NEW YORK, March 3, 2016 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ: WHF) today announced its financial results for the quarter and year ended December 31, 2015.
Fourth Quarter 2015 Summary Highlights
(1) 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.
Jay Carvell, WhiteHorse Finance's Chief Executive Officer commented, "We are pleased to report strong core earnings for the quarter. Our affiliation with H.I.G. Capital remains strong, and we are pleased with the forward pipeline. We continue to source attractive investments and believe opportunities in the credit markets will allow us to continue to execute on our origination strategy."
Portfolio and Investment Activity
As of December 31, 2015, the fair value of WhiteHorse Finance's investment portfolio was $415.3 million, compared with $403.5 million as of December 31, 2014. The portfolio at December 31, 2015 consisted of 35 positions across 29 companies with an average investment size of $11.5 million and a weighted average effective yield of 11.8 % on income producing investments. The majority of the portfolio was comprised of senior secured loans and more than 97.0% of these loans were variable-rate investments (primarily indexed to LIBOR), which should continue to position the portfolio well for a potential rising interest rate environment.
For the three months ended December 31, 2015, WhiteHorse Finance invested $63.7 million across five portfolio companies. Gross proceeds from sales and repayments totaled $6.4 million for the quarter.
For the year ended December 31, 2015, WhiteHorse Finance invested $140.4 million across twelve portfolio companies. Gross proceeds from sales and repayments totaled $107.7 million for the year.
Results of Operations
For the three months and year ended December 31, 2015, net investment income was $3.9 million and $20.8 million, compared with $5.0 million and $17.0 million for the same periods in the prior year. For the three months and year ended December 31, 2015, core net investment income, a non-GAAP financial measure, was $5.7 million and $22.6 million, compared with $5.0 million and $17.0 million for the same periods in the prior year. The increase in core net investment income was primarily attributable to increases in the average earning investment balance and the weighted average effective yield over the same periods in the prior year.
For the three months and year ended December 31, 2015, WhiteHorse Finance reported realized and unrealized losses on investments of $18.7 and $23.6 million, respectively. This compares with realized and unrealized losses on investments of $1.3 million and realized and unrealized gains on investments of $2.6 million for the three months and year ended December 31, 2014, respectively. The increase in realized and unrealized losses on investments related primarily to the recognition of unrealized depreciation of $13.3 million on the Company's investment in RCS Capital Corporation during the fourth quarter of 2015.
For the three months and year ended December 31, 2015, WhiteHorse Finance reported a net decrease in net assets of $14.8 million and $2.8 million, respectively, which compares with a net increase in net assets of $3.6 million and $19.5 million for the three months and year ended December 31, 2014.
WhiteHorse Finance's NAV was $244.1 million, or $13.33 per share, as of December 31, 2015, as compared with $227.0 million, or $15.16 per share, reported as of December 31, 2014.
Liquidity and Capital Resources
As of December 31, 2015, WhiteHorse Finance had cash and cash equivalents of $22.8 million, as compared with $25.9 million as of September 30, 2015, inclusive of restricted cash. As of December 31, 2015, the Company had $98.0 million of undrawn capacity under its revolving credit facility.
Distributions
On November 23, 2015, the Company declared a distribution of $0.355 per share for the quarter ended December 31, 2015, consistent for the thirteenth consecutive quarter since the Company's IPO. The distribution was payable on January 4, 2016 to shareholders of record as of December 21, 2015.
Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.
Conference Call
WhiteHorse Finance will host a conference call to discuss its fourth quarter and fiscal year-end results at 10:00 am ET on Thursday, March 3, 2016. To access the teleconference, please dial 706-758-9224 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference ID#36543898. Investors may also access the call on the investor relations portion of the Company's website at www.whitehorsefinance.com.
If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion through March 10, 2016. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID#36543898. A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com.
About WhiteHorse Finance, Inc.
WhiteHorse Finance is a business development company that originates and invests in loans to privately held small-cap companies across a broad range of industries. The Company's investment activities are managed by 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 $19 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.
(2) Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.
