Exhibit 99.1
WhiteHorse Finance, Inc. Announces First Quarter 2020 Earnings Results
NEW YORK, NY, May 11, 2020 – WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (Nasdaq: WHF) today announced its financial results for the quarter ended March 31, 2020.
First Quarter 2020 Summary Highlights
| · | Net Asset Value of $284.7 million, or $13.86 per share |
| · | Investment portfolio(1) totaling $557.1 million |
| · | STRS JV investment portfolio totaling $123.0 million |
| · | Gross investment additions(2) of $26.8 million, including new originations of $26.1 million and $0.7 million of fundings for add-ons to existing investments |
| · | Net investment income of $6.1 million, or $0.297 per share |
| · | Core net investment income of $5.5 million, or $0.267 per share(3) |
| · | First 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 $42.1 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, “The COVID-19 pandemic drove a correction within the debt markets that saw lower debt levels, tighter deal terms, and increased pricing. As a result, we are taking a very conservative view towards adding new assets, having originated 4 first lien loans during the quarter. Our liquidity position remains strong, and we have been working hand in hand to support our borrowers through this difficult time. Over the years we’ve taken deliberate action to build our portfolio upon rigorous underwriting, diversification in our underwriting strategy, a focus on first lien credits, selective sourcing that avoids aggressive credit terms, a focus on the lower middle market, and diligent management of our liquidity position. We are confident that staying true to these longstanding principles has prepared us to navigate the current volatility and deliver for our stakeholders.”
Portfolio and Investment Activity
As of March 31, 2020, the fair value of WhiteHorse Finance’s investment portfolio was $557.1 million, compared with $589.7 million as of December 31, 2019. The portfolio at March 31, 2020 consisted of 65 positions across 52 companies with a weighted average effective yield of 9.9% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV) was $9.3 million with the overall portfolio comprised of approximately 80% first lien secured loans, 10% second lien secured loans, 2% equity and 8% in investments in STRS JV. All loans were substantially variable-rate investments (primarily indexed to LIBOR), with nearly all performing floating rate investments having interest rate floors.
WhiteHorse Finance made investments in four new portfolio companies totaling $26.1 million. Also, the Company added $0.7 million to an existing portfolio company. Proceeds from sales and repayments, including $0.1 million of net repayments on revolvers, totaled approximately $16.9 million for the quarter, driven by a partial paydowns from Oasis Legal Finance, LLC of $7.5 million.
In addition to the transactions above, during the three months ended March 31, 2020, WhiteHorse Finance transferred assets to the STRS JV totaling $28.5 million in exchange for a net investment in STRS JV of $12.7 million as well as cash proceeds of $15.8 million.
WHF STRS Ohio Senior Loan Fund LLC
As of March 31, 2020, STRS JV’s portfolio totaled $123.0 million, consisted of 14 portfolio companies and had a weighted average effective yield of 7.8% on its portfolio.
Results of Operations
For the three months ended March 31, 2020, net investment income was approximately $6.1 million, compared with approximately $7.6 million for the same period in the prior year, representing a decrease of approximately 19.8%. The decrease in net investment income for the year-over-year period is primarily attributable to lower non-recurring fee and accelerated interest accretion income in the current quarter as well as an increase in interest expense and management fees recognized for the quarter ended March 31, 2020. The decrease in fee and accretion income as compared to the prior year is a result of a reduced level of prepayment activity as well as lower volume in nonrecurring, fee-generating events in the quarter ended March 31, 2020 as compared to the same period in the prior year. The increase in interest expense was driven by higher borrowing balances and the increase in management fees was due to an increase in the average gross assets for the first quarter 2020.
For the three months ended March 31, 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 $5.5 million, compared with $7.5 million for the same period in the prior year, representing a decrease of approximately 26.9%.
