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WhiteHorse Finance, Inc. Announces First Quarter 2019 Earnings Results

NEW YORK, May 8, 2019 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (WHF) today announced its financial results for the quarter ended March 31, 2019.

First Quarter 2019 Summary Highlights

  • Net Asset Value of $315.0 million, or $15.33 per share
  • New investments of $32.3 million
  • Net investment income of $7.6 million, or $0.370 per share
  • Core net investment income of $7.5 million, or $0.365 per share(1)
  • First quarter distribution of $0.355 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 (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, "Our transaction activity during the seasonally slow first quarter validates the competitive advantage of our three-tiered sourcing architecture, allowing us to remain disciplined in our sourcing and capital deployment while preserving our pipeline and keeping NAV stable. During the quarter we increased our allocation to first-lien senior-secured loans to comprise 80 percent of our portfolio, and we'll continue pursuing opportunities in less competitive areas of the lower middle market at our traditional leverage levels, which we believe drives our ultimate goal of enhancing shareholder value."

Portfolio and Investment Activity

As of March 31, 2019, the fair value of WhiteHorse Finance's investment portfolio was $468.4 million, compared with $469.6 million as of December 31, 2018. The portfolio at March 31, 2019 consisted of 56 positions across 41 companies with an average debt investment size of $9.5 million and a weighted average effective yield of 11.7% on debt investments. The majority of the portfolio was comprised of senior secured loans, and these loans were substantially all variable-rate investments (primarily indexed to LIBOR), which should continue to position the portfolio well for a potential stable interest rate environment.

During the three months ended March 31, 2019, WhiteHorse Finance made investments in four new portfolio companies totaling $32.3 million. Also, the Company added $2.9 million to an existing portfolio company, exclusive of refinancing. Gross proceeds from sales and repayments totaled approximately $38.5 million for the quarter, driven by the full repayment of Caelus Energy Alaska O3, LLC of $17.3 million and the sale of the Company's remaining position in Outcome Health for $5.5 million. In addition, WhiteHorse Finance refinanced its $17.1 million first lien investment to JVMC Holdings Corp., increasing its position by adding a net $0.1 million. The Company remained highly selective in deploying new investments.

Results of Operations

For the three months ended March 31, 2019, net investment income was approximately $7.6 million, compared with approximately $8.6 million for the same period in the prior year, representing a decrease of approximately 11.6%. The decrease in net investment income for the year-over-year period was primarily attributable to an increase in interest expense and a decrease in fee income. The decrease in fee income was attributable to a significantly higher amount of non-recurring fee income earned in the three months ended March 31, 2018 from prepayments on several of the Company's investments.

For the three months ended March 31, 2019, WhiteHorse Finance reported a net realized and unrealized losses on investments of $0.6 million. This is comprised of net realized losses of $2.0 million and net unrealized gains on investments of $1.4 million. This compares with net realized and unrealized gains on investments of $5.3 million for the three months ended March 31, 2018. The decrease in net realized and unrealized gains on investments for the year-over-year period was primarily attributable to a realized loss of approximately $2.1 million generated on the sale of Outcome Health in current quarter and the prior year mark-up of the Company's equity investment in Aretec Group, Inc. (which was sold in the fourth quarter of 2018).

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $7.0 million for the three months ended March 31, 2019, which compares with a net increase of $13.9 million for the three months ended March 31, 2018.

WhiteHorse Finance's NAV was $315.0 million, or $15.33 per share, as of March 31, 2019, as compared with $315.3 million, or $15.35 per share, as of December 31, 2018.

Liquidity and Capital Resources

As of March 31, 2019, WhiteHorse Finance had cash and cash equivalents of $36.9 million, as compared with $33.7 million as of December 31, 2018, inclusive of restricted cash.  As of March 31, 2019, the Company also had $85.0 million of undrawn capacity under its revolving credit facility.

Distributions

On March 15, 2019, the Company declared a distribution of $0.355 per share for the quarter ended March 31, 2019, consistent for the twenty-sixth consecutive quarter since the Company's IPO. The distribution was paid on April 3, 2019 to shareholders of record as of March 26, 2019.

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 first quarter results at 9:30 a.m. ET on Wednesday, May 8, 2019. 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 # 2548319. 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 May 15, 2019. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID # 2548319. 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 $30 billion of capital under management(2) 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.

