Exhibit 99.1

 

 

 

WhiteHorse Finance, Inc. Announces Second Quarter 2020 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share

 

NEW YORK, NY, August 10, 2020 – WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (Nasdaq: WHF) today announced its financial results for the quarter ended June 30, 2020. Additionally, the Company announced that its board of directors has declared a distribution of $0.355 per share with respect to the quarter ending September 30, 2020. The distribution will be payable on October 2, 2020 to stockholders of record as of September 21, 2020.

 

Second Quarter 2020 Summary Highlights

·Net Asset Value of $300.2 million, or $14.61 per share

·Investment portfolio(1) totaling $547.4 million

·STRS JV investment portfolio totaling $160.8 million

·Gross investment additions(2) of $39.4 million, including new positions of $33.6 million and $5.8 million of fundings for add-ons to existing investments

·Net investment income of $5.2 million, or $0.255 per share

·Core net investment income of $5.2 million, or $0.255 per share(3)

·Second quarter distribution of $0.355 per share

 

(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC (“STRS JV”), an unconsolidated joint venture, totaling $48.9 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.

 

Stuart Aronson, WhiteHorse Finance’s Chief Executive Officer commented, “Five months into the COVID-19 pandemic, we have seen the market slowly recover from the first shock with moderate pricing and slightly higher deal activity. While NII for the quarter was below our goal, NAV increased materially and liquidity dramatically improved. During the quarter, we continued to grow our portfolio with three new first lien positions and our portfolio is now comprised of 93.8% first lien loans. Recently, we also reduced outstanding borrowings on our credit facility to its minimum requirement and this influx of liquidity will allow us to rebuild our pipeline and take advantage of the better deals we are now seeing in the marketplace. We will continue leveraging our three-tiered sourcing approach and rigorous underwriting standards while continuing to build value for our shareholders.”

 

Portfolio and Investment Activity

 

As of June 30, 2020, the fair value of WhiteHorse Finance’s investment portfolio was $547.4 million, compared with $557.1 million as of March 31, 2020. The portfolio at June 30, 2020 consisted of 68 positions across 53 companies with a weighted average effective yield of 9.6% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV) was $8.8 million with the overall portfolio comprised of approximately 83% first lien secured loans, 5% second lien secured loans, 3% equity and 9% in investments in STRS JV. Almost all loans were substantially 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 June 30, 2020, WhiteHorse Finance made investments in three new portfolio companies totaling $33.6 million and added a total of $5.8 million to three existing portfolio companies. Proceeds from sales and repayments, including $0.3 million of net repayments on revolvers, totaled approximately $36.9 million for the quarter ended June 30, 2020, driven by a full paydown from Sigue Corporation of $24.8 million.

 

In addition to the transactions above, during the three months ended June 30, 2020, WhiteHorse Finance transferred an aggregate of $36.6 million in assets to STRS JV in exchange for a net investment in STRS JV of $5.7 million as well as cash proceeds of $30.9 million.

 

 

 

 

WHF STRS Ohio Senior Loan Fund LLC

 

As of June 30, 2020, STRS JV’s portfolio totaled $160.8 million, consisted of 18 portfolio companies and had a weighted average effective yield of 7.9% on its portfolio.

 

Results of Operations

 

For the three months ended June 30, 2020, the Company’s net investment income was approximately $5.2 million, compared with approximately $7.2 million for the same period in the prior year, representing a decrease of approximately 27.8%. The decrease in net investment income for the year-over-year period is primarily attributable to lower non-recurring fee income in the current quarter. The decrease in fee income during the quarter ended June 30, 2020 as compared to the same period in the prior year is a result of a lower volume in non-recurring, fee-generating events. The decrease in fee income during the quarter ended June 30, 2020 was partially offset by a decrease in incentive fees as compared to the same period in the prior year. The incentive fees decrease was primarily due to lower net investment income in the current quarter.

 

For the three months ended June 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 $5.2 million, compared with $7.4 million for the same period in the prior year, representing a decrease of approximately 29.4%.

