NEW YORK, March 3, 2016 /PRNewswire/ -- WhiteHorse
Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ:
WHF) today announced its financial results for the quarter and year
ended December 31, 2015.
Fourth Quarter 2015 Summary Highlights
- New investments of $63.7 million
and $140.4 million for the fourth
quarter and year, respectively
- Completed a public offering of subscription rights to purchase
shares of common stock, which were fully exercised, resulting
approximately $44.0 million of net
proceeds
- Refinanced the revolving credit facility, increasing the
facility size from $150 million to $200
million and extending the reinvestment period by three years
through 2018
- Net investment income of $3.9
million, or $0.24 per share,
for the fourth quarter
- Net credit facility refinancing costs of $1.8 million, or $0.11 per share
- Core net investment income of $5.7
million, or $0.35 per share,
for the fourth quarter(1)
- Annual core net investment income of $1.48 per share(1)
- Annual distributions of $1.42 per
share
(1) Core net investment income is a non-GAAP financial
measure. The Company believes that core net investment income
provides useful information to investors and management because it
reflects the Company's financial performance excluding the net
impact of costs associated with the refinancing of the Company's
revolving credit facility. 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.
Jay Carvell, WhiteHorse Finance's
Chief Executive Officer commented, "We are pleased to report strong
core earnings for the quarter. Our affiliation with H.I.G. Capital
remains strong, and we are pleased with the forward pipeline. We
continue to source attractive investments and believe opportunities
in the credit markets will allow us to continue to execute on our
origination strategy."
Portfolio and Investment Activity
As of December 31, 2015, the fair
value of WhiteHorse Finance's investment portfolio was $415.3 million, compared with $403.5 million as of December 31, 2014. The portfolio at December 31, 2015 consisted of 35 positions
across 29 companies with an average investment size of $11.5 million and a weighted average effective
yield of 11.8 % on income producing investments. The majority of
the portfolio was comprised of senior secured loans and more than
97.0% of these loans were variable-rate investments (primarily
indexed to LIBOR), which should continue to position the portfolio
well for a potential rising interest rate environment.
For the three months ended December 31,
2015, WhiteHorse Finance invested $63.7 million across five portfolio companies.
Gross proceeds from sales and repayments totaled $6.4 million for the quarter.
For the year ended December 31,
2015, WhiteHorse Finance invested $140.4 million across twelve portfolio companies.
Gross proceeds from sales and repayments totaled $107.7 million for the year.
Results of Operations
For the three months and year ended December 31, 2015, net investment income was
$3.9 million and $20.8 million, compared with $5.0 million and $17.0
million for the same periods in the prior year. For
the three months and year ended December 31,
2015, core net investment income, a non-GAAP financial
measure, was $5.7 million and
$22.6 million, compared with
$5.0 million and $17.0 million for the same periods in the prior
year. The increase in core net investment income was primarily
attributable to increases in the average earning investment balance
and the weighted average effective yield over the same periods in
the prior year.
For the three months and year ended December 31, 2015, WhiteHorse Finance reported
realized and unrealized losses on investments of $18.7 and $23.6
million, respectively. This compares with realized and
unrealized losses on investments of $1.3 million and realized and unrealized gains on
investments of $2.6 million for the
three months and year ended December 31,
2014, respectively. The increase in realized and unrealized
losses on investments related primarily to the recognition of
unrealized depreciation of $13.3
million on the Company's investment in RCS Capital
Corporation during the fourth quarter of 2015.
For the three months and year ended December 31, 2015, WhiteHorse Finance reported a
net decrease in net assets of $14.8
million and $2.8 million,
respectively, which compares with a net increase in net assets of
$3.6 million and $19.5 million for the three months and year ended
December 31, 2014.
WhiteHorse Finance's NAV was $244.1
million, or $13.33 per share,
as of December 31, 2015, as compared
with $227.0 million, or $15.16 per share, reported as of December 31, 2014.
