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WhiteHorse Finance, Inc. Announces Third Quarter 2021 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share

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WhiteHorse Finance (WHF) reported its Q3 2021 financial results, revealing a net asset value of $323.7 million, equating to $15.46 per share. The investment portfolio totaled $687.1 million, with gross deployments reaching $122.5 million. Net investment income was $7.6 million, or $0.366 per share, marking a 28.8% increase year-over-year. A distribution of $0.355 per share was declared for the quarter ending December 31, 2021. The company completed a public offering, generating about $33.7 million. Despite competitive markets, WhiteHorse remains optimistic about its growth opportunities.

Positive
  • Net investment income increased by 28.8% year-over-year to $7.6 million.
  • Declared a distribution of $0.355 per share for Q4 2021.
  • Completed a public offering generating approximately $33.7 million.
Negative
  • Net realized and unrealized gains decreased significantly to $0.6 million compared to $15.7 million in the previous year.
  • Net increase in net assets from operations fell to $8.3 million from $21.6 million year-over-year.

NEW YORK, Nov. 9, 2021 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the quarter ended September 30, 2021. In addition, the Company's board of directors has declared a distribution of $0.355 per share with respect to the quarter ending December 31, 2021. The distribution will be payable on January 4, 2022 to stockholders of record as of December 20, 2021.

Third Quarter 2021 Summary Highlights

  • Net Asset Value of $323.7 million, or $15.46 per share
  • Investment portfolio(1) totaling $687.1 million
  • STRS JV investment portfolio totaling $239.0 million
  • Gross investment deployments(2) of $122.5 million for the third quarter, including new originations of $47.9 million and $74.6 million of fundings for refinancings and add-ons to existing investments
  • Net investment income of $7.6 million, or $0.366 per share
  • Core net investment income of $7.8 million, or $0.372 per share(3)
  • Third quarter distribution of $0.355 per share

Recent Developments

Subsequent to the end of the quarter, the Company issued 1,900,000 shares of its common stock in a public offering at an offering price of $15.81 per share (the "Offering"). The Offering generated net proceeds of approximately $29.4 million. Under the existing underwriting agreement, the underwriters executed the option to purchase an additional 282,300 shares, generating another $4.3 million of net proceeds. The Company's aggregate net proceeds of the Offering were approximately $33.7 million, inclusive of underwriting discounts and commissions and before offering expenses.

Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "Gross capital deployments remained strong in the third quarter, offset in part by continuing repayments and refinancings within the portfolio, and we maintained a high level of origination activity. In anticipation of continuing rapid capital deployment, we completed a follow-on equity offering earlier this month, netting approximately $34 million in proceeds. Our pipeline remains very healthy, and this new capital should enable us to continue to grow WhiteHorse Finance through disciplined deal sourcing. Although the lending market has become more competitive in some segments, where pricing, leverage and documentation terms have returned to pre-COVID levels, we believe that our relationship with the leading H.I.G. platform and our differentiated three-tier sourcing capabilities will continue to drive growth. Notwithstanding the competitive backdrop, we believe that we can continue to identify and close deals that meet our rigorous underwriting standards and generate strong cash flow to support our dividend and create value for our shareholders."

Portfolio and Investment Activity

As of September 30, 2021, the fair value of WhiteHorse Finance's investment portfolio was $687.1 million, compared with $670.5 million as of June 30, 2021. The portfolio as of September 30, 2021 consisted of 99 positions across 65 companies with a weighted average effective yield of 9.3% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $7.3 million with the overall portfolio comprised of approximately 82.3% first lien secured loans, 4.3% second lien secured loans, 2.9% equity and 10.5% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the London Interbank Offered Rate) with fixed rate securities representing only 0.4% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended September 30, 2021, WhiteHorse Finance made investments in four new portfolio companies totaling $47.9 million, added a total of $34.8 million to existing portfolio companies, exclusive of refinancing, and made net fundings of $0.9 million to revolver loans. Proceeds from sales and repayments, exclusive of refinancing, totaled approximately $26.1 million for the quarter ended September 30, 2021, driven by two full realizations in LS GFG Holdings Inc. and Connexity, Inc. In addition, the Company refinanced three first lien investments: NNA Services, LLC, EducationDynamics, LLC and Source Code Midco, LLC, resulting in net repayments of approximately $7.3 million.  Gross receipts from refinancings were $47.1 million and gross deployments from refinancings were $39.8 million.

In addition to the transactions discussed above, during the three months ended September 30, 2021, WhiteHorse Finance transferred assets comprised of two new portfolio companies, three add-ons and the remaining portions of four previously transferred deals totaling $45.7 million to STRS JV in exchange for a net investment in STRS JV of $9.4 million as well as cash proceeds of $36.3 million.

