NEW YORK--(BUSINESS WIRE)--WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the "Company") (NASDAQ:WHF) today announced its financial results for the quarter ended September 30, 2014.
Third Quarter 2014 Summary Highlights
- New investments of $64.8 million for the quarter and $170.2 million year-to-date
- Quarterly distribution of $0.355 per share, consistent for the eighth consecutive quarter since the Company’s initial public offering
- Appointed William D. Markert as Chief Operating Officer
Jay Carvell, WhiteHorse Finance’s Chief Executive Officer commented, “While the third quarter experienced many of the same challenges in credit markets that we’ve seen over the recent past, we continued to source high-quality, risk-return adjusted loans, and remain on track to meet our full-year origination goals. This is the result of our efforts building a healthy pipeline across all industries, working closely with H.I.G. Capital to identify and source new loans, and remaining focused on the areas of the credit markets where we have the most expertise and confidence. Since early 2013, we have focused our efforts on building a diversified portfolio that can weather continued market volatility while enabling us to provide sustained returns to our stockholders.”
Portfolio and Investment Activity
As of September 30, 2014, the fair value of WhiteHorse Finance’s investment portfolio was $369.2 million, compared with $272.4 million as of December 31, 2013. The portfolio at the end of the third quarter consisted of 36 positions across 34 companies with an average investment size of $10.3 million and a weighted average yield of 10.3%. The majority of the portfolio was comprised of senior secured loans and more than 95.3% of these loans were variable-rate investments (indexed to LIBOR) with interest rate floors, which should continue to position the portfolio well for a potential rising interest rate environment.
For the three months ended September 30, 2014, WhiteHorse Finance invested $64.8 million across 16 portfolio companies. Gross proceeds from sales and repayments totaled $44.1 million for the quarter, in line with the Company’s expectations.
Results of Operations
For the three months ended September 30, 2014, net investment income was $4.0 million, compared with $6.3 million for the three months ended September 30, 2013.
For the three months ended September 30, 2014, WhiteHorse Finance recorded unrealized appreciation on investments of $0.5 million, as compared with unrealized depreciation on investments of $0.3 million for the three months ended September 30, 2013.
For the third quarter of 2014, operations resulted in a net increase in net assets of $4.6 million, as compared with a net increase in net assets of $6.0 million for the third quarter of 2013.
WhiteHorse Finance’s net asset value was $227.1 million, or $15.16 per share, as of September 30, 2014, as compared with $227.0 million, or $15.16 per share as of December 31, 2013.
Net investment income and net increase in net assets from operations can vary substantially from period to period due to various factors including the level of new net investments and the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net investment income and net increase in net assets from operations may not be meaningful.
Liquidity and Capital Resources
As of September 30, 2014, WhiteHorse Finance had cash and cash equivalents of $26.5 million, as compared with $95.6 million as of December 31, 2013, inclusive of restricted cash. The decrease in cash on hand was due primarily to the deployment of cash to increase investments and the repayment of borrowings under the Company’s revolving credit facility. As of September 30, 2014, the Company had $117.0 million of undrawn capacity under its revolving credit facility.
Distributions
On August 26, 2014, the Company declared a distribution of $0.355 per share for the quarter ended September 30, 2014. The distribution was payable on October 3, 2014 to shareholders of record as of September 19, 2014.
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 (the “SEC”).
Conference Call
WhiteHorse Finance will host a conference call to discuss its third quarter earnings results at 10:00 a.m. ET on Monday, November 10, 2014. 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# 19146769. 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 17, 2014. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID# 19146769. 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, Inc. is a business development company that originates and invests in loans to privately held small-cap companies across a broad range of industries. The Company’s investment activities are managed by its investment adviser, H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, L.L.C. (“H.I.G. Capital”). H.I.G. Capital is a leading global alternative asset manager with approximately $17 billion of capital under management* across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.
