WhiteHorse Finance, Inc. Publicizes First Quarter 2021 Earnings Outcomes and Declares Quarterly Distribution of $0.355 Per Share

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Saul Centers explains quarterly dividends and provides business updates

NEW YORK, May 10, 2021 /PRNewswire/ — WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”) (Nasdaq: WHF) today announced its financial results for the quarter ended March 31, 2021. Additionally, the Company announced that its board of directors has declared a distribution of $0.355 per share with respect to the quarter ending June 30, 2021. The distribution will be payable on July 2, 2021 to stockholders of record as of June 18, 2021.

First Quarter 2021 Summary Highlights

  • Net Asset Value of $314.3 million, or $15.27 per share
  • Investment portfolio(1) totaling $617.0 million
  • STRS JV investment portfolio totaling $185.7 million
  • Gross investment deployments(2) of $57.7 million for the first quarter, including new originations of $45.9 million and $11.8 million of fundings for add-ons to existing investments
  • Net investment income of $7.6 million, or $0.370 per share
  • Core net investment income of $7.7 million, or $0.375 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 $55.4 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, “We had a very active quarter in what is usually a seasonally slow period for transaction activities, successfully originating 5 first lien loans while having 10 complete realizations. This increased our allocation to first-lien senior secured loans to comprise 97 percent of our debt portfolio. Our leverage ratio decreased from the prior quarter-end due to the large realization volume, yet still within the preferrable range of above 1.0x. With the robust pipeline ahead in Q2, we hope to reach our target leverage again in a short amount of time with a strong portfolio under the current improving economic backdrop. We will remain prudent and stay true to our longstanding principles, which we believe drive our goal of enhancing shareholder value.”

Portfolio and Investment Activity

As of March 31, 2021, the fair value of WhiteHorse Finance’s investment portfolio was $617.0 million, compared with $690.7 million as of December 31, 2020. The portfolio at March 31, 2021 consisted of 90 positions across 62 companies with a weighted average effective yield of 9.6% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV) was $7.1 million with the overall portfolio comprised of approximately 84.7% first lien secured loans, 2.4% second lien secured loans, 3.9% equity and 9.0% in investments in STRS JV. Almost all loans were substantially variable-rate investments (primarily indexed to the London Interbank Offered Rate) with fixed rate securities representing only 0.4% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended March 31, 2021, WhiteHorse Finance made investments in five new portfolio companies totaling $45.9 million and added a total of $11.8 million to seven existing portfolio companies. Proceeds from sales and repayments totaled approximately $110.2 million for the quarter ended March 31, 2021, driven by ten full realizations including AG Kings Holdings Inc., Atlas Intermediate Holdings LLC, Oasis Legal Finance and Ribbon Communications Operating Company, Inc.

In addition to the transactions above, during the three months ended March 31, 2021, WhiteHorse Finance transferred assets comprised of four new portfolio companies totaling $28.9 million to STRS JV in exchange for a net investment in STRS JV of $4.3 million as well as cash proceeds of $24.6 million.

WHF STRS Ohio Senior Loan Fund LLC

As of March 31, 2021, STRS JV’s portfolio totaled $185.7 million, consisted of 22 portfolio companies and had a weighted average effective yield of 8.1% on its portfolio.

Results of Operations

For the three months ended March 31, 2021, the Company’s net investment income was approximately $7.6 million, compared with approximately $6.1 million for the same periods in the prior year, representing an increase of approximately 24.6%. The increase in net investment income for the year-over-year period was primarily attributable to higher accelerated accretion income recognized due to higher repayment activity and higher investment income generated from the Company’s investment in STRS JV, partially offset by higher incentive fees accrued for the quarter ended March 31, 2021. At March 31, 2021, the Company’s investment in STRS JV was generating an annualized, gross investment yield of approximately 14.8%.

For the three months ended March 31, 2021, core net investment income (as defined above) was $7.7 million, compared with $5.5 million for the same period in the prior year, representing an increase of approximately 40.0%.

For the three months ended March 31, 2021, WhiteHorse Finance reported net realized and unrealized gains on investments and foreign currency transactions of $0.6 million. This compares with a net realized and unrealized loss on investments and foreign currency transactions of $27.1 million for the three months ended March 31, 2020. The increase for the year-over-year period was primarily attributable to unrealized gains generated on markups in the portfolio as a result of overall market stability and price recovery from the COVID-19 pandemic, in addition to realized gains generated from sales in AG Kings Holdings Inc. and Vero Parent, Inc.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.2 million for the three months ended March 31, 2021, which compares with a net decrease of $21.0 million for the three months ended March 31, 2020.

