NEW YORK, May 10, 2022 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the quarter ended March 31, 2022. In addition, the Company's board of directors has declared a distribution of $0.355 per share with respect to the quarter ending June 30, 2022. The distribution will be payable on July 5, 2022 to stockholders of record as of June 20, 2022.

First Quarter 2022 Summary Highlights

  • Net Asset Value of $347.9 million, or $14.99 per share
  • Investment portfolio(1) totaling $800.4 million
  • STRS JV investment portfolio totaling $312.8 million
  • Gross investment deployments(2) of $83.6 million for the first quarter, including new originations of $69.5 million and $14.1 million of fundings for add-ons to existing investments
  • Net investment income of $8.5 million, or $0.368 per share
  • Core net investment income of $7.9 million, or $0.344 per share(3)
  • First quarter distribution of $0.355 per share

Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "This past quarter was another active period for capital deployments with WhiteHorse successfully deploying a total of $83.6 million, a record amount for any first quarter in our history. Following the exit from our position in Grupo HIMA and the restructuring of PlayMonster, we ended the quarter with no debt investment on non-accrual status, allowing us to focus all of our resources on managing our directly originated assets that make up the majority of our portfolio as well as sourcing future originations.  Importantly, we believe our investment portfolio is well-positioned to benefit from a rising interest rate environment as nearly 100% of our debt portfolio is comprised of floating rate debt investments.  We are likewise confident, given the modest leverage levels that we underwrite our loans to, that the majority of our portfolio companies will be able to service our debt in a rising interest rate environment.  The lending market remains active and competitive, and our pipeline for future deal flow remains strong due in part to our differentiated three-tiered sourcing approach and relationship with the leading H.I.G. platform. This has allowed us to adhere to our disciplined deal sourcing and rigorous underwriting standards to maintain and grow a healthy portfolio, generating robust cash flows to support our dividend and ultimately creating value for our shareholders."

Portfolio and Investment Activity

As of March 31, 2022, the fair value of WhiteHorse Finance's investment portfolio was $800.4 million, compared with $819.2 million as of December 31, 2021. The portfolio as of March 31, 2022 consisted of 111 positions across 68 companies with a weighted average effective yield of 9.2% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $7.7 million with the overall portfolio comprised of approximately 81.0% first lien secured loans, 3.0% second lien secured loans, 3.4% equity and 12.6% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the London Interbank Offered Rate or Secured Overnight Financing Rate) with fixed rate securities representing only 0.4% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended March 31, 2022, WhiteHorse Finance made investments in six new portfolio companies for a total of $69.5 million, added a total of $14.1 million to existing portfolio companies, and made net fundings of $1.8 million to revolver loans. Proceeds from sales and repayments totaled approximately $45.1 million for the three months ended March 31, 2022, driven by five full realizations in LHS Borrower, LLC, DCA Investment Holding, LLC, Epiphany Business Services, LLC, AST-Applications Software Technology LLC and Grupo HIMA San Pablo, Inc.

In addition to the transactions discussed above, during the three months ended March 31, 2022, WhiteHorse Finance transferred assets comprised of six new portfolio companies, five add-ons and the remaining portion of three previously transferred deals totaling $82.7 million to STRS JV in exchange for a net investment in STRS JV of $25.0 million as well as cash proceeds of $57.7 million.

WHF STRS Ohio Senior Loan Fund LLC

As of March 31, 2022, STRS JV's portfolio totaled $312.8 million, consisted of 33 portfolio companies and had a weighted average effective yield of 7.9% on its portfolio.

Results of Operations

For the three months ended March 31, 2022, the Company's net investment income was approximately $8.5 million, compared with approximately $7.6 million for the same period in the prior year, representing an increase of approximately 11.8%. The increase in net investment income for the year-over-year period was primarily attributable to higher investment income from interest income and STRS JV due to a larger portfolio size in both the Company and STRS JV. This was partially offset by higher interest expense incurred due to higher leverage balances. For the three months ended March 31, 2022, the Company's investment in STRS JV generated an annualized, gross investment yield of approximately 12.0%.

For the three months ended March 31, 2022, core net investment income(3) was $7.9  million, or $0.344 per share, compared with $7.7 million, or $0.375 per share for the same period in the prior year.

For the three months ended March 31, 2022, WhiteHorse Finance reported a net realized and unrealized loss on investments and foreign currency transactions of $2.8 million. This compares with a net realized and unrealized gain on investments and foreign currency transactions of $0.6 million for the three months ended March 31, 2021. The decrease for the year-over-year period was primarily attributable to net losses generated from Grupo HIMA San Pablo, Inc. realization.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $5.7 million for the three months ended March 31, 2022, which compares with a net increase of $8.2 million the three months ended March 31, 2021.

WhiteHorse Finance's net asset value was $347.9 million, or $14.99 per share, as of March 31, 2022, compared with $349.8 million, or $15.10 per share, as of December 31, 2021.

Liquidity and Capital Resources

As of March 31, 2022, WhiteHorse Finance had cash and cash equivalents of $21.3 million, compared with $22.5 million as of December 31, 2021, inclusive of restricted cash. As of March 31, 2022, the Company also had $51.2 million of undrawn capacity under its revolving credit facility.