For the three months ended March 31, 2020, WhiteHorse Finance reported a net realized and unrealized loss on investments and foreign currency transactions of $27.1 million. This compares with a net realized and unrealized loss on investments and foreign currency transactions of $0.6 million for the three months ended March 31, 2019. The decrease in the year-over-year period was primarily attributable to markdowns in the portfolio as a result of market disruptions caused by the COVID-19 pandemic in the quarter ended March 31, 2020.
WhiteHorse Finance reported a net decrease in net assets resulting from operations of approximately $21.0 million for the three months ended March 31, 2020, which compares with a net increase of $7.0 million for the three months ended March 31, 2019.
WhiteHorse Finance’s NAV was $284.7 million, or $13.86 per share, as of March 31, 2020, as compared with $313.0 million, or $15.23 per share, as of December 31, 2019.
Liquidity and Capital Resources
As of March 31, 2020, WhiteHorse Finance had cash and cash equivalents of $28.1 million, as compared with $27.5 million as of December 31, 2019, inclusive of restricted cash. As of March 31, 2020, the Company also had $19.1 million of undrawn capacity under its revolving credit facility.
Distributions
On March 17, 2020, the Company declared a distribution of $0.355 per share for the quarter ended March 31, 2020, consistent for the thirtieth consecutive quarter since the Company’s IPO. The distribution was paid on April 3, 2020 to shareholders of record as of March 27, 2020.
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 2:30 p.m. ET on Monday, May 11, 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 # 5258636. Investors may also access the call on the investor relations portion of the Company’s website atwww.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 18, 2020. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #5258636. A webcast replay will also be available on the investor relations portion of the Company’s website atwww.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 $37 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 March 31, 2020 and March 31, 2019.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2020 and March 31, 2019 (in thousands, except per share data):
| | | March 31, 2020 | | | March 31, 2019 | |
| | | Amount | | | Per Share
Amounts | | | Amount | | | Per Share
Amounts | |
| Net investment income | | $ | 6,102 | | | $ | 0.297 | | | $ | 7,611 | | | $ | 0.370 | |
| Net impact of costs associated with refinancing of indebtedness | | | - | | | | - | | | | - | | | | - | |
| Accrual for capital gains incentive fee | | | (626 | ) | | | (0.030 | ) | | | (121 | ) | | | (0.005 | ) |
| Net impact of excise tax expense related to net realized gains and losses | | | - | | | | - | | | | - | | | | - | |
| Core net investment income | | $ | 5,476 | | | $ | 0.267 | | | $ | 7,490 | | | $ | 0.365 | |
| | | | | | | | | | | | | | | | | |
WhiteHorse Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
| | | March 31, 2020 | | | December 31, 2019 | |
| | | (Unaudited) | | | | |
| Assets | | | | | | | | |
| Investments, at fair value | | | | | | | | |
| Non-controlled/non-affiliate company investments | | $ | 507,384 | | | $ | 546,744 | |
| Non-controlled affiliate company investments | | | 7,650 | | | | 9,651 | |
| Controlled affiliate company investments | | | 42,081 | | | | 33,293 | |
| Total investments, at fair value (amortized cost $593,304 and $597,725, respectively) | | | 557,115 | | | | 589,688 | |
| Cash and cash equivalents | | | 16,452 | | | | 4,294 | |
| Restricted cash and cash equivalents | | | 11,497 | | | | 23,252 | |
| Restricted foreign currency (cost of $123) | | | 116 | | | | — | |
| Interest and dividend receivable | | | 6,340 | | | | 6,010 | |
| Amounts receivable on unsettled investment transactions | | | 74 | | | | 360 | |
| Prepaid expenses and other receivables | | | 354 | | | | 7,620 | |
