NEW YORK, March 2, 2017 /PRNewswire/ -- WhiteHorse
Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ:
WHF) today announced its financial results for the quarter and year
ended December 31, 2016.
Fourth Quarter 2016 Summary Highlights
- New investments of $20.1 million
and $63.9 million for the fourth
quarter and year, respectively
- Net investment income of $6.6
million, or $0.358 per share,
for the fourth quarter
- Annual net investment income of $27.0
million, or $1.48 per
share
- Annual distribution of $1.42 per
share
Stuart Aronson, WhiteHorse
Finance's Chief Executive Officer commented, "This was a solid
quarter for WhiteHorse, with strong net interest income and modest
gains in our NAV. The leadership of our firm remains committed to
conservative investing in senior secured assets with a goal of
earning our dividend each year and protecting NAV. The pipeline for
the first quarter is strong."
Portfolio and Investment Activity
As of December 31, 2016, the fair
value of WhiteHorse Finance's investment portfolio was $411.7 million, compared with $415.3 million as of December 31, 2015. The portfolio at December 31, 2016 consisted of 37 positions
across 29 companies with an average investment size of $11.1 million based on fair value, a weighted
average effective yield of 11.8%, and an estimated weighted average
leverage multiple of 3.4x. The majority of the portfolio
comprised senior secured loans and approximately 99.8% of these
loans were variable-rate investments (primarily indexed to LIBOR),
which should continue to position the portfolio well in a rising
interest rate environment.
For the three months ended December 31,
2016, WhiteHorse Finance invested $20.1 million across two new portfolio companies.
Gross proceeds from sales and repayments totaled $2.5 million for the quarter. In addition,
WhiteHorse Finance refinanced its $36.8
million loan to Future Payment Technologies into a new
$23.3 million first lien loan;
reducing its net position by $13.5
million.
For the year ended December 31,
2016, WhiteHorse Finance invested $63.9 million across seven new portfolio
companies. Also, the Company invested $3.2 million in existing portfolio companies.
Gross proceeds from sales and repayments totaled $71.3 million for the year. In addition,
WhiteHorse Finance refinanced two investments resulting in a net
decrease in these investments of $2.9
million.
Results of Operations
For the three months and year ended December 31, 2016, net investment income was
approximately $6.6 million and
$27.0 million, compared with
approximately $3.9 million and
$20.8 million for the same periods in
the prior year. The increase in net investment income was primarily
attributable to (i) an increase in the balance of average earning
investments over the same periods in the prior year, (ii) higher
amortization of original issue discount related to repayments and
(iii) the 2015 write off of deferred financing costs related to a
credit line refinancing. In the past 24 months, cumulative core net
investment income, a non-GAAP financial measure, exceeded
distributions to stockholders.(1)
For the three months and year ended December 31, 2016, WhiteHorse Finance reported
realized and unrealized gain on investments of $2.5 million and $4.3
million, respectively. This compares with realized and
unrealized losses on investments of $18.7
million and $23.6 million for
the three months and year ended December 31,
2015, respectively. The increase in realized and unrealized
gains on investments was primarily attributable to the recognition
of unrealized loss in the Company's investment in RCS Capital
Corporation during the fourth quarter of 2015.
For the three months and year ended December 31, 2016, WhiteHorse Finance reported
net increases in net assets of $9.1
million and $31.3 million,
respectively, which compares to net decreases in net assets of
$14.8 million and $2.8 million for the three months and year ended
December 31, 2015.
WhiteHorse Finance's NAV was $249.4
million, or $13.63 per share,
as of December 31, 2016, as compared
with $246.8 million, or $13.48 per share, as of September 30, 2016. As of December 31, 2015, WhiteHorse Finance's NAV was
$244.0 million, or $13.33 per share.
Liquidity and Capital Resources
As of December 31, 2016,
WhiteHorse Finance had cash and cash equivalents of $28.9 million, as compared with cash and cash
equivalents of $23.7 million as of
September 30, 2016, inclusive of
restricted cash. As of December 31,
2016, the Company had approximately $40 million of undrawn capacity under its
revolving credit facility.
Distributions
On December 19, 2016, the Company
declared a distribution of $0.355 per
share for the quarter ended December 31,
2016, consistent for the seventeenth consecutive quarter
since the Company's IPO. The distribution was paid on January 3, 2017 to shareholders of record as of
December 20, 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.
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 2, 2017. 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
#70205251. 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 7,
2017. The teleconference replay can be accessed by dialing
404-537-3406 (domestic and international) and entering ID
#70205251. 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 $21
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.