WhiteHorse Finance’s net asset value was $314.3 million, or $15.27 per share, as of March 31, 2021, as compared with $312.9 million, or $15.23 per share, as of December 31, 2020.

Liquidity and Capital Resources

As of March 31, 2021, WhiteHorse Finance had cash and cash equivalents of $24.5 million, as compared with $15.9 million as of December 31, 2020, inclusive of restricted cash. As of March 31, 2021, the Company also had $70.4 million of undrawn capacity under its revolving credit facility.

Distributions

The Company’s board of directors has declared a distribution of $0.355 per share with respect to the quarter ending June 30, 2021. The distribution will be payable on July 2, 2021 to stockholders of record as of June 18, 2021.

On March 2, 2021, the Company declared a distribution of $0.355 per share for the quarter ended March 31, 2021, consistent with distributions declared for the thirty-fourth consecutive quarter since the Company’s initial public offering. The distribution was paid on April 5, 2021 to stockholders of record as of March 26, 2021.

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 1:00 p.m. ET on Monday, May 10, 2021. 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 #4287043. 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 24, 2021. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #4287043. 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 $44 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 incur any costs with refinancing any of its indebtedness for the quarters ended March 31, 2021 and March 31, 2020.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2021 and March 31, 2020 (in thousands, except per share data):



March 31, 2021



March 31, 2020




Amount



 Per Share

Amounts



Amount



 Per Share

Amounts


Net investment income


$

7,600



$

0.370



$

6,102



$

0.297


Net impact of costs associated with refinancing of indebtedness













Accrual for capital gains incentive fee



114




0.005




(626)




(0.030)


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













Core net investment income


$

7,714



$

0.375



$

5,476



$

0.267



















WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)




March 31, 2021



December 31, 2020




(Unaudited)





Assets









Investments, at fair value









Non-controlled/non-affiliate company investments


$

546,264



$

623,777


Non-controlled affiliate company investments



15,283




15,717


Controlled affiliate company investments



55,440




51,241


Total investments, at fair value (amortized cost $629,210 and $695,429, respectively)



616,987




690,735


Cash and cash equivalents



7,701




8,062


Restricted cash and cash equivalents



16,342




7,549


Restricted foreign currency (cost of $411 and $319, respectively)



431




333


Interest and dividend receivable



7,347




6,532


Amounts receivable on unsettled investment transactions



18,619




4,717


Escrow receivable



1,939





Receivable for common stock sold



8





Prepaid expenses and other receivables



1,132




1,061


Total assets


$

670,506



$

718,989











Liabilities









Debt


$

334,507



$

384,880


Distributions payable



7,307




7,294


Management fees payable



3,344




3,354


Incentive fees payable



6,493




6,117


Amounts payable on unsettled investment transactions






497


Interest payable



2,249




1,870


Accounts payable and accrued expenses



1,899




1,708


Unrealized depreciation on foreign currency forward contracts



1





Advances received from unfunded credit facilities



357




372


Total liabilities



356,157




406,092











Commitments and contingencies


















Net assets









Common stock, 20,583,835 and 20,546,032 shares issued and outstanding, par
value $0.001 per share, respectively, and 100,000,000 shares authorized



21




21


Paid-in capital in excess of par



300,592




300,002


Accumulated earnings



13,736




12,874


Total net assets



314,349




312,897


Total liabilities and total net assets


$

670,506



$

718,989











Number of shares outstanding



20,583,835




20,546,032


Net asset value per share


$

15.27



$

15.23


WhiteHorse Finance, Inc. 

