Exhibit 99.1
WhiteHorse Finance, Inc. Announces Fourth Quarter and Full Year 2017 Earnings Results
NEW YORK, NY, March 2, 2018 – WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (NASDAQ: WHF) today announced its financial results for the quarter and year ended December 31, 2017.
Fourth Quarter 2017 Summary Highlights
| · | New investments of $22.7 million and $111.0 million for the fourth quarter and year, respectively |
| · | Net investment income of $6.8 million, or $0.331 per share, for the fourth quarter |
| · | Annual net investment income of $26.2 million, or $1.35 per share |
| · | Period-ending NAV of $13.98 per share compared to $13.63 per share in 2016 |
| · | Annual distribution of $1.42 per share |
Stuart Aronson, WhiteHorse Finance’s Chief Executive Officer commented, “During the fourth quarter, we originated several first-lien, senior-secured loans that enhanced the quality of our already strong portfolio while preserving an attractive yield. These results illustrate the impact of our three-tiered sourcing architecture, which differentiates us in the lower-middle market by facilitating access to both the sponsor and non-sponsor markets and allowing us to maintain a disciplined approach to capital deployment. We are optimistic about our pipeline for the first quarter.”
Portfolio and Investment Activity
As of December 31, 2017, the fair value of WhiteHorse Finance’s investment portfolio was $440.7 million, compared with $411.7 million as of December 31, 2016. The portfolio at December 31, 2017 consisted of 43 positions across 32 companies with an average investment size of $10.2 million and a weighted average effective yield of 11.9%. 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 rising interest rate environment.
During the three months ended December 31, 2017, WhiteHorse Finance made investments in three new portfolio companies totaling $22.7 million. Gross proceeds from sales and repayments totaled $26.2 million for the quarter. In addition, WhiteHorse Finance refinanced its $13.8 million second lien loan to Multicultural Radio Broadcasting, Inc. into a new first lien loan, increasing its position by adding a net $5.8 million. The Company remained highly selective in deploying new investments.
For the year ended December 31, 2017, WhiteHorse Finance invested $111.0 million across ten new portfolio companies. Also, the Company invested $6.6 million in existing portfolio companies exclusive of refinancing. Gross proceeds from sales and repayments totaled $106.3 million for the year exclusive of refinancing activities.
Results of Operations
For the three months and year ended December 31, 2017, net investment income was approximately $6.8 million and $26.2 million, respectively, compared with approximately $6.6 million and $27.0 million for the same period in the prior year. The decrease in net investment income for the year-over-year period was primarily attributable to an increase in interest expense resulting from higher interest rates and higher borrowing balances on the Company’s line of credit facility as well as a lower average on the total principal amount of investments as compared to the prior year.
For the three months and year ended December 31, 2017, WhiteHorse Finance reported net realized and unrealized gains on investments of $1.7 million and $8.2 million, respectively. This compares with net realized and unrealized gains on investments of $2.5 million and $4.3 million for the three months and year ended December 31, 2016, respectively. The increase in net realized and unrealized gains on investments for the year-over-year period was primarily attributable to favorable fair value adjustments on an aggregate basis.
WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.5 million and $34.4 million for the three months and year ended December 31, 2017, respectively, which compares with a net increase of $9.1 million and $31.3 million for the three months and year ended December 31, 2016, respectively.
WhiteHorse Finance’s NAV was $287.0 million, or $13.98 per share, as of December 31, 2017, as compared with $285.5 million, or $13.92 per share, as of September 30, 2017. As of December 31, 2016, WhiteHorse Finance’s NAV was $249.4 million, or $13.63 per share.
Liquidity and Capital Resources
As of December 31, 2017, WhiteHorse Finance had cash and cash equivalents of $38.9 million, as compared with $41.9 million as of September 30, 2017, inclusive of restricted cash. As of December 31, 2017, the Company also had $45.0 million of undrawn capacity under its revolving credit facility.
