NEW YORK, Nov. 8, 2018 /PRNewswire/ -- WhiteHorse
Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ:
WHF) announced today that it has priced a registered public
offering of $33,000,000 aggregate
principal amount of its 6.50% notes due 2025 (the "Notes"), which
will result in net proceeds to the Company of approximately
$31.8 million (or approximately
$36.5 million if the
underwriters fully exercise the overallotment option described
below) based on a public offering price of 100% of the aggregate
principal amount of the Notes, after deducting payment of
underwriting discounts and commissions and estimated offering
expenses payable by the Company.
The Notes will mature on November 30,
2025 and may be redeemed in whole or in part at any time, or
from time to time, at the Company's option on or after November 30, 2021. The Notes will bear
interest at a rate of 6.50% per year, payable quarterly on
February 28, May 31, August 31
and November 30 each year, beginning
on February 28, 2019. The Notes
have received a private rating of "A-" from Egan-Jones Rating
Company.* The Company has also granted the underwriters a
30-day option to purchase an additional $4,950,000 aggregate principal amount of Notes to
cover overallotments, if any.
The offering is subject to customary closing conditions and is
expected to close on November 13,
2018. The Company has submitted an application for the Notes
to be listed and traded on The Nasdaq Global Select Market under
the trading symbol "WHFBZ." If approved for listing, the Company
expects the Notes to begin trading within 30 days from the original
issue date.
The Company intends to use the net proceeds of the offering to
fund investments in debt and equity securities in accordance with
its investment objective and for other general corporate purposes.
The Company also may use a portion of the net proceeds from the
offering to repay outstanding indebtedness under its revolving
credit facility with JPMorgan Chase Bank, N.A. (the "Credit
Facility"). As of November 6, 2018, the Company has
$155.0 million of indebtedness
outstanding under the Credit Facility. Borrowings under the Credit
Facility generally bear interest at an annual rate equal to LIBOR
plus 2.75% and will mature on December 29,
2021.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSE American: LTS), BB&T
Capital Markets, a division of BB&T Securities, LLC, and Janney
Montgomery Scott LLC are acting as joint book-running managers for
the offering.
B. Riley FBR, Inc., Incapital LLC and Oppenheimer & Co. Inc.
are acting as lead managers for the offering.
* Note: A securities rating is not
a recommendation to buy, sell or hold securities and may be subject
to revision or withdrawal at any time.
Investors are advised to carefully consider the investment
objective, risks and charges and expenses of the Company before
investing. The preliminary prospectus supplement, dated
November 8, 2018, and accompanying
prospectus, dated October 23, 2018,
each of which has been filed with the Securities and Exchange
Commission, contain a description of these matters and other
important information about the Company and should be read
carefully before investing.
The information in the preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. This press release does not constitute an
offer to sell or the solicitation of an offer to buy the securities
in this offering or any other securities nor will there be any sale
of these securities or any other securities referred to in this
press release in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities law of such state or
jurisdiction.
A shelf registration statement relating to these securities
is on file with and has been declared effective by the Securities
and Exchange Commission. The offering may be made only by
means of a prospectus and a related prospectus supplement, copies
of which may be obtained, when available, from: Ladenburg Thalmann
& Co. Inc., 277 Park Avenue, 26th Floor,
New York, New York 10172, or:
1-800-573-2541, or: prospectus@ladenburg.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 $28 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.
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SOURCE WhiteHorse Finance, Inc.