 

For the three months ended June 30, 2020, WhiteHorse Finance reported a net realized and unrealized gain on investments and foreign currency transactions of $17.6 million. This compares with a net realized and unrealized gain on investments and foreign currency transactions of $1.0 million for the three months ended June 30, 2019. The increase in the year-over-year period was primarily attributable to markups in the portfolio as a result of overall market stability and price recovery from the COVID-19 pandemic in the prior quarter.

 

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $22.8 million for the three months ended June 30, 2020, which compares with a net increase of $8.2 million for the three months ended June 30, 2019.

 

WhiteHorse Finance’s net asset value was $300.2 million, or $14.61 per share, as of June 30, 2020, as compared with $284.7 million, or $13.86 per share, as of March 31, 2020.

 

Liquidity and Capital Resources

 

As of June 30, 2020, WhiteHorse Finance had cash and cash equivalents of $20.9 million, as compared with $28.1 million as of March 31, 2020, inclusive of restricted cash. As of June 30, 2020, the Company also had $57.8 million of undrawn capacity under its revolving credit facility.

 

Distributions

  

On June 2, 2020, the Company declared a distribution of $0.355 per share for the quarter ended June 30, 2020. The distribution was paid on July 3, 2020 to stockholders of record as of June 19, 2020, and marks the thirty-first consecutive quarterly distribution paid since the Company’s initial public offering with all distributions consistently paid at the quarterly rate of $0.355 per share.

 

 

 

 

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 second quarter results at 2:00 p.m. ET on Monday, August 10, 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 #3181299. 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 August 17, 2020. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #3181299. 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 $39 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.

 

(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 refinance any of its indebtedness for the quarters ended June 30, 2020 and June 30, 2019. Additionally, there were no accruals for the capital gains incentive fee attributable to net realized and unrealized gains and losses for the three months ended June 30, 2020.

 

The following table provides a reconciliation of net investment income to core net investment income for the three months ended June 30, 2020 and June 30, 2019 (in thousands, except per share data):
 

   June 30, 2020   June 30, 2019 
   Amount  

 Per Share

Amounts

   Amount  

 Per Share

Amounts

 
Net investment income  $5,240   $0.255   $7,226   $0.352 
Net impact of costs associated with refinancing of indebtedness   -    -    -    - 
Accrual for capital gains incentive fee   -    -    198    0.010 
Net impact of excise tax expense related to net realized gains and losses   -    -    -    - 
Core net investment income  $5,240   $0.255   $7,424   $0.362 

 

 

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

 

   June 30, 2020   December 31, 2019 
   (Unaudited)     
Assets          
Investments, at fair value          
Non-controlled/non-affiliate company investments  $490,013   $546,744 
Non-controlled affiliate company investments   8,521    9,651 
Controlled affiliate company investments   48,863    33,293 
Total investments, at fair value (amortized cost $565,762 and $597,725, respectively)   547,397    589,688 
Cash and cash equivalents   2,263    4,294 
Restricted cash and cash equivalents   18,487    23,252 
Restricted foreign currency (cost of $143)   136     
Interest and dividend receivable   5,900    6,010 
Amounts receivable on unsettled investment transactions   297    360 
Prepaid expenses and other receivables   464    7,620 
Total assets  $574,944   $631,224 
           
Liabilities          
Debt  $252,671   $298,924 
Distributions payable   7,294    7,294 
Management and incentive fees payable   7,359    8,290 
Interest payable   1,315    1,674 
Accounts payable and accrued expenses   1,163    1,944 
Amounts payable on unsettled investment transactions   4,900     
Unrealized depreciation on foreign currency forward contracts   3     
Advances received from unfunded credit facilities   17    143 
Total liabilities   274,722    318,269 
           
Commitments and contingencies          
           
Net assets          
Common stock, 20,546,032 and 20,546,032 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 authorized   21    21 
Paid-in capital in excess of par   300,744    300,744 
Accumulated earnings (deficit)   (543)   12,190 
Total net assets   300,222    312,955 
Total liabilities and total net assets  $574,944   $631,224 
           
