WhiteHorse Finance, Inc. Announces Fourth Quarter and Full Year 2020 Earnings Results and Declares Quarterly Distribution of $0.355 Per Share
NEW YORK, March 2, 2021 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the year ended December 31, 2020. Additionally, the Company announced that its board of directors has declared a distribution of $0.355 per share with respect to the quarter ending March 31, 2021. The distribution will be payable on April 5, 2021 to stockholders of record as of March 26, 2021.
Fourth Quarter 2020 Summary Highlights
- Net Asset Value of $312.9 million, or $15.23 per share, compared to $15.23 per share in 2019
- Investment portfolio(1) totaling $690.7 million
- STRS JV investment portfolio totaling $174.6 million
- Gross investment deployments(2) of $162.4 million for the fourth quarter, including new originations of $158.9 million and $3.5 million of fundings for add-ons to existing investments
- Gross investment deployments(2) of $286.9 million for the year, including new originations of $261.3 million and $25.6 million of fundings for add-ons to existing investments
- Net investment income of $6.9 million, or $0.335 per share, for the fourth quarter
- Core net investment income of $7.1 million, or $0.348 per share(3), for the fourth quarter
- Annual net investment income of $24.2 million, or $1.176 per share
- Annual core net investment income of $25.7 million, or $1.249 per share(3)
- Annual distributions of $1.545 per share, including special distributions of $0.125 per share
(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling $51.2 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. |
Stuart Aronson, WhiteHorse Finance's Chief Executive Officer commented, "During the fourth quarter, we successfully originated 16 first lien loans financed partially through $60 million unsecured notes newly issued under the current favorable market conditions. Our fourth quarter origination volume set a new company record and enabled us to reach our target leverage of 1.25x. The year 2020 presented unprecedented challenges, but our business remained resilient and we finished the year stronger than ever which emphasizes the strength of our three-tiered sourcing approach and rigorous underwriting standards. We will remain prudent as we continue to enhance value for our shareholders in this environment."
Portfolio and Investment Activity
As of December 31, 2020, the fair value of WhiteHorse Finance's investment portfolio was $690.7 million, compared with $589.7 million as of December 31, 2019. The portfolio at December 31, 2020 consisted of 99 positions across 67 companies with a weighted average effective yield of 9.9% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV) was $7.3 million with the overall portfolio comprised of approximately 85.2% first lien secured loans, 4.0% second lien secured loans, 3.4% equity and 7.4% in investments in STRS JV. Almost all loans were substantially variable-rate investments (primarily indexed to the London Interbank Offered Rate) with fixed rate securities representing only 0.2% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.
During the three months ended December 31, 2020, WhiteHorse Finance made investments in 16 new portfolio companies totaling $158.9 million, added a total of $3.5 million to five existing portfolio companies and funded $1.2 million to revolver commitments. Proceeds from sales and repayments totaled approximately $39.1 million for the quarter ended December 31, 2020, driven by a full realization in Vessco Holdings, LLC, partial sales of Vero Parent, Inc. and payments received from Golden Pear Funding Assetco, LLC.
In addition to the transactions above, during the three months ended December 31, 2020, WhiteHorse Finance transferred assets comprised of four new portfolio companies and one existing portfolio company totaling $32.4 million to STRS JV in exchange for cash consideration.
During the year ended December 31, 2020, WhiteHorse Finance invested $261.3 million across 26 new portfolio companies. The Company also invested $25.6 million in existing portfolio companies. Gross proceeds from sales and repayments (exclusive of asset transfers to STRS JV) totaled approximately $119.0 million for the year.
In addition to the transactions above, during the year ended December 31, 2020, WhiteHorse Finance transferred assets totaling $98.8 million in exchange for a net investment in STRS JV of $18.4 million as well as cash proceeds of $80.4 million. As of December 31, 2020, the Company's investment in STRS JV was approximately $51.2 million, at fair value.
WHF STRS Ohio Senior Loan Fund LLC
As of December 31, 2020, STRS JV's portfolio totaled $174.6 million, consisted of 20 portfolio companies and had a weighted average effective yield of 7.9% on its portfolio.
