan Fund LLC | |||||||||||||||||||
Subordinated Note(4)(5)(7)(9)(14) | L+ | 07/19/19 | N/A | 41,073 | 41,073 | 41,073 | 13.06 | ||||||||||||
71,073 | 70,787 | 71,073 | 22.59 | ||||||||||||||||
Specialty Chemicals | |||||||||||||||||||
Flexitallic Group SAS | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 10/28/19 | 10/29/26 | 11,662 | 11,407 | 10,846 | 3.45 | ||||||||||||
( | |||||||||||||||||||
Systems Software | |||||||||||||||||||
Vero Parent, Inc. | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 11/06/19 | 08/16/24 | 16,428 | 15,061 | 16,267 | 5.17 | ||||||||||||
( | |||||||||||||||||||
Technology Hardware, Storage & Peripherals | |||||||||||||||||||
Source Code Midco, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 05/04/18 | 05/04/23 | 22,634 | 22,295 | 22,633 | 7.19 | ||||||||||||
( | |||||||||||||||||||
Trading Companies & Distributors | |||||||||||||||||||
Vessco Holdings, LLC | |||||||||||||||||||
First Lien Secured Term Loan | L+ | 08/22/19 | 08/22/24 | 8,835 | 8,696 | 8,922 | 2.84 | ||||||||||||
( | |||||||||||||||||||
Total Debt Investments | 602,578 | 569,408 | 566,230 | 180.00 | |||||||||||||||
Equity Investments | |||||||||||||||||||
Diversified Support Services | |||||||||||||||||||
Quest Events, LLC Preferred Units(4) | N/A | N/A | 12/28/18 | 12/08/25 | 317 | 317 | - | - | |||||||||||
ImageOne Industries, LLC Common A Units(4) | N/A | N/A | 09/20/19 | N/A | 225 | - | 169 | 0.05 | |||||||||||
Health Care Services | |||||||||||||||||||
Lab Logistics Preferred Units (4) | N/A | N/A | 10/29/19 | N/A | 2 | 857 | 857 | 0.27 | |||||||||||
Internet & Direct Marketing Retail | |||||||||||||||||||
BBQ Buyer, LLC Shares(4) | N/A | N/A | 08/28/20 | N/A | 1,100 | 1,100 | 1,199 | 0.38 | |||||||||||
Leisure Facilities | |||||||||||||||||||
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Class A Common Stock(4) | N/A | N/A | 06/29/20 | N/A | 2 | 1,955 | 282 | 0.09 | |||||||||||
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Warrants(4) | N/A | N/A | 06/29/20 | 06/28/28 | 1 | 793 | 114 | 0.04 | |||||||||||
3 | 2,748 | 396 | 0.13 | ||||||||||||||||
Other Diversified Financial Services | |||||||||||||||||||
RCS Creditor Trust Class B Units(4)(6) | N/A | N/A | 10/01/17 | N/A | 143 | - | - | - | |||||||||||
SFS Global Holding Company Warrants(4) | N/A | N/A | 06/28/18 | 12/28/25 | - | - | - | - | |||||||||||
Sigue Corporation Warrants(4) | N/A | N/A | 06/28/18 | 12/28/25 | 22 | 2,890 | 3,490 | 1.11 | |||||||||||
165 | 2,890 | 3,490 | 1.11 | ||||||||||||||||
Specialized Finance | |||||||||||||||||||
NMFC Senior Loan Program I LLC Units (4)(5)(6) | N/A | N/A | 08/13/14 | 08/31/22 | 10,000 | 10,029 | 9,520 | 3.03 | |||||||||||
WHF STRS Ohio Senior Loan Fund LLC Interests (4)(5)(7)(14) | N/A | N/A | 07/19/19 | N/A | 10,268 | 10,268 | 9,315 | 2.96 | |||||||||||
20,268 | 20,297 | 18,835 | 5.99 | ||||||||||||||||
Trading Companies & Distributors | |||||||||||||||||||
Vessco Holdings, LLC Units(4) | N/A | N/A | 08/22/19 | N/A | 506 | 860 | 4,090 | 1.30 | |||||||||||
Trucking | |||||||||||||||||||
Europcar Mobility Group Earnout (4)(5) | N/A | N/A | 10/31/19 | 12/31/22 | - | - | 29 | 0.01 | |||||||||||
Total Equity Investments | 22,586 | 29,069 | 29,065 | 9.24 | |||||||||||||||
Total Investments | 625,164 | $ | 598,477 | $ | 595,295 | 189.24 | % | ||||||||||||
WhiteHorse Finance, Inc. | |
Consolidated Schedule of Investments (Unaudited) - (continued) | |
September 30, 2020 | |
(in thousands) | |
(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"), and provide collateral for the Company's credit facility. |
(2) | The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L"), which resets monthly, quarterly or semiannually, the Canadian Dollar Offered Rate ("CDOR" or "C") or the U.S. Prime Rate as published by the Wall Street Journal ("Prime" or "P"). The one, three and six-month LIBOR were |
(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 |
(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 September 30, 2020. |
(8) | The investment is on non-accrual status. |
(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 |
(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 and P, respectively. The Spread Above Index and Interest Rate presented represent the weighted average of both contracts. |
(13) | Principal amount is denominated in Canadian dollars. |
(14) | Investment is a controlled affiliate investment as defined by the 1940 Act. 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. |
(15) | In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of |
(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 amount of |
(17) | In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of |
(18) | In August 2020, in conjunction with the AG Kings Holdings, Inc. bankruptcy, the Company converted approximately |
(19) | On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company's investments in first lien secured term loans to Arcole Acquisition Corp were equitized into common shares of Arcole Holding Corp. |
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
Sean Silva
Prosek Partners
646-818-9122
ssilva@prosek.com
View original content:http://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-third-quarter-2020-earnings-results-and-declares-quarterly-distribution-of-0-355-per-share-301168630.html
SOURCE WhiteHorse Finance, Inc.
FAQ
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