Number of shares outstanding   20,546,032    20,546,032 
Net asset value per share  $14.61   $15.23 

 

 

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

 

   Three months ended June 30,   Six months ended June 30, 
   2020   2019   2020   2019 
Investment income                    
From non-controlled/non-affiliate company investments                    
Interest income  $12,145   $12,746   $25,284   $27,238 
Fee income   539    2,926    830    4,083 
Dividend income   30    -    79    - 
From non-controlled affiliate company investments                    
Dividend income   263    312    538    587 
From controlled affiliate company investments                    
Interest income   606    -    1,231    - 
Dividend income   240    -    393    - 
Total investment income   13,823    15,984    28,355    31,908 
                     
Expenses                    
Interest expense   3,223    3,176    6,891    6,249 
Base management fees   2,950    2,818    6,042    5,407 
Performance-based incentive fees   1,311    2,055    1,752    3,806 
Administrative service fees   171    159    342    317 
General and administrative expenses   730    532    1,610    1,214 
Total expenses, before fees waived   8,385    8,740    16,637    16,993 
Base management fee waived   -    (220)   -    (397)
Total expenses, net of fees waived   8,385    8,520    16,637    16,596 
Net investment income before excise tax   5,438    7,464    11,718    15,312 
Excise tax   198    238    376    475 
Net investment income after excise tax   5,240    7,226    11,342    14,837 
                     
Realized and unrealized gains (losses) on investments and foreign currency transactions                    
Net realized gains (losses)                    
Non-controlled/non-affiliate company investments   (77)   -    433    (2,018)
Non-controlled-affiliate company investments   -    -    -    - 
Foreign currency transactions   70    -    67    - 
Foreign currency forward contracts   (6)   -    -    - 
Net realized gains (losses)   (13)   -    500    (2,018)
Net change in unrealized appreciation (depreciation)                    
Non-controlled/non-affiliate company investments   15,841    937    (6,355)   2,925 
Non-controlled affiliate company investments   871    56    (1,130)   (520)
Controlled affiliate company investments   1,111    -    (2,842)   - 
Translation of assets and liabilities in foreign currencies   (237)   -    343    - 
Foreign currency forward contracts   (2)   -    (3)   - 
Net change in unrealized appreciation (depreciation)   17,584    993    (9,987)   2,405 
Net realized and unrealized gains (losses) on investments   17,571    993    (9,487)   387 
Net increase in net assets resulting from operations  $22,811   $8,219   $1,855   $15,224 
                     
Per Common Share Data                    
Basic and diluted earnings per common share  $1.11   $0.41   $0.09   $0.74 
Dividends and distributions declared per common share  $0.36   $0.36   $0.71   $0.71 
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) 

June 30, 2020 

(in thousands)

 