Distributions

The Company's Board of Directors has declared a distribution of $0.355 per share with respect to the quarter ending June 30, 2022. The distribution will be payable on July 5, 2022 to stockholders of record as of June 20, 2022.

On March 3, 2022, the Company declared a distribution of $0.355 per share for the quarter ended March 31, 2022, consistent with distributions declared for the thirty-eighth consecutive quarter since the Company's initial public offering. The distribution was paid on April 4, 2022 to stockholders of record as of March 25, 2022.

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 first quarter results for the period ended March 31, 2022 at 12:00 p.m. ET on Tuesday, May 10, 2022. To access the teleconference, please dial 866-518-6930 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference Conference ID #WHFQ122. 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 17, 2022. The teleconference replay can be accessed by dialing 800-938-2243 (domestic and international). 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 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 over $47 billion of capital under management(4) 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) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling $100.8 million, at fair value.

(2) Excludes investments made in STRS JV.

(3) "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 (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). 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. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.

(4) Based on total capital commitments managed by H.I.G. Capital and affiliates.

SCHEDULE 1

As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses nor did the Company incur any costs with refinancing any of its indebtedness for the quarters ended March 31, 2022 and March 31, 2021.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2022 and March 31, 2021 (in thousands, except per share data):

















March 31, 2022

March 31, 2021


Amount

 Per Share

Amount

 Per Share






Amounts





Amounts

Net investment income

$

8,539

$

0.368

$

7,600

$

0.370

Net impact of costs associated with refinancing of indebtedness

-


-


-


-

Accrual for capital gains incentive fee

(566)


(0.024)


114


0.005

Net impact of excise tax expense related to net realized gains and losses

-


-


-


-

Core net investment income

$

7,973

$

0.344

$

7,714

$

0.375

 

WhiteHorse Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)




March 31, 2022

December 31, 2021



(Unaudited)


Assets





Investments, at fair value





     Non-controlled/non-affiliate company investments

$

686,253

$

736,727

     Non-controlled affiliate company investments

13,342

6,874

     Controlled affiliate company investments

100,776

75,607

Total investments, at fair value (amortized cost $798,251 and $831,960, respectively)

800,371

819,208

Cash and cash equivalents

2,454

12,185

Restricted cash and cash equivalents

18,262

9,814

Restricted foreign currency (cost of $550 and $464, respectively)

556

469

Interest and dividend receivable

6,767

7,521

Amounts receivable on unsettled investment transactions

7,916

—

Escrow receivable

1,309

515

Prepaid expenses and other receivables

879

1,307

Receivable for common stock issued

247

—

Total assets

$

838,761

$

851,019







Liabilities





Debt

$

467,857

$

475,958

Distributions payable

8,234

8,222

Management fees payable

3,952

3,766

Incentive fees payable

5,445

7,958

Interest payable

3,548

2,087

Accounts payable and accrued expenses

1,136

2,438

Advances received from unfunded credit facilities

666

839

Unrealized depreciation on foreign currency forward contracts

4

—

Total liabilities

490,842

501,268







Commitments and contingencies












Net assets





Common stock, 23,211,413 and 23,162,667 shares issued and outstanding, par value
$0.001 per share, respectively, and 100,000,000 shares authorized

23

23

Paid-in capital in excess of par

339,856

339,161

Accumulated earnings

8,040

10,567

Total net assets

347,919

349,751

Total liabilities and total net assets

$

838,761

$

851,019

Number of shares outstanding

23,211,413

23,162,667

Net asset value per share

$

14.99

$

15.10







 

WhiteHorse Finance, Inc.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)




Three months ended March 31, 



2022

2021

Investment income





From non-controlled/non-affiliate company investments





     Interest income

$

16,741

$

14,812

     Fee income

462

771

     Dividend income

89

44

From non-controlled affiliate company investments





     Interest income

60

—

     Dividend income

131

250

From controlled affiliate company investments





     Interest income

1,127

719

     Dividend income

1,424

1,374

Total investment income

20,034

17,970

Expenses





Interest expense

4,774

3,802

Base management fees

3,952

3,344

Performance-based incentive fees

1,427

2,042

Administrative service fees

171

171

General and administrative expenses

947

821

Total expenses

11,271

10,180

Net investment income before excise tax

8,763

7,790

     Excise tax

224

190

Net investment income after excise tax

8,539

7,600







Realized and unrealized gains (losses) on investments and foreign currency transactions





Net realized gains (losses)





     Non-controlled/non-affiliate company investments

(18,184)

8,160

     Non-controlled affiliate company investments

—

—

     Foreign currency transactions

(281)

1

     Foreign currency forward contracts

—

—

          Net realized gains (losses)

(18,465)

8,161

Net change in unrealized appreciation (depreciation)





     Non-controlled/non-affiliate company investments

17,117

(6,975)

     Non-controlled affiliate company investments

(1,621)

(434)

     Controlled affiliate company investments

169

(120)

     Translation of assets and liabilities in foreign currencies

(28)

(62)

     Foreign currency forward contracts

(4)