WHF STRS Ohio Senior Loan Fund LLC

As of September 30, 2021, STRS JV's portfolio totaled $239.0 million, consisted of 27 portfolio companies and had a weighted average effective yield of 8.0% on its portfolio.

Results of Operations

For the three months ended September 30, 2021, the Company's net investment income was approximately $7.6 million, compared with approximately $5.9 million for the same period in the prior year, representing an increase of approximately 28.8%. The increase in net investment income for the year-over-year period was primarily attributable to accelerated accretion and nonrecurring fee income recognized due to higher repayment activities as well as lesser capital gains incentive fee accrued, and partially offset by higher interest expense incurred due to higher leverage balances for the quarter ended September 30, 2021. For the three months ended September 30, 2021, the Company's investment in STRS JV generated an annualized, gross investment yield of approximately 12.6%.

For the three months ended September 30, 2021, core net investment income(3) was $7.8 million, or $0.372 per share, compared with $7.8 million, or $0.380 per share, for the same period in the prior year.

For the three months ended September 30, 2021, WhiteHorse Finance reported net realized and unrealized gains on investments and foreign currency transactions of $0.6 million. This compares with net realized and unrealized gains on investments and foreign currency transactions of $15.7 million for the three months ended September 30, 2020. The decrease for the year-over-year period was primarily attributable to higher prior-year unrealized gains generated on markups in the portfolio as a result of the market's continuing recovery from the COVID-19 pandemic.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.3 million for the three months ended September 30, 2021, which compares with a net increase of $21.6 million for the three months ended September 30, 2020.

WhiteHorse Finance's net asset value was $323.7 million, or $15.46 per share, as of September 30, 2021, as compared with $319.6 million, or $15.42 per share, as of June 30, 2021.

Liquidity and Capital Resources

As of September 30, 2021, WhiteHorse Finance had cash and cash equivalents of $16.6 million, as compared with $17.8 million as of June 30, 2021, inclusive of restricted cash. As of September 30, 2021, the Company also had $25.4 million of undrawn capacity under its revolving credit facility.

Distributions

The Company's Board of Directors has declared a distribution of $0.355 per share with respect to the quarter ending December 31, 2021. The distribution will be payable on January 4, 2022 to stockholders of record as of December 20, 2021. In addition, previously on October 14, 2021, the Company declared a special distribution of $0.135 per share, which will be payable on December 10, 2021 to stockholders of record as of October 29, 2021.

On August 9, 2021, the Company declared a distribution of $0.355 per share for the quarter ended September 30, 2021, consistent with distributions declared for the thirty-sixth consecutive quarter since the Company's initial public offering. The distribution was paid on October 4, 2021 to stockholders of record as of September 20, 2021.

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 third quarter results at 2:00 p.m. ET on Tuesday, November 9, 2021. To access the teleconference, please dial 877-876-9177 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference Conference ID #WHFQ321. 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, 2021. The teleconference replay can be accessed by dialing 888-566-0150 (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 over $45 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 $72.1 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 nor did the Company incur any costs with refinancing any of its indebtedness for the quarters ended September 30, 2021 and September 30, 2020.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2021 and September 30, 2020 (in thousands, except per share data):




















September 30, 2021



September 30, 2020




Amount



 Per Share



Amount



 Per Share








Amounts







Amounts


Net investment income


$

7,639



$

0.366



$

5,930



$

0.289


Net impact of costs associated with refinancing of indebtedness



-




-




-




-


Accrual for capital gains incentive fee



127




0.006




1,870




0.091


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



-




-




-




-


Core net investment income


$

7,766



$

0.372



$

7,800



$

0.380


 

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)





September 30, 2021



December 31, 2020





 (Unaudited)





Assets








Investments, at fair value








Non-controlled/non-affiliate company investments


$

608,213


$

623,777


Non-controlled affiliate company investments



6,800



15,717


Controlled affiliate company investments



72,110



51,241


Total investments, at fair value (amortized cost $695,047 and $695,429, respectively)



687,123



690,735


Cash and cash equivalents



9,579



8,062


Restricted cash and cash equivalents



6,749



7,549


Restricted foreign currency (cost of $241 and $319, respectively)



241



333


Interest and dividend receivable



7,227



6,532


Amounts receivable on unsettled investment transactions



15,489



4,717


Escrow receivable



1,827



—


Prepaid expenses and other receivables



1,162



1,061


Unrealized appreciation on foreign currency forward contracts



186



—


Total assets


$

729,583


$

718,989










Liabilities








Debt


$

379,757


$

384,880


Distributions payable



7,433



7,294


Management fees payable



3,508



3,354


Incentive fees payable



7,404



6,117


Amounts payable on unsettled investment transactions



3,380



497


Interest payable



2,201



1,870


Accounts payable and accrued expenses



1,680



1,708


Advances received from unfunded credit facilities



496



372


Total liabilities



405,859



406,092










Commitments and contingencies
















Net assets








Common stock, 20,936,874 and 20,546,032 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized



21



21


Paid-in capital in excess of par



305,972



300,002


Accumulated earnings



17,731



12,874


Total net assets



323,724



312,897


Total liabilities and total net assets


$

729,583


$

718,989


Number of shares outstanding



20,936,874



20,546,032


Net asset value per share


$

15.46


$

15.23










 

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)





Three months ended
September 30, 



Nine months ended
September 30, 





2021



2020



2021



2020


Investment income














From non-controlled/non-affiliate company investments














Interest income


$

15,199


$

14,222


$

44,159


$

39,506


Fee income



1,224



741



2,344



1,571


Dividend income



35



21



144



101


From non-controlled affiliate company investments














Dividend income



76



263



1,042



800


From controlled affiliate company investments














Interest income



905



682



2,362



1,913


Dividend income



939



568



3,638



961


Total investment income



18,378



16,497



53,689



44,852


Expenses














Interest expense



3,842



2,770



11,456



9,661


Base management fees



3,508



3,069



10,209



9,110


Performance-based incentive fees



2,069



3,819



6,739



5,571


Administrative service fees



171



171



512



512


General and administrative expenses



896



601



2,592



2,212


Total expenses



10,486



10,430



31,508



27,066


Net investment income before excise tax



7,892



6,067



22,181



17,786


Excise tax



253



137



845



513


Net investment income after excise tax



7,639



5,930



21,336



17,273
















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














Net realized gains (losses)














Non-controlled/non-affiliate company investments



109



635



7,714



1,069


Non-controlled affiliate company investments



—



—



—



—


Foreign currency transactions



(206)



(1)



(209)



66


Foreign currency forward contracts



1



(25)



(3)



(25)


Net realized gains (losses)



(96)



609



7,502



1,110


Net change in unrealized appreciation (depreciation)














Non-controlled/non-affiliate company investments



(1,370)



12,659



(3,937)



6,303


Non-controlled affiliate company investments



792



999



1,112



(131)


Controlled affiliate company investments



860



1,526



591



(1,316)


Translation of assets and liabilities in foreign currencies



263



(92)



161



251


Foreign currency forward contracts



187



3



186



—


Net change in unrealized appreciation (depreciation)



732



15,095



(1,887)



5,107


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



636



15,704



5,615



6,217


Net increase in net assets resulting from operations


$

8,275


$

21,634


$

26,951


$

23,490
















Per Common Share Data














Basic and diluted earnings per common share


$

0.40


$

1.06


$

1.30


$

1.15


Dividends and distributions declared per common share


$

0.36


$

0.36


$

1.07


$

1.07


Basic and diluted weighted average common shares outstanding



20,851,435



20,546,032



20,677,545



20,546,032


 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Issuer


Investment Type(1)


Floor


Spread
Above
Index(2)


Interest
Rate(3)


Acquisition
Date(10)


Maturity
Date


Principal/
Share
Amount


Amortized
Cost


Fair
Value(11)


Fair Value
As A
Percentage
of Net
Assets

North America























Debt Investments























Advertising























SmartSign Holdings LLC


First Lien Secured Term Loan


1.00%


L+ 7.50%


8.50%


08/21/20


10/11/24


7,686


$

7,573


$

7,686


2.37%















7,686



7,573



7,686


2.37

Air Freight & Logistics























Access USA Shipping, LLC


First Lien Secured Term Loan


1.50%


L+ 8.00%


9.50%


02/08/19


02/08/24


5,010



4,975



5,010


1.55

Motivational Marketing, LLC


First Lien Secured Term Loan


1.00%


L+ 6.25%


7.25%


07/12/21


07/12/26


11,818



11,592



11,590


3.58

Motivational Marketing, LLC(7)(12)


First Lien Secured Revolving Loan


1.75%


L+ 5.92%


7.67%


07/12/21


07/12/26


906



889



888


0.27















17,734



17,456



17,488


5.40

Application Software























Atlas Purchaser, Inc (dba Aspect Software)


Second Lien Secured Term Loan


0.75%


L+ 9.00%


9.75%


05/03/21


05/07/29


15,000



14,572



14,700


4.54

Newscycle Solutions, Inc


First Lien Secured Term Loan


1.00%


L+ 7.00%


8.00%


06/14/19


12/29/22


3,221



3,198



3,208


0.99

Newscycle Solutions, Inc(7)


First Lien Secured Revolving Loan


1.00%


L+ 7.00%


8.00%


06/14/19


12/29/22


169



168



168


0.05

TaxSlayer LLC


First Lien Secured Term Loan


1.00%


L+ 6.00%


7.00%


12/31/20


12/31/26


6,762



6,643



6,666


2.06

TaxSlayer LLC(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.00%


7.00%


12/31/20


12/31/26


—



—



3


—















25,152



24,581



24,745


7.64

Automotive Retail























Team Car Care Holdings, LLC(12)