Distributions
On December 6, 2017, the Company declared a distribution of $0.355 per share for the quarter ended December 31, 2017, consistent for the twenty-first consecutive quarter since the Company’s IPO. The distribution was paid on January 2, 2018 to shareholders of record as of December 18, 2017.
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 fourth quarter and fiscal year-end results at 10:00 am ET on Friday, March 2, 2018. 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 #9589848. 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 March 9, 2018. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #9589848. 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 $24 billion of capital under management(1) 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.
(1) Based on total capital commitments managed by H.I.G. Capital and affiliates.
| 2 |
WhiteHorse Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
| December 31, 2017 | December 31, 2016 | |||||||
| Assets | ||||||||
| Investments, at fair value | ||||||||
| Non-controlled/non-affiliate company investments | $ | 404,434 | $ | 385,216 | ||||
| Non-controlled affiliate company investments | 36,246 | 26,498 | ||||||
| Total investments, at fair value (amortized cost $448,522 and $427,689, respectively) | 440,680 | 411,714 | ||||||
| Cash and cash equivalents | 35,219 | 17,036 | ||||||
| Restricted cash and cash equivalents | 3,717 | 11,858 | ||||||
| Interest receivable | 4,947 | 3,891 | ||||||
| Receivables from investments sold | 783 | 881 | ||||||
| Prepaid expenses and other receivables | 185 | 854 | ||||||
| Total assets | $ | 485,531 | $ | 446,234 | ||||
| Liabilities | ||||||||
| Debt | $ | 182,122 | $ | 182,338 | ||||
| Distributions payable | 7,289 | 6,498 | ||||||
| Management fees payable | 7,848 | 5,476 | ||||||
| Payables for investments purchased | — | 995 | ||||||
| Interest payable | 527 | 480 | ||||||
| Accounts payable and accrued expenses | 701 | 1,058 | ||||||
| Advances received from unfunded credit facilities | 92 | — | ||||||
| Total liabilities | 198,579 | 196,845 | ||||||
| Commitments and contingencies (See Note 7) | ||||||||
| Net assets | ||||||||
| Common stock, 20,531,948 and 18,303,890 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized | 20 | 18 | ||||||
| Paid-in capital in excess of par | 302,292 | 272,242 | ||||||
| Accumulated overdistributed net investment income | (6,784 | ) | (5,423 | ) | ||||
| Accumulated net realized losses on investments | (734 | ) | (842 | ) | ||||
| Accumulated net unrealized depreciation on investments | (7,842 | ) | (16,606 | ) | ||||
| Total net assets | 286,952 | 249,389 | ||||||
| Total liabilities and total net assets | $ | 485,531 | $ | 446,234 | ||||
| Number of shares outstanding | 20,531,948 | 18,303,890 | ||||||
| Net asset value per share | $ | 13.98 | $ | 13.63 | ||||
| 3 |
WhiteHorse Finance, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
| Years ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| Investment income | ||||||||||||
| From non-controlled/non-affiliate company investments | ||||||||||||
| Interest income | $ | 49,233 | $ | 48,649 | $ | 42,380 | ||||||
| Fee income | 2,858 | 2,290 | 1,894 | |||||||||
| From non-controlled affiliate company investments | ||||||||||||
| Dividend income | 2,713 | 2,910 | 2,800 | |||||||||