Investment Type(1)   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                                      
Fluent, LLC                                      
First Lien Secured Term Loan   L+ 7.00%   7.50%   03/26/18   03/27/23   8,645   $ 8,645   $ 8,619   2.87 %
    (0.50% Floor)                                  
Connexity, Inc.                                      
First Lien Secured Term Loan   L+ 8.50%   10.00%   05/21/20   05/21/25   11,000     10,678     10,675   3.56  
    (1.50% Floor)                                  
                    19,645     19,323     19,294   6.43  
Agricultural & Farm Machinery                                      
Bad Boy Mowers Acquisition, LLC                                      
First Lien Secured Term Loan   L+ 5.75%   6.75%   12/19/19   12/06/25   10,333     10,049     9,816   3.27  
    (1.00% Floor)                                  
Air Freight & Logistics                                      
Access USA Shipping, LLC                                      
First Lien Secured Term Loan   L+ 8.00%   9.50%   02/08/19   02/08/24   5,505     5,446     5,441   1.81  
    (1.50% Floor)                                  
Application Software                                      
Newscycle Solutions, Inc.                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   06/14/19   12/29/22   5,195     5,122     4,832   1.61  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan   L+ 7.00%   8.00%   06/14/19   12/29/22   301     298     280   0.09  
    (1.00% Floor)                                  
                    5,496     5,420     5,112   1.70  
Automotive Retail                                      
Team Car Care Holdings, LLC                                      
First Lien Secured Term Loan(12)   base rate+ 7.99%   9.40%   02/26/18   02/23/23   16,491     16,295     15,900   5.30  
    (1.00% Floor)                                  
BW Gas & Convenience Holdings, LLC                                      
First Lien Secured Term Loan   L+ 6.25%   6.43%   11/15/19   11/18/24   8,288     7,993     8,039   2.68  
    (0.00% Floor)                                  
                    24,779     24,288     23,939   7.98  
Broadcasting                                      
Alpha Media, LLC                                      
First Lien Secured Term Loan   L+ 6.00%   7.00%   08/14/18   02/25/22   5,155     5,077     4,923   1.64  
    (1.00% Floor)                                  
Rural Media Group, Inc.                                      
First Lien Secured Term Loan   L+ 8.75%   9.75%   12/29/17   12/29/22   3,391     3,358     3,391   1.13  
    (1.00% Floor)                                  
                    8,546     8,435     8,314   2.77  
Cable & Satellite                                      
Bulk Midco, LLC                                      
First Lien Secured Term Loan(15)   P+ 6.23%   9.48%   06/08/18   06/08/23   15,000     14,868     13,725   4.57  
    (0.75% Floor)                                  
Communications Equipment                                      
Sorenson Communications, LLC                                      
First Lien Secured Term Loan   L+ 6.50%   6.81%   03/15/19   04/29/24   4,319     4,220     4,153   1.38  
    (0.00% Floor)                                  
Construction & Engineering                                      
Atlas Intermediate Holdings LLC                                      
First Lien Secured Term Loan   L+ 6.25%   7.25%   05/26/20   02/14/26   15,464     14,547     14,553   4.85  
    (1.00% Floor)                                  
Data Processing & Outsourced Services                                      
FPT Operating Company, LLC/                                      
TLabs Operating Company, LLC                                      
First Lien Secured Term Loan   L+ 8.25%   9.25%   12/23/16   06/07/24   24,595     24,401     23,120   7.70  
    (1.00% Floor)                                  
Geo Logic Systems Ltd. (5)                                      
First Lien Secured Term Loan (13)   C +6.25%   7.25%   12/19/19   12/19/24   6,795     5,089     4,701   1.57  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)(13)   C +6.25%   7.25%   12/19/19   12/19/24   -     -     (12 ) -  
    (1.00% Floor)                                  
                    31,390     29,490     27,809   9.27  
Department Stores                                      
Mills Fleet Farm Group, LLC                                      
First Lien Secured Term Loan   L+ 7.00%   8.59%   10/24/18   10/24/24   13,964     13,690     12,567   4.19  
    (1.00% Floor)   (0.75%PIK)                              
Distributors                                      
Crown Brands, LLC                                      
First Lien Secured Term Loan   L+ 8.00%   9.50%   01/28/19   01/25/24   5,727     5,625     5,164   1.72  
    (1.50% Floor)                                  
First Lien Secured Delayed Draw Loan   L+ 8.00%   9.50%   06/10/20   01/25/24   850     850     766   0.26  
    (1.50% Floor)                                  
                    6,577     6,475     5,930   1.98  
Diversified Capital Markets                                      
TOUR Intermediate Holdings, LLC                                      
First Lien Secured Delayed Draw Loan   L+ 7.00%   8.00%   06/30/20   05/15/25   1,360     1,334     1,335   0.44  
    (1.00% Floor)                                  
Diversified Chemicals                                      
Sklar Holdings, Inc.                                      
First Lien Secured Term Loan   L+ 7.00%   9.00%   11/13/19   05/13/23   8,903     8,713     8,643   2.88  
    (1.00% Floor)   (1.00%PIK)                              

 

 

 

 

WhiteHorse Finance, Inc. 