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) Net
investment income and core net investment income during the three
months ended December 31, 2015 were $0.237 per share and $0.352 per
share, respectively. Net investment income was equal to core net
investment income for every other quarter since the Company's
initial public offering. 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.
|
|
|
(2) Based
on total capital commitments managed by H.I.G.
Capital and affiliates.
|
|
WhiteHorse
Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share
data)
|
|
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate company
investments
|
|
$
|
392,721
|
|
|
$
|
395,143
|
|
|
Non-controlled
affiliate company investments
|
|
|
18,993
|
|
|
|
20,200
|
|
|
Total investments, at
fair value (amortized cost $427,684 and $436,109,
respectively)
|
|
|
411,714
|
|
|
|
415,343
|
|
|
Cash and cash
equivalents
|
|
|
17,036
|
|
|
|
22,769
|
|
|
Restricted cash and
cash equivalents
|
|
|
11,858
|
|
|
|
—
|
|
|
Interest
receivable
|
|
|
3,891
|
|
|
|
3,407
|
|
|
Receivable for
unsettled transactions
|
|
|
881
|
|
|
|
—
|
|
|
Prepaid expenses and
other receivables
|
|
|
854
|
|
|
|
192
|
|
|
Total
assets
|
|
$
|
446,234
|
|
|
$
|
441,711
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
182,338
|
|
|
$
|
183,482
|
|
|
Distributions
payable
|
|
|
6,498
|
|
|
|
6,498
|
|
|
Management fees
payable
|
|
|
5,476
|
|
|
|
3,813
|
|
|
Payables for
investments purchased
|
|
|
995
|
|
|
|
2,865
|
|
|
Interest
payable
|
|
|
480
|
|
|
|
—
|
|
|
Accounts payable and
accrued expenses
|
|
|
1,058
|
|
|
|
1,001
|
|
|
Total
liabilities
|
|
|
196,845
|
|
|
|
197,659
|
|
|
Commitments and
contingencies (See Note 7)
|
|
|
|
|
|
|
|
|
|
Net
assets
|
|
|
|
|
|
|
|
|
|
Common stock,
18,303,890 shares issued and outstanding, par value $0.001 per
share and 100,000,000 authorized
|
|
|
18
|
|
|
|
18
|
|
|
Paid-in capital in
excess of par
|
|
|
271,679
|
|
|
|
271,679
|
|
|
Accumulated over
distributed net investment income
|
|
|
(6,400)
|
|
|
|
(7,419)
|
|
|
Accumulated realized
gains on investments
|
|
|
698
|
|
|
|
1,176
|
|
|
Accumulated
unrealized depreciation on investments
|
|
|
(16,606)
|
|
|
|
(21,402)
|
|
|
Total net
assets
|
|
|
249,389
|
|
|
|
244,052
|
|
|
Total liabilities and
total net assets
|
|
$
|
446,234
|
|
|
$
|
441,711
|
|
|
Number of shares
outstanding
|
|
|
18,303,890
|
|
|
|
18,303,890
|
|
|
Net asset value per
share
|
|
$
|
13.63
|
|
|
$
|
13.33
|
|
|
WhiteHorse
Finance, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
Years ended
December 31,
|
|
|
2016
|
|
2015
|
|
2014
|
|
Investment
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
48,649
|
|
|
$
|
42,380
|
|
|
$
|
35,148
|
|
|
Fee income
|
|
|
2,290
|
|
|
|
1,894
|
|
|
|
1,604
|
|
|
Dividend
income
|
|
|
2,910
|
|
|
|
2,800
|
|
|
|
794
|
|
|
Total investment
income
|
|
|
53,849
|
|
|
|
47,074
|
|
|
|
37,546
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
8,188
|
|
|
|
9,970
|
|
|
|
5,818
|
|
|
Base management
fees
|
|
|
8,990
|
|
|
|
8,560
|
|
|
|
7,557
|
|
|
Performance-based
incentive fees
|
|
|
6,755
|
|
|
|
4,323
|
|
|
|
3,387
|
|
|
Administrative
service fees
|
|
|
684
|
|
|
|
1,140
|
|
|
|
1,510
|
|
|
General and
administrative expenses
|
|
|
2,221
|
|
|
|
2,326
|
|
|
|
2,720
|
|
|
Total expenses,
before fees waived
|
|
|
26,838
|
|
|
|
26,319
|
|
|
|
20,992
|
|
|
Base management fees
waived
|
|
|
—
|
|
|
|
—
|
|
|
|
(447)
|
|
|
Total expenses, net