(Financial Tables Follow)
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WhiteHorse Finance, Inc. |
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Consolidated Statements of Assets and Liabilities |
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(in thousands, except share and per share data) |
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September 30, 2014 | December 31, 2013 | ||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Investments, at fair value (amortized cost $365,430 and $272,608, respectively) | $ | 369,185 | $ | 272,439 | ||||
| Cash and cash equivalents | 12,411 | 92,905 | ||||||
| Restricted cash and cash equivalents | 14,074 | 3,078 | ||||||
| Interest receivable | 1,835 | 1,585 | ||||||
| Deferred financing costs | 4,181 | 3,827 | ||||||
| Prepaid expenses and other receivables | 332 | 319 | ||||||
| Total assets | $ | 402,018 | $ | 374,153 | ||||
| Liabilities | ||||||||
| Credit facility | $ | 33,000 | $ | 25,000 | ||||
| Senior notes | 30,000 | 30,000 | ||||||
| Unsecured term loan | 55,000 | 55,000 | ||||||
| Distributions payable | 5,319 | 5,317 | ||||||
| Management fees payable | 4,143 | 2,831 | ||||||
| Payable for investments purchased | 47,109 | 28,606 | ||||||
| Accounts payable and accrued expenses | 364 | 397 | ||||||
| Total liabilities | 174,935 | 147,151 | ||||||
| Net assets | ||||||||
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Common stock, 14,982,857 and 14,977,056 shares issued and |
15 | 15 | ||||||
| Paid-in capital in excess of par | 228,734 | 228,646 | ||||||
| Accumulated overdistributed net investment income | (4,785 | ) | (854 | ) | ||||
| Net unrealized appreciation (depreciation) on investments | 3,119 | (805 | ) | |||||
| Total net assets | 227,083 | 227,002 | ||||||
| Total liabilities and total net assets | $ | 402,018 | $ | 374,153 | ||||
| Number of shares outstanding | 14,982,857 | 14,977,056 | ||||||
| Net asset value per share | $ | 15.16 | $ | 15.16 | ||||
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WhiteHorse Finance, Inc. |
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Consolidated Statements of Operations (Unaudited) |
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(in thousands, except share and per share data) |
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| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Investment income | ||||||||||||||||
| Interest income | $ | 8,712 | $ | 9,251 | $ | 24,919 | $ | 26,544 | ||||||||
| Fee income | 346 | 1,871 | 1,407 | 2,458 | ||||||||||||
| Dividend income | 207 | - | 207 | - | ||||||||||||
| Total investment income | 9,265 | 11,122 | 26,533 | 29,002 | ||||||||||||
| Expenses | ||||||||||||||||
| Interest expense | 1,405 | 1,403 | 4,146 | 4,070 | ||||||||||||
| Base management fees | 1,871 | 1,201 | 5,439 | 3,522 | ||||||||||||
| Performance-based incentive fees | 1,011 | 1,571 | 2,143 | 3,736 | ||||||||||||
| Administrative service fees | 427 | 142 | 1,111 | 920 | ||||||||||||
| General and administrative expenses | 508 | 523 | 2,115 | 1,613 | ||||||||||||
| Total expenses, before fees waived | 5,222 | 4,840 | 14,954 | 13,861 | ||||||||||||
| Base management fees waived | - | - | (447 | ) | - | |||||||||||
| Total expenses, net of fees waived | 5,222 | 4,840 | 14,507 | 13,861 | ||||||||||||
| Net investment income | 4,043 | 6,282 | 12,026 | 15,141 | ||||||||||||
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Realized and unrealized gains |
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Net realized gains (losses) on |
- | - | - | - | ||||||||||||
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Net change in unrealized |
520 | (262 | ) | 3,924 | (2,446 | ) | ||||||||||
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Net realized and unrealized gains |
520 | (262 | ) | 3,924 | (2,446 | ) | ||||||||||
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Net increase in net assets resulting |
$ | 4,563 | $ | 6,020 | $ | 15,950 | $ | 12,695 | ||||||||
| Per Common Share Data | ||||||||||||||||
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Basic and diluted earnings per |