 (2) 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 and other income taxes related to net realized gains and losses for the quarter ended March 31, 2018. Additionally, the Company did not refinance any of its indebtedness nor did the Company recognize any capital gains incentive fees for the quarter ended March 31, 2018.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2019 and March 31, 2018 (in thousands, except per share data):

 



March 31, 2019



March 31, 2018




Amount



 Per Share
Amounts



Amount



 Per Share
Amounts


Net investment income


$

7,611



$

0.370



$

8,578



$

0.418


Net impact of costs associated with refinancing of indebtedness



-




-




-




-


Accrual for capital gains incentive fee



(121)




(0.005)




-




-


Net impact of excise tax expense related to net realized gains and losses



-




-




-




-


Core net investment income


$

7,490



$

0.365



$

8,578



$

0.418


 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)




March 31, 2019



December 31, 2018




(Unaudited)





Assets









Investments, at fair value









  Non-controlled/non-affiliate company investments


$

458,795



$

459,399


  Non-controlled affiliate company investments



9,590




10,165


Total investments, at fair value (amortized cost $475,248 and $477,839,
 respectively)



468,385




469,564


Cash and cash equivalents



30,707




24,148


Restricted cash and cash equivalents



6,186




9,584


Interest receivable



6,833




4,616


Receivables from investments sold



8,818




5,608


Prepaid expenses and other receivables



583




575


Total assets


$

521,512



$

514,095











Liabilities









Debt


$

176,197



$

175,953


Management and incentive fees payable



15,356




11,193


Distributions payable



7,294




7,294


Payables for investments purchased



5,093




445


Accounts payable and accrued expenses



1,518




2,322


Interest payable



983




1,562


Advances received from unfunded credit facilities



64




30


Total liabilities



206,505




198,799











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



301,557




301,557


Accumulated undistributed earnings



13,429




13,718


Total net assets



315,007




315,296


Total liabilities and total net assets


$

521,512



$

514,095











Number of shares outstanding



20,546,032




20,546,032


Net asset value per share


$

15.33



$

15.35


 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)




Three months ended March 31,




2019



2018


Investment income









From non-controlled/non-affiliate company investments









  Interest income


$

14,492



$

13,763


  Fee income



1,157




2,192


From non-controlled affiliate company investments









  Dividend income



275




650


Total investment income



15,924




16,605











Expenses









Interest expense



3,073




2,565


Base management fees



2,589




2,445


Performance-based incentive fees



1,751




2,144


Administrative service fees



158




175


General and administrative expenses



682




698


Total expenses, before fees waived



8,253




8,027


Base management fee waived



(177)




-


Total expenses, net of fees waived



8,076




8,027


Net investment income before excise tax



7,848




8,578


  Excise tax



237




-


Net investment income after excise tax



7,611




8,578











Realized and unrealized gains (losses) on investments









Net realized losses









  Non-controlled/non-affiliate company investments



(2,018)




-


  Net realized losses



(2,018)




-


Net change in unrealized appreciation (depreciation)









  Non-controlled/non-affiliate company investments



1,988




(2,911)


  Non-controlled affiliate company investments



(576)




8,186


  Net change in unrealized appreciation



1,412




5,275


Net realized and unrealized losses on investments



(606)




5,275


Net increase in net assets resulting from operations


$

7,005



$

13,853











Per Common Share Data









Basic and diluted earnings per common share


$

0.34



$

0.68


Dividends and distributions declared per common share


$

0.36



$

0.36


Basic and diluted weighted average common shares outstanding



20,546,032




20,531,948


 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2019

(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%


9.50%


03/26/18


03/27/23



10,615



$

10,615



$

10,615




3.37

%



(0.50%
Floor)























Air Freight & Logistics

























Access USA Shipping, LLC

























First Lien Secured Term Loan


L+ 8.00%


10.50%


02/08/19


02/08/24



5,833




5,748




5,742




1.82




(1.50%
Floor)























Automotive Retail

























Team Car Care Holdings, LLC

























First Lien Secured Term Loan(12)


base rate+
7.99%


10.51%


02/26/18


02/23/23



17,068




16,768




16,727




5.31




(1.00%
Floor)























Broadcasting

























Alpha Media, LLC

























First Lien Secured Term Loan


L+ 6.25%


8.83%


08/14/18


02/25/22



5,901




5,735




5,889




1.87




(1.00%
Floor)























Multicultural Radio Broadcasting, Inc.

