Results of Operations
For the three months and year ended December 31, 2020, the Company's net investment income was approximately $6.9 million and $24.2 million, respectively, compared with approximately $7.7 million and $31.2 million for the same periods in the prior year, representing a decrease of approximately 10.4% and 22.4%, respectively. The decrease in net investment income for the year-over-year period was primarily attributable to lower non-recurring fee income, partially offset by higher investment income generated from STRS JV for the year ended December 31, 2020. The decrease in fee income during the quarter and year ended December 31, 2020 as compared with the same period in the prior year was primarily a result of fewer nonrecurring, fee-generating events.
For the three months and year ended December 31, 2020, core net investment income, a non-GAAP financial measure that excludes capital gains incentive fee accruals, the net effects of excise or other income taxes related to net realized gains and losses, and the associated costs of refinancing the Company's indebtedness, was $7.1 million and $25.7 million, respectively, compared with $7.9 million and $31.1 million for the same period in the prior year, representing a decrease of approximately 10.1% and 17.4%, respectively.
For the three months and year ended December 31, 2020, WhiteHorse Finance reported net realized and unrealized gains on investments and foreign currency transactions of $1.3 million and $7.5 million, respectively. This compares with a net realized and unrealized gain on investments and foreign currency transactions of $1.1 million and a net realized and unrealized loss on investments and foreign currency transactions of $0.4 million for the three months and year ended December 31, 2019, respectively. The increase for the year-over-year period was primarily attributable to unrealized gains generated on AG Kings Holdings, Inc., partially offset by unrealized losses recognized on positions in Grupo HIMA San Pablo, Inc., Honors Holdings, LLC as well as Lift Brands, Inc., in addition to realized gains generated from sales and equity realizations in Vessco Holdings, LLC, PMA Holdco, LLC, Fluent, LLC and Vero Parent, Inc.
WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.2 million and $31.7 million for the three months and year ended December 31, 2020, respectively, which compares with a net increase of $8.8 million and $30.8 million for the three months and year ended December 31, 2019, respectively.
WhiteHorse Finance's net asset value was $312.9 million, or $15.23 per share, as of December 31, 2020, as compared with $314.6 million, or $15.31 per share, as of September 30, 2020. As of December 31, 2019, WhiteHorse Finance's net asset value was $313.0 million, or $15.23 per share.
Liquidity and Capital Resources
As of December 31, 2020, WhiteHorse Finance had cash and cash equivalents of $15.9 million, as compared with $22.9 million as of September 30, 2020, inclusive of restricted cash. As of December 31, 2020, the Company also had $19.8 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 March 31, 2021. The distribution will be payable on April 5, 2021 to stockholders of record as of March 26, 2021.
On November 9, 2020, the Company declared a distribution of $0.355 per share for the quarter ended December 31, 2020, consistent with distributions declared for the thirty-third consecutive quarter since the Company's initial public offering. The distribution was paid on January 5, 2021 to stockholders of record as of December 21, 2020. In addition, previously on October 9, 2020, the Company declared a special distribution of $0.125 per share, which was paid on December 10, 2020 to stockholders of record as of October 30, 2020.
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 2:30 p.m. ET on Tuesday, March 2, 2021. 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 #1860839. 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 9, 2021. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID #1860839. 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 $43 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.