$ | 0.31 | $ | 0.40 | $ | 1.06 | $ | 0.85 | ||||||||
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Dividends and distributions declared per common share |
$ | 0.36 | $ | 0.36 | $ | 1.07 | $ | 1.07 | ||||||||
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Basic and diluted weighted average |
14,982,857 | 14,976,807 | 14,982,815 | 14,969,393 | ||||||||||||
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WhiteHorse Finance, Inc. |
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Consolidated Schedule of Investments (Unaudited) |
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September 30, 2014 |
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(in thousands) |
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| Investment Type(6) |
Spread Above Index(1) |
Interest Rate(2) |
Maturity Date |
Par / Shares |
Amortized Cost |
Fair Value |
Fair Value As A Percentage Of Net Assets |
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| North America | ||||||||||||||||||||||||
| Debt Investments | ||||||||||||||||||||||||
| Application Software | ||||||||||||||||||||||||
| Serena Software, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+6.50% | 7.50 | % | 4/14/20 | $ | 4,000 | $ | 4,040 | $ | 4,020 | 1.77 | % | ||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Auto Parts & Equipment | ||||||||||||||||||||||||
| GST Autoleather, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+5.50% | 6.50 | % | 7/10/20 | 4,000 | 3,990 | 3,996 | 1.76 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Broadcasting | ||||||||||||||||||||||||
| Multicultural Radio Broadcasting, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+10.50% | 11.50 | % | 6/27/19 | 15,000 | 15,000 | 15,000 | 6.61 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Cable & Satellite | ||||||||||||||||||||||||
| Puerto Rico Cable Acquisition Company, Inc. | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+8.50% | 9.50 | % | 5/30/19 | 7,000 | 6,928 | 7,014 | 3.09 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Coal & Consumable Fuels | ||||||||||||||||||||||||
| Bowie Resource Holdings, LLC | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+5.75% | 6.75 | % | 8/16/20 | 4,000 | 4,025 | 4,032 | 1.78 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Commercial Printing | ||||||||||||||||||||||||
| Harland Clarke Holdings Corp. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+5.50% | 7.00 | % | 5/22/18 | 2,000 | 2,025 | 2,020 | 0.89 | ||||||||||||||||
| (1.50% Floor) | ||||||||||||||||||||||||
| Construction Materials | ||||||||||||||||||||||||
| Quickrete Holdings, Inc. | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+6.00% | 7.00 | % | 3/26/21 | 2,000 | 2,033 | 2,028 | 0.89 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Consumer Finance | ||||||||||||||||||||||||
| Oasis Legal Finance, LLC(7) | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | N/A(4) | 10.50 | % | 9/30/18 | 9,500 | 9,334 | 9,443 | 4.16 | ||||||||||||||||
| Sigue Corporation | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+9.50% | 10.50 | % | 12/27/18 | 25,000 | 24,560 | 24,975 | 11.00 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| 34,500 | 33,894 | 34,418 | 15.16 | |||||||||||||||||||||
| Data Processing & Outsourced Services | ||||||||||||||||||||||||
| Future Payment Technologies, LP | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+10.00% | 11.00 | % | 12/31/18 | 35,534 | 34,295 | 35,357 | 15.57 | ||||||||||||||||
| (1.00% Floor) | (2.00% PIK) | |||||||||||||||||||||||
| Diversified Support Services | ||||||||||||||||||||||||
| Orion Healthcorp, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+9.00% | 11.00 | % | 9/30/17 | 10,071 | 9,800 | 10,000 | 4.40 | ||||||||||||||||
| (2.00% Floor) | ||||||||||||||||||||||||
| Smile Brands Group Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+6.25% | 7.50 | % | 8/16/19 | 11,880 | 11,676 | 11,654 | 5.13 | ||||||||||||||||
| (1.25% Floor) | ||||||||||||||||||||||||
| 21,951 | 21,476 | 21,654 | 9.53 | |||||||||||||||||||||