(1)

          Net change in unrealized appreciation (depreciation)

15,633

(7,592)

Net realized and unrealized gains (losses) on investments and foreign currency transactions

(2,832)

569

Net increase in net assets resulting from operations

$

5,707

$

8,169







Per Common Share Data





Basic and diluted earnings per common share

$

0.25

$

0.40

Dividends and distributions declared per common share

$

0.36

$

0.36

Basic and diluted weighted average common shares outstanding

23,190,656

20,551,565

 

WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
March 31, 2022
(in thousands)
























Issuer

Investment Type(1)

Floor

Spread
Above
Index(2)

Interest
Rate(3)

Acquisition
Date(10)

Maturity
Date

Principal/
Share
Amount

Amortized
Cost

Fair
Value(11)

Fair Value
As A
Percentage
of Net
Assets

North America






















Debt Investments






















Asset Management & Custody Banks






















JZ Capital Partners Ltd.(4)(5)

First Lien Secured Term Loan

1.00%

L+ 7.00%

8.00%

01/26/22

01/26/27

10,286

$

10,087

$

10,087

2.90

%

JZ Capital Partners Ltd.(4)(5)(7)

First Lien Secured Delayed Draw Loan

1.00%

L+ 7.00%

8.00%

01/26/22

01/26/27

—

—

—

—

















10,087

10,087

2.90

Air Freight & Logistics






















Access USA Shipping, LLC (d/b/a MyUS.com)

First Lien Secured Term Loan

1.50%

L+ 8.00%

9.50%

02/08/19

02/08/24

4,864

4,837

4,864

1.40

Motivational Marketing, LLC (d/b/a Motivational Fulfillment)

First Lien Secured Term Loan

1.00%

L+ 6.25%

7.25%

07/12/21

07/12/26

11,461

11,265

11,347

3.26

Motivational Marketing, LLC (d/b/a Motivational Fulfillment)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.25%

7.25%

07/12/21

07/12/26

—

—

8

—

















16,102

16,219

4.66

Application Software






















Atlas Purchaser, Inc. (d/b/a Aspect Software)

Second Lien Secured Term Loan

0.75%

L+ 9.00%

9.75%

05/03/21

05/07/29

15,000

14,600

14,850

4.26

Education Networks of America, Inc.

First Lien Secured Term Loan

1.00%

L+ 5.50%

6.50%

11/30/21

10/27/26

4,680

4,483

4,680

1.35

Naviga Inc. (f/k/a Newscycle Solutions, Inc.)

First Lien Secured Term Loan

1.00%

L+ 7.00%

8.01%

06/14/19

12/29/22

3,205

3,191

3,205

0.92

Naviga Inc. (f/k/a Newscycle Solutions, Inc.)(7)

First Lien Secured Revolving Loan

1.00%

L+ 7.00%

8.00%

06/14/19

12/29/22

169

168

169

0.05

















22,442

22,904

6.58

Automotive Retail






















Team Car Care Holdings, LLC (Heartland Auto)(12)

First Lien Secured Term Loan

1.00%

Base rate+ 7.98%

9.02%

02/16/18

06/28/24

15,055

14,973

14,980

4.31

















14,973

14,980

4.31

Broadcasting






















Coastal Television Broadcasting Group LLC

First Lien Secured Term Loan

1.00%

SF+ 6.50%

7.50%

12/30/21

12/30/26

8,191

8,035

8,035

2.31

Coastal Television Broadcasting Group LLC(7)

First Lien Secured Revolving Loan

1.00%

SF+ 6.50%

7.50%

12/30/21

12/30/26

—

—

—

—

















8,035

8,035

2.31

Building Products






















PFB Holdco, Inc. (d/b/a PFB Corporation)(13)

First Lien Secured Term Loan

1.00%

C+ 6.50%

7.50%

12/17/21

12/17/26

9,004

6,911

7,069

2.02

PFB Holdco, Inc. (d/b/a PFB Corporation)(7)(13)

First Lien Secured Revolving Loan

1.00%

C+ 6.50%

7.50%

12/17/21

12/17/26

—

—

—

—

PFB Holdco, Inc. (d/b/a PFB Corporation)

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

12/17/21

12/17/26

2,193

2,151

2,151

0.62

PFB Holdco, Inc. (d/b/a PFB Corporation)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.50%

7.50%

12/17/21

12/17/26

—

—

—

—

Trimlite Buyer LLC (d/b/a Trimlite LLC)(5)(13)

First Lien Secured Term Loan

1.00%

C+ 6.50%

7.71%

07/27/21

07/27/26

22,833

17,881

18,249

5.25

Trimlite Buyer LLC (d/b/a Trimlite LLC)(5)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.50%

7.50%

07/27/21

07/27/26

491

482

508

0.15

















27,425

27,977

8.04

Cable & Satellite






















Bulk Midco, LLC(15)

First Lien Secured Term Loan

1.00%

L+ 7.64%

9.13%

06/08/18

06/08/23

14,922

14,869

14,475

4.16

















14,869

14,475

4.16

Commodity Chemicals






















Flexitallic Group SAS

First Lien Secured Term Loan

1.00%

L+ 7.50%

8.51% (8.01% Cash +
0.50% PIK)