First Lien Secured Term Loan


1.03%


Base rate+ 7.99%


9.02%


02/16/18


06/28/24


15,516



15,413



15,392


4.75















15,516



15,413



15,392


4.75

Building Products























Drew Foam Companies Inc


First Lien Secured Term Loan


1.00%


L+ 6.25%


7.25%


11/05/20


11/05/25


7,225



7,104



7,153


2.21

LHS Borrower, LLC


First Lien Secured Term Loan


1.00%


L+ 6.75%


7.75%


09/30/20


09/30/25


9,506



9,336



9,436


2.91

LHS Borrower, LLC(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.75%


7.75%


09/30/20


09/30/25


—



—



6


—

Trimlite Buyer LLC(5)(13)


First Lien Secured Term Loan


1.00%


C+ 6.50%


7.50%


07/27/21


07/27/26


23,122



18,070



17,900


5.53

Trimlite Buyer LLC(5)(7)(13)


First Lien Secured Revolving Loan


1.00%


C+ 6.50%


7.50%


07/27/21


07/27/26


—



—



—


—















39,853



34,510



34,495


10.65

Cable & Satellite























Bulk Midco, LLC(15)


First Lien Secured Term Loan


1.00%


L+ 7.34%


8.34%


06/08/18


06/08/23


15,000



14,924



14,419


4.45















15,000



14,924



14,419


4.45

Construction & Engineering























Tensar Corp


First Lien Secured Term Loan


1.00%


L+ 6.75%


7.75%


11/20/20


08/20/25


6,948



6,805



6,948


2.15















6,948



6,805



6,948


2.15

Construction Materials























Claridge Products and Equipment, LLC


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


12/30/20


12/29/25


7,659



7,529



7,521


2.32

Claridge Products and Equipment, LLC(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.50%


7.50%


12/30/20


12/29/25


—



—



—


—















7,659



7,529



7,521


2.32

Commodity Chemicals























Flexitallic Group SAS


First Lien Secured Term Loan


1.00%


L+ 7.50%


8.50% (8.00% Cash +
0.50% PIK)


10/28/19


10/29/26


15,742



15,038



15,191


4.69















15,742



15,038



15,191


4.69

Consumer Finance























Maxitransfers Blocker Corp


First Lien Secured Term Loan


1.00%


L+ 8.50%


9.50%


10/07/20


10/07/25


8,701



8,535



8,701


2.69

Maxitransfers Blocker Corp(4)(7)


First Lien Secured Revolving Loan


1.00%


L+ 8.50%


9.50%


10/07/20


10/07/25


—



—



20


0.01















8,701



8,535



8,721


2.70

Data Processing & Outsourced Services























Escalon Services Inc


First Lien Secured Term Loan


1.00%


L+ 13.50%


14.50% (13.00% Cash +
1.50% PIK)


12/04/20


12/04/25


8,035



7,442



7,932


2.45

FPT Operating Company, LLC/ TLabs Operating Company, LLC


First Lien Secured Term Loan


1.00%


L+ 8.25%


9.25%


12/23/16


06/07/24


24,156



23,953



24,028


7.42















32,191



31,395



31,960


9.87

Department Stores























Mills Fleet Farm Group, LLC


First Lien Secured Term Loan


1.00%


L+ 6.25%


7.25%


10/24/18


10/24/24


13,538


$

13,320


$

13,538


4.18%















13,538



13,320



13,538


4.18

Distributors























Crown Brands, LLC(19)


Second Lien Secured Term Loan


1.50%


L+ 10.50%


12.00%


12/15/20


01/08/26


4,380



4,293



3,504


1.08

Crown Brands, LLC(19)


Second Lien Secured Delayed Draw Loan


1.50%


L+ 10.50%


12.00%


12/15/20


01/08/26


650



650



520


0.16















5,030



4,943



4,024


1.24

Diversified Chemicals























Sklar Holdings, Inc


First Lien Secured Term Loan


1.00%


L+ 7.75%


8.75%


11/13/19


05/13/23


7,429



7,323



7,429


2.29















7,429



7,323



7,429


2.29

Diversified Support Services























NNA Services, LLC


First Lien Secured Term Loan


1.00%


L+ 6.75%


7.75%


08/27/21


08/27/26


11,667



11,524



11,522


3.56















11,667



11,524



11,522


3.56

Education Services























EducationDynamics, LLC


First Lien Secured Term Loan


1.00%


L+ 7.00%


8.00% (7.50% Cash +
0.50% PIK)


09/15/21


09/14/26


13,385



13,119



13,118


4.05

EducationDynamics, LLC(7)


First Lien Secured Delayed Draw Loan


1.00%


L+ 7.00%


8.00% (7.50% Cash +
0.50% PIK)


09/15/21


09/14/26


—



—



—


—

EducationDynamics, LLC(7)