Consolidated Statements of Operations

(Unaudited) 

(in thousands, except share and per share data)




Three months ended March 31,




2021



2020


Investment income









From non-controlled/non-affiliate company investments









Interest income


$

14,812



$

13,140


Fee income



771




291


Dividend income



44




49


From non-controlled affiliate company investments









Dividend income



250




275


From controlled affiliate company investments









Interest income



719




625


Dividend income



1,374




153


Total investment income



17,970




14,533











Expenses









Interest expense



3,802




3,668


Base management fees



3,344




3,092


Performance-based incentive fees



2,042




441


Administrative service fees



171




171


General and administrative expenses



821




881


Total expenses



10,180




8,253


Net investment income before excise tax



7,790




6,280


Excise tax



190




178


Net investment income after excise tax



7,600




6,102











Realized and unrealized gains (losses) on investments and foreign currency
transactions









Net realized gains (losses)









Non-controlled/non-affiliate company investments



8,160




510


Non-controlled affiliate company investments







Foreign currency transactions



1




(3)


Foreign currency forward contracts






6


Net realized gains (losses)



8,161




513


Net change in unrealized appreciation (depreciation)









Non-controlled/non-affiliate company investments



(6,975)




(22,196)


Non-controlled affiliate company investments



(434)




(2,001)


Controlled affiliate company investments



(120)




(3,953)


Translation of assets and liabilities in foreign currencies



(62)




580


Foreign currency forward contracts



(1)




(1)


Net change in unrealized appreciation (depreciation)



(7,592)




(27,571)


Net realized and unrealized losses on investments



569




(27,058)


Net increase (decrease) in net assets resulting from operations


$

8,169



$

(20,956)











Per Common Share Data









Basic and diluted earnings (loss) per common share


$

0.40



$

(1.01)


Dividends and distributions declared per common share


$

0.36



$

0.36


Basic and diluted weighted average common shares outstanding



20,551,565




20,546,032


WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(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




















SmartSign Holdings LLC




















First Lien Secured Term Loan


L+ 7.50%


8.50%


08/21/20


10/11/24


7,724


$

7,593


$

7,724


2.46

%



(1.00% Floor)


















Air Freight & Logistics




















Access USA Shipping, LLC




















First Lien Secured Term Loan


L+ 8.00%


9.50%


02/08/19


02/08/24


5,286



5,241



5,286


1.68




(1.50% Floor)


















Application Software




















Connexity, Inc.




















First Lien Secured Term Loan


L+ 8.50%


10.00%


05/21/20


05/21/25


10,794



10,486



10,794


3.43




(1.50% Floor)


















Newscycle Solutions, Inc.




















First Lien Secured Term Loan


L+ 7.00%


8.00%


06/14/19


12/29/22


3,237



3,205



3,185


1.01




(1.00% Floor)


















First Lien Secured Revolving Loan(7)


L+ 7.00%


8.00%


06/14/19


12/29/22


145



143



141


0.04




(1.00% Floor)


















 TaxSlayer LLC




















First Lien Secured Term Loan


L+ 6.50%


7.50%


12/31/20


12/31/26


6,796



6,666



6,666


2.12




(1.00% Floor)


















First Lien Secured Revolving Loan(7)


L+ 6.50%


7.50%


12/31/20


12/31/26










(1.00% Floor)




























20,972



20,500



20,786


6.60


Automotive Retail




















Team Car Care Holdings, LLC




















First Lien Secured Term Loan(12)


Base rate+ 7.99%


9.01%


02/26/18


02/23/23


16,007



15,870



15,650


4.98




(1.00% Floor)


















Building Products




















Drew Foam Companies Inc




















First Lien Secured Term Loan


L+ 6.50%


7.50%


12/15/20


11/05/25


7,261



7,124



7,127


2.27




(1.00% Floor)


















LHS Borrower, LLC




















First Lien Secured Term Loan


L+ 6.75%


7.75%


09/30/20


09/30/25


9,689



9,493



9,550


3.04




(1.00% Floor)


















First Lien Secured Revolving Loan(7)


L+ 6.75%


7.75%


09/30/20


09/30/25


131



128



131


0.04




(1.00% Floor)








17,081



16,745



16,808


5.35


Cable & Satellite




















Bulk Midco, LLC




















First Lien Secured Term Loan(15)


L+ 7.34%


8.34%


06/08/18


06/08/23


15,000



14,902



14,250


4.53




(1.00% Floor)


















Construction & Engineering




















SFP Holding, Inc.




















First Lien Secured Delayed Draw Loan(7)


L+ 6.25%


7.25%


01/25/21


01/24/25


1,054



1,039



1,050


0.33




(1.00% Floor)


















First Lien Secured Revolving Loan(7)


L+ 6.25%


7.25%


02/22/21


09/01/23






1





(1.00% Floor)


















Tensar Corp.




