10/28/19

10/29/26

15,702

15,062

15,337

4.41

















15,062

15,337

4.41

Construction & Engineering






















Tensar Corporation

First Lien Secured Term Loan

1.00%

L+ 6.75%

7.76%

11/20/20

08/20/25

6,913

6,789

7,051

2.03

















6,789

7,051

2.03

Construction Materials






















Claridge Products and Equipment, LLC

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.51%

12/30/20

12/29/25

7,621

7,506

7,468

2.14

Claridge Products and Equipment, LLC(7)(12)

First Lien Secured Revolving Loan

1.00%

Base rate+ 5.64%

9.21%

12/30/20

12/29/25

596

588

584

0.17

















8,094

8,052

2.31

Consumer Finance






















Maxitransfers Blocker Corp.

First Lien Secured Term Loan

1.00%

L+ 8.50%

9.51%

10/07/20

10/07/25

8,478

8,337

8,478

2.44

Maxitransfers Blocker Corp.(4)(7)

First Lien Secured Revolving Loan

1.00%

L+ 8.50%

9.51%

10/07/20

10/07/25

—

—

17

—

















8,337

8,495

2.44

Data Processing & Outsourced Services






















Escalon Services Inc.

First Lien Secured Term Loan

1.00%

L+ 10.30%

11.30% (10.60% Cash +
0.70% PIK)

12/04/20

12/04/25

17,259

16,471

16,991

4.88

Future Payment Technologies, L.P.

First Lien Secured Term Loan

1.00%

L+ 8.25%

9.25%

12/23/16

06/07/24

23,845

23,668

23,785

6.84

















40,139

40,776

11.72

Department Stores






















Mills Fleet Farm Group, LLC

First Lien Secured Term Loan

1.00%

L+ 6.25%

7.25%

10/24/18

10/24/24

13,538

13,342

13,538

3.89

















13,342

13,538

3.89

Distributors






















Crown Brands LLC(19)

Second Lien Secured Term Loan

1.50%

L+ 10.50%

12.00%

12/15/20

01/08/26

4,383

4,304

3,507

1.01

Crown Brands LLC(19)

Second Lien Secured Delayed Draw Loan

1.50%

L+ 10.50%

12.00%

12/15/20

01/08/26

651

651

521

0.15

















4,955

4,028

1.16

Diversified Chemicals






















Manchester Acquisition Sub LLC (d/b/a Draslovka Holding AS)

First Lien Secured Term Loan

0.75%

SF+ 5.75%

6.50%

11/16/21

11/16/26

7,980

7,582

7,712

2.22

Sklar Holdings, Inc. (d/b/a Starco)

First Lien Secured Term Loan

1.00%

L+ 9.75%

10.75% (8.75% Cash +
2.00% PIK)

11/13/19

05/13/23

7,390

7,307

7,020

2.02

















14,889

14,732

4.24

Diversified Support Services






















NNA Services, LLC

First Lien Secured Term Loan

1.00%

L+ 6.75%

7.76%

08/27/21

08/27/26

11,521

11,394

11,465

3.30

















11,394

11,465

3.30

Education Services






















EducationDynamics, LLC

First Lien Secured Term Loan

1.00%

L+ 7.00%

8.00% (7.50% Cash +
0.50% PIK)

09/15/21

09/15/26

13,251

13,015

13,004

3.73

EducationDynamics, LLC(4)(7)

First Lien Secured Delayed Draw Loan

1.00%

L+ 7.00%

8.00% (7.50% Cash +
0.50% PIK)

09/15/21

09/15/26

—

—

(1)

—

EducationDynamics, LLC(7)

First Lien Secured Revolving Loan

1.00%

P+ 5.50%

9.00%

09/15/21

09/15/26

240

236

235

0.07

EducationDynamics, LLC(4)

Subordinated Unsecured Term Loan

N/A

4.00%

4.00%

09/15/21

03/15/27

167

167

167

0.05

















13,418

13,405

3.85

Electric Utilities






















CleanChoice Energy, Inc. (d/b/a CleanChoice)

First Lien Secured Term Loan

1.00%

L+ 7.25%

8.25%

10/12/21

10/12/26

10,500

10,310

10,290

2.96

















10,310

10,290

2.96

Environmental & Facilities Services






















Industrial Specialty Services USA LLC

First Lien Secured Term Loan

1.00%

L+ 6.25%

7.26%

12/31/21

12/31/26

11,977

11,750

11,750

3.38

Industrial Specialty Services USA LLC(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.25%

7.25%

12/31/21

12/31/26

709

696

696

0.20

RLJ Pro-Vac, Inc. (d/b/a Pro-Vac)

First Lien Secured Term Loan

1.00%

L+ 6.25%

7.26%

12/31/21

12/31/26

8,753

8,587

8,587

2.47

RLJ Pro-Vac, Inc. (d/b/a Pro-Vac)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.25%