First Lien Secured Term Loan


L+ 8.00%


10.50%


12/28/17


12/28/22



17,412




17,151




17,272




5.48




(1.00%
Floor)























Rural Media Group, Inc.

























First Lien Secured Term Loan


L+ 7.86%


10.60%


12/29/17


12/29/22



6,955




6,851




6,847




2.17




(1.00%
Floor)


































30,268




29,737




30,008




9.52


Cable & Satellite

























Bulk Midco, LLC

























First Lien Secured Term Loan


L+ 7.33%


9.93%


06/08/18


06/08/23



15,000




14,811




14,700




4.67




(1.00%
Floor)























Communications Equipment

























Sorenson Communications, LLC

























First Lien Secured Term Loan


L+ 6.50%


9.05%


03/15/19


03/15/24



5,250




5,093




5,092




1.62




















































Data Processing & Outsourced Services

























FPT Operating Company, LLC/

























TLabs Operating Company, LLC

























First Lien Secured Term Loan


L+ 8.25%


10.74%


12/23/16


12/23/21



25,229




24,957




24,548




7.79




(1.00%
Floor)























Department Stores

























Mills Fleet Farm Group, LLC

























First Lien Secured Term Loan


L+ 6.25%


8.75%


10/24/18


10/24/24



14,963




14,684




14,670




4.66




(1.00%
Floor)























Distributors

























Crown Brands, LLC

























First Lien Secured Term Loan


L+ 8.00%


10.50%


01/28/19


01/25/24



5,950




5,806




5,807




1.84




(1.50%
Floor)























First Lien Secured Delayed Draw Loan(7)


L+ 8.00%


10.50%


01/28/19


01/25/24



-




-




-




-




(1.50%
Floor)


































5,950




5,806




5,807




2


Diversified Support Services

























Account Control Technology Holdings, Inc.

























First Lien Secured Term Loan


L+ 8.75%


11.49%


04/28/17


04/28/22



622




610




622




0.20




(1.00%
Floor)























ImageOne Industries, LLC

























First Lien Secured Term Loan


L+ 10.00%


12.50%


01/11/18


01/11/23



7,204




7,038




6,988




2.22




(1.00%
Floor)


(2.00%
PIK)





















NNA Services, LLC

























First Lien Secured Term Loan


L+ 7.00%


9.60%


10/16/18


10/16/23



10,369




10,180




10,138




3.22




(1.00%
Floor)























Quest Events, LLC

























First Lien Secured Term Loan


L+ 6.00%


8.60%


12/28/18


12/28/24



10,915




10,706




10,697




3.40




(1.00%
Floor)























First Lien Secured Revolving Loan(7)


L+ 6.00%


8.60%


12/28/18


12/28/24



-




-




-




-




(1.00%
Floor)


































29,110




28,534




28,445




9.04


 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

March 31, 2019

(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


Food Retail

























AG Kings Holdings, Inc.

























First Lien Secured Term Loan


L+ 11.95%


14.55%


08/10/16


08/10/21



13,046



$

12,780



$

11,089




3.52

%



(1.00%
Floor)


(2.00%
PIK)





















Crews of California, Inc.

























First Lien Secured Term Loan


L+ 11.00%


13.48%


11/20/14


11/20/19



10,101




10,077




10,000




3.17




(1.00%
Floor)


(1.00%
PIK)





















First Lien Secured Revolving Loan


L+ 11.00%


13.48%


06/05/15


11/20/19



5,185




5,168




5,133




1.63




(1.00%
Floor)


(1.00%
PIK)





















First Lien Secured Delayed Draw Loan


L+ 11.00%


13.48%


03/27/15


11/20/19



2,901




2,892




2,872




0.91




(1.00%
Floor)


(1.00%
PIK)
































31,233




30,917




29,094




9.23


Health Care Facilities

























Grupo HIMA San Pablo, Inc.

