Liquidity and Capital Resources
As of December 31, 2015,
WhiteHorse Finance had cash and cash equivalents of $22.8 million, as compared with $25.9 million as of September 30, 2015, inclusive of restricted cash.
As of December 31, 2015, the Company
had $98.0 million of undrawn capacity
under its revolving credit facility.
Distributions
On November 23, 2015, the Company
declared a distribution of $0.355 per
share for the quarter ended December 31,
2015, consistent for the thirteenth consecutive quarter
since the Company's IPO. The distribution was payable on
January 4, 2016 to shareholders of
record as of December 21, 2015.
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 Thursday,
March 3, 2016. 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#36543898. 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 March 10,
2016. The teleconference replay can be accessed by dialing
404-537-3406 (domestic and international) and entering ID#36543898.
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 small-cap
companies across a broad range of industries. The Company's
investment activities are managed by its investment
adviser, H.I.G. WhiteHorse Advisers, LLC, an affiliate
of H.I.G. Capital, L.L.C. ("H.I.G. Capital"). H.I.G.
Capital is a leading global alternative asset manager
with $19 billion of capital under
management(2) across a number of funds focused on the
small and mid-cap markets. For more information about H.I.G.
Capital, please visit http://www.higcapital.com. For
more information about the Company, please
visit http://www.whitehorsefinance.com.
(2) Based on total capital commitments to funds managed
by H.I.G. Capital and its affiliates.
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.
|
WhiteHorse
Finance, Inc.
|
|
|
Consolidated
Statements of Assets and Liabilities
(in thousands, except share and per share
data)
|
|
|
|
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate company
investments
|
|
$
|
395,143
|
|
$
|
383,500
|
|
Non-controlled
affiliate company investments
|
|
|
20,200
|
|
|
20,000
|
|
Total investments, at
fair value (amortized cost $436,109 and $401,062,
respectively)
|
|
|
415,343
|
|
|
403,500
|
|
Cash and cash
equivalents
|
|
|
22,769
|
|
|
11,647
|
|
Restricted cash and
cash equivalents
|
|
|
—
|
|
|
4,495
|
|
Interest
receivable
|
|
|
3,407
|
|
|
2,702
|
|
Deferred financing
costs
|
|
|
3,518
|
|
|
4,004
|
|
Prepaid expenses and
other receivables
|
|
|
192
|
|
|
494
|
|
Total
assets
|
|
$
|
445,229
|
|
$
|
426,842
|
|
Liabilities
|
|
|
|
|
|
|
|
Debt
|
|
$
|
187,000
|
|
$
|
190,500
|
|
Distributions
payable
|
|
|
6,498
|
|
|
5,319
|
|
Management fees
payable
|
|
|
3,813
|
|
|
5,006
|
|
Payable for
investments purchased
|
|
|
2,865
|
|
|
—
|
|
Accounts payable and
accrued expenses
|
|
|
1,001
|
|
|
659
|
|
Total
liabilities
|
|
|
201,177
|
|
|
201,484
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Net
assets
|
|
|
|
|
|
|
|
Common stock,
18,303,890 and 14,982,857 shares issued and outstanding, par value
$0.001 per share and 100,000,000 authorized
|
|
|
18
|
|
|
15
|
|
Paid-in capital in
excess of par
|
|
|
272,705
|
|
|
228,731
|
|
Accumulated
overdistributed net investment income
|
|
|
(7,618)
|
|
|
(5,918)
|
|
Net realized gains on
investments
|
|
|
349
|
|
|
728
|
|
Net unrealized
(depreciation) appreciation on investments
|
|
|
(21,402)
|
|
|
1,802
|
|
Total net
assets
|
|
|
244,052
|
|
|
225,358
|
|
Total liabilities and
total net assets
|
|
$
|
445,229
|
|
$
|
426,842
|
|
Number of shares
outstanding
|
|
|
18,303,890
|
|
|
14,982,857
|
|
Net asset value per
share
|
|
$
|
13.33
|
|
$
|
15.04
|
|
WhiteHorse
Finance, Inc.
