WhiteHorse Finance, Inc. Closes $20.0 Million Follow-On Notes Offering

Rhea-AI Summary

WhiteHorse Finance announced the sale of $20 million in notes, consisting of $10 million of 5.375% notes due 2026 and $10 million of 5.625% notes due 2027. The offering is part of a follow-on to a previous $40 million issuance on October 20, 2020. Proceeds will be used for refinancing existing debt and general corporate purposes. The notes are unsecured and interest will be paid semiannually. If the notes lose their investment grade rating, interest rates may increase by 1.0%. Maturities are set for December 2026 and December 2027.

Positive

• Raised $20 million through the issuance of new notes, contributing to liquidity.
• Interest rates of 5.375% and 5.625% are competitive for the market.
• Proceeds aimed at refinancing existing debt, potentially lowering interest obligations.

Negative

• Notes are unsecured, posing higher risk for investors.
• Potential increase in interest rates by 1.0% if the company's credit rating declines.

NEW YORK, Dec. 4, 2020 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced that it has sold $20.0 million aggregate principal amount of notes consisting of $10.0 million of 5.375% notes due 2026 (the "2026 Notes") and $10.0 million of 5.625% notes due 2027 (the "2027 Notes", and together with the 2026 Notes, the "Notes"). The Notes were issued in a privately placed follow-on offering in connection with the $40.0 million in aggregate principal amount of 5.375% notes due 2025 that the Company issued on October 20, 2020. 

The Company intends to use the net proceeds from this offering to refinance and/or redeem existing debt and/or for general corporate purposes.

The Notes are all unsecured. The 2026 Notes bear interest at a rate of 5.375% per year, and the 2027 Notes bear interest at a rate of 5.625% per year. Interest on both series of Notes are payable semiannually. The interest rates of each series are subject to an increase of 1.0% in the event that, subject to certain exceptions, such series of Notes cease to have an investment grade rating.

Unless the 2026 Notes or 2027 Notes are redeemed, purchased or prepaid by the Company or its affiliates prior to their respective maturity dates, the 2026 Notes will mature on December 4, 2026, and the 2027 Notes will mature on December 4, 2027 in accordance with their respective terms.   

The Notes have not and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from the registration requirements thereof. 

About WhiteHorse Finance, Inc.

WhiteHorse Finance, Inc. 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 its investment adviser, 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 approximately $42 billion of capital under management* 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.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.

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

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

Sean Silva
Prosek Partners
646-818-9122
ssilva@prosek.com

View original content:http://www.prnewswire.com/news-releases/whitehorse-finance-inc-closes-20-0-million-follow-on-notes-offering-301186722.html

SOURCE WhiteHorse Finance, Inc.

FAQ

What is the significance of WhiteHorse Finance's $20 million notes offering?

The $20 million offering is intended for refinancing existing debt, which may improve the company's financial stability.

What are the interest rates on the new notes issued by WHF?

The 2026 Notes have an interest rate of 5.375%, while the 2027 Notes have a rate of 5.625%.

When do the notes issued by WhiteHorse Finance mature?

The 2026 Notes mature on December 4, 2026, and the 2027 Notes mature on December 4, 2027.

How will WHF utilize the proceeds from the notes offering?

Proceeds will be used to refinance existing debt and for general corporate purposes.

What risks are associated with the newly issued notes from WHF?

The notes are unsecured, posing higher risks, and interest rates may increase by 1.0% if the company loses its investment-grade rating.