7.26%

12/31/21

12/31/26

—

—

—

—

















21,033

21,033

6.05

Health Care Facilities






















Bridgepoint Healthcare, LLC

First Lien Secured Term Loan

1.00%

L+ 7.75%

8.75%

10/05/21

10/05/26

10,840

10,644

10,731

3.08

Bridgepoint Healthcare, LLC(7)

First Lien Secured Delayed Draw Loan

1.00%

L+ 7.75%

8.75%

10/05/21

10/05/26

—

—

6

—

Bridgepoint Healthcare, LLC(7)

First Lien Secured Revolving Loan

1.00%

L+ 7.75%

8.75%

10/05/21

10/05/26

—

—

13

—

















10,644

10,750

3.08

Health Care Services






















CHS Therapy, LLC

First Lien Secured Term Loan A

1.50%

L+ 9.00%

10.50% (10.00% Cash +
0.50% PIK)

06/14/19

06/14/24

7,203

7,143

7,203

2.07

CHS Therapy, LLC

First Lien Secured Term Loan C

1.50%

L+ 9.00%

10.50% (10.00% Cash +
0.50% PIK)

10/07/20

06/14/24

886

876

886

0.25

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)

First Lien Secured Term Loan

1.00%

L+ 6.75%

7.75%

12/04/20

12/04/24

17,322

17,098

17,322

4.98

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)(7)

First Lien Secured Delayed Draw Loan

1.00%

L+ 6.75%

7.75%

12/04/20

12/04/24

2,908

2,873

2,883

0.83

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)(7)

First Lien Secured Revolving Loan

1.00%

P+ 5.75%

9.25%

12/04/20

12/04/24

142

140

147

0.04

Lab Logistics, LLC

First Lien Secured Term Loan

1.00%

L+ 7.25%

8.25%

10/16/19

09/25/23

1,153

1,139

1,153

0.33

Lab Logistics, LLC

First Lien Secured Delayed Draw Loan

1.00%

L+ 7.25%

8.25%

10/16/19

09/25/23

5,170

5,156

5,170

1.49

PG Dental New Jersey Parent, LLC

First Lien Secured Term Loan

1.00%

L+ 9.75%

10.75% (9.25% Cash +
1.50% PIK)

11/25/20

11/25/25

15,177

14,932

13,963

4.01

PG Dental New Jersey Parent, LLC

First Lien Secured Revolving Loan

1.00%

L+ 9.75%

10.75% (9.25% Cash +
1.50% PIK)

11/25/20

11/25/25

704

692

647

0.19

















50,049

49,374

14.19

Health Care Supplies






















ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)

First Lien Secured Term Loan

0.75%

L+ 7.50%

8.26%

02/23/22

02/23/28

21,736

21,202

21,202

6.09

ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)(7)

First Lien Secured Revolving Loan

0.75%

Base rate+ 6.83%

9.77%

02/23/22

02/23/28

838

817

817

0.23

















22,019

22,019

6.32

Heavy Electrical Equipment






















PPS CR Acquisition, Inc. (d/b/a Power Plant Services)

First Lien Secured Term Loan

1.00%

L+ 6.25%

7.26%

06/25/21

06/25/26

11,095

10,906

10,984

3.16

PPS CR Acquisition, Inc. (d/b/a Power Plant Services)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.25%

7.26%

06/25/21

06/25/24

104

103

118

0.03

















11,009

11,102

3.19

Home Furnishings






















Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

10/12/21

10/12/26

19,984

19,622

19,739

5.67

Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.50%

7.50%

10/12/21

10/12/26

—

—

15

—

Sure Fit Home Products, LLC

First Lien Secured Term Loan

1.00%

L+ 9.75%

10.76%

04/12/21

07/13/23

4,877

4,807

4,146

1.19

















24,429

23,900

6.86

Household Products






















The Kyjen Company, LLC (d/b/a Outward Hound)

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

04/05/21

04/05/26

11,374

11,237

11,374

3.27

The Kyjen Company, LLC (d/b/a Outward Hound)(7)

First Lien Secured Revolving Loan

1.00%

L+ 6.50%

7.50%

04/05/21

04/05/26

258

255

266

0.08

















11,492

11,640

3.35

Interactive Media & Services






















What If Holdings, LLC (d/b/a What If Media Group, LLC)

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

10/02/19

10/02/24

18,725

18,509

18,725

5.38

















18,509

18,725

5.38

Internet & Direct Marketing Retail






















BBQ Buyer, LLC (d/b/a BBQ Guys)

First Lien Secured Term Loan

1.50%

L+ 10.00%

11.50% (9.50% Cash +
2.00% PIK)

08/28/20

08/28/25

12,654

12,435

12,527

3.60

BBQ Buyer, LLC (d/b/a BBQ Guys)(7)

First Lien Secured Delayed Draw Loan

1.50%

L+ 10.00%

11.50% (9.50% Cash +
2.00% PIK)

12/02/21

08/28/25

2,580

2,532

2,561

0.74

Luxury Brand Holdings, Inc. (d/b/a Ross-Simons, Inc.)

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

12/04/20

06/04/26

5,925

5,835

5,925

1.70

Potpourri Group, Inc.