| Total assets | | $ | 591,948 | | | $ | 631,224 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Debt | | $ | 291,129 | | | $ | 298,924 | |
| Distributions payable | | | 7,294 | | | | 7,294 | |
| Management and incentive fees payable | | | 6,191 | | | | 8,290 | |
| Interest payable | | | 1,127 | | | | 1,674 | |
| Accounts payable and accrued expenses | | | 1,340 | | | | 1,944 | |
| Amounts payable on unsettled investment transactions | | | 28 | | | | — | |
| Unrealized depreciation on foreign currency forward contracts | | | 1 | | | | — | |
| Advances received from unfunded credit facilities | | | 133 | | | | 143 | |
| Total liabilities | | | 307,243 | | | | 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) | | | (16,060 | ) | | | 12,190 | |
| Total net assets | | | 284,705 | | | | 312,955 | |
| Total liabilities and total net assets | | $ | 591,948 | | | $ | 631,224 | |
| | | | | | | | | |
| Number of shares outstanding | | | 20,546,032 | | | | 20,546,032 | |
| Net asset value per share | | $ | 13.86 | | | $ | 15.23 | |
WhiteHorse Finance, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
| | | Three months ended March 31, | |
| | | 2020 | | | 2019 | |
| Investment income | | | | | | | | |
| From non-controlled/non-affiliate company investments | | | | | | | | |
| Interest income | | $ | 13,140 | | | $ | 14,492 | |
| Fee income | | | 291 | | | | 1,157 | |
| Dividend income | | | 49 | | | | — | |
| From non-controlled affiliate company investments | | | | | | | | |
| Dividend income | | | 275 | | | | 275 | |
| From controlled affiliate company investments | | | | | | | | |
| Interest income | | | 625 | | | | — | |
| Dividend income | | | 153 | | | | — | |
| Total investment income | | | 14,533 | | | | 15,924 | |
| | | | | | | | | |
| Expenses | | | | | | | | |
| Interest expense | | | 3,668 | | | | 3,073 | |
| Base management fees | | | 3,092 | | | | 2,589 | |
| Performance-based incentive fees | | | 441 | | | | 1,751 | |
| Administrative service fees | | | 171 | | | | 158 | |
| General and administrative expenses | | | 881 | | | | 682 | |
| Total expenses, before fees waived | | | 8,253 | | | | 8,253 | |
| Base management fee waived | | | — | | | | (177 | ) |
| Total expenses, net of fees waived | | | 8,253 | | | | 8,076 | |
| Net investment income before excise tax | | | 6,280 | | | | 7,848 | |
| Excise tax | | | 178 | | | | 237 | |
| Net investment income after excise tax | | | 6,102 | | | | 7,611 | |
| | | | | | | | | |
| Realized and unrealized gains (losses) on investments and foreign currency transactions | | | | | | | | |
| Net realized gains (losses) | | | | | | | | |
| Non-controlled/non-affiliate company investments | | | 510 | | | | (2,018 | ) |
| Non-controlled affiliate company investments | | | — | | | | — | |
| Foreign currency transactions | | | (3 | ) | | | — | |
| Foreign currency forward contracts | | | 6 | | | | — | |
| Net realized gains (losses) | | | 513 | | | | (2,018 | ) |
| Net change in unrealized appreciation (depreciation) | | | | | | | | |
| Non-controlled/non-affiliate company investments | | | (22,196 | ) | | | 1,988 | |
| Non-controlled affiliate company investments | | | (2,001 | ) | | | (576 | ) |
| Controlled affiliate company investments | | | (3,953 | ) | | | — | |
| Translation of assets and liabilities in foreign currencies | | | 580 | | | | | |
| Foreign currency forward contracts | | | (1 | ) | | | — | |
| Net change in unrealized appreciation (depreciation) | | | (27,571 | ) | | | 1,412 | |
| Net realized and unrealized losses on investments | | | (27,058 | ) | | | (606 | ) |
| Net increase (decrease) in net assets resulting from operations | | $ | (20,956 | ) | | $ | 7,005 | |
| | | | | | | | | |
| Per Common Share Data | | | | | | | | |
| Basic and diluted earnings (loss) per common share | | $ | (1.01 | ) | | $ | 0.34 | |
| Dividends and distributions declared per common share | | $ | 0.36 | | | $ | 0.36 | |