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WhiteHorse Finance, Inc. |
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Consolidated Schedule of Investments (Unaudited) (Continued) |
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September 30, 2014 |
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(in thousands) |
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| Investment Type(6) |
Spread Above Index(1) |
Interest Rate(2) |
Maturity Date |
Par / Shares |
Amortized Cost |
Fair Value |
Fair Value As A Percentage Of Net Assets |
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| Electronic Equipment & Instruments | |||||||||||||||||||||||
| AP Gaming I, LLC | |||||||||||||||||||||||
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First Lien Secured Term Loan |
L+8.25% | 9.25 | % | 12/20/20 | 9,925 | 9,647 | 9,667 | 4.26 | |||||||||||||||
| (1.00% Floor) | |||||||||||||||||||||||
| Health Care Distributors | |||||||||||||||||||||||
| Comprehensive Decubitus Therapy, Inc. | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+13.50% | 15.00 | % | 3/15/18 | 12,944 | 12,740 | 12,711 | 5.60 | |||||||||||||||
| (1.50% Floor) | (3.00% PIK) | ||||||||||||||||||||||
| First Lien Secured Revolving Loan | L+13.50% | 15.00 | % | 3/15/18 | - | (28 | ) | - | - | ||||||||||||||
| (1.50% Floor) | (3.00% PIK) | ||||||||||||||||||||||
| P2 Newco Acquisition, Inc. | |||||||||||||||||||||||
| Second Lien Secured Term Loan | L+8.50% | 9.50 | % | 10/22/21 | 10,000 | 9,907 | 10,020 | 4.41 | |||||||||||||||
| (1.00% Floor) | |||||||||||||||||||||||
| 22,944 | 22,619 | 22,731 | 10.01 | ||||||||||||||||||||
| Health Care Facilities | |||||||||||||||||||||||
| Gentiva Health Services, Inc. (7) | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+5.25% | 6.50 | % | 10/18/19 | 2,000 | 2,015 | 2,006 | 0.88 | |||||||||||||||
| (1.25% Floor) | |||||||||||||||||||||||
| Coastal Sober Living, LLC | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+9.25% | 10.25 | % | 6/30/19 | 21,725 | 21,355 | 21,573 | 9.50 | |||||||||||||||
| (1.00% Floor) | |||||||||||||||||||||||
| Grupo HIMA San Pablo, Inc | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+9.00% | 10.50 | % | 1/31/18 | 14,775 | 14,558 | 14,790 | 6.51 | |||||||||||||||
| (1.50% Floor) | |||||||||||||||||||||||
| Second Lien Secured Term Loan | N/A(4) | 15.75 | % | 7/31/18 | 1,000 | 961 | 997 | 0.44 | |||||||||||||||
| 39,500 | 38,889 | 39,366 | 17.33 | ||||||||||||||||||||
| Health Care Technology | |||||||||||||||||||||||
| Client Network Services, Inc. | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+13.00% | 13.50 | % | 4/24/19 | 28,958 | 28,509 | 28,957 | 12.75 | |||||||||||||||
| (0.50% Floor) | (1.00% PIK) | ||||||||||||||||||||||
| First Lien Secured Revolving Loan | L+12.00% | 12.50 | % | 4/24/19 | 2,500 | 2,500 | 2,500 | 1.10 | |||||||||||||||
| (0.50% Floor) | |||||||||||||||||||||||
| 31,458 | 31,009 | 31,457 | 13.85 | ||||||||||||||||||||
| Homebuilding | |||||||||||||||||||||||
| Orleans Homebuilders, Inc. | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+8.50% | 10.50 | % | 2/14/16 | 16,218 | 16,263 | 16,218 | 7.14 | |||||||||||||||
| (2.00% Floor) | |||||||||||||||||||||||
| Home Furnishing Retail | |||||||||||||||||||||||
| BDF Acquisition Corp. | |||||||||||||||||||||||
| Second Lien Secured Term Loan | L+8.00% | 9.00 | % | 2/12/22 | 5,000 | 4,905 | 4,845 | 2.13 | |||||||||||||||
| (1.00% Floor) | |||||||||||||||||||||||
| Human Resource & Employment Services | |||||||||||||||||||||||
| Miller Heiman, Inc. | |||||||||||||||||||||||
| First Lien Secured Term Loan | L+5.75% | 6.75 | % | 9/30/19 | 4,000 | 3,925 | 3,924 | 1.73 | |||||||||||||||
| (1.00% Floor) | |||||||||||||||||||||||
| Integrated Telecommunication Services | |||||||||||||||||||||||
| Securus Technologies, Inc. | |||||||||||||||||||||||
| Second Lien Secured Term Loan | L+7.75% | 9.00 | % | 4/30/21 | 12,090 | 12,021 | 12,090 | 5.32 | |||||||||||||||
| (1.25% Floor) | |||||||||||||||||||||||
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WhiteHorse Finance, Inc.