(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 and years ended December 31, 2020 and December 31, 2019.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended December 31, 2020 and December 31, 2019 (in thousands, except per share data):
December 31, 2020 | December 31, 2019 | |||||||||||||||
Amount | Per Share Amounts | Amount | Per Share Amounts | |||||||||||||
Net investment income | $ | 6,883 | $ | 0.335 | $ | 7,702 | $ | 0.375 | ||||||||
Net impact of costs associated with refinancing of indebtedness | - | - | - | - | ||||||||||||
Accrual for capital gains incentive fee | 262 | 0.013 | 212 | 0.010 | ||||||||||||
Net impact of excise tax expense related to net realized gains and losses | - | - | - | - | ||||||||||||
Core net investment income | $ | 7,145 | $ | 0.348 | $ | 7,914 | $ | 0.385 | ||||||||
The following table provides a reconciliation of net investment income to core net investment income for the years ended December 31, 2020 and December 31, 2019 (in thousands, except per share data):
December 31, 2020 | December 31, 2019 | |||||||||||||||
Amount | Per Share Amounts | Amount | Per Share Amounts | |||||||||||||
Net investment income | $ | 24,157 | $ | 1.176 | $ | 31,196 | $ | 1.518 | ||||||||
Net impact of costs associated with refinancing of indebtedness | - | - | - | - | ||||||||||||
Accrual for capital gains incentive fee | 1,505 | 0.073 | (71) | (0.003) | ||||||||||||
Net impact of excise tax expense related to net realized gains and losses | - | - | - | - | ||||||||||||
Core net investment income | $ | 25,662 | $ | 1.249 | $ | 31,125 | $ | 1.515 | ||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||
December 31, | December 31, | ||||||||||||
Assets | |||||||||||||
Investments, at fair value | |||||||||||||
Non-controlled/non-affiliate company investments | $ | 623,777 | $ | 546,744 | |||||||||
Non-controlled affiliate company investments | 15,717 | 9,651 | |||||||||||
Controlled affiliate company investments | 51,241 | 33,293 | |||||||||||
Total investments, at fair value (amortized cost $695,429 and $597,725, respectively) | 690,735 | 589,688 | |||||||||||
Cash and cash equivalents | 8,062 | 4,294 | |||||||||||
Restricted cash and cash equivalents | 7,549 | 23,252 | |||||||||||
Restricted foreign currency (cost of $319) | 333 | — | |||||||||||
Interest and dividend receivable | 6,532 | 6,010 | |||||||||||
Amounts receivable on unsettled investment transactions | 4,717 | 360 | |||||||||||
Prepaid expenses and other receivables | 1,061 | 7,620 | |||||||||||
Total assets | $ | 718,989 | $ | 631,224 | |||||||||
Liabilities | |||||||||||||
Debt | $ | 384,880 | $ | 298,924 | |||||||||
Distributions payable | 7,294 | 7,294 | |||||||||||
Management fees payable | 3,354 | 3,060 | |||||||||||
Incentive fees payable | 6,117 | 5,230 | |||||||||||
Amounts payable on unsettled investment transactions | 497 | — | |||||||||||
Interest payable | 1,870 | 1,674 | |||||||||||
Accounts payable and accrued expenses | 1,708 | 1,944 | |||||||||||
Advances received from unfunded credit facilities | 372 | 143 | |||||||||||
Total liabilities | 406,092 | 318,269 | |||||||||||
Commitments and contingencies | |||||||||||||
Net assets | |||||||||||||
Common stock, 20,546,032 and 20,546,032 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized | 21 | 21 | |||||||||||
Paid-in capital in excess of par | 300,002 | 300,744 | |||||||||||
Accumulated undistributed (overdistributed) earnings | 12,874 | 12,190 | |||||||||||
Total net assets | 312,897 | 312,955 | |||||||||||
Total liabilities and total net assets | $ | 718,989 | $ | 631,224 | |||||||||
Number of shares outstanding | 20,546,032 | 20,546,032 | |||||||||||
Net asset value per share | $ | 15.23 | $ | 15.23 | |||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||
Investment income | |||||||||||||||||||
From non-controlled/non-affiliate company investments | |||||||||||||||||||
Interest income | $ | 54,039 | $ | 56,566 | $ | 56,208 | |||||||||||||
Fee income | 1,988 | 8,398 | 4,906 | ||||||||||||||||