| Basic and diluted weighted average common shares outstanding | | | 20,546,032 | | | | 20,546,032 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
March 31, 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% | | 7.99% | | 03/26/18 | | 03/27/23 | | | 8,801 | | | $ | 8,801 | | | $ | 8,713 | | | | 3.06 | % |
| | | (0.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Agricultural & Farm Machinery | | | | | | | | | | | | | | | | | | | | | | | | |
| Bad Boy Mowers Acquisition, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 5.75% | | 6.75% | | 12/19/19 | | 12/06/25 | | | 10,359 | | | | 10,061 | | | | 9,530 | | | | 3.35 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Air Freight & Logistics | | | | | | | | | | | | | | | | | | | | | | | | |
| Access USA Shipping, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 8.00% | | 9.00% | | 02/08/19 | | 02/08/24 | | | 5,578 | | | | 5,514 | | | | 5,467 | | | | 1.92 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Application Software | | | | | | | | | | | | | | | | | | | | | | | | |
| Newscycle Solutions, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.00% | | 8.45% | | 06/14/19 | | 12/29/22 | | | 5,195 | | | | 5,115 | | | | 4,832 | | | | 1.70 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Revolving Loan | | L+ 7.00% | | 8.34% | | 06/14/19 | | 12/29/22 | | | 301 | | | | 298 | | | | 280 | | | | 0.10 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 5,496 | | | | 5,413 | | | | 5,112 | | | | 1.80 | |
| Automotive Retail | | | | | | | | | | | | | | | | | | | | | | | | |
| Team Car Care Holdings, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan(12) | | base rate+ 7.99% | | 9.88% | | 02/26/18 | | 02/23/23 | | | 16,607 | | | | 16,390 | | | | 15,942 | | | | 5.60 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| BW Gas & Convenience Holdings, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.25% | | 7.18% | | 11/15/19 | | 11/18/24 | | | 8,394 | | | | 8,079 | | | | 7,848 | | | | 2.76 | |
| | | (0.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 25,001 | | | | 24,469 | | | | 23,790 | | | | 8.36 | |
| Broadcasting | | | | | | | | | | | | | | | | | | | | | | | | |
| Alpha Media, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.00% | | 7.45% | | 08/14/18 | | 02/25/22 | | | 5,330 | | | | 5,237 | | | | 5,090 | | | | 1.79 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Rural Media Group, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.66% | | 9.44% | | 12/29/17 | | 12/29/22 | | | 7,133 | | | | 7,057 | | | | 6,741 | | | | 2.37 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 12,463 | | | | 12,294 | | | | 11,831 | | | | 4.16 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) - (continued)
March 31, 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 | |
| Cable & Satellite | | | | | | | | | | | | | | | | | | | | | | | | |
| Bulk Midco, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.27% | | 9.19% | | 06/08/18 | | 06/08/23 | | | 15,000 | | | $ | 14,857 | | | $ | 13,950 | | | | 4.90 | % |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Communications Equipment | | | | | | | | | | | | | | | | | | | | | | | | |
| Sorenson Communications, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.50% | | 7.95% | | 03/15/19 | | 04/29/24 | | | 4,744 | | | | 4,628 | | | | 4,489 | | | | 1.58 | |
| | | (0.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Data Processing & Outsourced Services | | | | | | | | | | | | | | | | | | | | | | | | |
| FPT Operating Company, LLC/ | | | | | | | | | | | | | | | | | | | | | | | | |
| TLabs Operating Company, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 8.25% | | 9.83% | | 12/23/16 | | 06/07/24 | | | 24,751 | | | | 24,542 | | | | 23,266 | | | | 8.17 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Geo Logic Systems Ltd.(5) | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan(13) | | C +6.25% | | 7.52% | | 12/19/19 | | 12/19/24 | | | 6,838 | | | | 5,115 | | | | 4,420 | | | | 1.55 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Revolving Loan(7)(13) | | C +6.25% | | 7.52% | | 12/19/19 | | 12/19/24 | | | - | | | | - | | | | (17 | ) | | | (0.01 | ) |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 31,589 | | | | 29,657 | | | | 27,669 | | | | 9.71 | |