| Total investment income | 54,804 | 53,849 | 47,074 | |||||||||
| Expenses | ||||||||||||
| Interest expense | 9,811 | 8,188 | 9,970 | |||||||||
| Base management fees | 9,508 | 8,990 | 8,560 | |||||||||
| Performance-based incentive fees | 6,553 | 6,755 | 4,323 | |||||||||
| Administrative service fees | 696 | 684 | 1,140 | |||||||||
| General and administrative expenses | 2,024 | 2,221 | 2,326 | |||||||||
| Total expenses, before fees waived | 28,592 | 26,838 | 26,319 | |||||||||
| Base management fees waived | — | — | — | |||||||||
| Total expenses, net of fees waived | 28,592 | 26,838 | 26,319 | |||||||||
| Net investment income | 26,212 | 27,011 | 20,755 | |||||||||
| Realized and unrealized gains (losses) on investments | ||||||||||||
| Net realized gains (losses) | ||||||||||||
| Non-controlled/non-affiliate company investments | 108 | (478 | ) | (379 | ) | |||||||
| Net realized gains (losses) | 108 | (478 | ) | (379 | ) | |||||||
| Net change in unrealized appreciation (depreciation) | ||||||||||||
| Non-controlled/non-affiliate company investments | (1,620 | ) | 5,767 | (23,404 | ) | |||||||
| Non-controlled affiliate company investments | 9,748 | (971 | ) | 200 | ||||||||
| Net change in unrealized appreciation (depreciation) | 8,128 | 4,796 | (23,204 | ) | ||||||||
| Net realized and unrealized gains (losses) on investments | 8,236 | 4,318 | (23,583 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 34,448 | $ | 31,329 | $ | (2,828 | ) | |||||
| Per Common Share Data | ||||||||||||
| Basic and diluted earnings (loss) per common share | $ | 1.77 | $ | 1.72 | $ | (0.18 | ) | |||||
| Dividends and distributions declared per common share | $ | 1.42 | $ | 1.42 | $ | 1.42 | ||||||
| Basic and diluted weighted average common shares outstanding | 19,433,003 | 18,303,890 | 15,319,510 | |||||||||
| 4 |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments
December 31, 2017
(in thousands)
| Investment Type(1) | Spread Above Index(2) | Interest Rate(3) | Maturity Date | Principal/ Share Amount | Amortized Cost | Fair Value(7) | Fair Value As A Percentage of Net Assets | |||||||||||||||
| North America | ||||||||||||||||||||||
| Debt Investments | ||||||||||||||||||||||
| Advertising | ||||||||||||||||||||||
| Fluent, LLC (f/k/a Fluent Acquisition II, LLC) | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 11.50% (0.50% Floor) | 13.05% (1.00% PIK) | 12/08/20 | $ | 25,650 | $ | 25,352 | $ | 25,651 | 8.94 | % | |||||||||||
| Outcome Health | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 6.50% (1.00% Floor) | 8.13% | 12/22/21 | 14,853 | 13,667 | 12,372 | 4.31 | |||||||||||||||
| 40,503 | 39,019 | 38,023 | 13.25 | |||||||||||||||||||
| Application Software | ||||||||||||||||||||||
| Intermedia Holdings, Inc. | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.50% (1.00% Floor) | 10.88% | 02/03/25 | 18,000 | 17,680 | 17,892 | 6.24 | |||||||||||||||
| Auto Parts & Equipment | ||||||||||||||||||||||
| Crowne Group, LLC | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 9.25% (1.00% Floor) | 10.73% | 05/26/21 | 12,031 | 11,747 | 12,031 | 4.19 | |||||||||||||||
| Broadcasting | ||||||||||||||||||||||
| Multicultural Radio Broadcasting, Inc. | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 8.00% (1.00% Floor) | 9.56% | 12/28/22 | 20,000 | 19,601 | 19,600 | 6.83 | |||||||||||||||