First Lien Secured Term Loan

1.50%

L+ 8.25%

9.75%

07/03/19

07/03/24

17,034

16,861

17,034

4.90

















37,663

38,047

10.94

Investment Banking & Brokerage






















JVMC Holdings Corp. (fka RJO Holdings Corp)

First Lien Secured Term Loan

1.00%

L+ 7.00%

8.00%

02/28/19

02/28/24

12,512

12,464

12,512

3.60

















12,464

12,512

3.60

IT Consulting & Other Services






















ATSG, Inc.

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

11/12/21

11/12/26

13,965

13,707

13,713

3.94

















13,707

13,713

3.94

Leisure Facilities






















Honors Holdings, LLC (d/b/a Orange Theory)(16)

First Lien Secured Term Loan

1.00%

L+ 7.92%

8.92% (8.42% Cash +
0.50% PIK)

09/06/19

09/06/24

9,440

9,322

9,345

2.69

Honors Holdings, LLC (d/b/a Orange Theory)(16)

First Lien Secured Delayed Draw Loan

1.00%

L+ 7.63%

8.63% (8.05% Cash +
0.58% PIK)

09/06/19

09/06/24

4,649

4,613

4,603

1.32

Lift Brands, Inc. (d/b/a Snap Fitness)

First Lien Secured Term Loan A

1.00%

L+ 7.50%

8.50%

06/29/20

06/29/25

5,617

5,560

5,581

1.60

Lift Brands, Inc. (d/b/a Snap Fitness)

First Lien Secured Term Loan B

N/A

9.50%

9.50% (0.00% Cash +
9.50% PIK)

06/29/20

06/29/25

1,309

1,291

1,274

0.37

Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)(9)

First Lien Secured Term Loan C

N/A

9.50%

9.50% (0.00% Cash +
9.50% PIK)

06/29/20

NA

1,268

1,265

1,227

0.35

















22,051

22,030

6.33

Leisure Products






















Playmonster Group LLC(6)(20)(22)

First Lien Secured Term Loan

1.00%

L+ 8.00%

9.00% (0.00% Cash +
9.00% PIK)

01/24/22

06/08/26

2,985

2,985

2,985

0.86

PlayMonster LLC(6)(7)

First Lien Secured Revolving Loan

0.25%

L+ 1.75%

2.10%

01/24/22

06/08/26

1,044

1,044

1,044

0.30

















4,029

4,029

1.16

Life Sciences Tools & Services






















LSCS Holdings, Inc. (d/b/a Eversana Life Science Services, LLC)

Second Lien Secured Term Loan

0.50%

L+ 8.00%

8.50%

11/23/21

12/16/29

5,000

4,928

4,902

1.41

















4,928

4,902

1.41

Office Services & Supplies






















American Crafts, LC

First Lien Secured Term Loan

1.00%

L+ 8.50%

9.50%

05/28/21

05/28/26

8,351

8,248

8,238

2.37

American Crafts, LC

First Lien Secured Delayed Draw Loan

1.00%

L+ 8.50%

9.50%

01/25/22

05/28/26

1,403

1,376

1,376

0.40

Empire Office, Inc.

First Lien Secured Term Loan

1.50%

L+ 6.50%

8.00%

04/12/19

04/12/24

12,443

12,313

12,350

3.55

Empire Office, Inc.(4)(7)

First Lien Secured Delayed Draw Loan

1.50%

L+ 6.50%

8.00%

08/17/21

04/12/24

—

—

(40)

(0.01)

















21,937

21,924

6.31

Packaged Foods & Meats






















Lenny & Larry's, LLC(17)

First Lien Secured Term Loan

1.00%

L+ 7.83%

8.83% (7.68% Cash +
1.15% PIK)

05/15/18

05/15/23

11,185

11,137

10,907

3.14

















11,137

10,907

3.14

Personal Products






















Inspired Beauty Brands, Inc.

First Lien Secured Term Loan

1.00%

L+ 7.00%

8.00%

12/30/20

12/30/25

12,117

11,935

12,117

3.48

Inspired Beauty Brands, Inc.(7)

First Lien Secured Revolving Loan

1.00%

L+ 7.00%

8.00%

12/30/20

12/30/25

—

—

8

—

















11,935

12,125

3.48

Research & Consulting Services






















Aeyon LLC

First Lien Secured Term Loan

1.00%

SF+ 8.88%

9.88%

02/10/22

02/10/27

8,978

8,803

8,801

2.53

ALM Media, LLC

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.51%

11/25/19

11/25/24

13,978

13,830

13,838

3.98

Nelson Worldwide, LLC

First Lien Secured Term Loan

1.00%

L+ 10.25%

11.25% (10.25% Cash +
1.00% PIK)

01/09/18

01/09/23

9,719

9,682

9,547

2.74

















32,315

32,186

9.25

Specialized Consumer Services






















Camp Facility Services Holdings, LLC (d/b/a Camp Construction
Services, Inc.)