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.
| WhiteHorse Finance, Inc. |
||||||||
| Consolidated Statements of Assets and Liabilities |
||||||||
| December 31, |
December 31, |
|||||||
| Assets |
||||||||
| Investments, at fair value |
||||||||
| Non-controlled/non-affiliate company investments |
$ |
395,143 |
$ |
383,500 |
||||
| Non-controlled affiliate company investments |
20,200 |
20,000 |
||||||
| Total investments, at fair value (amortized cost $436,109 and $401,062, respectively) |
415,343 |
403,500 |
||||||
| Cash and cash equivalents |
22,769 |
11,647 |
||||||
| Restricted cash and cash equivalents |
— |
4,495 |
||||||
| Interest receivable |
3,407 |
2,702 |
||||||
| Deferred financing costs |
3,518 |
4,004 |
||||||
| Prepaid expenses and other receivables |
192 |
494 |
||||||
| Total assets |
$ |
445,229 |
$ |
426,842 |
||||
| Liabilities |
||||||||
| Debt |
$ |
187,000 |
$ |
190,500 |
||||
| Distributions payable |
6,498 |
5,319 |
||||||
| Management fees payable |
3,813 |
5,006 |
||||||
| Payable for investments purchased |
2,865 |
— |
||||||
| Accounts payable and accrued expenses |
1,001 |
659 |
||||||
| Total liabilities |
201,177 |
201,484 |
||||||
| Commitments and contingencies |
||||||||
| Net assets |
||||||||
| Common stock, 18,303,890 and 14,982,857 shares issued and outstanding, par value $0.001 per share and 100,000,000 authorized |
18 |
15 |
||||||
| Paid-in capital in excess of par |
272,705 |
228,731 |
||||||
| Accumulated overdistributed net investment income |
(7,618) |
(5,918) |
||||||
| Net realized gains on investments |
349 |
728 |
||||||
| Net unrealized (depreciation) appreciation on investments |
(21,402) |
1,802 |
||||||
| Total net assets |
244,052 |
225,358 |
||||||
| Total liabilities and total net assets |
$ |
445,229 |
$ |
426,842 |
||||
| Number of shares outstanding |
18,303,890 |
14,982,857 |
||||||
| Net asset value per share |
$ |
13.33 |
$ |
15.04 |
||||
| WhiteHorse Finance, Inc. |
||||||||||||
| Consolidated Statements of Operations |
||||||||||||
| Years ended December 31, |
||||||||||||
| 2015 |
2014 |
2013 |
||||||||||
| Investment income |
||||||||||||
| Interest income |
$ |
42,381 |
$ |
35,148 |
$ |
34,155 |
||||||
| Fee income |
1,894 |
1,604 |
3,462 |
|||||||||
| Dividend income |
2,800 |
794 |
— |
|||||||||
| Total investment income |
47,075 |
37,546 |
37,617 |
|||||||||
| Expenses |
||||||||||||
| Interest expense |
9,970 |
5,818 |
5,341 |
|||||||||
| Base management fees |
8,560 |
7,557 |
5,059 |
|||||||||
| Performance-based incentive fees |
4,323 |
3,387 |
4,800 |
|||||||||
| Administrative service fees |
1,140 |
1,510 |
1,173 |
|||||||||
| General and administrative expenses |
2,326 |
2,720 |
2,182 |
|||||||||
| Total expenses, before fees waived |
26,319 |
20,992 |
18,555 |
|||||||||
| Base management fees waived |
— |
(447) |
(248) |
|||||||||
| Total expenses, net of fees waived |
26,319 |
20,545 |
18,307 |
|||||||||
| Net investment income |
20,756 |
17,001 |
19,310 |
|||||||||
| Realized and unrealized (losses) gains on investments |
||||||||||||
| Net realized losses on investments |
(379) |
(64) |
— |
|||||||||
| Net change in unrealized (depreciation) appreciation on investments |
(23,204) |
2,607 |
(280) |
|||||||||
| Net realized and unrealized (losses) gains on investments |
(23,583) |
2,543 |
(280) |
|||||||||
| Net (decrease) increase in net assets resulting from operations |
$ |
(2,827) |
$ |
19,544 |
$ |
19,030 |
||||||
| Per Common Share Data |
||||||||||||
| Basic and diluted (loss) earnings per common share |
$ |
(0.18) |
$ |
1.30 |
$ |
1.27 |
||||||