First Lien Secured Term Loan


L+ 9.00%


11.75%


04/01/18


05/31/19



13,881




13,881




12,215




3.88




(1.50%
Floor)























Second Lien Secured Term Loan(8)


N/A


15.75%


02/01/13


07/31/18



1,028




1,024




103




0.03






(2.00%
PIK)
































14,909




14,905




12,318




3.91


Health Care Services

























PMA Holdco, LLC

























First Lien Secured Term Loan


L+ 7.50%


10.10%


06/28/18


06/28/23



14,781




14,514




14,540




4.62




(1.00%
Floor)























Home Furnishings

























Sure Fit Home Products, LLC

























First Lien Secured Term Loan


L+ 9.50%


12.11%


10/26/18


07/13/22



5,460




5,363




5,371




1.71




(1.00%
Floor)























Human Resources & Employment Services

























Pluto Acquisition Topco, LLC

























First Lien Secured Term Loan


L+ 6.56%


9.30%


01/31/19


01/31/24



12,543




12,300




12,292




3.90




(1.00%
Floor)























Internet Retail

























Clarus Commerce, LLC

























First Lien Secured Term Loan


L+ 8.39%


10.89%


03/09/18


03/09/23



17,100




16,940




17,100




5.43




(1.00%
Floor)























Internet Services & Infrastructure

























London Trust Media Incorporated

























First Lien Secured Term Loan


L+ 8.00%


10.74%


02/01/18


02/01/23



10,781




10,657




10,707




3.40




(1.00%
Floor)























StackPath, LLC & Highwinds Capital, Inc.

























Second Lien Secured Term Loan


L+ 9.50%


12.33%


02/03/17


02/02/24



18,567




18,256




15,218




4.83




(1.00%
Floor)


(12.33%
PIK)
































29,348




28,913




25,925




8.23


Investment Banking & Brokerage

























Arcole Acquisition Corp(5)

























First Lien Secured Term Loan A


L+ 7.25%


9.88%


11/29/18


11/30/23



7,493




7,364




7,380




2.34




(1.00%
Floor)























First Lien Secured Term Loan B


L+ 14.50%


17.13%


11/29/18


11/30/23



1,854




1,822




1,826




0.58




(1.00%
Floor)


(1.50%
PIK)





















JVMC Holdings Corp.

























First Lien Secured Term Loan


L+ 6.50%


9.00%


02/28/19


02/28/24



17,378




17,207




17,211




5.46




(1.00%
Floor)























First Lien Secured Delayed Draw Loan(7)


L+ 6.50%


9.00%


02/28/19


02/28/24



-




-




-




-




 (1.00%
Floor)


































26,725




26,393




26,417




8.38


IT Consulting & Other Services

























AST-Applications Software Technology LLC

























First Lien Secured Term Loan


L+ 8.00%


10.50%


01/10/17


01/10/23



4,225




4,163




4,098




1.30




(1.00%
Floor)


(1.00%
PIK)





















Leisure Facilities

























Planet Fit Indy 10 LLC

























First Lien Incremental Term Loan


L+ 7.25%


9.86%


11/30/17


03/07/22



12,890




12,673




12,822




4.07




(1.00%
Floor)























First Lien Initial Delayed Draw Loan


L+ 7.25%


9.96%


11/30/17


03/07/22



6,167




6,149




6,134




1.95




(1.00%
Floor)























First Lien Initial Term Loan


L+ 7.25%


9.86%


11/30/17


03/07/22



130




129




129




0.04




(1.00%
Floor)























Lift Brands, Inc.

























First Lien Secured Term Loan


L+ 7.00%


9.60%


04/16/18


04/16/23



10,831




10,647




10,523




3.34




(1.00%
Floor)























First Lien Secured Revolving Loan(7)


P+ 6.00%


11.50%


04/16/18


04/16/23



203




200




191




0.06




(1.00%
Floor)























Honors Holdings, LLC

























First Lien Secured Term Loan


L+ 8.80%


11.45%


07/17/18


07/17/23



7,500




7,403




7,355




2.33




(0.00%
Floor)


































37,721




37,201




37,154




11.79


Other Diversified Financial Services

























Sigue Corporation(4)

























Second Lien Secured Term Loan


L+ 12.00%


14.60%


12/27/13


09/30/19



24,904




24,905




24,358




7.73




(1.00%
Floor)