of fees waived
|
|
|
26,838
|
|
|
|
26,319
|
|
|
|
20,545
|
|
|
Net investment
income
|
|
|
27,011
|
|
|
|
20,755
|
|
|
|
17,001
|
|
|
Realized and
unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate
company investments
|
|
|
(478)
|
|
|
|
(379)
|
|
|
|
(64)
|
|
|
Net realized losses
|
|
|
(478)
|
|
|
|
(379)
|
|
|
|
(64)
|
|
|
Net change in
unrealized appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate
company investments
|
|
|
6,003
|
|
|
|
(23,404)
|
|
|
|
2,607
|
|
|
Non-controlled/affiliate
company investments
|
|
|
(1,207)
|
|
|
|
200
|
|
|
|
—
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
4,796
|
|
|
|
(23,204)
|
|
|
|
2,607
|
|
|
Net realized and
unrealized gains (losses) on investments
|
|
|
4,318
|
|
|
|
(23,583)
|
|
|
|
2,543
|
|
|
Net increase
(decrease) in net assets resulting from operations
|
|
$
|
31,329
|
|
|
$
|
(2,828)
|
|
|
$
|
19,544
|
|
|
Per Common Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
|
$
|
1.71
|
|
|
$
|
(0.18)
|
|
|
$
|
1.30
|
|
|
Dividends and
distributions declared per common share
|
|
$
|
1.42
|
|
|
$
|
1.42
|
|
|
$
|
1.42
|
|
|
Basic and diluted
weighted average common shares outstanding
|
|
|
18,303,890
|
|
|
|
15,319,510
|
|
|
|
14,982,825
|
|
|
WhiteHorse
Finance, Inc.
Consolidated Schedule of Investments
December 31, 2016
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outcome
Health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+6.50%
(1.00% Floor)
|
|
|
|
7.50%
|
|
|
|
12/22/21
|
|
|
$
|
18,500
|
|
|
$
|
16,652
|
|
|
$
|
16,872
|
|
|
|
6.77
|
%
|
|
Fluent Acquisition
II, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+11.50%
(0.69% Floor)
|
|
|
|
12.19%
(1.00% PIK)
|
|
|
|
12/8/20
|
|
|
|
26,885
|
|
|
|
26,466
|
|
|
|
26,745
|
|
|
|
10.72
|
|
|
Intersection
Acquisition, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+10.00%
(1.00% Floor)
|
|
|
|
11.00%
|
|
|
|
9/15/20
|
|
|
|
16,149
|
|
|
|
16,029
|
|
|
|
15,597
|
|
|
|
6.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,534
|
|
|
|
59,147
|
|
|
|
59,214
|
|
|
|
23.74
|
|
|
Auto Parts &
Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crowne Group,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+9.25%
(1.00% Floor)
|
|
|
|
10.25%
|
|
|
|
5/26/21
|
|
|
|
12,406
|
|
|
|
12,027
|
|
|
|
12,282
|
|
|
|
4.92
|
|
|
Broadcasting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multicultural Radio
Broadcasting, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+10.50%
(1.00% Floor)
|
|
|
|
11.50%
|
|
|
|
6/27/19
|
|
|
|
14,850
|
|
|
|
14,850
|
|
|
|
14,776
|
|
|
|
5.92
|
|
|
Consumer
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Pear Funding
III, LLC(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+10.25%
(1.00% Floor)
|
|
|
|
11.25%
|
|
|
|
6/25/20
|
|
|
|
25,000
|
|
|
|
24,797
|
|
|
|
24,732
|
|
|
|
9.92
|
|
|
Second Lien Secured
Revolving Loan
|
|
|
L+10.25%
(1.00% Floor)
|
|
|
|
11.25%
|
|
|
|
6/25/20
|
|
|
|
5,000
|
|
|
|
4,959
|
|
|
|
4,947
|
|
|
|
1.98
|
|
|
Oasis Legal Finance,
LLC(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+10.75%
(1.00%
Floor)
|
|
|
|
11.75%
|
|
|
|
3/1/22
|
|
|
|
20,000
|
|
|
|
19,623
|
|
|
|
19,650
|
|
|
|
7.88
|
|
|
Sigue
Corporation(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+11.00%
(1.00% Floor)
|
|
|
|
12.00%
|
|
|
|
12/27/18
|
|
|
|
25,000
|
|
|
|
24,801
|
|
|
|
24,200
|
|
|
|
9.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,000
|
|
|
|
74,180
|
|
|
|
73,529
|
|
|
|
29.48
|
|
|
WhiteHorse
Finance, Inc.