|
|
|
Consolidated
Statements of Operations
(in thousands, except share and per share
data)
|
|
|
|
|
|
|
|
Years ended
December 31,
|
|
2015
|
|
2014
|
|
2013
|
|
Investment
income
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
42,381
|
|
$
|
35,148
|
|
$
|
34,155
|
|
Fee income
|
|
1,894
|
|
|
1,604
|
|
|
3,462
|
|
Dividend
income
|
|
2,800
|
|
|
794
|
|
|
—
|
|
Total investment
income
|
|
47,075
|
|
|
37,546
|
|
|
37,617
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
9,970
|
|
|
5,818
|
|
|
5,341
|
|
Base management
fees
|
|
8,560
|
|
|
7,557
|
|
|
5,059
|
|
Performance-based
incentive fees
|
|
4,323
|
|
|
3,387
|
|
|
4,800
|
|
Administrative
service fees
|
|
1,140
|
|
|
1,510
|
|
|
1,173
|
|
General and
administrative expenses
|
|
2,326
|
|
|
2,720
|
|
|
2,182
|
|
Total expenses,
before fees waived
|
|
26,319
|
|
|
20,992
|
|
|
18,555
|
|
Base management fees
waived
|
|
—
|
|
|
(447)
|
|
|
(248)
|
|
Total expenses, net
of fees waived
|
|
26,319
|
|
|
20,545
|
|
|
18,307
|
|
Net investment
income
|
|
20,756
|
|
|
17,001
|
|
|
19,310
|
|
Realized and
unrealized (losses) gains on investments
|
|
|
|
|
|
|
|
|
|
Net realized losses
on investments
|
|
(379)
|
|
|
(64)
|
|
|
—
|
|
Net change in
unrealized (depreciation) appreciation on investments
|
|
(23,204)
|
|
|
2,607
|
|
|
(280)
|
|
Net realized and
unrealized (losses) gains on investments
|
|
(23,583)
|
|
|
2,543
|
|
|
(280)
|
|
Net (decrease)
increase in net assets resulting from operations
|
$
|
(2,827)
|
|
$
|
19,544
|
|
$
|
19,030
|
|
Per Common Share
Data
|
|
|
|
|
|
|
|
|
|
Basic and diluted
(loss) earnings per common share
|
$
|
(0.18)
|
|
$
|
1.30
|
|
$
|
1.27
|
|
Dividends and
distributions declared per common share
|
$
|
1.42
|
|
$
|
1.42
|
|
$
|
1.42
|
|
Basic and diluted
weighted average common shares outstanding
|
|
15,319,510
|
|
|
14,982,825
|
|
|
14,971,324
|
|
WhiteHorse
Finance, Inc.
|
|
|
Consolidated
Schedule of Investments
December 31, 2015
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Type(1)
|
|
Spread Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal
Amount
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Fair Value
As A
Percentage
Of Net
Assets
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluent Acquisition
II, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+11.50%
(0.50% Floor)
|
|
12.00%
(1.00% PIK)
|
|
12/8/20
|
|
$
|
28,017
|
|
$
|
27,462
|
|
$
|
27,765
|
|
|
11.38%
|
|
Intersection
Acquisition, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+10.00%
(1.00% Floor)
|
|
11.00%
|
|
9/15/20
|
|
|
16,462
|
|
|
16,302
|
|
|
16,429
|
|
|
6.73
|
|
|
|
|
|
|
|
|
|
|
|
44,479
|
|
|
43,764
|
|
|
44,194
|
|
|
18.11
|
|
Broadcasting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multicultural Radio
Broadcasting, Inc.(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+10.50%
(1.00% Floor)
|
|
|
11.50%
|
|
6/27/19
|
|
|
14,850
|
|
|
14,850
|
|
|
14,806
|
|
|
6.07
|
|
Consumer
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Pear Funding
III, LLC(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+10.25%
(1.00% Floor)
|
|
|
11.25%
|
|
6/25/20
|
|
|
25,000
|
|
|
24,731
|
|
|
24,650
|
|
|
10.10
|
|
Second Lien Secured
Revolving Loan
|
|
L+10.25%
(1.00% Floor)
|
|
|
11.25%
|
|
6/25/20
|
|
|
—
|
|
|
(52)
|
|
|
—
|
|
|
—
|
|
Oasis Legal Finance,