| Rural Media Group, Inc. | ||||||||||||||||||||||
| First Lien Secured Term Loan | P+ 5.75% (1.00% Floor) | 10.25% | 12/29/22 | 7,133 | 6,991 | 6,991 | 2.44 | |||||||||||||||
| First Lien Secured Delayed Draw Loan | P+ 5.75% (1.00% Floor) | 10.25% | 12/29/22 | — | — | — | — | |||||||||||||||
| 27,133 | 26,592 | 26,591 | 9.27 | |||||||||||||||||||
| Data Processing & Outsourced Services | ||||||||||||||||||||||
| FPT Operating Company, LLC/ | ||||||||||||||||||||||
| TLabs Operating Company, LLC | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 8.25% (1.00% Floor) | 9.61% | 12/23/21 | 23,305 | 22,975 | 23,188 | 8.08 | |||||||||||||||
| Department Stores | ||||||||||||||||||||||
| Mills Fleet Farm Group, LLC | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.75% (1.00% Floor) | 11.32% | 02/26/23 | 7,146 | 7,038 | 7,146 | 2.49 | |||||||||||||||
| Diversified Support Services | ||||||||||||||||||||||
| Account Control Technology Holdings, Inc. | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 8.50% (1.00% Floor) | 9.88% | 04/28/22 | 14,329 | 13,971 | 14,180 | 4.94 | |||||||||||||||
| Sitel Worldwide Corporation | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.50% (1.00% Floor) | 10.88% | 09/18/22 | 8,670 | 8,553 | 8,651 | 3.01 | |||||||||||||||
| 22,999 | 22,524 | 22,831 | 7.95 | |||||||||||||||||||
| Environmental & Facilities Services | ||||||||||||||||||||||
| Montrose Environmental Group, Inc. | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.50% (1.00% Floor) | 10.88% | 09/30/20 | 8,500 | 8,345 | 8,423 | 2.94 | |||||||||||||||
| 5 |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments - (continued)
December 31, 2017
(in thousands)
| Investment Type(1) | Spread Above Index(2) | Interest Rate(3) | Maturity Date | Principal/ Share Amount | Amortized Cost | Fair Value(7) | Fair Value As A Percentage of Net Assets | |||||||||||||||
| Food Retail | ||||||||||||||||||||||
| AG Kings Holdings, Inc. | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 9.95% (1.00% Floor) | 11.64% | 08/10/21 | $ | 13,615 | $ | 13,190 | $ | 13,479 | 4.70 | % | |||||||||||
| Crews of California, Inc. | ||||||||||||||||||||||
| First Lien Secured Term Lo Loan | L+ 11.00% (1.00% Floor) | 12.48% (1.00% PIK) | 11/20/19 | 16,853 | 16,732 | 16,516 | 5.76 | |||||||||||||||
| First Lien Secured Revolving Loan | L+ 11.00% (1.00% Floor) | 12.48% (1.00% PIK) | 11/20/19 | 5,119 | 5,070 | 5,017 | 1.75 | |||||||||||||||
| First Lien Secured Delayed Draw Loan | L+ 11.00% (1.00% Floor) | 12.48% (1.00% PIK) | 11/20/19 | 4,884 | 4,840 | 4,786 | 1.67 | |||||||||||||||
| 40,471 | 39,832 | 39,798 | 13.88 | |||||||||||||||||||
| Health Care Facilities | ||||||||||||||||||||||
| Grupo HIMA San Pablo, Inc. | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 9.00% (1.50% Floor) | 10.50% | 01/31/18 | 14,250 | 14,245 | 12,430 | 4.33 | |||||||||||||||
| Second Lien Secured Term Loan | N/A | 15.75% (2.00% PIK) | 07/31/18 | 1,027 | 1,023 | 239 | 0.08 | |||||||||||||||
| 15,277 | 15,268 | 12,669 | 4.41 | |||||||||||||||||||
| Internet Retail | ||||||||||||||||||||||
| Clarus Commerce, LLC | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 9.77% (1.00% Floor) | 11.34% | 03/17/21 | 6,000 | 5,923 | 6,000 | 2.09 | |||||||||||||||
| Internet Software & Services | ||||||||||||||||||||||