First Lien Secured Revolving Loan


1.00%


L+ 7.00%


8.00% (7.50% Cash +
0.50% PIK)


09/15/21


09/14/26


—



—



—


—

EducationDynamics, LLC(4)


Subordinated Unsecured Term Loan


N/A


4.00%


4.00%


09/15/21


03/15/27


167



167



167


0.05















13,552



13,286



13,285


4.10

Electronic Equipment & Instruments























LMG Holdings, Inc


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


04/30/21


04/30/26


6,819



6,694



6,704


2.07

LMG Holdings, Inc(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.50%


7.50%


04/30/21


04/30/26


—



—



1


—















6,819



6,694



6,705


2.07

Health Care Facilities























Epiphany Dermatology


First Lien Secured Term Loan


1.00%


L+ 7.50%


8.50%


12/04/20


06/22/23


3,474



3,415



3,446


1.06

Epiphany Dermatology(7)


First Lien Secured Revolving Loan


1.00%


L+ 7.50%


8.50%


12/04/20


06/22/23


—



—



4


—

Epiphany Dermatology(7)


First Lien Secured Delayed Draw Loan


1.00%


L+ 7.50%


8.50%


12/04/20


06/22/23


1,195



1,175



1,202


0.37

Grupo HIMA San Pablo, Inc(8)


First Lien Secured Term Loan A


N/A


L+ 9.00%


9.13%


05/05/19


04/30/19


3,855



3,855



1,927


0.60

Grupo HIMA San Pablo, Inc(8)


First Lien Secured Term Loan B


1.50%


L+ 9.00%


10.50%


02/01/13


04/30/19


13,511



13,511



6,756


2.09

Grupo HIMA San Pablo, Inc(8)


Second Lien Secured Term Loan


N/A


L+ 15.75%


15.75% (13.75% Cash +
2.00% PIK)


02/01/13


07/31/18


1,028



1,024



—


—















23,063



22,980



13,335


4.12

Health Care Services























CHS Therapy, LLC


First Lien Secured Term Loan A


1.50%


L+ 9.00%


10.50% (10.00% Cash +
0.50% PIK)


06/14/19


06/14/24


7,281



7,206



7,281


2.25

CHS Therapy, LLC


First Lien Secured Term Loan C


1.50%


L+ 9.00%


10.50% (10.00% Cash +
0.50% PIK)


10/07/20


06/14/24


895



882



895


0.28

DCA Investment Holding, LLC


First Lien Secured Term Loan


0.75%


L+ 6.25%


7.00%


03/12/21


03/12/27


7,042



6,946



6,944


2.15

DCA Investment Holding, LLC(7)


First Lien Secured Delayed Draw Loan


0.75%


L+ 6.25%


7.00%


03/12/21


03/12/27


340



337



337


0.10

IvyRehab Intermediate II, LLC


First Lien Secured Term Loan


1.00%


L+ 6.75%


7.75%


12/04/20


12/04/24


17,410



17,143



17,280


5.34

IvyRehab Intermediate II, LLC(7)


First Lien Secured Delayed Draw Loan


1.00%


L+ 6.75%


7.75%


12/04/20


12/04/24


1,553



1,529



1,553


0.48

IvyRehab Intermediate II, LLC(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.75%


7.75%


12/04/20


12/04/24


—



—



9


—

Lab Logistics, LLC


First Lien Secured Term Loan


1.00%


L+ 7.25%


8.25%


10/16/19


09/25/23


1,158



1,141



1,155


0.36

Lab Logistics, LLC


First Lien Secured Delayed Draw Loan


1.00%


L+ 7.25%


8.25%


10/16/19


09/25/23


5,197



5,177



5,197


1.61

PG Dental New Jersey Parent, LLC


First Lien Secured Term Loan


1.00%


L+ 9.00%


10.00% (8.75% Cash +
1.25% PIK)


11/25/20


11/25/25


15,398



15,110



14,782


4.57

PG Dental New Jersey Parent, LLC(7)


First Lien Secured Revolving Loan


1.00%


L+ 9.00%


10.00% (8.75% Cash +
1.25% PIK)


11/25/20


11/25/25


—



—



(20)


(0.01)















56,274



55,471



55,413


17.13

Heavy Electrical Equipment























PPS CR Acquisition, Inc (dba Power Plant Services)


First Lien Secured Term Loan


1.00%


L+ 6.25%


7.25%


06/25/21


06/25/26


11,151


$

10,940


$

10,940


3.38%

PPS CR Acquisition, Inc (dba Power Plant Services)(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.25%


7.25%


06/25/21


06/25/24


104



103



100


0.03















11,255



11,043



11,040


3.41

Home Furnishings























Sure Fit Home Products, LLC


First Lien Secured Term Loan


1.00%


L+ 9.75%


10.75%


04/12/21


07/13/23


4,947



4,848



4,419


1.37















4,947



4,848



4,419


1.37

Household Products























The Kyjen Company, LLC (dba Outward Hound)