LLC(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
N/A
|
(5)
|
|
10.50%
|
|
9/30/18
|
|
|
9,000
|
|
|
8,881
|
|
|
8,973
|
|
|
3.68
|
|
Sigue
Corporation(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+10.50%
(1.00% Floor)
|
|
|
11.50%
|
|
12/27/18
|
|
|
25,000
|
|
|
24,669
|
|
|
24,875
|
|
|
10.19
|
|
|
|
|
|
|
|
|
|
|
|
59,000
|
|
|
58,229
|
|
|
58,498
|
|
|
23.97
|
|
Data Processing &
Outsourced Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future Payment
Technologies, L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+12.00%
(1.00% Floor)
|
|
13.00%
(1.00% PIK)
|
|
12/31/18
|
|
|
36,447
|
|
|
35,510
|
|
|
36,447
|
|
|
14.93
|
|
Distributors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
360 Holdings III
Corp.(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
P+8.00%
(3.50% Floor)
|
|
|
11.50%
|
|
10/1/21
|
|
|
9,975
|
|
|
9,575
|
|
|
9,775
|
|
|
4.01
|
|
WhiteHorse
Finance, Inc.
|
|
|
Consolidated
Schedule of Investments – (continued)
December 31, 2015
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Type(1)
|
|
Spread Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal
Amount
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Fair Value
As A
Percentage
Of Net
Assets
|
|
Diversified Support
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expert Global
Solutions, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+11.00%
(1.50% Floor)
|
|
|
12.50%
|
|
|
10/3/18
|
|
$
|
20,000
|
|
$
|
19,831
|
|
$
|
19,820
|
|
|
8.12%
|
|
Orion Healthcorp,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+9.00%
(2.00% Floor)
|
|
|
11.00%
|
|
|
9/30/17
|
|
|
6,991
|
|
|
6,830
|
|
|
6,998
|
|
|
2.87
|
|
Sitel Worldwide
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+9.50%
(1.00% Floor)
|
|
|
10.50%
|
|
|
9/18/22
|
|
|
8,670
|
|
|
8,501
|
|
|
8,540
|
|
|
3.50
|
|
Smile Brands Group
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+7.75%
(1.25% Floor)
|
|
|
9.00%
(1.50% PIK)
|
|
|
8/16/19
|
|
|
11,745
|
|
|
11,585
|
|
|
9,983
|
|
|
4.09
|
|
|
|
|
|
|
|
|
|
|
|
|
47,406
|
|
|
46,747
|
|
|
45,341
|
|
|
18.58
|
|
Electronic Equipment
& Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AP Gaming I, LLC
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+8.25%
(1.00% Floor)
|
|
|
9.25%
|
|
|
12/20/20
|
|
|
9,800
|
|
|
9,566
|
|
|
9,663
|
|
|
3.96
|
|
Food
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crews of California,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+11.00%
(1.00% Floor)
|
|
|
12.00%
(1.00% PIK)
|
|
|
11/20/19
|
|
|
15,170
|
|
|
14,889
|
|
|
14,639
|
|
|
6.00
|
|
First Lien Secured
Revolving Loan
|
|
L+11.00%
(1.00% Floor)
|
|
|
12.00%
(1.00% PIK)
|
|
|
11/20/19
|
|
|
5,019
|
|
|
4,931
|
|
|
4,843
|
|
|
1.98
|
|
First Lien Secured
Delayed Draw Term Loan
|
|
L+11.00%
(1.00% Floor)
|
|
|
12.00%
(1.00% PIK)
|
|
|
11/20/19
|
|
|
5,034
|
|
|
4,946
|
|
|
4,858
|
|
|
1.99
|
|
|
|
|
|
|
|
|
|
|
|
|
25,223
|
|
|
24,766
|
|
|
24,340
|
|
|
9.97
|
|
Health Care
Distributors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P2 Newco Acquisition,
Inc.(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+8.50%
(1.00% Floor)
|
|
|
9.50%
|
|
|
10/22/21
|
|
|
6,000
|
|
|
5,952
|
|
|
5,982
|
|
|
2.45
|
|
Health Care
Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coastal Sober Living,
LLC(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+9.25%