First Lien Secured Term Loan


L+ 6.75%


7.75%


11/20/20


08/20/25


6,983



6,821



6,918


2.20




(1.00% Floor)




























8,037



7,860



7,969


2.53


Construction Materials




















Claridge Products and Equipment, LLC




















First Lien Secured Term Loan


L+ 6.50%


7.50%


12/30/20


12/29/25


7,980



7,828



7,828


2.49




(1.00% Floor)


















First Lien Secured Revolving Loan(7)


L+ 6.50%


7.50%


12/30/20


12/29/25










(1.00% Floor)








7,980



7,828



7,828


2.49


Consumer Finance




















Maxitransfers Blocker Corp




















First Lien Secured Term Loan


L+ 9.00%


10.00%


10/07/20


10/07/25


8,813



8,624



8,725


2.78




(1.00% Floor)


















First Lien Secured Revolving Loan(4)(7)


L+ 9.00%


10.00%


10/07/20


10/07/25






12





(1.00% Floor)








8,813



8,624



8,737


2.78






















Data Processing & Outsourced Services




















Escalon Services Inc




















First Lien Secured Term Loan


P+12.50%


14.50%


12/04/20


12/04/25


8,014



7,346



7,379


2.35




(0.75% Floor)


(1.50%PIK)
















FPT Operating Company, LLC/




















TLabs Operating Company, LLC




















First Lien Secured Term Loan


L+ 8.25%


9.25%


12/23/16


06/07/24


24,467



24,238



24,224


7.71




(1.00% Floor)


(0.50%PIK)
















Geo Logic Systems Ltd. (5)




















First Lien Secured Term Loan(13)


C +6.25%


7.50%


12/19/19


12/19/24


6,666



5,009



5,198


1.65




(1.00% Floor)


















First Lien Secured Revolving Loan (7)(13)


C +6.25%


7.50%


12/19/19


12/19/24






(2)





(1.00% Floor)


`






39,147



36,593



36,799


11.71


Department Stores




















Mills Fleet Farm Group, LLC




















First Lien Secured Term Loan


L+ 6.00%


7.00%


10/24/18


10/24/24


13,543



13,303



13,408


4.27




(1.00% Floor)


















Distributors




















Crown Brands, LLC




















Second Lien Secured Term Loan(19)


L+ 10.50%


12.00%


12/15/20


01/08/26


4,453



4,353



3,562


1.13




(1.50% Floor)


















Second Lien Secured Delayed Draw Loan(19)


L+ 10.50%


12.00%


12/15/20


01/08/26


661



660



528


0.17




(1.50% Floor)








5,114



5,013



4,090


1.30


WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)


Diversified Chemicals




















Sklar Holdings, Inc.




















First Lien Secured Term Loan


L+ 7.75%


8.75%


11/13/19


05/13/23


7,473


$

7,346


$

7,473


2.38

%



(1.00% Floor)






































Diversified Support Services




















NNA Services, LLC




















First Lien Secured Term Loan


L+ 7.00%


8.50%


10/16/18


10/16/23


13,263



13,105



13,263


4.22




(1.50% Floor)


















Education Services




















EducationDynamics, LLC




















First Lien Secured Term Loan


L+ 7.75%


8.75%


11/26/19


11/26/24


12,796



12,602



12,789


4.07




(1.00% Floor)


















Health Care Facilities




















Epiphany Dermatology




















First Lien Secured Term Loan


L+ 7.50%


8.50%


12/04/20


06/22/23


3,491



3,415



3,456


1.10




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 7.50%


8.50%


12/04/20


06/22/23






5





(1.00% Floor)


















First Lien Secured Delayed Draw Loan (7)


L+ 7.50%


8.50%


12/04/20


06/22/23






36


0.01




(1.00% Floor)


















Grupo HIMA San Pablo, Inc.




















First Lien Secured Term Loan A (8)


L+ 9.00%


9.22%


05/15/19


04/30/19


3,855



3,855



2,147


0.68






















First Lien Secured Term Loan B(8)


L+ 9.00%


10.50%


02/01/13


04/30/19


13,511



13,511



7,526


2.39




(1.50% Floor)


















Second Lien Secured Term Loan(8)


N/A


15.75%


02/01/13


07/31/18


1,028



1,024









(2.00 %PIK)






21,885



21,805



13,170


4.18


Health Care Services




















CHS Therapy, LLC




















First Lien Secured Term Loan A


L+ 8.50%


10.00%


06/14/19


06/14/24


7,374



7,284



7,374


2.35




(1.50% Floor)


