| Department Stores | | | | | | | | | | | | | | | | | | | | | | | | |
| Mills Fleet Farm Group, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.25% | | 7.84% | | 10/24/18 | | 10/24/24 | | | 14,874 | | | | 14,582 | | | | 13,387 | | | | 4.70 | |
| | | (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 | | | | 5,617 | | | | 5,206 | | | | 1.83 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Loan(7) | | L+ 8.00% | | 9.50% | | 01/28/19 | | 01/25/24 | | | - | | | | - | | | | (61 | ) | | | (0.02 | ) |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 5,727 | | | | 5,617 | | | | 5,145 | | | | 1.81 | |
| Diversified Chemicals | | | | | | | | | | | | | | | | | | | | | | | | |
| Sklar Holdings, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.00% | | 9.00% | | 11/13/19 | | 05/13/23 | | | 8,903 | | | | 8,722 | | | | 8,547 | | | | 3.00 | |
| | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Loan(7) | | L+ 7.00% | | 9.00% | | 11/13/19 | | 05/13/20 | | | - | | | | - | | | | (61 | ) | | | (0.02 | ) |
| | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 8,903 | | | | 8,722 | | | | 8,486 | | | | 2.98 | |
| Diversified Support Services | | | | | | | | | | | | | | | | | | | | | | | | |
| ImageOne Industries, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 10.00% | | 11.00% | | 01/11/18 | | 01/11/23 | | | 7,239 | | | | 7,077 | | | | 6,805 | | | | 2.39 | |
| | | (1.00% Floor) | | (4.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Revolving Loan(4)(7) | | L+ 10.00% | | 11.45% | | 07/22/19 | | 12/12/22 | | | 135 | | | | 135 | | | | 127 | | | | 0.04 | |
| | | (1.00% Floor) | | (4.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| NNA Services, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.00% | | 8.45% | | 10/16/18 | | 10/16/23 | | | 9,823 | | | | 9,684 | | | | 9,626 | | | | 3.38 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 17,197 | | | | 16,896 | | | | 16,558 | | | | 5.81 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) - (continued)
March 31, 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 | |
| Education Services | | | | | | | | | | | | | | | | | | | | | | | | |
| EducationDynamics, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.50% | | 9.15% | | 11/26/19 | | 11/26/24 | | | 11,603 | | | $ | 11,387 | | | $ | 11,487 | | | | 4.03 | % |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Food Retail | | | | | | | | | | | | | | | | | | | | | | | | |
| AG Kings Holdings, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan(8) | | P+ 11.00% | | 14.25% | | 08/10/16 | | 08/10/21 | | | 13,250 | | | | 12,837 | | | | 6,625 | | | | 2.33 | |
| | | (0.75% Floor) | | (2.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| Health Care Facilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Grupo HIMA San Pablo, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan A(4) | | L+ 9.00% | | 10.76% | | 05/15/19 | | 04/30/19 | | | 3,855 | | | | 3,855 | | | | 2,891 | | | | 1.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan B(4) | | L+ 9.00% | | 10.76% | | 02/01/13 | | 04/30/19 | | | 13,511 | | | | 13,511 | | | | 10,133 | | | | 3.56 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan(4)(8) | | N/A | | 15.75% | | 02/01/13 | | 07/31/18 | | | 1,028 | | | | 1,024 | | | | - | | | | - | |
| | | | | (2.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 18,394 | | | | 18,390 | | | | 13,024 | | | | 4.58 | |
| Health Care Services | | | | | | | | | | | | | | | | | | | | | | | | |
