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WhiteHorse Finance, Inc. Announces Fourth Quarter and Full Year 2015 Earnings Results
NEW YORK, NY, March 3, 2016 – WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the "Company") (NASDAQ: WHF) today announced its financial results for the quarter and year ended December 31, 2015.
Fourth Quarter 2015 Summary Highlights
|·||New investments of $63.7 million and $140.4 million for the fourth quarter and year, respectively|
|·||Completed a public offering of subscription rights to purchase shares of common stock, which were fully exercised, resulting approximately $44.0 million of net proceeds|
|·||Refinanced the revolving credit facility, increasing the facility size from $150 million to $200 million and extending the reinvestment period by three years through 2018|
|·||Net investment income of $3.9 million, or $0.24 per share, for the fourth quarter|
|·||Net credit facility refinancing costs of $1.8 million, or $0.11 per share|
|·||Core net investment income of $5.7 million, or $0.35 per share, for the fourth quarter(1)|
|·||Annual core net investment income of $1.48 per share(1)|
|·||Annual distributions of $1.42 per share|
(1) 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 the net impact of costs associated with the refinancing of the Company’s revolving credit facility. 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.
Jay Carvell, WhiteHorse Finance’s Chief Executive Officer commented, “We are pleased to report strong core earnings for the quarter. Our affiliation with H.I.G. Capital remains strong, and we are pleased with the forward pipeline. We continue to source attractive investments and believe opportunities in the credit markets will allow us to continue to execute on our origination strategy."
Portfolio and Investment Activity
As of December 31, 2015, the fair value of WhiteHorse Finance’s investment portfolio was $415.3 million, compared with $403.5 million as of December 31, 2014. The portfolio at December 31, 2015 consisted of 35 positions across 29 companies with an average investment size of $11.5 million and a weighted average effective yield of 11.8 % on income producing investments. The majority of the portfolio was comprised of senior secured loans and more than 97.0% of these loans were variable-rate investments (primarily indexed to LIBOR), which should continue to position the portfolio well for a potential rising interest rate environment.
For the three months ended December 31, 2015, WhiteHorse Finance invested $63.7 million across five portfolio companies. Gross proceeds from sales and repayments totaled $6.4 million for the quarter.
For the year ended December 31, 2015, WhiteHorse Finance invested $140.4 million across twelve portfolio companies. Gross proceeds from sales and repayments totaled $107.7 million for the year.
Results of Operations
For the three months and year ended December 31, 2015, net investment income was $3.9 million and $20.8 million, compared with $5.0 million and $17.0 million for the same periods in the prior year. For the three months and year ended December 31, 2015, core net investment income, a non-GAAP financial measure, was $5.7 million and $22.6 million, compared with $5.0 million and $17.0 million for the same periods in the prior year. The increase in core net investment income was primarily attributable to increases in the average earning investment balance and the weighted average effective yield over the same periods in the prior year.
The following information was filed by Whitehorse Finance, Inc. (WHF) on Thursday, March 3, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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