Consolidated Schedule of Investments (Unaudited) - (continued) 

June 30, 2020 

(in thousands)

 

Diversified Support Services                                    
ImageOne Industries, LLC                                    
First Lien Secured Term Loan L+ 10.00%   11.00%   01/11/18   01/11/23   7,218     $ 7,058     $ 7,073   2.36 %
  (1.00% Floor)   (4.00%PIK)                                  
First Lien Secured Revolving Loan(4)(7) L+ 10.00%   11.00%   07/22/19   12/12/22   5       5       (11 ) -  
  (1.00% Floor)   (4.00%PIK)                                  
NNA Services, LLC                                        
First Lien Secured Term Loan L+ 7.00%   8.50%   10/16/18   10/16/23   9,757       9,629       9,635   3.21  
  (1.50% Floor)                                      
                  16,980       16,692       16,697   5.57  
Education Services                                        
EducationDynamics, LLC                                        
First Lien Secured Term Loan L+ 7.50%   8.50%   11/26/19   11/26/24   11,406       11,205       11,349   3.78  
  (1.00% Floor)                                      
Food Retail                                        
AG Kings Holdings, Inc.                                        
First Lien Secured Term Loan(4)(8) P+ 11.00%   14.25%   08/10/16   08/10/21   35,693       17,737       21,280   7.09  
  (0.75% Floor)   (2.00%PIK)                                  
Health Care Facilities                                        
Grupo HIMA San Pablo, Inc.                                        
First Lien Secured Term Loan A L+ 9.00%   9.69%   05/15/19   04/30/19   3,855       3,855       2,891   0.96  
                                         
First Lien Secured Term Loan B L+ 9.00%   10.50%   02/01/13   04/30/19   13,511       13,511       10,133   3.38  
  (1.50% Floor)                                      
Second Lien Secured Term Loan(8) N/A   15.75%   02/01/13   07/31/18   1,028       1,024       -   -  
      (2.00%PIK)                                  
                  18,394       18,390       13,024   4.34  
Health Care Services                                        
CHS Therapy, LLC                                        
First Lien Secured Term Loan A L+ 8.50%   10.00%   06/14/19   06/14/24   7,518       7,406       7,302   2.43  
  (1.50% Floor)                                      
Lab Logistics, LLC                                        
First Lien Secured Term Loan L+ 6.50%   7.56%   10/16/19   09/25/23   106       105       104   0.03  
  (1.00% Floor)                                      
First Lien Secured Delayed Draw Loan L+ 6.50%   7.73%   10/16/19   09/25/23   5,262       5,230       5,157   1.72  
  (1.00% Floor)                                      
PMA Holdco, LLC                                        
First Lien Secured Term Loan L+ 10.00%   11.00%   06/28/18   06/28/23   12,841       12,616       12,713   4.23  
  (1.00% Floor)                                      
                  25,727       25,357       25,276   8.41  
Home Furnishings                                        
Sure Fit Home Products, LLC                                        
First Lien Secured Term Loan(8) L+ 9.75%   10.75%   10/26/18   07/13/22   5,215       5,157       4,206   1.40  
  (1.00% Floor)                                      
Interactive Media & Services                                        
What If Media Group, LLC                                        
First Lien Secured Term Loan L+ 6.50%   7.50%   10/02/19   10/02/24   12,756       12,539       12,692   4.23  
  (1.00% Floor)                                      
Internet & Direct Marketing Retail                                        
Potpourri Group, Inc.                                        
First Lien Secured Term Loan L+ 8.25%   9.75%   07/03/19   07/03/24   18,525       18,194       17,784   5.92  
  (1.50% Floor)                                      
Investment Banking & Brokerage                                        
Arcole Acquisition Corp(5)                                        
First Lien Secured Term Loan A(4)(8) L+ 10.25%   11.25%   11/29/18   11/30/23   5,231       5,159       4,185   1.39  
  (1.00% Floor)                                      
First Lien Secured Term Loan B(4)(8) L+ 16.50%   17.50%   11/29/18   11/30/23   1,819       1,785       1,455   0.48  
  (1.00% Floor)   (1.50%PIK)                                  
JVMC Holdings Corp. (f/k/a RJO Holdings Corp)                                        
First Lien Secured Term Loan L+ 6.50%   7.50%   02/28/19   02/28/24   14,032       13,930       13,892   4.63  
  (1.00% Floor)                                      
                  21,082       20,874       19,532   6.50  
IT Consulting & Other Services                                        
AST-Applications Software Technology LLC                                        
First Lien Secured Term Loan L+ 8.00%   9.00%   01/10/17   01/10/23   4,049       4,010       4,009   1.34  
  (1.00% Floor)   (1.00%PIK)                                  
Leisure Facilities                                        
Honors Holdings, LLC                                        
First Lien Secured Term Loan(16) L+ 7.75%   8.75%   09/06/19   09/06/24   9,405       9,279       8,465   2.82  
  (1.00% Floor)                                      
First Lien Secured Delayed Draw Loan(7)(16) L+ 6.50%   8.11%   09/06/19   09/06/24   4,633       4,592       4,170   1.39  
  (1.00% Floor)                                      
Lift Brands, Inc.                                        
First Lien Secured Term Loan A(8) L+ 3.75%   4.75%   06/29/20   06/29/25   5,659       5,571       5,571   1.86  
  (1.00% Floor)                                      
First Lien Secured Term Loan B(8) N/A   9.50%   06/29/20   06/29/25   1,109       1,080       1,080   0.36  
                                         