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Consolidated Schedule of Investments (Unaudited)(Continued) |
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September 30, 2014 |
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(in thousands) |
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| Investment Type(6) |
Spread Above Index(1) |
Interest Rate(2) |
Maturity Date |
Par / Shares |
Amortized Cost |
Fair Value |
Fair Value As A Percentage Of Net Assets |
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| Internet Retail | ||||||||||||||||||||||||
| Bluestem Brands, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+6.50% | 7.50 | % | 12/6/18 | 8,222 | 8,050 | 8,255 | 3.64 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Metal & Glass Containers | ||||||||||||||||||||||||
| Pelican Products, Inc. | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+8.25% | 9.25 | % | 4/11/21 | 3,000 | 2,978 | 3,027 | 1.33 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Oil & Gas Drilling | ||||||||||||||||||||||||
| ProPetro Services, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+6.25% | 7.25 | % | 9/30/19 | 9,500 | 9,414 | 9,481 | 4.18 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Oil & Gas Exploration & Production | ||||||||||||||||||||||||
| Caelus Energy Alaska O3, LLC | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+7.50% | 8.75 | % | 4/15/20 | 13,000 | 12,825 | 12,857 | 5.66 | ||||||||||||||||
| (1.25% Floor) | ||||||||||||||||||||||||
| Larchmont Resources, LLC | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+7.25% | 8.25 | % | 8/7/19 | 2,000 | 2,040 | 2,028 | 0.89 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| 15,000 | 14,865 | 14,885 | 6.55 | |||||||||||||||||||||
| Oil & Gas Storage & Transportation | ||||||||||||||||||||||||
| Sprint Industrial Holdings LLC | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+5.75% | 7.00 | % | 5/14/19 | 2,000 | 2,013 | 2,010 | 0.89 | ||||||||||||||||
| (1.25% Floor) | ||||||||||||||||||||||||
| Other Diversified Financial Services | ||||||||||||||||||||||||
| RCS Capital Corporation(7) | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+9.50% | 10.50 | % | 4/29/21 | 13,250 | 13,257 | 13,489 | 5.94 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Specialized Consumer Services | ||||||||||||||||||||||||
| Pre-Paid Legal Services, Inc. | ||||||||||||||||||||||||
| Second Lien Secured Term Loan | L+8.50% | 9.75 | % | 7/1/20 | 18,000 | 17,795 | 18,072 | 7.96 | ||||||||||||||||
| (1.25% Floor) | ||||||||||||||||||||||||
| Specialized Finance | ||||||||||||||||||||||||
| GMT Holdings 1, Ltd. & GMT Holdings 12, Ltd.(3)(7) | ||||||||||||||||||||||||
| First Lien Secured Term Loan | N/A(4) | 10.00 | % | 6/30/17 | 6,872 | 6,937 | 6,247 | 2.75 | ||||||||||||||||
| Trading Companies & Distributors | ||||||||||||||||||||||||
| Distribution International, Inc. | ||||||||||||||||||||||||
| First Lien Secured Term Loan | L+6.50% | 7.50 | % | 7/16/19 | 9,875 | 9,792 | 9,786 | 4.31 | ||||||||||||||||
| (1.00% Floor) | ||||||||||||||||||||||||
| Total Debt Investments | 356,839 | 352,085 | 355,089 | 156.38 | ||||||||||||||||||||
| Equity Investments | ||||||||||||||||||||||||
| Diversified Support Services | ||||||||||||||||||||||||
| Constellation Health, LLC | ||||||||||||||||||||||||
| Warrants | N/A | N/A | 3/31/18 | 1 | - | 870 | 0.38 | |||||||||||||||||
| Specialized Finance | ||||||||||||||||||||||||
| NMFC Senior Loan Program I LLC(7) | ||||||||||||||||||||||||
| LLC Interest | N/A | N/A | 6/10/19 | 13,345 | 13,345 | 13,226 | 5.82 | |||||||||||||||||
| Total Equity Investments | 13,346 | 13,345 | 14,096 | 6.20 | ||||||||||||||||||||
| Total Investments(5) | $ | 370,185 | $ | 365,430 | $ | 369,185 | 162.58 | % | ||||||||||||||||
| (1) | 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. |
| (2) | The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind, or “PIK”, interest rate, as the case may be. |
| (3) | WhiteHorse Finance, Inc.’s investments in GMT Holdings 1, Ltd. and GMT Holdings 12, Ltd. are held through its subsidiary Bayside Financing S.A.R.L. |
| (4) | Interest rate is fixed and accordingly the spread above the index is not applicable. |
| (5) | Except for BDF Acquisition Corp., Constellation Health, LLC, GMT Holdings 1, Ltd. and GMT Holdings 12, Ltd., Harland Clarke Holdings Corp., NMFC Senior Loan Program I LLC, P2 Newco Acquisition, Inc., Pelican Products, Inc., Quickrete Holdings, Inc. and Sprint Industrial Holdings LLC, the investments provide collateral for the Credit Facility. |
| (6) | All investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, or the 1940 Act. |
| (7) | Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. |