| StackPath, LLC & Highwinds Capital, Inc. | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.50% (1.00% Floor) | 10.88% | 02/02/24 | 18,000 | 17,608 | 17,576 | 6.13 | |||||||||||||||
| Investment Banking and Brokerage | ||||||||||||||||||||||
| JVMC Holdings Corp. (f/k/a RJO Holdings Corp) | ||||||||||||||||||||||
| First Lien First Out Secured Term Loan | L+ 8.02% (1.00% Floor) | 9.59% | 05/05/22 | 13,163 | 12,905 | 13,042 | 4.55 | |||||||||||||||
| First Lien Last Out Secured Term Loan | L+ 12.00% (1.00% Floor) | 13.57% | 05/05/22 | 4,875 | 4,780 | 4,830 | 1.68 | |||||||||||||||
| 18,038 | 17,685 | 17,872 | 6.23 | |||||||||||||||||||
| IT Consulting & Other Services | ||||||||||||||||||||||
| AST-Applications Software Technology LLC | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 9.00% (1.00% Floor) | 10.57% (2.00% PIK) | 01/10/23 | 4,150 | 4,067 | 3,901 | 1.36 | |||||||||||||||
| Leisure Facilities | ||||||||||||||||||||||
| Planet Fit Indy 10 LLC | ||||||||||||||||||||||
| First Lien Initial Secured Term Loan | L+ 7.25% (1.00% Floor) | 8.77% | 03/07/22 | 132 | 131 | 131 | 0.05 | |||||||||||||||
| First Lien Secured Incremental Term Loan | L+ 7.25% (1.00% Floor) | 8.94% | 03/07/22 | 1,935 | 1,916 | 1,916 | 0.67 | |||||||||||||||
| First Lien Initial Secured Delayed Draw Term Loan | L+ 7.25% (1.00% Floor) | 8.73% | 03/07/22 | 2,658 | 2,632 | 2,632 | 0.92 | |||||||||||||||
| 4,725 | 4,679 | 4,679 | 1.64 | |||||||||||||||||||
| Office Services & Supplies | ||||||||||||||||||||||
| Katun Corporation | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 11.25% (1.00% Floor) | 12.61% | 01/25/21 | 4,422 | 4,402 | 4,466 | 1.56 | |||||||||||||||
| Oil & Gas Exploration & Production | ||||||||||||||||||||||
| Caelus Energy Alaska O3, LLC | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 7.50% (1.25% Floor) | 9.10% | 04/15/20 | 13,000 | 12,929 | 10,837 | 3.78 | |||||||||||||||
| 6 |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments - (continued)
December 31, 2017
(in thousands)
| Investment Type(1) | Spread Above Index(2) | Interest Rate(3) | Maturity Date | Principal/ Share Amount | Amortized Cost | Fair Value(7) | Fair Value As A Percentage of Net Assets | |||||||||||||||
| Other Diversified Financial Services | ||||||||||||||||||||||
| Sigue Corporation(4) | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 11.50% (1.00% Floor) | 13.19% | 12/27/18 | $ | 25,000 | $ | 24,901 | $ | 24,872 | 8.67 | % | |||||||||||
| The Pay-O-Matic Corp. | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 11.00% (1.00% Floor) | 12.38% | 04/02/18 | 12,044 | 12,003 | 12,044 | 4.20 | |||||||||||||||
| 37,044 | 36,904 | 36,916 | 12.87 | |||||||||||||||||||
| Research & Consulting Services | ||||||||||||||||||||||
| Project Time & Cost, LLC | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 12.00% (0.50% Floor) | 13.53% | 10/09/20 | 9,104 | 9,004 | 8,440 | 2.94 | |||||||||||||||
| Security & Alarm Services | ||||||||||||||||||||||
| SecurAmerica, LLC | ||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 9.50% (1.00% Floor) | 10.92% | 11/17/22 | 11,320 | 11,044 | 11,084 | 3.86 | |||||||||||||||
| Specialized Consumer Services | ||||||||||||||||||||||
| Pre-Paid Legal Services, Inc. | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.00% (1.25% Floor) | 10.57% | 07/01/20 | 19,000 | 18,912 | 19,000 | 6.62 | |||||||||||||||