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


04/05/21


04/05/26


11,432



11,277



11,348


3.51

The Kyjen Company, LLC (dba Outward Hound)(7)


First Lien Secured Revolving Loan


1.00%


L+ 6.50%


7.50%


04/05/21


04/05/26


385



380



385


0.12















11,817



11,657



11,733


3.63

Interactive Media & Services























What If Media Group, LLC


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


10/02/19


10/02/24


18,972



18,709



18,857


5.83















18,972



18,709



18,857


5.83

Internet & Direct Marketing Retail























BBQ Buyer, LLC


First Lien Secured Term Loan


1.50%


L+ 8.00%


9.50%


08/28/20


08/28/25


12,634



12,382



12,846


3.97

Luxury Brand Holdings, Inc


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


12/04/20


06/04/26


5,955



5,854



5,955


1.84

Marlin DTC-LS Midco 2, LLC


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


08/06/21


07/01/25


4,277



4,194



4,193


1.30

Potpourri Group, Inc


First Lien Secured Term Loan


1.50%


L+ 8.25%


9.75%


07/03/19


07/03/24


17,263



17,048



17,263


5.33















40,129



39,478



40,257


12.44

Investment Banking & Brokerage























JVMC Holdings Corp (f/k/a RJO Holdings Corp)


First Lien Secured Term Loan


1.00%


L+ 6.75%


7.75%


02/28/19


02/28/24


12,946



12,884



12,946


4.00















12,946



12,884



12,946


4.00

IT Consulting & Other Services























AST-Applications Software Technology LLC


First Lien Secured Term Loan


1.00%


L+ 8.00%


9.00% (8.00% Cash +
1.00% PIK)


01/10/17


01/10/23


3,973



3,954



3,973


1.23

Core BTS, Inc


First Lien Secured Term Loan


1.50%


L+ 6.75%


8.25%


02/01/21


08/30/25


3,317



3,260



3,279


1.01

Core BTS, Inc


First Lien Secured Delayed Draw Loan


1.50%


L+ 6.75%


8.25%


02/01/21


08/30/25


1,658



1,627



1,623


0.50















8,948



8,841



8,875


2.74

Leisure Facilities























Honors Holdings, LLC(16)


First Lien Secured Term Loan


1.00%


L+ 7.81%


8.81% (8.31% Cash +
0.50% PIK)


09/06/19


09/06/24


9,440



9,307



9,213


2.85

Honors Holdings, LLC(16)


First Lien Secured Delayed Draw Loan


1.00%


L+ 7.60%


8.60% (8.10% Cash +
0.50% PIK)


09/06/19


09/06/24


4,649



4,609



4,537


1.40

Lift Brands, Inc (aka Snap  Fitness Holdings, Inc)


First Lien Secured Term Loan A


1.00%


L+ 7.50%


8.50%


06/29/20


06/29/25


5,645



5,579



5,556


1.72

Lift Brands, Inc (aka Snap  Fitness Holdings, Inc)


First Lien Secured Term Loan B


N/A


9.50%


9.50% (0.00% Cash +
9.50% PIK)


06/29/20


06/29/25


1,249



1,227



1,227


0.38

Lift Brands, Inc (aka Snap  Fitness Holdings, Inc)(9)


First Lien Secured Term Loan C


N/A


9.50%


9.50% (0.00% Cash +
9.50% PIK)


06/29/20


NA


1,268



1,265



1,218


0.38















22,251



21,987



21,751


6.73

Leisure Products























PlayMonster LLC


First Lien Secured Term Loan


1.00%


L+ 6.00%


7.00%


06/07/21


06/07/26


6,000



5,888



5,580


1.72

PlayMonster LLC(7)


First Lien Secured Delayed Draw Loan


1.00%


L+ 6.00%


7.00%


06/07/21


06/07/26


—



—



(158)


(0.05)















6,000



5,888



5,422


1.67

Office Services & Supplies























American Crafts, LC


First Lien Secured Term Loan


1.00%


L+ 8.50%


9.50%


05/28/21


05/28/26


8,392


$

8,280


$

8,278


2.56%

Empire Office, Inc


First Lien Secured Term Loan


1.50%


L+ 6.75%


8.25%


04/12/19


04/12/24


12,868



12,700



12,786


3.95

Empire Office, Inc(7)


First Lien Secured Delayed Draw Loan


1.50%


L+ 6.75%


8.25%


08/17/21


04/12/24


—



—



(2)


—















21,260



20,980



21,062


6.51

Packaged Foods & Meats























Lenny & Larry's, LLC(17)


First Lien Secured Term Loan


1.00%


L+ 8.40%


9.40% (7.68% Cash +
1.72% PIK)