| Dividends and distributions declared per common share |
$ |
1.42 |
$ |
1.42 |
$ |
1.42 |
||||||
| Basic and diluted weighted average common shares outstanding |
15,319,510 |
14,982,825 |
14,971,324 |
|||||||||
| WhiteHorse Finance, Inc. |
||||||||||||||||||||||||||||||
| Consolidated Schedule of Investments |
||||||||||||||||||||||||||||||
| Investment Type(1) |
Spread Above |
Interest |
Maturity |
Principal |
Amortized |
Fair |
Fair Value |
|||||||||||||||||||||||
| North America |
||||||||||||||||||||||||||||||
| Debt Investments |
||||||||||||||||||||||||||||||
| Advertising |
||||||||||||||||||||||||||||||
| Fluent Acquisition II, LLC |
||||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+11.50% |
12.00% |
12/8/20 |
$ |
28,017 |
$ |
27,462 |
$ |
27,765 |
11.38% |
||||||||||||||||||||
| Intersection Acquisition, LLC |
||||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+10.00% |
11.00% |
9/15/20 |
16,462 |
16,302 |
16,429 |
6.73 |
|||||||||||||||||||||||
| 44,479 |
43,764 |
44,194 |
18.11 |
|||||||||||||||||||||||||||
| Broadcasting |
||||||||||||||||||||||||||||||
| Multicultural Radio Broadcasting, Inc.(6) |
||||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+10.50% |
11.50% |
6/27/19 |
14,850 |
14,850 |
14,806 |
6.07 |
|||||||||||||||||||||||
| Consumer Finance |
||||||||||||||||||||||||||||||
| Golden Pear Funding III, LLC(7) |
||||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+10.25% |
11.25% |
6/25/20 |
25,000 |
24,731 |
24,650 |
10.10 |
|||||||||||||||||||||||
| Second Lien Secured Revolving Loan |
L+10.25% |
11.25% |
6/25/20 |
— |
(52) |
— |
— |
|||||||||||||||||||||||
| Oasis Legal Finance, LLC(7) |
||||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
N/A |
(5) |
10.50% |
9/30/18 |
9,000 |
8,881 |
8,973 |
3.68 |
||||||||||||||||||||||
| Sigue Corporation(6) |
||||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+10.50% |
11.50% |
12/27/18 |
25,000 |
24,669 |
24,875 |
10.19 |
|||||||||||||||||||||||
| 59,000 |
58,229 |
58,498 |
23.97 |
|||||||||||||||||||||||||||
| Data Processing & Outsourced Services |
||||||||||||||||||||||||||||||
| Future Payment Technologies, L.P. |
||||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+12.00% |
13.00% |
12/31/18 |
36,447 |
35,510 |
36,447 |
14.93 |
|||||||||||||||||||||||
| Distributors |
||||||||||||||||||||||||||||||
| 360 Holdings III Corp.(6) |
||||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
P+8.00% |
11.50% |
10/1/21 |
9,975 |
9,575 |
9,775 |
4.01 |
|||||||||||||||||||||||
| WhiteHorse Finance, Inc. |
||||||||||||||||||||||||||||
| Consolidated Schedule of Investments – (continued) |
||||||||||||||||||||||||||||
| Investment Type(1) |
Spread Above |
Interest |
Maturity |
Principal |
Amortized |
Fair |
Fair Value |
|||||||||||||||||||||
| Diversified Support Services |
||||||||||||||||||||||||||||
| Expert Global Solutions, Inc. |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+11.00% |
12.50% |
10/3/18 |
$ |
20,000 |
$ |
19,831 |
$ |
19,820 |
8.12% |
||||||||||||||||||
| Orion Healthcorp, Inc. |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+9.00% |
11.00% |
9/30/17 |
6,991 |
6,830 |
6,998 |
2.87 |
|||||||||||||||||||||
| Sitel Worldwide Corporation |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+9.50% |
10.50% |
9/18/22 |
8,670 |
8,501 |
8,540 |
3.50 |
|||||||||||||||||||||
| Smile Brands Group Inc. |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+7.75% |
9.00% |
8/16/19 |
11,745 |
11,585 |
9,983 |
4.09 |
|||||||||||||||||||||
| 47,406 |
46,747 |
45,341 |
18.58 |
|||||||||||||||||||||||||
| Electronic Equipment & Instruments |