| Specialized Finance | ||||||||||||||||||||||
| Golden Pear Funding III, LLC(5) | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 10.25% (1.00% Floor) | 11.63% | 06/25/20 | 25,000 | 24,855 | 24,760 | 8.63 | |||||||||||||||
| Second Lien Secured Revolving Loan | L+ 10.25% (1.00% Floor) | 11.63% | 06/25/20 | 5,000 | 4,971 | 4,952 | 1.73 | |||||||||||||||
| Oasis Legal Finance, LLC(5) | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 10.75% (1.00% Floor) | 12.11% | 03/09/22 | 20,000 | 19,696 | 20,000 | 6.97 | |||||||||||||||
| 50,000 | 49,522 | 49,712 | 17.33 | |||||||||||||||||||
| Trucking | ||||||||||||||||||||||
| Sunteck / TTS Holdings, LLC | ||||||||||||||||||||||
| Second Lien Secured Term Loan | L+ 9.00% (1.00% Floor) | 10.59% | 06/15/22 | 3,500 | 3,450 | 3,456 | 1.20 | |||||||||||||||
| Total Debt Investments | 413,668 | 407,149 | 402,531 | 140.31 | ||||||||||||||||||
| 7 |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments - (continued)
December 31, 2017
(in thousands)
| Investment Type(1) | Spread Above Index(2) | Interest Rate(3) | Maturity Date | Principal/ Share Amount | Amortized Cost | Fair Value(7) | Fair Value As A Percentage of Net Assets | |||||||||||||||
| Equity Investments | ||||||||||||||||||||||
| Advertising | ||||||||||||||||||||||
| Cogint, Inc. (f/k/a IDI, Inc.)(4) | N/A | N/A | 12/08/25 | $ | 187 | $ | 560 | $ | 821 | 0.29 | % | |||||||||||
| Food Retail | ||||||||||||||||||||||
| Crews of California, Inc. Warrants(4) | N/A | N/A | 12/31/24 | — | — | 14 | 0.00 | |||||||||||||||
| Nicholas & Associates, LLC Warrants(4) | N/A | N/A | 12/31/24 | 3 | — | 296 | 0.10 | |||||||||||||||
| Pinnacle Management Group, LLC Warrants(4) | N/A | N/A | 12/31/24 | 3 | — | 296 | 0.10 | |||||||||||||||
| RC3 Enterprises, LLC Warrants(4) | N/A | N/A | 12/31/24 | 3 | — | 296 | 0.10 | |||||||||||||||
| 9 | — | 902 | 0.30 | |||||||||||||||||||
| Other Diversified Financial Services | ||||||||||||||||||||||
| Aretec Group, Inc.(4)(5)(6) | N/A | N/A | N/A | 536 | 20,693 | 17,314 | 6.03 | |||||||||||||||
| RCS Creditor Trust Class B Units(4)(6) | N/A | N/A | N/A | 143 | — | 428 | 0.15 | |||||||||||||||
| 679 | 20,693 | 17,742 | 6.18 | |||||||||||||||||||
| Specialized Finance | ||||||||||||||||||||||
| NMFC Senior Loan Program I LLC Units(4)(5)(6) | N/A | N/A | 06/13/20 | 20,000 | 20,120 | 18,504 | 6.45 | |||||||||||||||
| Trucking | ||||||||||||||||||||||
| Fox Rent A Car, Inc. Warrants(4) | N/A | N/A | N/A | — | — | 180 | 0.06 | |||||||||||||||
| Total Equity Investments | 20,875 | 41,373 | 38,149 | 13.28 | ||||||||||||||||||
| Total Investments | $ | 434,543 | $ | 448,522 | $ | 440,680 | 153.59 | % | ||||||||||||||
| (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 1.6%, 1.7% and 1.8%, respectively, as of December 31, 2017. The Prime was 4.5% as of December 31, 2017. |
| (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) | Except as otherwise noted, the fair value of each investment was determined using significant unobservable inputs. |
Contacts
WhiteHorse Finance, Inc.
Stuart Aronson, 212-506-0500
saronson@higwhitehorse.com
or
WhiteHorse Finance, Inc.
Edward J. Giordano, 305-379-2322
egiordano@higwhitehorse.com
or
Prosek Partners
Sean Silva, 646-493-9632
ssilva@prosek.com
Source: WhiteHorse Finance, Inc.
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