First Lien Secured Term Loan

1.00%

L+ 6.50%

7.50%

11/16/21

11/16/27

12,968

12,722

12,729

3.66

Camp Facility Services Holdings, LLC (d/b/a Camp Construction
Services, Inc.)(4)(7)

First Lien Secured Delayed Draw Loan

1.00%

L+ 6.50%

7.50%

11/16/21

11/16/27

—

—

2

—

HC Salon Holdings, Inc. (d/b/a Hair Cuttery)

First Lien Secured Term Loan

1.00%

L+ 8.00%

9.01%

09/30/21

09/30/26

11,608

11,399

11,384

3.27

HC Salon Holdings, Inc. (d/b/a Hair Cuttery)(7)

First Lien Secured Revolving Loan

1.00%

L+ 8.00%

9.01%

09/30/21

09/30/26

—

—

(1)

—

True Blue Car Wash, LLC

First Lien Secured Term Loan

1.00%

SF+ 6.88%

7.88%

10/17/19

10/17/24

10,101

9,984

10,018

2.88

True Blue Car Wash, LLC(7)

First Lien Secured Delayed Draw Loan

1.00%

SF+ 6.50%

7.50%

10/17/19

10/17/24

1,845

1,817

1,831

0.53

















35,922

35,963

10.34

Specialized Finance






















WHF STRS Ohio Senior Loan Fund LLC(4)(5)(9)(14)

Subordinated Note

N/A

L+ 6.50%

6.94%

07/19/19

N/A

80,000

80,000

80,000

22.99

















80,000

80,000

22.99

Systems Software






















Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC

First Lien Secured Term Loan

1.00%

L+ 7.00%

8.01%

03/16/21

03/16/27

19,305

18,986

18,919

5.44

















18,986

18,919

5.44

Technology Hardware, Storage & Peripherals






















Telestream Holdings Corporation

First Lien Secured Term Loan

1.00%

L+ 8.75%

9.75%

10/15/20

10/15/25

15,041

14,699

15,041

4.32

Telestream Holdings Corporation(7)

First Lien Secured Revolving Loan

1.00%

L+ 8.75%

9.75%

10/15/20

10/15/25

—

—

30

0.01

















14,699

15,071

4.33
























Total Debt Investments














$

751,619

$

752,717

216.35

%
























Equity Investments(23)






















Advertising






















Avision Holdings, LLC (d/b/a Avision Sales Group)(4)

Class A LLC Interests

N/A

N/A

N/A

12/15/21

N/A

200

$

250

$

208

0.06

%

















250

208

0.06

Air Freight & Logistics






















Motivational CIV, LLC (d/b/a Motivational Fulfillment)(4)

Class B Units

N/A

N/A

N/A

07/12/21

N/A

1,250

1,250

863

0.25

















1,250

863

0.25

Building Products






















PFB Holdco, Inc. (d/b/a PFB Corporation)(4)(13)

Class A Units

N/A

N/A

N/A

12/17/21

N/A

1

423

432

0.12

















423

432

0.12

Data Processing & Outsourced Services






















Escalon Services Inc.(4)

Warrants

N/A

N/A

N/A

12/04/20

N/A

709

476

1,644

0.47

















476

1,644

0.47

Diversified Support Services






















Quest Events, LLC(4)

Preferred Units

N/A

N/A

N/A

12/28/18

12/08/25

317

317

71

0.02

ImageOne Industries, LLC(4)

Common A Units

N/A

N/A

N/A

09/20/19

N/A

225

—

122

0.04

















317

193

0.06

Education Services






















Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC)(4)

Preferred Units

N/A

12.00%

12.00%

09/15/21

N/A

167

167

156

0.04

















167

156

0.04

Environmental & Facilities Services






















BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings LLC)(4)

Class A Units

N/A

N/A

N/A

12/29/21

N/A

83

825

825

0.24

















825

825

0.24

Health Care Services






















Lab Logistics, LLC(4)(21)

Preferred Units

N/A

14.00%

14.00% PIK

10/29/19

N/A

2

857

915

0.26

















857

915

0.26

Industrial Machinery






















BL Products Parent, LP (d/b/a Bishop Lifting Products, Inc.)(4)

Class A Units

N/A

N/A

N/A

02/01/22

N/A

667

667

667

0.19

















667

667

0.19

Interactive Media & Services






















What If Media Group, LLC(4)

Common Units

N/A

N/A

N/A

07/02/21

N/A

8

850

1,439

0.41

















850

1,439

0.41

Internet & Direct Marketing Retail






















BBQ Buyer, LLC (d/b/a BBQ Guys)(4)

Shares

N/A

N/A

N/A

08/28/20

N/A

1,100

1,100

2,266

0.65

Ross-Simons Topco, LP (d/b/a Ross-Simons, Inc.)(4)

Preferred Units

N/A

8.00%

8.00% PIK

12/04/20

N/A

600

514

1,246

0.36

















1,614

3,512

1.01

Investment Banking & Brokerage






















Arcole Holding Corporation(4)(5)(6)(18)

Shares

N/A

N/A

N/A

10/01/20

N/A

—

6,944

7,045

2.02

















6,944

7,045

2.02

IT Consulting & Other Services






















CX Holdco LLC (d/b/a Cennox Inc.)(4)

Common Units

N/A

N/A

N/A

05/04/21

N/A

972

972

1,584

0.46

Keras Holdings, LLC (d/b/a KSM Consulting, LLC)(4)