| CHS Therapy, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan A | | L+ 8.50% | | 10.00% | | 06/14/19 | | 06/14/24 | | | 7,566 | | | | 7,446 | | | | 7,302 | | | | 2.56 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Lab Logistics, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.50% | | 7.56% | | 10/16/19 | | 09/25/23 | | | 106 | | | | 106 | | | | 103 | | | | 0.04 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Loan(7) | | L+ 6.50% | | 8.44% | | 10/16/19 | | 09/25/23 | | | 5,276 | | | | 5,241 | | | | 5,104 | | | | 1.79 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| PMA Holdco, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 10.00% | | 11.45% | | 06/28/18 | | 06/28/23 | | | 12,902 | | | | 12,684 | | | | 12,708 | | | | 4.46 | |
| | | (1.00% Floor) | | (2.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 25,850 | | | | 25,477 | | | | 25,217 | | | | 8.85 | |
| Home Furnishings | | | | | | | | | | | | | | | | | | | | | | | | |
| Sure Fit Home Products, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 9.75% | | 11.21% | | 10/26/18 | | 07/13/22 | | | 5,250 | | | | 5,185 | | | | 4,883 | | | | 1.71 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Human Resources & Employment Services | | | | | | | | | | | | | | | | | | | | | | | | |
| Pluto Acquisition Topco, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.31% | | 8.08% | | 01/31/19 | | 01/31/24 | | | 12,291 | | | | 12,102 | | | | 12,045 | | | | 4.23 | |
| | | (1.50% 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 | | | 12,838 | | | | 12,606 | | | | 12,581 | | | | 4.42 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Internet & Direct Marketing Retail | | | | | | | | | | | | | | | | | | | | | | | | |
| Potpourri Group, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 8.25% | | 9.77% | | 07/03/19 | | 07/03/24 | | | 18,644 | | | | 18,289 | | | | 17,898 | | | | 6.29 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Investment Banking & Brokerage | | | | | | | | | | | | | | | | | | | | | | | | |
| Arcole Acquisition Corp(5) | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan A(4)(8) | | L+ 10.25% | | 11.86% | | 11/29/18 | | 11/30/23 | | | 5,231 | | | | 5,159 | | | | 3,923 | | | | 1.38 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan B(4)(8) | | L+ 16.50% | | 18.11% | | 11/29/18 | | 11/30/23 | | | 1,812 | | | | 1,785 | | | | 1,538 | | | | 0.54 | |
| | | (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 | | | 15,538 | | | | 15,416 | | | | 15,227 | | | | 5.35 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 22,581 | | | | 22,360 | | | | 20,688 | | | | 7.27 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) - (continued)
March 31, 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 | |
| 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 | | | 4,226 | | | $ | 4,181 | | | $ | 4,141 | | | | 1.45 | % |
| | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| Leisure Facilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Honors Holdings, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.83% | | 7.83% | | 09/06/19 | | 09/06/24 | | | 9,405 | | | | 9,272 | | | | 8,118 | | | | 2.85 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Loan | | L+ 6.50% | | 8.44% | | 09/06/19 | | 09/06/24 | | | 4,662 | | | | 4,619 | | | | 4,023 | | | | 1.41 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Lift Brands, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan(8) | | L+ 8.00% | | 9.45% | | 04/16/18 | | 04/16/23 | | | 10,552 | | | | 10,398 | | | | 8,425 | | | | 2.96 | |
| | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Revolving Loan(7)(8) | | P+ 6.00% | | 9.25% | | 04/16/18 | | 04/16/23 | | | 376 | | | | 371 | | | | 229 | | | | 0.08 | |
| | | (1.99% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 24,995 | | | | 24,660 | | | | 20,795 | | | | 7.30 | |
| Office Services & Supplies | | | | | | | | | | | | | | | | | | | | | | | | |
| Empire Office, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.75% | | 8.25% | | 04/12/19 | | 04/12/24 | | | 12,065 | | | | 11,871 | | | | 11,703 | | | | 4.11 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Other Diversified Financial Services | | | | | | | | | | | | | | | | | | | | | | | | |
