WHFBL Whitehorse Finance - 6.50% Senior Notes Due 2020 (delisted)

NEW YORK, May 5, 2016 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ: WHF) today announced its financial results for the quarter ended March 31, 2016.

First Quarter 2016 Summary Highlights

• New investments of $18.4 million across three loans in three different sectors
• Net investment income increased 26.8% year-over-year to $6.8 million
• First quarter net investment income of $0.369 per share
• First quarter distribution of $0.355 per share

Jay Carvell, WhiteHorse Finance's Chief Executive Officer commented, "We are pleased to report another solid quarter during which we increased the effective yield on our investments and covered our distribution to stockholders. We continue to see attractive opportunities in the market and remain highly selective in the deployment of capital."

Portfolio and Investment Activity

As of March 31, 2016, the fair value of WhiteHorse Finance's investment portfolio was $417.2 million, compared with $415.3 million as of December 31, 2015. The portfolio at March 31, 2016 consisted of 38 positions across 31 companies with an average investment size of $11.0 million and a weighted average effective yield of 11.9%. 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.

During the three months ended March 31, 2016, WhiteHorse Finance invested $20.6 million across one existing and three new portfolio companies. Gross proceeds from sales and repayments totaled $18.4 million for the quarter. The Company continued to be highly selective with the deployment of capital into new investments.

Results of Operations

For the three months ended March 31, 2016, net investment income was approximately $6.8 million, compared with approximately $5.3 million for the same period in the prior year, representing an increase of 26.8%. The increase in net investment income was primarily attributable to an increase in the average earning investment balance over the same period in the prior year.

For the three months ended March 31, 2016, WhiteHorse Finance reported realized and unrealized losses on investments of $1.2 million. This compares with realized and unrealized losses on investments of $0.6 million for the three months ended March 31, 2015. The increase in realized and unrealized losses on investments was primarily attributable to fair value adjustments.

WhiteHorse Finance reported a net increase in net assets of $5.5 million for the three months ended March 31, 2016, which compares with a net increase of $4.8 million for the three months ended March 31, 2015.

WhiteHorse Finance's NAV was $243.1 million, or $13.28 per share, as of March 31, 2016, as compared with $244.1 million, or $13.33 per share, reported as of December 31, 2015.

Liquidity and Capital Resources

As of March 31, 2016, WhiteHorse Finance had cash and cash equivalents of $21.1 million, as compared with $22.8 million as of December 31, 2015, inclusive of restricted cash. As of March 31, 2016, the Company had $95.0 million of undrawn capacity under its revolving credit facility.

Distributions

On March 9, 2016, the Company declared a distribution of $0.355 per share for the quarter ended March 31, 2016, consistent for the fourteenth consecutive quarter since the Company's IPO. The distribution was paid on April 4, 2016 to shareholders of record as of March 21, 2016.

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.

Appointment of Chief Executive Officer

On May 2, 2016, the Company's Board of Directors appointed Stuart Aronson as Chief Executive Officer, effective May 23, 2016. Jay Carvell, the Company's current Chief Executive Officer, will continue to serve as a member of the Company's Board of Directors and as a Managing Director of H.I.G. WhiteHorse Advisers, LLC ("WhiteHorse Advisers"), the Company's investment adviser.

Mr. Aronson currently serves as the Group Head of the U.S. direct lending platform of H.I.G. Capital, L.L.C. ("H.I.G. Capital"), an affiliate of WhiteHorse Advisers. Prior to joining H.I.G. Capital, Mr. Aronson was President and Chief Executive Officer of GE Capital's U.S. Sponsor Finance Group ("GSF") and was an officer of the General Electric Company. From 2010 to 2015, GSF was a leading provider of debt financing to U.S. sponsor-backed middle market companies.

John Bolduc, WhiteHorse Finance's Chairman of the Board, commented, "Stuart has had an immediate impact on our direct lending activities since joining H.I.G. WhiteHorse as Group Head of U.S. direct lending. His strong credentials and deep relationships across the direct lending space make him an ideal candidate to lead WhiteHorse Finance in the years ahead. I would also like to thank Jay for his service and look forward to his continued contributions as an active member of our executive group."

Conference Call

WhiteHorse Finance will host a conference call to discuss its first quarter results at 10:00 am ET on Thursday, May 5, 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 #89615045. 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 12, 2016. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #89615045. 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 WhiteHorse Advisers, an affiliate of H.I.G. Capital. H.I.G. Capital is a leading global alternative asset manager with $19 billion of capital under management* 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.

^* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.

(Financial Tables Follow)