Dividend income | 133 | — | — | ||||||||||||||||
From non-controlled affiliate company investments | |||||||||||||||||||
Dividend income | 1,183 | 1,173 | 2,132 | ||||||||||||||||
From controlled affiliate company investments | |||||||||||||||||||
Interest income | 2,595 | 936 | — | ||||||||||||||||
Dividend income | 1,761 | — | — | ||||||||||||||||
Total investment income | 61,699 | 67,073 | 63,246 | ||||||||||||||||
Expenses | |||||||||||||||||||
Interest expense | 13,125 | 13,468 | 11,599 | ||||||||||||||||
Base management fees | 12,464 | 11,300 | 10,511 | ||||||||||||||||
Performance-based incentive fees | 7,619 | 7,710 | 12,134 | ||||||||||||||||
Administrative service fees | 683 | 646 | 684 | ||||||||||||||||
General and administrative expenses | 2,909 | 2,337 | 2,646 | ||||||||||||||||
Total expenses, before fees waived | 36,800 | 35,461 | 37,574 | ||||||||||||||||
Base management fees waived | — | (397) | (270) | ||||||||||||||||
Total expenses, net of fees waived | 36,800 | 35,064 | 37,304 | ||||||||||||||||
Net investment income before excise tax | 24,899 | 32,009 | 25,942 | ||||||||||||||||
Excise tax | 742 | 813 | 942 | ||||||||||||||||
Net investment income after excise tax | 24,157 | 31,196 | 25,000 | ||||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currency transactions | |||||||||||||||||||
Net realized gains (losses) | |||||||||||||||||||
Non-controlled/non-affiliate company investments | 4,118 | (409) | (216) | ||||||||||||||||
Non-controlled affiliate company investments | — | — | 32,950 | ||||||||||||||||
Foreign currency transactions | 70 | 1 | — | ||||||||||||||||
Foreign currency forward contracts | (25) | — | — | ||||||||||||||||
Net realized gains (losses) | 4,163 | (408) | 32,734 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | |||||||||||||||||||
Non-controlled/non-affiliate company investments | 4,685 | 388 | (5,136) | ||||||||||||||||
Non-controlled affiliate company investments | (878) | (514) | 4,703 | ||||||||||||||||
Controlled affiliate company investments | (464) | 363 | — | ||||||||||||||||
Translation of assets and liabilities in foreign currencies | 22 | (184) | — | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 3,365 | 53 | (433) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments and | 7,528 | (355) | 32,301 | ||||||||||||||||
Net increase in net assets resulting from operations | $ | 31,685 | $ | 30,841 | $ | 57,301 | |||||||||||||
Per Common Share Data | |||||||||||||||||||
Basic and diluted earnings per common share | $ | 1.55 | $ | 1.50 | $ | 2.79 | |||||||||||||
Dividends and distributions declared per common share | $ | 1.55 | $ | 1.62 | $ | 1.42 | |||||||||||||
Basic and diluted weighted average common shares outstanding | 20,546,032 | 20,546,032 | 20,538,971 | ||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||||||||||
Advertising | |||||||||||||||||||||||||||||||||||||||||||
Fluent, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.00% (0.50% Floor) | 7.50% | 03/26/18 | 03/27/23 | 7,453 | $ | 7,453 | $ | 7,453 | 2.38% | |||||||||||||||||||||||||||||||||
SmartSign Holdings LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.50% (1.00% Floor) | 8.50% | 08/21/20 | 10/11/24 | 7,744 | 7,603 | 7,706 | 2.46 | |||||||||||||||||||||||||||||||||||
15,197 | 15,056 | 15,159 | 4.84 | ||||||||||||||||||||||||||||||||||||||||
Agricultural & Farm Machinery | |||||||||||||||||||||||||||||||||||||||||||
Bad Boy Mowers Acquisition, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 5.75% (1.00% Floor) | 6.75% | 12/19/19 | 12/06/25 | 9,294 | 9,062 | 9,201 | 2.94 | |||||||||||||||||||||||||||||||||||
Air Freight & Logistics | |||||||||||||||||||||||||||||||||||||||||||
Access USA Shipping, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.00% (1.50% Floor) | 9.50% | 02/08/19 | 02/08/24 | 5,359 | 5,309 | 5,359 | 1.71 | |||||||||||||||||||||||||||||||||||
Application Software | |||||||||||||||||||||||||||||||||||||||||||