(1.00% Floor)
|
|
|
10.25%
|
|
|
6/30/19
|
|
|
41,030
|
|
|
40,436
|
|
|
40,251
|
|
|
16.49
|
|
Grupo HIMA San Pablo,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+7.00%
(1.50% Floor)
|
|
|
8.50%
|
|
|
1/31/18
|
|
|
14,588
|
|
|
14,441
|
|
|
14,588
|
|
|
5.98
|
|
Second Lien Secured
Term Loan
|
|
N/A
|
(5)
|
|
13.75%
|
|
|
7/31/18
|
|
|
1,000
|
|
|
971
|
|
|
992
|
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
56,618
|
|
|
55,848
|
|
|
55,831
|
|
|
22.88
|
|
WhiteHorse
Finance, Inc.
|
|
|
Consolidated
Schedule of Investments – (continued)
December 31, 2015
(in thousands)
|
|
|
Investment
Type(1)
|
|
Spread Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal
Amount
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Fair Value
As A
Percentage
Of Net
Assets
|
|
Health Care
Technology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Client Network
Services, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+13.00%
(0.50% Floor)
|
|
|
13.50%
|
|
|
4/24/19
|
|
$
|
9,185
|
|
$
|
8,954
|
|
$
|
9,350
|
|
|
3.83%
|
|
First Lien Secured
Revolving Loan
|
|
P+12.00%
(3.50% Floor)
|
|
|
15.50%
|
|
|
4/24/19
|
|
|
1,000
|
|
|
1,000
|
|
|
1,018
|
|
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
10,185
|
|
|
9,954
|
|
|
10,368
|
|
|
4.25
|
|
Integrated
Telecommunication Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securus Technologies
Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+7.75%
(1.25% Floor)
|
|
|
9.00%
|
|
|
4/30/21
|
|
|
9,090
|
|
|
9,059
|
|
|
5,936
|
|
|
2.43
|
|
Oil & Gas
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ProPetro Services,
Inc.(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+6.25%
(1.00% Floor)
|
|
|
7.25%
|
|
|
9/30/19
|
|
|
8,875
|
|
|
8,809
|
|
|
6,417
|
|
|
2.63
|
|
Oil & Gas
Exploration & Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caelus Energy Alaska
O3, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+7.50%
(1.25% Floor)
|
|
|
8.75%
|
|
|
4/15/20
|
|
|
13,000
|
|
|
12,856
|
|
|
9,269
|
|
|
3.80
|
|
Larchmont Resources,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+8.75%
(1.00% Floor)
|
|
|
9.75%
|
|
|
8/7/19
|
|
|
1,745
|
|
|
1,777
|
|
|
1,238
|
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
14,745
|
|
|
14,633
|
|
|
10,507
|
|
|
4.31
|
|
Other Diversified
Financial Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RCS Capital
Corporation(6)(7)(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+10.50%
(1.00% Floor)
|
|
|
11.50%
|
|
|
4/29/21
|
|
|
20,750
|
|
|
20,687
|
|
|
7,262
|
|
|
2.98
|
|
The Pay-O-Matic
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+11.00%
(1.00% Floor)
|
|
|
12.00%
|
|
|
3/31/18
|
|
|
9,750
|
|
|
9,594
|
|
|
9,740
|
|
|
3.99
|
|
|
|
|
|
|
|
|
|
|
|
|
30,500
|
|
|
30,281
|
|
|
17,002
|
|
|
6.97
|
|
Research &
Consulting Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Time &
Cost, LLC(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
L+11.00%
(0.50% Floor)
|
|
|
11.50%
|
|
|
10/9/20
|
|
|
11,700
|
|
|
11,468
|
|
|
11,571
|
|
|
4.74
|
|
Specialized Consumer
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Paid Legal
Services, Inc.(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+9.00%
(1.25% Floor)
|
|
|
10.25%
|
|
|
7/1/20
|
|
|
18,000
|
|
|
17,830
|
|
|
18,054
|
|
|
7.40
|
|
WhiteHorse
Finance, Inc.
