NEW YORK, Nov. 7, 2017 /PRNewswire/ -- WhiteHorse
Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ:
WHF) today announced its financial results for the quarter ended
September 30, 2017.
Third Quarter 2017 Summary Highlights
- New investments of $8.3
million
- Net investment income of $5.9
million
- Third quarter net investment income of $0.290 per share
- Third quarter distribution of $0.355 per share
Stuart Aronson, WhiteHorse
Finance's Chief Executive Officer commented, "Our third quarter
results reflect a commitment to the conservative, disciplined and
diverse investment strategy that our high-quality, high-yield
portfolio is built on. While these principles restricted us from
completing select transactions during the quarter, which impacted
our net investment income, this was done with the long-term
interests of our business and our shareholders in mind. Our overall
performance was still strong, as we saw an increase in NAV, and our
portfolio yield held constant. We remain confident in our ability
to source high-quality originations that will unlock additional
growth, protect NAV, work to earn our yearly dividend, and
ultimately maximize long-term shareholder value.
Portfolio and Investment Activity
As of September 30, 2017, the fair
value of WhiteHorse Finance's investment portfolio was $435.3 million, compared with $437.9 million as of June
30, 2017. The portfolio at September
30, 2017 consisted of 38 positions across 31 companies with
an average investment size of $11.5
million and a weighted average effective yield of 11.9%,
remaining relatively flat as compared to last quarter. The
majority of the portfolio was comprised of senior secured loans,
and these loans were substantially all 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 September
30, 2017, WhiteHorse Finance made investments in one new
portfolio company totaling $8.3
million. Gross proceeds from sales and repayments totaled
$14.8 million for the quarter. The
Company continued to be highly selective in deploying new
investments.
Results of Operations
For the three months ended September 30,
2017, net investment income was approximately $5.9 million, compared with approximately
$7.3 million for the same period in
the prior year, representing a decrease of 19.2%. The decrease in
net investment income was primarily attributable to a decrease of
investment income due to lower fee income and an increase in
interest expense resulting from higher interest rates and higher
borrowing balances on the Company's line of credit facility as
compared to the same period in the prior year. Since 2015,
cumulative core net investment income, a non-GAAP financial
measure, has exceeded distributions to stockholders for the last 11
quarters.(1)
For the three months ended September 30,
2017, WhiteHorse Finance reported realized and unrealized
gains on investments of $3.1 million.
This compares with realized and unrealized gains on investments of
$1.3 million for the three months
ended September 30, 2016. The
increase in realized and unrealized gains on investments was
primarily attributable to favorable fair value adjustments on an
aggregate basis.
WhiteHorse Finance reported a net increase in net assets
resulting from operations of approximately $9.1 million for the three months ended
September 30, 2017, which compares
with a net increase of $8.6 million
for the three months ended September 30,
2016.
WhiteHorse Finance's NAV was $285.5
million, or $13.92 per share,
as of September 30, 2017, as compared with $283.8 million, or $13.83 per share, reported as of June 30, 2017.
Liquidity and Capital Resources
As of September 30, 2017,
WhiteHorse Finance had cash and cash equivalents of $41.9 million, as compared with $43.7 million as of June
30, 2017, inclusive of restricted cash. As of
September 30, 2017, the Company also
had $45.0 million of undrawn capacity
under its revolving credit facility.
Distributions
On September 6, 2017, the Company
declared a distribution of $0.355 per
share for the quarter ended September 30, 2017, consistent
for the twentieth consecutive quarter since the Company's IPO. The
distribution was paid on October 3,
2017 to shareholders of record as of September 18, 2017.
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
third quarter results at 11:00 am ET
on Tuesday, November 7, 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 #4498809. 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 November 14,
2017. The teleconference replay can be accessed by dialing
404-537-3406 (domestic and international) and entering ID #4498809.