 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

March 31, 2019

(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


Packaged Foods & Meats

























Lenny & Larry's, LLC

























First Lien Secured Term Loan


L+ 8.02%


10.50%


05/15/18


05/15/23



12,327



$

12,124



$

11,957




3.80

%



(1.00%
Floor)


(1.19%
PIK)





















Research & Consulting Services

























Nelson Worldwide, LLC

























First Lien Secured Term Loan


L+ 8.75%


11.55%


01/09/18


01/09/23



13,869




13,607




13,481




4.28




(1.00%
Floor)























Restaurants

























LS GFG Holdings Inc.

























First Lien Secured Term Loan


L+ 6.00%


8.48%


11/30/18


11/19/25



10,314




10,019




9,994




3.17




 (0.00%
Floor)























Specialized Finance

























Golden Pear Funding Assetco, LLC(5)

























Second Lien Secured Term Loan


L+ 10.50%


12.99%


09/20/18


03/20/24



17,500




17,183




17,150




5.44




(1.00%
Floor)























Oasis Legal Finance, LLC(5)

























Second Lien Secured Term Loan


L+ 10.75%


13.24%


09/09/16


03/09/22



20,000




19,786




20,000




6.35




(1.00%
Floor)


































37,500




36,969




37,150




11.79


Technology Hardware, Storage & Peripherals

























Source Code Midco, LLC

























First Lien Secured Term Loan


L+ 8.25%


10.99%


05/04/18


05/04/23



14,000




13,713




13,720




4.36




(1.00%
Floor)























Trucking

























Sunteck / TTS Holdings, LLC

























Second Lien Secured Term Loan


L+ 9.00%


11.61%


12/15/16


06/15/22



3,500




3,464




3,500




1.11




(1.00%
Floor)























Total Debt Investments











469,745




463,163




454,823




144.38




















































Equity Investments

























Advertising

























Fluent, Inc.(4)(9)


N/A


N/A


11/28/17


N/A



187



$

560



$

1,021




0.32

%


























Diversified Support Services

























Quest Events, LLC

























Preferred Units(4)


N/A


N/A


12/28/18


12/08/25



317




317




317




0.10



























Food Retail

























Crews of California, Inc. Warrants (4)


N/A


N/A


11/20/14


12/31/24



-




-




6




-


Nicholas & Associates, LLC Warrants(4)


N/A


N/A


11/20/14


12/31/24



2




-




131




0.04


Pinnacle Management Group, LLC Warrants(4)


N/A


N/A


11/20/14


12/31/24



2




-




131




0.04


RC3 Enterprises, LLC Warrants(4)


N/A


N/A


11/20/14


12/31/24



2




-




131




0.04













6




-




399




0.12



























Health Care Services

























PMA Holdco, LLC Warrants(4)


N/A


N/A


06/28/18


06/28/28



8




-




441




0.14



























Other Diversified Financial Services

























RCS Creditor Trust Class B Units(4)(6)


N/A


N/A


10/01/17


N/A



143




-




6




-



























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



10




1,179




1,594




0.51













153




1,179




1,600




0.51


Specialized Finance

























NMFC Senior Loan Program I LLC Units (4)(5)(6)


N/A


N/A


08/13/14


08/31/21



10,000




10,029




9,584




3.04



























Trucking

























Fox Rent A Car, Inc. Warrants(4)


N/A


N/A


10/26/16


12/31/22



-




-




200




0.06



























Total Equity Investments











10,671




12,085




13,562




4.29



























Total Investments











480,416



$

475,248



$

468,385




148.67

%

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

March 31, 2019

(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, or the U.S. Prime Rate as published by the Wall Street Journal ("Prime" or "P"). The one, three and six-month LIBOR were 2.5%, 2.6% and 2.7%, respectively, as of March 31, 2019. The Prime was 5.5% as of March 31, 2019.



(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 89%, 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 March 31, 2019.



(8)

The investment is on non-accrual status.



(9)

The fair value of the investment was determined using observable inputs. There are no legal restrictions on sales of the investment.



(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 148% of the Company's net assets or 90% of the Company's total assets, are subject to legal restrictions on sales.



(11)

Except as otherwise noted, 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.

 

Cision

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