05/15/18


05/15/23


11,094



11,025



10,814


3.34















11,094



11,025



10,814


3.34

Personal Products























Inspired Beauty Brands, Inc


First Lien Secured Term Loan


1.00%


L+ 7.00%


8.00%


12/30/20


12/30/25


12,397



12,185



12,397


3.83

Inspired Beauty Brands, Inc(7)


First Lien Secured Revolving Loan


1.00%


L+ 7.00%


8.00%


12/30/20


12/30/25


—



—



9


—















12,397



12,185



12,406


3.83

Property & Casualty Insurance























Policy Services Company, LLC (5)


First Lien Secured Term Loan


1.00%


L+ 6.00%


7.00%


03/06/20


05/31/24


6,046



5,854



5,562


1.72















6,046



5,854



5,562


1.72

Research & Consulting Services























ALM Media, LLC


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


11/25/19


11/25/24


14,372



14,191



14,134


4.37

Nelson Worldwide, LLC


First Lien Secured Term Loan


1.00%


L+ 10.25%


11.25% (10.25% Cash +
1.00% PIK)


01/09/18


01/09/23


10,333



10,268



10,230


3.16















24,705



24,459



24,364


7.53

Specialized Consumer Services























HC Salon Holdings, Inc


First Lien Secured Term Loan


1.00%


L+ 8.00%


9.00%


09/30/21


09/24/26


11,667



11,433



11,433


3.53

HC Salon Holdings, Inc(7)


First Lien Secured Revolving Loan


1.00%


L+ 8.00%


9.00%


09/30/21


09/24/26


—



—



—


—

True Blue Car Wash, LLC


First Lien Secured Term Loan


1.00%


L+ 6.82%


7.82%


10/17/19


10/17/24


8,256



8,129



8,181


2.53

True Blue Car Wash, LLC(7)


First Lien Secured Delayed Draw Loan


1.00%


L+ 6.82%


7.82%


10/17/19


10/17/24


2,924



2,896



2,922


0.90















22,847



22,458



22,536


6.96

Specialized Finance























Golden Pear Funding Assetco, LLC(5)


Second Lien Secured Term Loan


1.00%


L+ 10.50%


11.50%


09/20/18


03/20/24


10,938



10,839



10,938


3.38

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


Subordinated Note


N/A


L+ 6.50%


6.58%


07/19/19


N/A


57,297



57,297



57,297


17.70















68,235



68,136



68,235


21.08

Systems Software























Arcstor Midco, LLC


First Lien Secured Term Loan


1.00%


L+ 7.00%


8.00%


03/16/21


03/16/27


19,403



19,050



19,179


5.92















19,403



19,050



19,179


5.92

Technology Hardware, Storage & Peripherals























Source Code Midco, LLC


First Lien Secured Term Loan


1.00%


L+ 6.50%


7.50%


07/30/21


07/30/27


7,648



7,500



7,499


2.32

Source Code Midco, LLC(7)


First Lien Secured Delayed Draw Loan


1.00%


L+ 7.00%


8.00%


07/30/21


07/30/27


—



—



—


—

Telestream Holdings Corporation


First Lien Secured Term Loan


1.00%


L+ 8.75%


9.75%


10/15/20


10/15/25


15,117



14,725



14,966


4.62

Telestream Holdings Corporation(7)


First Lien Secured Revolving Loan


1.00%


L+ 8.75%


9.75%


10/15/20


10/15/25


371



361



382


0.12















23,136



22,586



22,847


7.06
























Total Debt Investments














675,942


$

661,368


$

652,122


201.45%
























Equity Investments























Air Freight & Logistics























Motivational CIV, LLC (dba Motivational Marketing, LLC)(4)


Class B Units


N/A


N/A


N/A


07/12/21


N/A


1,250


$

1,250


$

1,250


0.39%


















1,250



1,250


0.39

Data Processing & Outsourced Services























Escalon Services Inc(4)


Warrants


N/A


N/A


N/A


12/04/20


N/A


709


$

476


$

914


0.28%


















476



914


0.28

Diversified Support Services























Quest Events, LLC(4)


Preferred Units


N/A


N/A


N/A


12/28/18


12/08/25


317



317



—


—

ImageOne Industries, LLC(4)


Common A Units


N/A


N/A


N/A


09/20/19


N/A


225



—



164


0.05


















317



164


0.05

Education Services























EducationDynamics, LLC(4)


Preferred Units


N/A


N/A


N/A


09/15/21


N/A


167



167



167


0.05


















167



167


0.05

Health Care Services























Lab Logistics(4)(20)


Preferred Units


N/A


14.00%


14.00% PIK


10/29/19


N/A


2



857



934


0.29


















857



934


0.29

Interactive Media & Services























What If Media Group, LLC(4)