||||||||||||||||||||||||||||
| AP Gaming I, LLC (6) |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+8.25% |
9.25% |
12/20/20 |
9,800 |
9,566 |
9,663 |
3.96 |
|||||||||||||||||||||
| Food Retail |
||||||||||||||||||||||||||||
| Crews of California, Inc. |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+11.00% |
12.00% |
11/20/19 |
15,170 |
14,889 |
14,639 |
6.00 |
|||||||||||||||||||||
| First Lien Secured Revolving Loan |
L+11.00% |
12.00% |
11/20/19 |
5,019 |
4,931 |
4,843 |
1.98 |
|||||||||||||||||||||
| First Lien Secured Delayed Draw Term Loan |
L+11.00% |
12.00% |
11/20/19 |
5,034 |
4,946 |
4,858 |
1.99 |
|||||||||||||||||||||
| 25,223 |
24,766 |
24,340 |
9.97 |
|||||||||||||||||||||||||
| Health Care Distributors |
||||||||||||||||||||||||||||
| P2 Newco Acquisition, Inc.(6) |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+8.50% |
9.50% |
10/22/21 |
6,000 |
5,952 |
5,982 |
2.45 |
|||||||||||||||||||||
| Health Care Facilities |
||||||||||||||||||||||||||||
| Coastal Sober Living, LLC(6) |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+9.25% |
10.25% |
6/30/19 |
41,030 |
40,436 |
40,251 |
16.49 |
|||||||||||||||||||||
| Grupo HIMA San Pablo, Inc. |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+7.00% |
8.50% |
1/31/18 |
14,588 |
14,441 |
14,588 |
5.98 |
|||||||||||||||||||||
| Second Lien Secured Term Loan |
N/A |
(5) |
13.75% |
7/31/18 |
1,000 |
971 |
992 |
0.41 |
||||||||||||||||||||
| 56,618 |
55,848 |
55,831 |
22.88 |
|||||||||||||||||||||||||
| WhiteHorse Finance, Inc. |
||||||||||||||||||||||||||||
| Consolidated Schedule of Investments – (continued) |
||||||||||||||||||||||||||||
| Investment Type(1) |
Spread Above |
Interest |
Maturity |
Principal |
Amortized |
Fair |
Fair Value |
|||||||||||||||||||||
| Health Care Technology |
||||||||||||||||||||||||||||
| Client Network Services, Inc. |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+13.00% |
13.50% |
4/24/19 |
$ |
9,185 |
$ |
8,954 |
$ |
9,350 |
3.83% |
||||||||||||||||||
| First Lien Secured Revolving Loan |
P+12.00% |
15.50% |
4/24/19 |
1,000 |
1,000 |
1,018 |
0.42 |
|||||||||||||||||||||
| 10,185 |
9,954 |
10,368 |
4.25 |
|||||||||||||||||||||||||
| Integrated Telecommunication Services |
||||||||||||||||||||||||||||
| Securus Technologies Holdings, Inc. |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+7.75% |
9.00% |
4/30/21 |
9,090 |
9,059 |
5,936 |
2.43 |
|||||||||||||||||||||
| Oil & Gas Drilling |
||||||||||||||||||||||||||||
| ProPetro Services, Inc.(6) |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+6.25% |
7.25% |
9/30/19 |
8,875 |
8,809 |
6,417 |
2.63 |
|||||||||||||||||||||
| Oil & Gas Exploration & Production |
||||||||||||||||||||||||||||
| Caelus Energy Alaska O3, LLC |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+7.50% |
8.75% |
4/15/20 |
13,000 |
12,856 |
9,269 |
3.80 |
|||||||||||||||||||||
| Larchmont Resources, LLC |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+8.75% |
9.75% |
8/7/19 |
1,745 |
1,777 |
1,238 |
0.51 |
|||||||||||||||||||||
| 14,745 |
14,633 |
10,507 |
4.31 |
|||||||||||||||||||||||||
| Other Diversified Financial Services |
||||||||||||||||||||||||||||
| RCS Capital Corporation(6)(7)(9) |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+10.50% |
11.50% |
4/29/21 |
20,750 |
20,687 |
7,262 |
2.98 |
|||||||||||||||||||||
| The Pay-O-Matic Corp. |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+11.00% |
12.00% |
3/31/18 |
9,750 |
9,594 |
9,740 |
3.99 |
|||||||||||||||||||||
| 30,500 |
30,281 |
17,002 |
6.97 |
|||||||||||||||||||||||||
| Research & Consulting Services |