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 mid-cap
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 $24 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)
|
|
|
|
September 30,
2017
|
|
|
December 31,
2016
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate company
investments
|
|
$
|
404,752
|
|
|
$
|
385,216
|
|
Non-controlled
affiliate company investments
|
|
|
30,571
|
|
|
|
26,498
|
|
Total investments, at
fair value (amortized cost $444,896 and $427,689,
respectively)
|
|
|
435,323
|
|
|
|
411,714
|
|
Cash and cash
equivalents
|
|
|
37,103
|
|
|
|
17,036
|
|
Restricted cash and
cash equivalents
|
|
|
4,808
|
|
|
|
11,858
|
|
Receivables from
investments sold
|
|
|
1,562
|
|
|
|
881
|
|
Interest
receivable
|
|
|
4,538
|
|
|
|
3,891
|
|
Prepaid expenses and
other receivables
|
|
|
36
|
|
|
|
854
|
|
Total
assets
|
|
$
|
483,370
|
|
|
$
|
446,234
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
181,928
|
|
|
$
|
182,338
|
|
Distributions
payable
|
|
|
7,284
|
|
|
|
6,498
|
|
Management fees
payable
|
|
|
6,518
|
|
|
|
5,476
|
|
Payables for
investments purchased
|
|
|
—
|
|
|
|
995
|
|
Accounts payable and
accrued expenses
|
|
|
1,604
|
|
|
|
1,058
|
|
Interest
payable
|
|
|
488
|
|
|
|
480
|
|
Total
liabilities
|
|
|
197,822
|
|
|
|
196,845
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets
|
|
|
|
|
|
|
|
|
Common stock,
20,518,104 and 18,303,890 shares issued and outstanding,
par value $0.001 per share, respectively, and 100,000,000
authorized
|
|
|
20
|
|
|
|
18
|
|
Paid-in capital in
excess of par
|
|
|
302,724
|
|
|
|
272,242
|
|
Accumulated
overdistributed net investment income
|
|
|
(6,300)
|
|
|
|
(5,423)
|
|
Accumulated realized
losses on investments
|
|
|
(686)
|
|
|
|
(842)
|
|
Accumulated
unrealized depreciation on investments
|
|
|
(10,210)
|
|
|
|
(16,606)
|
|
Total net
assets
|
|
|
285,548
|
|
|
|
249,389
|
|
Total liabilities
and total net assets
|
|
$
|
483,370
|
|
|
$
|
446,234
|
|
|
|
|
|
|
|
|
|
|
Number of shares
outstanding
|
|
|
20,518,104
|
|
|
|
18,303,890
|
|
Net asset value per
share
|
|
$
|
13.92
|
|
|
$
|
13.63
|
|
WhiteHorse
Finance, Inc.
Consolidated
Statements of Operations (Unaudited)
(in thousands,
except share and per share data)
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Investment
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
non-controlled/non-affiliate company investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
12,235
|
|
|
$
|
12,507
|
|
|
$
|
36,830
|
|
|
$
|
36,633
|
|
Fee income
|
|
|
161
|
|
|
|
683
|
|
|
|
1,986
|
|
|
|
1,615
|
|
From non-controlled
affiliate company investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend
income
|
|
|
628
|
|
|
|
840
|
|
|
|
2,068
|
|
|
|
2,243
|
|
Total investment
income
|
|
|
13,024
|
|
|
|
14,030
|
|
|
|
40,884
|
|
|
|
40,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
2,379
|
|
|
|
2,050
|
|
|
|
7,382
|
|
|
|
5,917
|
|
Base management
fees
|
|
|
2,481
|
|
|
|
2,250
|
|
|
|
7,133
|
|
|
|
6,749
|
|
Performance-based
incentive fees
|
|
|
1,487
|
|
|
|
1,817
|
|
|
|
4,852
|
|
|
|
5,116
|
|
Administrative
service fees
|
|
|
246
|
|
|
|
134
|
|
|
|
538
|
|
|
|
550
|
|
General and
administrative expenses
|
|
|
481
|
|
|
|
511
|
|
|
|
1,571
|
|
|
|
1,700
|
|
Total
expenses
|
|
|
7,074
|
|
|
|
6,762
|
|
|
|
21,476
|
|
|
|
20,032
|
|
Net investment
income
|
|
|
5,950
|
|
|
|
7,268
|
|
|
|
19,408
|
|