First Lien Secured Term Loan C(8)(9) N/A   9.50%   06/29/20   N/A   1,268       1,265       1,265   0.42  
                                         
                  22,074       21,787       20,551   6.85  
Office Services & Supplies                                        
Empire Office, Inc.                                        
First Lien Secured Term Loan L+ 6.75%   8.25%   04/12/19   04/12/24   11,054       10,887       10,797   3.60  
  (1.50% Floor)                                      
Packaged Foods & Meats                                        
Lenny & Larry's, LLC                                        
First Lien Secured Term Loan (17) L+ 7.95%   8.95%   05/15/18   05/15/23   11,237       11,110       10,747   3.58  
  (1.00% Floor)   (1.17%PIK)                                  
Property & Casualty Insurance                                        
Policy Services Company, LLC (5)                                        
First Lien Secured Term Loan L+ 6.25%   7.32%   03/06/20   05/31/24   6,459       6,158       6,136   2.04  
  (1.00% Floor)                                      

 

 

 

 

WhiteHorse Finance, Inc. 

Consolidated Schedule of Investments (Unaudited) - (continued) 

June 30, 2020 

(in thousands)

 

Research & Consulting Services                                  
Nelson Worldwide, LLC                                  

First Lien Secured Term Loan 

L+ 9.25%   10.56%   01/09/18   01/09/23     13,041     $ 12,876     $ 12,780     4.26 %
  (1.00% Floor)                                          
ALM Media, LLC                                            
First Lien Secured Term Loan L+ 6.50%   7.50%   11/25/19   11/25/24     15,356       15,086       14,482     4.82  
  (1.00% Floor)                                          
                    28,397       27,962       27,262     9.08  
Restaurants                                            
LS GFG Holdings Inc.                                            
First Lien Secured Term Loan L+ 6.00%   6.18%   11/30/18   11/19/25     10,177       9,940       8,548     2.85  
  (0.00% Floor)                                          
Specialized Consumer Services                                            
True Blue Car Wash, LLC                                            
First Lien Secured Term Loan L+ 8.12%   9.12%   10/17/19   10/17/24     4,405       4,329       4,361     1.45  
  (1.00% Floor)                                          
First Lien Secured Delayed Draw Loan(7) L+ 8.12%   9.12%   10/17/19   10/17/24     667       661       659     0.22  
  (1.00% Floor)                 5,072       4,990       5,020     1.67  
Specialty Chemicals                                            
Flexitallic Group SAS                                            
First Lien Secured Term Loan L+ 6.50%   7.57%   10/28/19   10/29/26     11,691       11,425       10,756     3.58  
  (1.00% Floor)                                          
Specialized Finance                                            
Golden Pear Funding Assetco, LLC(5)                                            
Second Lien Secured Term Loan L+ 10.50%   11.50%   09/20/18   03/20/24     17,500       17,263       17,468     5.82  
  (1.00% Floor)                                          
Oasis Legal Finance, LLC(5)                                            
Second Lien Secured Term Loan L+ 10.75%   11.75%   09/09/16   03/09/22     12,500       12,423       12,500     4.16  
  (1.00% Floor)                                          
WHF STRS Ohio Senior Loan Fund LLC                                            
Subordinated Note(4)(5)(7)(9)(14) L+ 6.50%   6.68%   07/19/19   N/A     41,073       41,073       41,073     13.68  
                                             