Common Units


N/A


N/A


N/A


07/02/21


N/A


8



850



850


0.26


















850



850


0.26

Internet & Direct Marketing Retail























BBQ Buyer, LLC(4)


Shares


N/A


N/A


N/A


08/28/20


N/A


1,100



1,100



3,311


1.02

Ross-Simons Topco, LP(4)


Preferred Units


N/A


N/A


N/A


12/04/20


N/A


600



600



840


0.26


















1,700



4,151


1.28

Investment Banking & Brokerage























Arcole Holding Corp.(4)(5)(6)(18)


Shares


N/A


N/A


N/A


10/01/20


N/A


—



6,944



6,800


2.10


















6,944



6,800


2.10

IT Consulting & Other Services























CX Holdco LLC(4)


Common Units


N/A


N/A


N/A


05/04/21


N/A


660



660



660


0.20

Keras Holdings, LLC(4)


Shares


N/A


N/A


N/A


12/31/20


N/A


496



496



546


0.17


















1,156



1,206


0.37

Leisure Facilities























Lift Brands, Inc (aka Snap Fitness Holdings, Inc)(4)


Class A Common Stock


N/A


N/A


N/A


06/29/20


N/A


2



1,955



184


0.06

Lift Brands, Inc (aka Snap Fitness Holdings, Inc)(4)


Warrants


N/A


N/A


N/A


06/29/20


06/28/28


1



793



75


0.02


















2,748



259


0.08

Other Diversified Financial Services























SFS Global Holding Company(4)


Warrants


N/A


N/A


N/A


06/28/18


12/28/25


—



—



—


—

Sigue Corporation(4)


Warrants


N/A


N/A


N/A


06/28/18


12/28/25


22



2,890



3,493


1.08


















2,890



3,493


1.08

Specialized Finance























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


LLC Interests


N/A


N/A


N/A


07/19/19


N/A


14,324



14,324



14,813


4.58


















14,324



14,813


4.58
























Total Equity Investments
















$

33,679


$

35,001


10.81%
























Total Investments
















$

695,047


$

687,123


212.26%

 


WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)


Forward Currency Contracts


Counterparty


Currency to be sold


Currency to be purchased


Settlement date


Unrealized
appreciation


Unrealized
depreciation

Morgan Stanley


C$

24,385 CAD


$

19,440 USD


10/28/21


$

186


$

—

Total










$

186


$

—




(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 USD LIBOR were 0.08%, 0.13% and 0.16%, respectively, as of September 30, 2021. The CDOR and Prime was 0.45% and 3.25%, respectively, as of September 30, 2021.



(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 84.5% 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 September 30, 2021.



(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 212.3% of the Company's net assets or 94.2% 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 and P, respectively. The 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. 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 in the amount of 2.75% 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)

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 3.00% 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.



(18)

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 converted into common shares of Arcole Holding Corp.



(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 2.00% PIK.



(20)

Investment earns 14.00% that converts to PIK on an annual basis and is recorded in interest and dividend receivable in the consolidated statements of assets and liabilities.

 

 

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 to download multimedia:https://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-third-quarter-2021-earnings-results-and-declares-quarterly-distribution-of-0-355-per-share-301419345.html

SOURCE WhiteHorse Finance, Inc.

FAQ

What were WhiteHorse Finance's Q3 2021 financial results?

WhiteHorse Finance reported net investment income of $7.6 million and a net asset value of $323.7 million.

What is the distribution declared by WhiteHorse Finance for December 2021?

WhiteHorse Finance declared a distribution of $0.355 per share for the quarter ending December 31, 2021.

How much did WhiteHorse Finance raise from its public offering?

WhiteHorse Finance raised approximately $33.7 million from its recent public offering.

What was the net increase in net assets for WhiteHorse Finance in Q3 2021?

The net increase in net assets resulting from operations was approximately $8.3 million.

What is the investment portfolio value of WhiteHorse Finance as of September 30, 2021?

The investment portfolio of WhiteHorse Finance was valued at $687.1 million as of September 30, 2021.

Stock WHF logo
WhiteHorse Finance, Inc.

NASDAQ:WHF

WHF Rankings

#3680 Ranked by Market Cap
#46 Ranked by Dividends

WHF Latest News

Nov 7, 2024
WhiteHorse Finance, Inc. Announces Third Quarter 2024 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share
Oct 15, 2024
WhiteHorse Finance, Inc. Announces Special Distribution And To Report Third Quarter 2024 Financial Results
Aug 8, 2024
WhiteHorse Finance, Inc. Announces Second Quarter 2024 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share
Jul 11, 2024
WhiteHorse Finance, Inc. To Report Second Quarter 2024 Financial Results
May 8, 2024
WhiteHorse Finance, Inc. Announces First Quarter 2024 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share

WHF Stock Data

246.84M
23.24M
21.4%
34.17%
0.88%
Asset Management
Financial Services
Link
United States of America
Miami