|
|
20,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains
(losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate company
investments
|
|
|
133
|
|
|
|
660
|
|
|
|
156
|
|
|
|
(478)
|
|
Net
realized gains (losses)
|
|
|
133
|
|
|
|
660
|
|
|
|
156
|
|
|
|
(478)
|
|
Net change in
unrealized appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate company
investments
|
|
|
1,390
|
|
|
|
1,856
|
|
|
|
2,323
|
|
|
|
3,466
|
|
Non-controlled affiliate company
investments
|
|
|
1,583
|
|
|
|
(1,190)
|
|
|
|
4,073
|
|
|
|
(1,190)
|
|
Net change
in unrealized appreciation
|
|
|
2,973
|
|
|
|
666
|
|
|
|
6,396
|
|
|
|
2,276
|
|
Net realized and
unrealized gains on investments
|
|
|
3,106
|
|
|
|
1,326
|
|
|
|
6,552
|
|
|
|
1,798
|
|
Net increase in
net assets resulting from operations
|
|
$
|
9,056
|
|
|
$
|
8,594
|
|
|
$
|
25,960
|
|
|
$
|
22,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
|
$
|
0.45
|
|
|
$
|
0.47
|
|
|
$
|
1.36
|
|
|
$
|
1.22
|
|
Dividends and
distributions declared per common share
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
1.07
|
|
|
$
|
1.07
|
|
Basic and diluted
weighted average common shares outstanding
|
|
|
20,518,104
|
|
|
|
18,303,890
|
|
|
|
19,062,764
|
|
|
|
18,303,890
|
|
WhiteHorse
Finance, Inc.
Consolidated
Schedule of Investments (Unaudited)
September 30,
2017
(in
thousands)
|
|
Investment
Type(1)
|
|
Spread
Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal/
Share
Amount
|
|
|
Amortized
Cost
|
|
|
Fair
Value(7)
|
|
|
Fair Value
As A
Percentage
of Net
Assets
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluent, LLC (f/k/a
Fluent
Acquisition II, LLC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 11.50%
(0.50% Floor)
|
|
12.74%
(1.00% PIK)
|
|
12/08/20
|
|
$
|
25,971
|
|
|
$
|
25,644
|
|
|
$
|
25,971
|
|
|
$
|
9.10
|
%
|
Intersection
Acquisition, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 12.25%
(1.00% Floor)
|
|
13.58%
(2.25% PIK)
|
|
09/15/20
|
|
|
15,202
|
|
|
|
15,113
|
|
|
|
15,050
|
|
|
|
5.27
|
|
Outcome
Health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 6.50%
(1.00% Floor)
|
|
7.75%
|
|
12/22/21
|
|
|
16,241
|
|
|
|
14,887
|
|
|
|
16,079
|
|
|
|
5.63
|
|
|
|
|
|
|
|
|
|
|
57,414
|
|
|
|
55,644
|
|
|
|
57,100
|
|
|
|
20.00
|
|
Application
Software
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermedia Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 9.50%
(1.00% Floor)
|
|
10.81%
|
|
02/03/25
|
|
|
18,000
|
|
|
|
17,668
|
|
|
|
17,759
|
|
|
|
6.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto Parts &
Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crowne Group,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 9.25%
(1.00% Floor)
|
|
10.57%
|
|
05/26/21
|
|
|
12,125
|
|
|
|
11,818
|
|
|
|
12,121
|
|
|
|
4.24
|
|
Broadcasting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multicultural
Radio
Broadcasting, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 10.50%
(1.00% Floor)
|
|
11.74%
|
|
06/27/19
|
|
|
13,820
|
|
|
|
13,820
|
|
|
|
13,752
|
|
|
|
4.82
|
|
Data Processing &
Outsourced Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FPT Operating
Company, LLC/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TLabs Operating
Company,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 8.25%
(1.00% Floor)
|
|
9.49%
|
|
12/23/21
|
|
|
23,453
|
|
|
|
23,100
|
|
|
|
23,336
|
|
|
|
8.17
|
|
Department
Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mills Fleet Farm
Group, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 9.75%
(1.00% Floor)
|
|
10.99%
|
|
02/26/23
|
|
|
7,146
|
|
|
|
7,033
|
|
|
|
7,145
|
|
|
|
2.50
|
|
Diversified Support
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account Control
Technology
Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 8.50%
(1.00% Floor)
|
|
9.81%
|
|
04/28/22
|
|
|
17,575
|
|
|
|
17,111
|
|
|
|
17,089
|
|
|
|
5.98
|
|
Climate Pros,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 10.00%
(1.00% Floor)
|
|
11.32%
(1.00% PIK)
|
|
02/28/22
|
|
|
3,985
|
|
|
|
3,915
|
|
|
|
3,985
|
|
|
|
1.40
|
|
Sitel Worldwide
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 9.50%
(1.00% Floor)
|
|
10.81%
|
|
09/18/22
|
|
|
8,670
|
|
|
|
8,547
|
|
|
|
8,651
|
|
|
|
3.03
|
|
|
|
|
|
|
|
|
|
|
30,230
|
|
|
|
29,573
|
|
|
|
29,725
|
|
|
|
10.41
|
|
Environmental &
Facilities Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Montrose
Environmental
Group, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 9.50%
|
|
10.74%
|
|
09/30/20
|
|
|
8,500
|
|
|
|
8,330
|
|
|
|
8,330
|
|
|
|
2.92
|
|
WhiteHorse
Finance, Inc.
Consolidated
Schedule of Investments (Unaudited) - (continued)
September 30,
2017
(in
thousands)
|
|
Investment
Type(1)
|
|
Spread
Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal/
Share
Amount
|
|
|
Amortized
Cost
|
|
|
Fair
Value(7)
|
|
|
Fair Value
As A
Percentage
of Net
Assets
|
|
Food
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AG Kings Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured
Term
Loan
|
|
L+ 9.95%
(1.00% Floor)
|
|
11.28%
|
|
08/10/21
|
|
$
|
13,720
|
|
|
$
|
13,262
|
|
|
$
|
13,583
|
|
|
|
4.76
|
%
|
Crews of California,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Secured Term
Loan
|
|
L+ 11.00%
(1.00% Floor)
|
|
12.23%
(1.00% PIK)
|
|
11/20/19
|
|
|
17,025
|
|
|
|
16,886
|
|
|
|
16,944
|
|
|
|
5.93
|
|
First Lien
Secured
Revolving Loan
|
|
L+ 11.00%
(1.00% Floor)
|
|
12.23%
(1.00% PIK)
|
|
11/20/19
|
|
|
5,107
|
|
|
|
5,051
|
|
|
|
5,082
|
|
|
|
1.78
|
|
First
Lien Secured Delayed
Draw Loan
|
|
L+ 11.00%
(1.00% Floor)
|
|
12.23%
(1.00% PIK)
|
|
11/20/19
|
|
|
4,934
|
|
|
|
4,883
|
|
|
|
4,910
|
|
|
|
1.72
|
|
|
|
|
|
|
|
|
|
|
40,786
|
|
|
|
40,082
|
|
|
|
40,519
|
|
|
|
14.19
|
|
Health Care
Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo HIMA San Pablo,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Lien Secured Term
Loan
|
|
L+ 9.00%
(1.50% Floor)
|
|
10.50%
|
|
01/31/18
|
|
|
14,300
|
|
|
|
14,280
|
|
|
|
12,474
|
|
|
|
4.37
|
|
Second Lien Secured Term
Loan
|
|
N/A
|
|
15.75%
(2.00% PIK)
|
|
07/31/18
|
|
|
1,027
|
|
|
|
1,020
|
|
|
|
240
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
15,327
|
|
|
|
15,300
|
|
|
|
12,714
|
|
|
|
4.45
|
|
Internet
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clarus Commerce,
LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 10.17%
(1.00% Floor)
|
|
11.41%
|
|
03/17/21
|
|
|
6,000
|
|
|
|
5,917
|
|
|
|
6,000
|
|
|
|
2.10
|
|
Internet Software
& Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
StackPath, LLC &
Highwinds
Capital, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 9.50%
(1.00% Floor)
|
|
10.81%
|
|
02/02/24
|
|
|
18,000
|
|
|
|
17,592
|
|
|
|
17,667
|
|
|
|
6.19
|
|
Investment Banking
and Brokerage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JVMC Holdings
Corp.