First Lien Secured Term Loan C


L+ 8.50%


10.00%


10/07/20


06/14/24


906



891



906


0.29




(1.50% Floor)


















DCA Investment Holding, LLC




















First Lien Secured Term Loan


L+ 6.25%


7.00%


03/11/21


03/12/27


7,060



6,955



6,955


2.21




(0.75% Floor)


















First Lien Secured Delayed Draw Loan(7)


L+ 6.25%


L+ 7.00%


03/11/21


03/12/27






(13)





(0.75% Floor)


















Ivy Rehab Holdings LLC




















First Lien Secured Term Loan


L+ 6.75%


7.75%


12/04/20


12/04/24


8,833



8,671



8,768


2.79




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 6.75%


7.75%


12/04/20


12/04/24






6





(1.00% Floor)


















First Lien Secured Delayed Draw Loan (7)


L+ 6.75%


7.75%


12/04/20


12/04/24


155



152



170


0.05




(1.00% Floor)


















Lab Logistics, LLC




















First Lien Secured Term Loan


L+ 7.25%


8.25%


10/16/19


11/19/25


1,164



1,141



1,151


0.37




(1.00% Floor)


















First Lien Secured Delayed Draw Loan


L+ 7.25%


8.25%


10/16/19


09/25/23


5,223



5,198



5,223


1.66




(1.00% Floor)


















PG Dental New Jersey Parent, LLC




















First Lien Secured Term Loan


L+ 7.75%


8.75%


11/25/20


11/25/25


16,130



15,792



15,830


5.04




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 7.75%


8.75%


11/25/20


11/25/25






3





(1.00% Floor)








46,845



46,084



46,373


14.76


Home Furnishings




`
















Sure Fit Home Products, LLC




















First Lien Secured Term Loan(8)


L+ 9.75%


10.75%


10/26/18


07/13/22


5,243



5,111



4,672


1.49




(1.00% Floor)


















Interactive Media & Services




















What If Media Group, LLC




















First Lien Secured Term Loan


L+ 7.00%


8.00%


10/02/19


10/02/24


17,561



17,285



17,461


5.55




(1.00% Floor)


















Internet & Direct Marketing Retail




















BBQ Buyer, LLC




















First Lien Secured Term Loan


L+ 8.00%


9.50%


08/28/20


08/28/25


12,698



12,412



12,753


4.06




(1.50% Floor)


















Clarus Commerce, LLC




















First Lien Secured Term Loan


L+ 6.50%


7.50%


03/05/21


07/01/25


1,917



1,879



1,879


0.60




(1.00% Floor)


















Luxury Brand Holdings, Inc.




















First Lien Secured Term Loan


L+ 7.00%


8.00%


12/04/20


06/04/26


5,985



5,872



5,926


1.89




(1.00% Floor)


















Potpourri Group, Inc.




















First Lien Secured Term Loan


L+ 8.25%


9.75%


07/03/19


07/03/24


18,270



18,003



18,271


5.81




(1.50% Floor)








38,870



38,166



38,829


12.36


Investment Banking & Brokerage




















JVMC Holdings Corp. (f/k/a RJO Holdings Corp)




















First Lien Secured Term Loan


L+ 7.75%


8.75%


02/28/19


02/28/24


13,381



13,303



13,381


4.26




(1.00% Floor)


















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


4,004



3,977



4,004


1.27




(1.00% Floor)


(1.00% PIK)
















Core BTS, Inc.




















First Lien Secured Term Loan


L+ 6.75%


8.25%


02/01/21


08/30/25


3,333



3,269



3,269


1.04




(1.50% Floor)


















First Lien Secured Delayed Draw Loan (7)


L+ 0.00%


0.00%


02/01/21


08/30/25






(16)





(1.50% Floor)








7,337



7,246



7,257


2.31


Leisure Facilities




















Honors Holdings, LLC




















First Lien Secured Term Loan (16)


L+ 8.48%


9.48%


09/06/19


09/06/24


9,651



9,502



8,878


2.82




(1.00% Floor)


(1.00% PIK)
















First Lien Secured Delayed Draw Loan(16)


L+ 8.11%


9.11%


09/06/19


09/06/24


4,750



4,704



4,370


1.39




(1.00% Floor)


(1.00% PIK)
















Lift Brands, Inc. (aka Snap  Fitness Holdings, Inc.)