                    71,073       70,759       71,041     23.66  
Systems Software                                            
Vero Parent, Inc.                                            
First Lien Secured Term Loan L+ 6.00%   7.00%   11/06/19   08/16/24     16,469       15,010       15,971     5.32  
  (1.00% Floor)                                          
                                             
Technology Hardware, Storage & Peripherals                                            
Source Code Midco, LLC                                            
First Lien Secured Term Loan L+ 8.25%   9.25%   05/04/18   05/04/23     22,944       22,568       22,675     7.55  
  (1.00% Floor)                                          
                                             
Trading Companies & Distributors                                            
Vessco Holdings, LLC                                            
First Lien Secured Term Loan L+ 7.25%   8.75%   08/22/19   08/22/24     8,891       8,744       8,778     2.92  
  (1.50% Floor)                                          
                                             
Total Debt Investments                   566,646       537,793       524,762     174.80  
                                             
                                             
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     149       -       61     0.02  
                                             
Health Care Services                                            
Lab Logistics Preferred Units (4) N/A   N/A   10/29/19   N/A     2       857     844     0.28  
PMA Holdco, LLC Warrants(4) N/A   N/A   06/28/18   06/28/28     8       -       503     0.17  
                    10       857       1,347     0.45  
Leisure Facilities                                            
 Lift Brands, Inc. Class A Common Stock (4) N/A   N/A   06/29/20   N/A     2       1,955       282     0.09  
 Lift Brands, 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       3,499     1.17  
                    165       2,890       3,499     1.17  
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       8,521     2.84  
                                             
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       7,789     2.59  
                    20,268       20,297       16,310     5.43  
Trading Companies & Distributors                                            
Vessco Holdings, LLC Units(4) N/A   N/A   08/22/19   N/A     506       860       993     0.33  
                                             
Trucking                                            
Europcar Mobility Group Earnout (4)(5) N/A   N/A   10/31/19   12/31/22     -       -       29     0.01  
                                             
Total Equity Investments                   21,418       27,969       22,635     7.54  
                                             
Total Investments                   588,064     $ 565,762     $ 547,397     182.34 %

 

 

 

 

A summary of outstanding financial instruments at June 30, 2020 is as follows:

 

Forward Currency Contracts

 

    Currency to be   Currency to be       Unrealized     Unrealized  
Counterparty   sold   purchased   Settlement date   appreciation ($)     depreciation ($)  
Morgan Stanley   C$ 1,999 CAD   $ 1,468 USD   09/30/2020   $ -     $ (3 )
                $ -     $ (3 )

 

 

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

June 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 0.2%, 0.3% and 0.4%, respectively, as of June 30, 2020. The Prime was 3.3% as of June 30, 2020. The CDOR was 0.6% as of June 30, 2020.

 

(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 82% 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 June 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 182% of the Company’s net assets or 95% 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 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 (as described in Note 4 hereto) 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 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 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 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.

 

 

 

 

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

 

Source: WhiteHorse Finance, Inc.

 

 

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Screenshot of actual balance sheet from company 10-K Annual Report
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Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
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Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

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Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
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Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

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Financial Ratios
Available Financial Ratios
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