WhiteHorse Finance, Inc. Increases Commitment to Joint Venture

Rhea-AI Summary

WhiteHorse Finance (NASDAQ: WHF) announced an increase in capital commitments to the WHF STRS Ohio Senior Loan Fund LLC joint venture by $25 million, with $15 million from WhiteHorse and $10 million from the State Teachers Retirement System of Ohio. This raises total commitments to $175 million. The WHF STRS JV, established in 2019, focuses on lower middle market senior secured debt facilities. Since inception, its portfolio has grown to over $280 million, consisting of 28 companies with a weighted average yield of 10.1% as of September 30, 2022. CEO Stuart Aronson emphasized the partnership's success and potential for shareholder value enhancement amid current market conditions.

Positive

• Increased total capital commitments to WHF STRS JV to $175 million.
• Portfolio value of WHF STRS JV has grown to over $280 million.
• Weighted average effective yield of 10.1% as of September 30, 2022, indicates strong profitability.

Negative

• None.

NEW YORK, Feb. 6, 2023 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced that the Company, together with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law ("STRS Ohio"), have increased their capital commitments to their joint venture, WHF STRS Ohio Senior Loan Fund LLC (the "WHF STRS JV"), by $25 million.  The increased commitment will be funded by an incremental $15 million investment from WhiteHorse Finance and an incremental $10 million investment from STRS Ohio bringing total capital commitments to the WHF STRS JV to $175 million. 

"We are pleased to continue growing our successful partnership with STRS Ohio through increased commitments to our joint venture, which has produced a healthy return on equity to WhiteHorse Finance," said Stuart Aronson, Chief Executive Officer, WhiteHorse Finance.  "We believe our investment in the joint venture provides attractive returns for our shareholders and is particularly relevant given the current market backdrop.  Combined with higher base rates and our strong origination pipeline, we expect our incremental investment to be accretive and allow us to increase our diversification into lower-risk assets and advance our goal of enhancing shareholder value while providing financing solutions to our borrowers and sponsor clients alike."

The WHF STRS JV was established in 2019 to invest primarily in lower middle market senior secured debt facilities.  Since inception, the value of the WHF STRS JV portfolio has grown to over $280 million and consisted of 28 portfolio companies with a total portfolio weighted average effective yield of 10.1% as of September 30, 2022.

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 $53 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 SEC. 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.

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

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

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

Source: WhiteHorse Finance, Inc.

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

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SOURCE WhiteHorse Finance, Inc.

FAQ

What is the recent announcement by WhiteHorse Finance on February 6, 2023?

WhiteHorse Finance announced an increase in capital commitments to its joint venture with the State Teachers Retirement System of Ohio by $25 million.

What is the total capital commitment for the WHF STRS Ohio Senior Loan Fund?

The total capital commitment for the WHF STRS Ohio Senior Loan Fund is now $175 million.

What is the portfolio value of the WHF STRS JV as of now?

The WHF STRS JV portfolio value has grown to over $280 million.

What was the weighted average effective yield of the WHF STRS JV portfolio?

The weighted average effective yield of the WHF STRS JV portfolio was 10.1% as of September 30, 2022.

How much did WhiteHorse Finance invest in the joint venture?

WhiteHorse Finance invested an additional $15 million in the joint venture.