`
















First Lien Secured Term Loan A


L+ 7.50%


8.50%


06/29/20


06/29/25


5,659



5,585



5,572


1.77




(1.00% Floor)


















First Lien Secured Term Loan B


N/A


9.50%


06/29/20


06/29/25


1,191



1,167



1,160


0.37






(9.50% PIK)
















First Lien Secured Term Loan C (9)


N/A


9.50%


06/29/20


NA


1,268



1,265



1,264


0.40






(9.50% PIK)






22,519



22,223



21,244


6.75


WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)


Office Services & Supplies




















Empire Office, Inc.




















First Lien Secured Term Loan


L+ 6.75%


8.25%


04/12/19


04/12/24


10,577


$

10,449


$

10,341


3.29

%



(1.50% Floor)


















Packaged Foods & Meats




















Lenny & Larry’s, LLC




















First Lien Secured Term Loan(17)


L+ 8.41%


9.41%


05/15/18


05/15/23


10,997



10,907



10,513


3.34




(1.00% Floor)


(1.72%PIK)
















Personal Products




















Inspired Beauty Brands, Inc.




















First Lien Secured Term Loan


L+ 7.00%


8.00%


12/30/20


12/31/25


12,547



12,308



12,308


3.92




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 7.00%


8.00%


12/30/20


12/31/25










(1.00% Floor)








12,547



12,308



12,308


3.92


Property & Casualty Insurance




















Policy Services Company, LLC (5)




















First Lien Secured Term Loan


L+ 6.00%


7.00%


03/06/20


05/31/24


6,224



5,990



6,100


1.94




(1.00% Floor)


















Research & Consulting Services




















Comniscient Technologies LLC




















First Lien Secured Term Loan


L+ 7.50%


8.50%


10/13/20


10/13/25


6,945



6,819



6,945


2.21




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 7.50%


8.50%


10/13/20


10/13/25






7





(1.00% Floor)


















Nelson Worldwide, LLC




















First Lien Secured Term Loan


L+ 9.25%


10.25%


01/09/18


01/09/23


10,972



10,875



10,862


3.46




(1.00% Floor)


















ALM Media, LLC




















First Lien Secured Term Loan


L+ 7.00%


8.00%


11/25/19


11/25/24


14,766



14,550



14,323


4.56




(1.00% Floor)








32,683



32,244



32,137


10.23


Restaurants




















LS GFG Holdings Inc.




















First Lien Secured Term Loan


L+ 8.00%


9.00%


11/30/18


11/19/25


10,879



10,147



10,227


3.25




(1.00% Floor)


(2.00%PIK)
















Specialized Consumer Services




















True Blue Car Wash, LLC




















First Lien Secured Term Loan


L+ 7.12%


8.12%


10/17/19


10/17/24


4,321



4,259



4,321


1.37




(1.00% Floor)


















First Lien Secured Delayed Draw Loan(7)


L+ 7.12%


8.12%


10/17/19


10/17/24


2,002



1,985



2,017


0.64




(1.00% Floor)








6,323



6,244



6,338


2.01


Specialized Finance




















Golden Pear Funding Assetco, LLC(5)




















Second Lien Secured Term Loan


L+ 10.50%


11.50%


09/20/18


03/20/24


10,938



10,819



10,938


3.48




(1.00% Floor)


















WHF STRS Ohio Senior Loan Fund LLC




















Subordinated Note(4)(5)(7)(9)(14)


L+ 6.50%


6.61%


07/19/19


N/A


44,529



44,529



44,529


14.17












55,467



55,348



55,467


17.65


Specialty Chemicals




















Flexitallic Group SAS




















First Lien Secured Term Loan


L+ 6.50%


7.50%


10/28/19


10/29/26


11,603



11,370



10,802


3.44




(1.00% Floor)


















Systems Software




















Arcstor Midco, LLC




















First Lien Secured Term Loan


L+ 7.00%


8.00%


03/16/21


03/16/27


19,500



19,113



19,112


6.08




(1.00% Floor)






































IDIG Parent LLC




















First Lien Secured Term Loan


L+ 6.50%


7.50%


02/17/21


12/15/26


8,547



8,466



8,466


2.69




(1.00% Floor)


















First Lien Secured Delayed Draw Loan(7)


L+ 6.50%


7.50%


02/17/21


12/15/26










(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 6.50%


7.50%


02/17/21


12/15/26










(1.00% Floor)