(f/k/a RJO Holdings Corp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien First Out Secured
Term
Loan
|
|
L+ 8.02%
(1.00% Floor)
|
|
9.26%
|
|
05/05/22
|
|
|
13,331
|
|
|
|
13,055
|
|
|
|
13,198
|
|
|
|
4.62
|
|
First Lien Last Out
Secured Term
Loan
|
|
L+ 12.00%
(1.00% Floor)
|
|
13.24%
|
|
05/05/22
|
|
|
4,938
|
|
|
|
4,835
|
|
|
|
4,888
|
|
|
|
1.71
|
|
|
|
|
|
|
|
|
|
|
18,269
|
|
|
|
17,890
|
|
|
|
18,086
|
|
|
|
6.33
|
|
IT Consulting &
Other Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AST-Applications
Software
Technology LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 9.00%
(1.00% Floor)
|
|
10.24%
(2.00% PIK)
|
|
01/10/23
|
|
|
4,919
|
|
|
|
4,817
|
|
|
|
4,526
|
|
|
|
1.59
|
|
Office Services &
Supplies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Katun
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term
Loan
|
|
L+ 11.25%
(1.00% Floor)
|
|
12.49%
|
|
01/25/21
|
|
|
4,422
|
|
|
|
4,400
|
|
|
|
4,390
|
|
|
|
1.54
|
|
Oil & Gas
Exploration & Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caelus Energy Alaska
O3, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term
Loan
|
|
L+ 7.50%
(1.25% Floor)
|
|
8.82%
|
|
04/15/20
|
|
|
13,000
|
|
|
|
12,921
|
|
|
|
10,737
|
|
|
|
3.76
|
|
Other Diversified
Financial Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sigue
Corporation(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 11.50%
(1.00% Floor)
|
|
12.83%
|
|
12/27/18
|
|
|
25,000
|
|
|
|
24,876
|
|
|
|
24,395
|
|
|
|
8.54
|
|
The Pay-O-Matic
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term
Loan
|
|
L+ 11.00%
(1.00% Floor)
|
|
12.23%
|
|
04/02/18
|
|
|
12,259
|
|
|
|
12,175
|
|
|
|
12,222
|
|
|
|
4.28
|
|
|
|
|
|
|
|
|
|
|
37,259
|
|
|
|
37,051
|
|
|
|
36,617
|
|
|
|
12.82
|
|
WhiteHorse
Finance, Inc.