||||||||||||||||||||||||||||
| Project Time & Cost, LLC(6) |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
L+11.00% |
11.50% |
10/9/20 |
11,700 |
11,468 |
11,571 |
4.74 |
|||||||||||||||||||||
| Specialized Consumer Services |
||||||||||||||||||||||||||||
| Pre-Paid Legal Services, Inc.(6) |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+9.00% |
10.25% |
7/1/20 |
18,000 |
17,830 |
18,054 |
7.40 |
|||||||||||||||||||||
| WhiteHorse Finance, Inc. |
||||||||||||||||||||||||||||
| Consolidated Schedule of Investments – (continued) |
||||||||||||||||||||||||||||
| Investment Type(1) |
Spread Above |
Interest |
Maturity |
Principal |
Amortized |
Fair |
Fair Value |
|||||||||||||||||||||
| Specialized Finance |
||||||||||||||||||||||||||||
| GMT Holdings 1, Ltd. & GMT Holdings 12, Ltd.(4)(7) |
||||||||||||||||||||||||||||
| First Lien Secured Term Loan |
N/A |
(5) |
10.00% |
6/30/17 |
$ |
1,710 |
$ |
1,710 |
$ |
1,710 |
0.70% |
|||||||||||||||||
| Trucking |
||||||||||||||||||||||||||||
| Fox Rent A Car, Inc. |
||||||||||||||||||||||||||||
| Second Lien Secured Term Loan |
L+12.00% |
12.43% |
10/31/19 |
7,500 |
7,438 |
7,395 |
3.03 |
|||||||||||||||||||||
| Total Debt Investments |
422,103 |
415,989 |
393,837 |
161.37 |
||||||||||||||||||||||||
| Equity Investments |
||||||||||||||||||||||||||||
| Advertising |
||||||||||||||||||||||||||||
| IDI, Inc. Warrants(6) |
N/A |
N/A |
12/8/25 |
— |
— |
— |
— |
|||||||||||||||||||||
| Diversified Support Services |
||||||||||||||||||||||||||||
| Constellation Health, LLC Warrants(6) |
N/A |
N/A |
9/30/18 |
— |
— |
989 |
0.40 |
|||||||||||||||||||||
| Food Retail |
||||||||||||||||||||||||||||
| Crews of California, Inc. Warrants(6) |
N/A |
N/A |
12/31/24 |
— |
— |
191 |
0.08 |
|||||||||||||||||||||
| Nicholas & Associates, LLC Warrants(6) |
N/A |
N/A |
12/31/24 |
— |
— |
37 |
0.01 |
|||||||||||||||||||||
| Pinnacle Management Group, LLC Warrants(6) |
N/A |
N/A |
12/31/24 |
— |
— |
69 |
0.03 |
|||||||||||||||||||||
| RC3 Enterprises, LLC Warrants(6) |
N/A |
N/A |
12/31/24 |
— |
— |
20 |
0.01 |
|||||||||||||||||||||
| — |
— |
317 |
0.13 |
|||||||||||||||||||||||||
| Specialized Finance |
||||||||||||||||||||||||||||
| NMFC Senior Loan Program I LLC |
N/A |
N/A |
6/10/19 |
— |
20,120 |
20,200 |
8.28 |
|||||||||||||||||||||
| Total Equity Investments |
— |
20,120 |
21,506 |
8.81 |
||||||||||||||||||||||||
| Total Investments |
$ |
422,103 |
$ |
436,109 |
$ |
415,343 |
170.19% |
|||||||||||||||||||||
| (1) |
Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the "1940 Act"), and provide collateral for the Company's credit facility. |
|
| (2) |
The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L") or the Prime Rate ("P"), which resets monthly, quarterly or semiannually. |
|
| (3) |
The interest rate is the "all-in-rate" including the current index and spread, the fixed rate, and the payment-in-kind ("PIK") interest rate, as the case may be. |
|
| (4) |
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. |
|
| (5) |
Interest rate is fixed and accordingly the spread above the index is not applicable. |
|
| (6) |
The investment or a portion of the investment does not provide collateral for the Company's credit facility. |
|
| (7) |
Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represent 86% of total assets. |
|
| (8) |
Investment is a non-controlled/affiliate investment as defined by the 1940 Act. |
|
| (9) |
The investment is on non-accrual status. |
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SOURCE WhiteHorse Finance, Inc.
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