28,047



27,579



27,578


8.77


Technology Hardware, Storage & Peripherals




















Source Code Midco, LLC




















First Lien Secured Term Loan


L+ 8.25%


9.25%


05/04/18


05/04/23


22,010



21,745



22,010


7.00




(1.00% Floor)


















Telestream Holdings Corporation




















First Lien Secured Term Loan


L+ 8.75%


9.75%


10/15/20


10/15/25


15,193



14,751



14,903


4.74




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 8.75%


9.75%


10/15/20


10/15/25






14





(1.00% Floor)








37,203



36,496



36,927


11.74


Trading Companies & Distributors




















LINC Systems, LLC




















First Lien Secured Term Loan


L+ 6.50%


7.50%


02/24/21


02/24/26


8,355



8,191



8,191


2.61




(1.00% Floor)


















First Lien Secured Revolving Loan (7)


L+ 6.50%


7.50%


02/24/21


02/24/26










(1.00% Floor)








8,355



8,191



8,191


2.61






















Total Debt Investments










602,782



591,621



582,176


185.20










































Equity Investments




















Data Processing & Outsourced Services




















Escalon Services Inc Warrants(4)


N/A


N/A


12/04/20


N/A


709



476



475


0.15


Diversified Support Services




















Quest Events, LLC Preferred Units(4)


N/A


N/A


12/28/18


12/08/25


317



317





ImageOne Industries, LLC Common A Units(4)


N/A


N/A


09/20/19


N/A


225





164


0.05












542



317



164


0.05


Health Care Services




















Lab Logistics Preferred Units (4)


N/A


N/A


10/29/19


N/A


2



857



857


0.27


Internet & Direct Marketing Retail




















BBQ Buyer, LLC Shares(4)


N/A


N/A


08/28/20


N/A


1,100



1,100



2,200


0.70


Ross-Simons Topco, LP Preferred Units(4)


N/A


N/A


12/04/20


N/A


600



600



600


0.19












1,700



1,700



2,800


0.89


Investment Banking & Brokerage




















Arcole Holding Corp.
Shares (4)(5)(6)(18)


N/A


N/A


10/01/20


N/A




6,944



5,713


1.82


IT Consulting & Other Services




















Keras Holdings, LLC Shares(4)


N/A


N/A


12/31/20


N/A


496



496



496


0.16


Leisure Facilities




















 Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Class A Common Stock(4)


N/A


N/A


06/29/20


N/A


2



1,955



237


0.08


 Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Warrants(4)


N/A


N/A


06/29/20


06/28/28


1



793



96


0.03












3



2,748



333


0.11


Other Diversified Financial Services




















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



3,492


1.11












22



2,890



3,492


1.11


Specialized Finance




















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


N/A


N/A


08/13/14


08/31/22


10,000



10,029



9,570


3.04


WHF STRS Ohio Senior Loan Fund LLC Interests (4)(5)(7)(14)


N/A


N/A


07/19/19


N/A


11,132



11,132



10,911


3.47












21,132



21,161



20,481


6.51






















Total Equity Investments










24,606



37,589



34,811


11.07






















Total Investments










627,388


$

629,210


$

616,987


196.27

%

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)


Forward Currency Contracts




Currency to be


Currency to be






Unrealized



Unrealized


Counterparty


sold


purchased



Settlement date



appreciation ($)



depreciation ($)


Morgan Stanley


C$

105 CAD


$

83 USD




04/28/2021



$



$

(1)














$



$

(1)


























(1)

Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility.





(2)

The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Canadian Dollar Offered Rate (“CDOR” or “C”) or the U.S. Prime Rate as published by the Wall Street Journal (“Prime” or “P”). The one, three and six-month LIBOR were 0.1%, 0.2% and 0.2%, respectively, as of March 31, 2021. The Prime was 3.25% as of March 31, 2021. The CDOR was 0.4% as of March 31, 2021.





(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 86% 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, 2021.





(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 92% 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 STRS JV, a joint venture, which invests primarily in senior secured first and second lien term loans.





(15)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.





(16)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.





(17)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.





(18)

On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company’s investments in first lien secured term loans to Arcole Acquisition Corp were converted into common shares of Arcole Holding Corp.





(19)

At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 2.00% PIK.

Contacts

Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
[email protected]   

or

Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
[email protected]

or

Sean Silva
Prosek Partners
646-818-9122
[email protected]

SOURCE WhiteHorse Finance, Inc.

Related Links

https://www.whitehorsefinance.com