Consolidated Schedule of Investments – (continued)
December 31, 2016
(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
|
|
Data Processing &
Outsourced Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future Payment
Technologies, L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
|
L+8.25%
(1.00% Floor)
|
|
|
|
9.25%
|
|
|
|
12/23/21
|
|
|
|
$23,750
|
|
|
|
$23,329
|
|
|
|
$23,370
|
|
|
|
9.37
|
%
|
|
Department
Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mills Fleet Farm
Group, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
|
L+9.75%
(1.00% Floor)
|
|
|
|
10.75%
|
|
|
|
2/26/23
|
|
|
|
7,146
|
|
|
|
7,017
|
|
|
|
7,146
|
|
|
|
2.87
|
|
|
Distributors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
360 Holdings III
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
|
L+9.00%
(1.00% Floor)
|
|
|
|
10.00%
|
|
|
|
10/1/21
|
|
|
|
9,875
|
|
|
|
9,549
|
|
|
|
9,875
|
|
|
|
3.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Support
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sitel Worldwide
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+9.50%
(1.00% Floor)
|
|
|
|
10.50%
|
|
|
|
9/18/22
|
|
|
|
8,670
|
|
|
|
8,528
|
|
|
|
8,462
|
|
|
|
3.39
|
|
|
Electronic Equipment
& Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AP Gaming I, LLC
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+8.25%
(1.00% Floor)
|
|
|
|
9.25%
|
|
|
|
12/20/20
|
|
|
|
9,700
|
|
|
|
9,533
|
|
|
|
9,523
|
|
|
|
3.82
|
|
|
Food
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AG Kings Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+9.95%
(1.00% Floor)
|
|
|
|
10.95%
|
|
|
|
8/10/21
|
|
|
|
13,930
|
|
|
|
13,375
|
|
|
|
13,610
|
|
|
|
5.46
|
|
|
Crews of California,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+11.00%
(1.00% Floor)
|
|
|
|
12.00%
(1.00% PIK)
|
|
|
|
11/20/19
|
|
|
|
17,538
|
|
|
|
17,343
|
|
|
|
17,461
|
|
|
|
7.00
|
|
|
First Lien Secured
Revolving Loan
|
|
|
L+11.00%
(1.00% Floor)
|
|
|
|
12.00%
(1.00% PIK)
|
|
|
|
11/20/19
|
|
|
|
5,068
|
|
|
|
4,992
|
|
|
|
5,046
|
|
|
|
2.02
|
|
|
First Lien Secured
Delayed Draw Term Loan
|
|
|
L+11.00%
(1.00% Floor)
|
|
|
|
12.00%
(1.00% PIK)
|
|
|
|
11/20/19
|
|
|
|
5,083
|
|
|
|
5,012
|
|
|
|
5,061
|
|
|
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,619
|
|
|
|
40,722
|
|
|
|
41,178
|
|
|
|
16.51
|
|
|
Health Care
Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coastal Sober Living,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+10.25%
(1.00% Floor)
|
|
|
|
11.25%
|
|
|
|
6/30/19
|
|
|
|
23,183
|
|
|
|
22,964
|
|
|
|
23,183
|
|
|
|
9.30
|
|
|
WhiteHorse
Finance, Inc.