Connexity, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.50% (1.50% Floor) | 10.00% | 05/21/20 | 05/21/25 | 10,863 | 10,577 | 10,863 | 3.47 | |||||||||||||||||||||||||||||||||||
Newscycle Solutions, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.00% (1.00% Floor) | 8.00% | 06/14/19 | 12/29/22 | 3,245 | 3,209 | 3,194 | 1.02 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 7.00% (1.00% Floor) | 8.00% | 06/14/19 | 12/29/22 | 181 | 179 | 177 | 0.06 | |||||||||||||||||||||||||||||||||||
TaxSlayer LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% (1.00% Floor) | 7.50% | 12/31/20 | 12/31/26 | 14,452 | 14,163 | 14,163 | 4.53 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 6.50% (1.00% Floor) | 7.50% | 12/31/20 | 12/31/26 | — | — | — | — | |||||||||||||||||||||||||||||||||||
28,741 | 28,128 | 28,397 | 9.08 | ||||||||||||||||||||||||||||||||||||||||
Automotive Retail | |||||||||||||||||||||||||||||||||||||||||||
Team Car Care Holdings, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(12) | Base rate+ 8.00% (1.00% Floor) | 9.00% | 02/26/18 | 02/23/23 | 16,168 | 16,011 | 15,820 | 5.06 | |||||||||||||||||||||||||||||||||||
BW Gas & Convenience Holdings, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.25% (0.00% Floor) | 6.40% | 11/15/19 | 11/18/24 | 6,319 | 6,121 | 6,319 | 2.02 | |||||||||||||||||||||||||||||||||||
22,487 | 22,132 | 22,139 | 7.08 | ||||||||||||||||||||||||||||||||||||||||
Broadcasting | |||||||||||||||||||||||||||||||||||||||||||
Alpha Media, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | P+7.50% (2.00% Floor) | 10.75% | 08/14/18 | 02/25/22 | 5,075 | 5,022 | 4,844 | 1.55 | |||||||||||||||||||||||||||||||||||
Building Products | |||||||||||||||||||||||||||||||||||||||||||
Drew Foam Companies Inc | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% (1.00% Floor) | 7.50% | 12/15/20 | 11/24/25 | 10,078 | 9,878 | 9,879 | 3.16 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 6.50% (1.00% Floor) | 7.50% | 12/15/20 | 11/05/25 | 332 | 325 | 325 | 0.10 | |||||||||||||||||||||||||||||||||||
LHS Borrower, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.75% (1.00% Floor) | 7.75% | 09/30/20 | 09/30/25 | 9,689 | 9,483 | 9,543 | 3.05 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan (7) | L+ 6.75% (1.00% Floor) | 7.75% | 09/30/20 | 09/30/25 | — | — | 4 | — | |||||||||||||||||||||||||||||||||||
20,099 | 19,686 | 19,751 | 6.31 | ||||||||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||
Cable & Satellite | |||||||||||||||||||||||||||||||||||||||||||
Bulk Midco, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(15) | L+ 7.19% (1.00% Floor) | 8.19% | 06/08/18 | 06/08/23 | 15,000 | $ | 14,890 | $ | 14,250 | 4.55% | |||||||||||||||||||||||||||||||||
Communications Equipment | |||||||||||||||||||||||||||||||||||||||||||
Ribbon Communications Operating Company, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(5) | L+ 7.50% (0.00% Floor) | 7.65% | 08/14/20 | 03/03/26 | 12,438 | 12,002 | 12,313 | 3.94% | |||||||||||||||||||||||||||||||||||
Sorenson Communications, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% (0.00% Floor) | 6.75% | 03/15/19 | 04/29/24 | 3,462 | 3,393 | 3,457 | 1.10 | |||||||||||||||||||||||||||||||||||
15,900 | 15,395 | 15,770 | 5.04 | ||||||||||||||||||||||||||||||||||||||||
Construction & Engineering | |||||||||||||||||||||||||||||||||||||||||||
Atlas Intermediate Holdings LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.25% (1.00% Floor) | 7.25% | 05/26/20 | 02/13/26 | 15,073 | 14,259 | 14,922 | 4.77 | |||||||||||||||||||||||||||||||||||
Road Safety Services, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.00% (1.00% Floor) | 7.00% | 12/31/20 | 09/18/23 | 4,550 | 4,459 | 4,461 | 1.43 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 6.00% (1.00% Floor) | 7.00% | 12/31/20 | 09/18/23 | — | — | 17 | 0.01 | |||||||||||||||||||||||||||||||||||
Tensar Corp. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.75% (1.00% Floor) | 7.75% | 11/20/20 | 08/20/25 | 7,000 | 6,829 | 6,829 | 2.18 | |||||||||||||||||||||||||||||||||||