| Sigue Corporation | | | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan(4) | | L+ 10.55% | | 11.82% | | 12/27/13 | | 04/30/20 | | | 24,793 | | | | 24,793 | | | | 24,297 | | | | 8.53 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Packaged Foods & Meats | | | | | | | | | | | | | | | | | | | | | | | | |
| Lenny & Larry's, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 7.95% | | 8.95% | | 05/15/18 | | 05/15/23 | | | 12,282 | | | | 12,131 | | | | 11,496 | | | | 4.04 | |
| | | (1.00% Floor) | | (1.18%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 | | | 6,476 | | | | 6,155 | | | | 6,281 | | | | 2.21 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Research & Consulting Services | | | | | | | | | | | | | | | | | | | | | | | | |
| Nelson Worldwide, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 9.25% | | 11.10% | | 01/09/18 | | 01/09/23 | | | 13,381 | | | | 13,195 | | | | 13,046 | | | | 4.58 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| ALM Media, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.50% | | 7.95% | | 11/25/19 | | 11/25/24 | | | 15,553 | | | | 15,264 | | | | 14,668 | | | | 5.15 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 28,934 | | | | 28,459 | | | | 27,714 | | | | 9.73 | |
| Restaurants | | | | | | | | | | | | | | | | | | | | | | | | |
| LS GFG Holdings Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.00% | | 6.99% | | 11/30/18 | | 11/19/25 | | | 10,211 | | | | 9,963 | | | | 8,577 | | | | 3.01 | |
| | | (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 | | | 4,433 | | | | 4,353 | | | | 4,300 | | | | 1.51 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Loan(7) | | L+ 8.12% | | 9.12% | | 10/17/19 | | 10/17/24 | | | 672 | | | | 665 | | | | 623 | | | | 0.22 | |
| | | (1.00% Floor) | | | | | | | | | 5,105 | | | | 5,018 | | | | 4,923 | | | | 1.73 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) - (continued)
March 31, 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 | |
| Specialty Chemicals | | | | | | | | | | | | | | | | | | | | | | | | |
| Flexitallic Group SAS | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.50% | | 7.57% | | 10/28/19 | | 10/29/26 | | | 11,721 | | | $ | 11,443 | | | $ | 10,549 | | | | 3.71 | % |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Specialized Finance | | | | | | | | | | | | | | | | | | | | | | | | |
| Golden Pear Funding Assetco, LLC(5) | | | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+ 10.50% | | 12.08% | | 09/20/18 | | 03/20/24 | | | 17,500 | | | | 17,247 | | | | 17,238 | | | | 6.05 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Oasis Legal Finance, LLC(5) | | | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+ 10.75% | | 12.33% | | 09/09/16 | | 03/09/22 | | | 12,500 | | | | 12,412 | | | | 12,250 | | | | 4.30 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| WHF STRS Ohio Senior Loan Fund LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| Subordinated Note(4)(5)(7)(9)(14) | | L+ 6.50% | | 7.49% | | 07/19/19 | | N/A | | | 36,537 | | | | 36,537 | | | | 36,537 | | | | 12.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 66,537 | | | | 66,196 | | | | 66,025 | | | | 23.18 | |
| Systems Software | | | | | | | | | | | | | | | | | | | | | | | | |
| Vero Parent, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.00% | | 7.58% | | 11/06/19 | | 08/16/24 | | | 16,510 | | | | 14,959 | | | | 14,034 | | | | 4.93 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Technology Hardware, Storage & Peripherals | | | | | | | | | | | | | | | | | | | | | | | | |
| PS Lightwave, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.75% | | 8.25% | | 03/09/20 | | 03/10/25 | | | 8,005 | | | | 7,847 | | | | 7,846 | | | | 2.76 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Loan(7) | | L+ 6.75% | | 8.25% | | 03/09/20 | | 03/10/25 | | | - | | | | - | | | | - | | | | - | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| Source Code Midco, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 8.25% | | 9.69% | | 05/04/18 | | 05/04/23 | | | 23,255 | | | | 22,841 | | | | 22,790 | | | | 8.00 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 31,260 | | | | 30,688 | | | | 30,636 | | | | 10.76 | |