Shares

N/A

N/A

N/A

12/31/20

N/A

496

496

496

0.14

















1,468

2,080

0.60

Leisure Facilities






















Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)(4)

Class A Common Stock

N/A

N/A

N/A

06/29/20

N/A

2

1,941

199

0.06

Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)(4)

Warrants

N/A

N/A

N/A

06/29/20

06/28/28

1

793

81

0.02

















2,734

280

0.08

Leisure Products






















Playmonster Group Equity, Inc. (d/b/a PlayMonster LLC)(4)(6)(8)(22)

Preferred Stock

N/A

14.00%

14.00% PIK

01/24/22

N/A

36

3,600

2,268

0.66

Playmonster Group Equity, Inc. (d/b/a PlayMonster LLC)(4)(6)(22)

Common Stock

N/A

N/A

N/A

01/24/22

N/A

72

460

—

—

















4,060

2,268

0.66

Other Diversified Financial Services






















SFS Global Holding Company (d/b/a Sigue Corporation)(4)

Warrants

N/A

N/A

N/A

06/28/18

12/28/25

—

—

—

—

Sigue Corporation(4)

Warrants

N/A

N/A

N/A

06/28/18

12/28/25

22

2,890

3,490

1.00

















2,890

3,490

1.00

Specialized Consumer Services






















Camp Facility Services Parent, LLC (d/b/a Camp Construction Services, Inc.)(4)

Preferred Units

N/A

10.00%

10.00% PIK

11/16/21

N/A

15

840

861

0.26

















840

861

0.26

Specialized Finance






















WHF STRS Ohio Senior Loan Fund(4)(5)(14)

LLC Interests

N/A

N/A

N/A

07/19/19

N/A

20,000

20,000

20,776

5.97

















20,000

20,776

5.97
























Total Equity Investments














$

46,632

$

47,654

13.70

%
























Total Investments














$

798,251

$

800,371

230.05

%

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2022

(in thousands)

(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 Secured Overnight Financing Rate ("SOFR" or "SF"), the Canadian Dollar Offered Rate ("CDOR" or "C"), Canada Prime Rate ("CP") or the U.S. Prime Rate ("Prime" or "P"). The one, three and six-month USD LIBOR were 0.45%, 0.96% and 1.47%, respectively, as of March 31, 2022. The SOFR, CDOR, CP and Prime were 0.29%, 1.26%, 2.70% and 3.50%, respectively, as of March 31, 2022.


(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 83.7% 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 investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of March 31, 2022.


(8)

Preferred equity investment is a non-income producing security.


(9)

Security is perpetual with no defined maturity date.


(10)

Except as otherwise noted, all of the Company's portfolio company investments, which as of the date of the consolidated schedule of investments represented 230.0% of the Company's net assets or 95.4% of the Company's total assets, are subject to legal restrictions on sales.


(11)

The fair value of each investment was determined using significant unobservable inputs.


(12)

The investment was comprised of two contracts, which were indexed to different base rates, L and P, respectively. The Floor, Spread Above Index and Interest Rate presented represent the weighted average of both contracts.


(13)

Principal amount is non-USD denominated and is based in Canadian dollars.


(14)

Investment is a controlled affiliate investment as defined by the 1940 Act. On January 14, 2019, the Company entered into an agreement with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law ("STRS Ohio"), to create WHF STRS Ohio Senior Loan Fund, LLC ("STRS JV"), a joint venture, which invests primarily in senior secured first and second lien term loans.


(15)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 2.75% on its "last out" tranche of the portfolio company's senior term debt, which was previously syndicated into "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.


(16)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.50% on its "last out" tranche of the portfolio company's senior term debt, which was previously syndicated into "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.


(17)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.00% on its "last out" tranche of the portfolio company's senior term debt, which was previously syndicated into "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.


(18)

On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company's investments in first lien secured term loans to Arcole Acquisition Corp were converted into common shares of Arcole Holding Corp.


(19)

At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 2.00% PIK.


(20)

At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 9.00% PIK.


(21)

Investment earns 14.00% that converts to PIK on an annual basis and is recorded in interest and dividend receivable in the consolidated statements of assets and liabilities.


(22)

On January 24, 2022, as part of a restructuring agreement between the Company and PlayMonster LLC, the Company's first lien secured term loan and delayed draw loan investments to PlayMonster LLC were converted into a new first lien secured term loan, preferred stock and common stock of Playmonster Group LLC.


(23)

Ownership of certain equity investments may occur through a holding company or partnership.




Contacts


Stuart Aronson

WhiteHorse Finance, Inc.

212-506-0500

saronson@higwhitehorse.com


or


Joyson Thomas

WhiteHorse Finance, Inc.

305-379-2322

jthomas@higwhitehorse.com


or


Robert Brinberg
Rose & Company
212-257-5932
whitehorse@roseandco.com




 

Cision View original content:https://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-first-quarter-2022-earnings-results-and-declares-quarterly-distribution-of-0-355-per-share-301543314.html

SOURCE WhiteHorse Finance, Inc.

Copyright 2022 PR Newswire

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