Consolidated Schedule of Investments – (continued)
December 31, 2016
(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
|
|
Grupo HIMA San Pablo,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
|
L+9.00%
(1.50% Floor)
|
|
|
|
10.50%
|
|
|
|
1/31/18
|
|
|
|
$14,438
|
|
|
|
$14,375
|
|
|
|
$12,569
|
|
|
|
5.04
|
%
|
|
Second Lien Secured Term
Loan
|
|
|
N/A
|
|
|
|
15.75%
|
|
|
|
7/31/18
|
|
|
|
1,000
|
|
|
|
986
|
|
|
|
594
|
|
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,621
|
|
|
|
38,325
|
|
|
|
36,346
|
|
|
|
14.58
|
|
|
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
|
|
|
|
$9,067
|
|
|
|
$8,841
|
|
|
|
3.55
|
|
|
Internet
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clarus Commerce,
LC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+11.14%
(1.00% Floor)
|
|
|
|
12.14%
|
|
|
|
3/17/21
|
|
|
|
6,000
|
|
|
|
5,899
|
|
|
|
5,895
|
|
|
|
2.36
|
|
|
Office Service &
Supplies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Katun
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+11.25%
(1.00% Floor)
|
|
|
|
12.25%
|
|
|
|
1/25/21
|
|
|
|
5,000
|
|
|
|
4,970
|
|
|
|
4,930
|
|
|
|
1.98
|
|
|
Oil & Gas
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ProPetro Services,
Inc.(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+6.25%
(1.00% Floor)
|
|
|
|
7.25%
|
|
|
|
9/30/19
|
|
|
|
8,284
|
|
|
|
8,246
|
|
|
|
7,189
|
|
|
|
2.88
|
|
|
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
|
|
|
|
12,898
|
|
|
|
9,939
|
|
|
|
3.99
|
|
|
Other Diversified
Financial Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Pay-O-Matic
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term Loan
|
|
|
L+11.00%
(1.00% Floor)
|
|
|
|
12.00%
|
|
|
|
4/2/18
|
|
|
|
8,934
|
|
|
|
8,860
|
|
|
|
8,904
|
|
|
|
3.57
|
|
|
Research &
Consulting Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Time &
Cost, LLC(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
|
L+11.00%
(0.74% Floor)
|
|
|
|
12.74%
|
|
|
|
10/9/20
|
|
|
|
10,105
|
|
|
|
9,953
|
|
|
|
9,845
|
|
|
|
3.95
|
|
|
WhiteHorse
Finance, Inc.
Consolidated Schedule of Investments – (continued)
December 31, 2016
(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 Consumer
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Paid Legal
Services, Inc.(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+9.00%
(1.25% Floor)
|
|
|
|
10.25
|
%
|
|
|
7/1/20
|
|
|
|
$19,000
|
|
|
|
$18,882
|
|
|
|
$19,000
|
|
|
|
7.22%
|
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Rent A Car,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+12.00%
(0.62%
Floor)
|
|
|
|
12.62
|
%
|
|
|
9/30/17
|
|
|
|
7,500
|
|
|
|
7,455
|
|
|
|
7,410
|
|
|
|
2.97
|
|
|
Sunteck/TSS Holdings,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term Loan
|
|
|
L+9.00%
(1.00%
Floor)
|
|
|
|
10.00
|
%
|
|
|
6/15/22
|
|
|
|
3,500
|
|
|
|
3,439
|
|
|
|
3,454
|
|
|
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,000
|
|
|
|
10,894
|
|
|
|
10,864
|
|
|
|
4.35
|
|
|
Total Debt
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
393,581
|
|
|
|
386,871
|
|
|
|
381,111
|
|
|
|
152.88
|
|
|
Equity
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI, Inc.
Warrants(4)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
12/8/25
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Food
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crews of California,
Inc. Warrants(4)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
12/31/24
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,426
|
|
|
|
0.97
|
|
|
Nicholas &
Associates, LLC Warrants(4)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
12/31/24
|
|
|
|
—
|
|
|
|
—
|
|
|
|
417
|
|
|
|
0.17
|
|
|
Pinnacle Management
Group, LLC Warrants(4)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
12/31/24
|
|
|
|
—
|
|
|
|
—
|
|
|
|
871
|
|
|
|
0.35
|
|
|
RC3 Enterprises, LLC
Warrants(4)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
12/31/24
|
|
|
|
—
|
|
|
|
—
|
|
|
|
232
|
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,946
|
|
|
|
1.58
|
|
|
Other Diversified
Financial Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Artec Group, Inc.
(5)(5)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
—
|
|
|
|
20,693
|
|
|
|
7,505
|
|
|
|
3.01
|
|
|
Specialized
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NMFC Senior Loan
Program I LLC
Units(5)(6)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
6/10/19
|
|
|
|
—
|
|
|
|
20,120
|
|
|
|
18,993
|
|
|
|
7.62
|
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Rent A Car, Inc.
Warrants(4)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
—
|
|
|
|
—
|
|
|
|
162
|
|
|
|
0.06
|
|
|
Total Equity
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
40,813
|
|
|
|
30,606
|
|
|
|
12.21
|
|
|
Total
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
393,581
|
|
|
$
|
427,684
|
|
|
$
|
411,714
|
|
|
|
165.09
|
%
|
|
(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)
|
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 represent 83% of total
assets.
|
|
(6)
|
Investment is a
non-controlled/affiliate investment as defined by the 1940
Act.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-fourth-quarter-and-full-year-2016-earnings-results-300416644.html
SOURCE WhiteHorse Finance, Inc.