Consolidated
Schedule of Investments (Unaudited) - (continued)
September 30,
2017
(in
thousands)
|
|
Investment
Type(1)
|
|
Spread
Above
Index(2)
|
|
Interest
Rate(3)
|
|
Maturity
Date
|
|
Principal/
Share
Amount
|
|
Amortized
Cost
|
|
|
Fair
Value(7)
|
|
|
Fair Value
As A
Percentage
of Net
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research &
Consulting Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Time &
Cost, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Lien Secured Term
Loan
|
|
L+ 12.00%
(0.50% Floor)
|
|
13.24%
|
|
10/09/20
|
|
$
|
9,404
|
|
$
|
9,291
|
|
|
$
|
8,968
|
|
|
|
3.14
|
%
|
Specialized Consumer
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Paid Legal
Services, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 9.00%
(1.25% Floor)
|
|
10.25%
|
|
07/01/20
|
|
|
19,000
|
|
|
18,903
|
|
|
|
19,144
|
|
|
|
6.70
|
|
Specialized
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golden Pear Funding
III, LLC(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term
Loan
|
|
L+ 10.25%
(1.00% Floor)
|
|
11.56%
|
|
06/25/20
|
|
|
25,000
|
|
|
24,841
|
|
|
|
24,797
|
|
|
|
8.68
|
|
Second Lien Secured
Revolving Loan
|
|
L+ 10.25%
(1.00% Floor)
|
|
11.56%
|
|
06/25/20
|
|
|
5,000
|
|
|
4,968
|
|
|
|
4,959
|
|
|
|
1.74
|
|
Oasis Legal Finance,
LLC(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term
Loan
|
|
L+ 10.75%
(1.00% Floor)
|
|
11.99%
|
|
03/09/22
|
|
|
20,000
|
|
|
19,677
|
|
|
|
20,000
|
|
|
|
7.00
|
|
|
|
|
|
|
|
|
|
|
50,000
|
|
|
49,486
|
|
|
|
49,756
|
|
|
|
17.42
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunteck / TTS
Holdings, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured
Term
Loan
|
|
L+ 9.00%
(1.00% Floor)
|
|
10.32%
|
|
06/15/22
|
|
|
3,500
|
|
|
3,447
|
|
|
|
3,456
|
|
|
|
1.21
|
|
Total Debt
Investments
|
|
|
|
|
|
|
|
|
410,574
|
|
|
404,083
|
|
|
|
401,848
|
|
|
|
140.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cogint, Inc. (f/k/a
IDI, Inc.)
Warrants(4)
|
|
N/A
|
|
N/A
|
|
12/08/25
|
|
|
187
|
|
|
-
|
|
|
|
243
|
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crews of California,
Inc.
Warrants (4)
|
|
N/A
|
|
N/A
|
|
12/31/24
|
|
|
-
|
|
|
-
|
|
|
|
1,544
|
|
|
|
0.54
|
|
Nicholas &
Associates, LLC
Warrants(4)
|
|
N/A
|
|
N/A
|
|
12/31/24
|
|
|
3
|
|
|
-
|
|
|
|
248
|
|
|
|
0.09
|
|
Pinnacle Management
Group, LLC
Warrants(4)
|
|
N/A
|
|
N/A
|
|
12/31/24
|
|
|
3
|
|
|
-
|
|
|
|
551
|
|
|
|
0.19
|
|
RC3 Enterprises, LLC
Warrants(4)
|
|
N/A
|
|
N/A
|
|
12/31/24
|
|
|
3
|
|
|
-
|
|
|
|
138
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|
-
|
|
|
|
2,481
|
|
|
|
0.87
|
|
Other Diversified
Financial Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aretec Group, Inc.
(4)(5)(6)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
536
|
|
|
20,693
|
|
|
|
12,329
|
|
|
|
4.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized
Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NMFC Senior Loan
Program I
LLC Units (4)(5)(6)
|
|
N/A
|
|
N/A
|
|
06/13/20
|
|
|
20,000
|
|
|
20,120
|
|
|
|
18,242
|
|
|
|
6.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Rent A Car, Inc.
Warrants(4)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
-
|
|
|
-
|
|
|
|
180
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
Investments
|
|
|
|
|
|
|
|
|
20,732
|
|
|
40,813
|
|
|
|
33,475
|
|
|
|
11.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments
|
|
|
|
|
|
|
|
$
|
431,306
|
|
$
|
444,896
|
|
|
$
|
435,323
|
|
|
|
152.45
|
|
(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 1, 3 and 6 month LIBOR were
1.2%, 1.3% and 1.5%, respectively, as of September 30,
2017.
|
|
|
(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 83% 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 fair value of the
investment was determined using significant unobservable
inputs.
|
View original
content:http://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-third-quarter-2017-earnings-results-300550766.html
SOURCE WhiteHorse Finance, Inc.