Whitehorse Finance, Inc. Announces Closing of Offering of $40.0 Million Notes Due 2025

Rhea-AI Summary

WhiteHorse Finance, Inc. (Nasdaq: WHF) announced the completion of a private offering of $40 million in 5.375% Notes due 2025. These unsecured notes are intended for refinancing existing debt and general corporate purposes. The interest on these notes may increase to 6.375% if they lose their investment grade rating. The notes will mature on October 20, 2025, unless preemptively redeemed. The offering was made to qualified institutional buyers and is not registered under the Securities Act, thus not available for public sale without registration.

Positive

• Successfully raised $40 million through private offering.
• Notes have a fixed interest rate of 5.375%, potentially beneficial for financing.

Negative

• Interest rate may increase to 6.375% if investment grade rating is lost.
• Notes are unsecured, posing higher risk to investors.

NEW YORK, Oct. 20, 2020 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced that it has sold in a private offering, $40.0 million aggregate principal amount of its 5.375% Notes due 2025 (the "2025 Notes"). The 2025 Notes were offered only to qualified institutional buyers (as defined in the Securities Act of 1933, as amended (the "Securities Act")) in reliance on Section 4(a)(2) of the Securities Act. 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 2025 Notes are unsecured and bear interest at a rate of 5.375% per year, payable semiannually. This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 2025 Notes cease to have an investment grade rating. The 2025 Notes will mature on October 20, 2025, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

The 2025 Notes have not and will not be registered under the Securities Act, and the 2025 Notes may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act.

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 $40 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-announces-closing-of-offering-of-40-0-million-notes-due-2025--301155833.html

SOURCE WhiteHorse Finance, Inc.

FAQ

What is the total amount of the 2025 Notes issued by WHF?

WhiteHorse Finance issued $40 million in 2025 Notes.

What is the interest rate on WhiteHorse Finance's 2025 Notes?

The 2025 Notes bear an interest rate of 5.375%, which may increase to 6.375% under certain conditions.

What are the intended uses of the proceeds from the 2025 Notes offering by WHF?

The proceeds are intended for refinancing existing debt and general corporate purposes.

When do the 2025 Notes from WHF mature?

The 2025 Notes will mature on October 20, 2025.

Are the 2025 Notes from WHF secured or unsecured?

The 2025 Notes are unsecured.