|
|
|
Consolidated
Schedule of Investments – (continued)
December 31, 2015
(in thousands)
|
|
|
Investment
Type(1)
|
|
Spread Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal
Amount
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Fair Value
As A
Percentage
Of Net
Assets
|
|
Specialized
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMT Holdings 1, Ltd.
& GMT Holdings 12, Ltd.(4)(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
N/A
|
(5)
|
|
10.00%
|
|
|
6/30/17
|
|
$
|
1,710
|
|
$
|
1,710
|
|
$
|
1,710
|
|
|
0.70%
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Rent A Car,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
L+12.00%
|
|
|
12.43%
|
|
|
10/31/19
|
|
|
7,500
|
|
|
7,438
|
|
|
7,395
|
|
|
3.03
|
|
Total Debt
Investments
|
|
|
|
|
|
|
|
|
|
|
|
422,103
|
|
|
415,989
|
|
|
393,837
|
|
|
161.37
|
|
Equity
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI, Inc.
Warrants(6)
|
|
N/A
|
|
N/A
|
|
|
12/8/25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Diversified Support
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constellation Health,
LLC Warrants(6)
|
|
N/A
|
|
N/A
|
|
|
9/30/18
|
|
|
—
|
|
|
—
|
|
|
989
|
|
|
0.40
|
|
Food
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crews of California,
Inc. Warrants(6)
|
|
N/A
|
|
N/A
|
|
|
12/31/24
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
0.08
|
|
Nicholas &
Associates, LLC Warrants(6)
|
|
N/A
|
|
N/A
|
|
|
12/31/24
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
0.01
|
|
Pinnacle Management
Group, LLC Warrants(6)
|
|
N/A
|
|
N/A
|
|
|
12/31/24
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
0.03
|
|
RC3 Enterprises, LLC
Warrants(6)
|
|
N/A
|
|
N/A
|
|
|
12/31/24
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
317
|
|
|
0.13
|
|
Specialized
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NMFC Senior Loan
Program I LLC
Units(6)(7)(8)
|
|
N/A
|
|
N/A
|
|
|
6/10/19
|
|
|
—
|
|
|
20,120
|
|
|
20,200
|
|
|
8.28
|
|
Total Equity
Investments
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
20,120
|
|
|
21,506
|
|
|
8.81
|
|
Total
Investments
|
|
|
|
|
|
|
|
|
|
|
$
|
422,103
|
|
$
|
436,109
|
|
$
|
415,343
|
|
|
170.19%
|
|
|
|
|
(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") or the Prime Rate
("P"), which resets monthly, quarterly or semiannually.
|
|
|
|
|
(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)
|
WhiteHorse Finance,
Inc.'s investments in GMT Holdings 1, Ltd. and GMT Holdings 12,
Ltd. are held through its subsidiary Bayside Financing
S.A.R.L.
|
|
|
|
|
(5)
|
Interest rate is
fixed and accordingly the spread above the index is not
applicable.
|
|
|
|
|
(6)
|
The investment or a
portion of the investment does not provide collateral for the
Company's credit facility.
|
|
|
|
|
(7)
|
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 represent 86% of total
assets.
|
|
|
|
|
(8)
|
Investment is a
non-controlled/affiliate investment as defined by the 1940
Act.
|
|
|
|
|
(9)
|
The investment is on
non-accrual status.
|
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SOURCE WhiteHorse Finance, Inc.