| Trading Companies & Distributors | | | | | | | | | | | | | | | | | | | | | | | | |
| Vessco Holdings, LLC | | | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+ 6.50% | | 8.20% | | 08/22/19 | | 08/22/24 | | | 18,947 | | | | 18,615 | | | | 18,568 | | | | 6.52 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Debt Investments | | | | | | | | | | | 580,495 | | | | 569,276 | | | | 538,314 | | | | 189.06 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Equity Investments | | | | | | | | | | | | | | | | | | | | | | | | |
| Diversified Support Services | | | | | | | | | | | | | | | | | | | | | | | | |
| Quest Events, LLC Preferred Units(4) | | N/A | | N/A | | 12/28/18 | | 12/08/25 | | | 317 | | | | 317 | | | | 171 | | | | 0.06 | |
| ImageOne Industries, LLC Common A Units(4) | | N/A | | N/A | | 09/20/19 | | N/A | | | 149 | | | | - | | | | 45 | | | | 0.02 | |
| | | | | | | | | | | | 466 | | | | 317 | | | | 216 | | | | 0.08 | |
| Health Care Services | | | | | | | | | | | | | | | | | | | | | | | | |
| Lab Logistics Preferred Units(4) | | N/A | | N/A | | 10/29/19 | | N/A | | | 2 | | | | 857 | | | | 834 | | | | 0.29 | |
| PMA Holdco, LLC Warrants(4) | | N/A | | N/A | | 06/28/18 | | 06/28/28 | | | 8 | | | | - | | | | 454 | | | | 0.16 | |
| | | | | | | | | | | | 10 | | | | 857 | | | | 1,288 | | | | 0.45 | |
| 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 | | | | 3,277 | | | | 1.15 | |
| | | | | | | | | | | | 165 | | | | 2,890 | | | | 3,277 | | | | 1.15 | |
| Specialized Finance | | | | | | | | | | | | | | | | | | | | | | | | |
| NMFC Senior Loan Program I LLC Units(4)(5)(6) | | N/A | | N/A | | 08/13/14 | | 08/31/21 | | | 10,000 | | | | 10,030 | | | | 7,650 | | | | 2.69 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| WHF STRS Ohio Senior Loan Fund LLC(4)(5)(7)(14) | | N/A | | N/A | | 07/19/19 | | N/A | | | 9,134 | | | | 9,134 | | | | 5,544 | | | | 1.95 | |
| | | | | | | | | | | | 19,134 | | | | 19,164 | | | | 13,194 | | | | 4.64 | |
| Trading Companies & Distributors | | | | | | | | | | | | | | | | | | | | | | | | |
| Vessco Holdings, LLC(4) | | N/A | | N/A | | 08/22/19 | | N/A | | | 489 | | | | 800 | | | | 757 | | | | 0.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Trucking | | | | | | | | | | | | | | | | | | | | | | | | |
| Europcar Mobility Group(4)(5) | | N/A | | N/A | | 10/31/19 | | 12/31/22 | | | - | | | | - | | | | 69 | | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Equity Investments | | | | | | | | | | | 20,264 | | | | 24,028 | | | | 18,801 | | | | 6.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments | | | | | | | | | | | 600,759 | | | $ | 593,304 | | | $ | 557,115 | | | | 195.67 | % |
A summary of outstanding financial instruments at March 31, 2020 is as follows:
Forward Currency Contracts
| Counterparty | | Currency to
be sold | | Currency to
be purchased | | Settlement
date | | Unrealized
appreciation ($) | | | Unrealized
depreciation ($) | |
| JP Morgan Chase Bank | | C$ 188 CAD | | $ 133 USD | | 06/30/2020 | | $ | - | | | $ | (1 | ) |
| | | | | | | | | $ | - | | | $ | (1 | ) |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) - (continued)
March 31, 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 1.0%, 1.5% and 1.2%, respectively, as of March 31, 2020. The Prime was 3.3% as of March 31, 2020. The CDOR was 1.2% as of March 31, 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 84% 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, 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 196% of the Company’s net assets or 96% 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 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. |
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.