26,623 | 25,547 | 26,229 | 8.39 | ||||||||||||||||||||||||||||||||||||||||
Construction Materials | |||||||||||||||||||||||||||||||||||||||||||
Claridge Products and Equipment, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% | 7.50% | 12/30/20 | 12/29/25 | 8,000 | 7,840 | 7,840 | 2.51 | |||||||||||||||||||||||||||||||||||
(1.00% Floor) | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 6.50% (1.00% Floor) | 7.50% | 12/30/20 | 12/29/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
8,000 | 7,840 | 7,840 | 2.51 | ||||||||||||||||||||||||||||||||||||||||
Consumer Finance | |||||||||||||||||||||||||||||||||||||||||||
Maxitransfers Blocker Corp | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 9.00% (1.00% Floor) | 10.00% | 10/07/20 | 10/07/25 | 8,869 | 8,668 | 8,668 | 2.77 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(4) | L+ 9.00% (1.00% Floor) | 10.00% | 10/07/20 | 10/07/25 | 1,038 | 1,014 | 1,014 | 0.32 | |||||||||||||||||||||||||||||||||||
9,907 | 9,682 | 9,682 | 3.09 | ||||||||||||||||||||||||||||||||||||||||
Data Processing & Outsourced Services | |||||||||||||||||||||||||||||||||||||||||||
Escalon Services Inc | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | P+12.50% (0.75% Floor) | 15.75% (1.50% PIK) | 12/04/20 | 12/04/25 | 8,000 | 7,295 | 7,763 | 2.48 | |||||||||||||||||||||||||||||||||||
FPT Operating Company, LLC/ | |||||||||||||||||||||||||||||||||||||||||||
TLabs Operating Company, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.25% (1.00% Floor) | 9.25% (0.50% PIK) | 12/23/16 | 06/07/24 | 24,467 | 24,225 | 23,460 | 7.50 | |||||||||||||||||||||||||||||||||||
Geo Logic Systems Ltd.(5) | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(13) | C +6.25% (1.00% Floor) | 7.25% | 12/19/19 | 12/19/24 | 6,709 | 5,035 | 5,164 | 1.65 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7)(13) | C +6.25% (1.00% Floor) | 7.25% | 12/19/19 | 12/19/24 | — | — | (2) | — | |||||||||||||||||||||||||||||||||||
39,176 | 36,555 | 36,385 | 11.63 | ||||||||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||
Department Stores | |||||||||||||||||||||||||||||||||||||||||||
Mills Fleet Farm Group, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.00% (1.00% Floor) | 7.00% | 10/24/18 | 10/24/24 | 13,543 | $ | 13,292 | $ | 13,272 | 4.24% | |||||||||||||||||||||||||||||||||
Distributors | |||||||||||||||||||||||||||||||||||||||||||
Crown Brands, LLC | |||||||||||||||||||||||||||||||||||||||||||
Second Lien Secured Term Loan(20) | L+ 10.50% (1.50% Floor) | 12.00% | 12/15/20 | 01/08/26 | 4,526 | 4,420 | 3,621 | 1.16 | |||||||||||||||||||||||||||||||||||
Second Lien Secured Delayed Draw Loan(20) | L+ 10.50% (1.50% Floor) | 12.00% | 12/15/20 | 01/08/26 | 671 | 671 | 537 | 0.17 | |||||||||||||||||||||||||||||||||||
5,197 | 5,091 | 4,158 | 1.33 | ||||||||||||||||||||||||||||||||||||||||
Diversified Chemicals | |||||||||||||||||||||||||||||||||||||||||||
Sklar Holdings, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.00% (1.00% Floor) | 7.00% | 11/13/19 | 05/13/23 | 8,882 | 8,718 | 8,834 | 2.82 | |||||||||||||||||||||||||||||||||||
Diversified Support Services | |||||||||||||||||||||||||||||||||||||||||||
ImageOne Industries, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 10.00% (1.00% Floor) | 11.00% (4.00% PIK) | 01/11/18 | 01/11/23 | 6,564 | 6,422 | 6,564 | 2.10 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(4)(7) | L+ 10.00% (1.00% Floor) | 11.00% (4.00% PIK) | 07/22/19 | 12/12/22 | 379 | 379 | 379 | 0.12 | |||||||||||||||||||||||||||||||||||
NNA Services, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.00% (1.50% Floor) | 8.50% | 10/16/18 | 10/16/23 | 13,353 | 13,178 | 13,284 | 4.25 | |||||||||||||||||||||||||||||||||||
20,296 | 19,979 | 20,227 | 6.47 | ||||||||||||||||||||||||||||||||||||||||
Education Services | |||||||||||||||||||||||||||||||||||||||||||
EducationDynamics, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.75% (1.00% Floor) | 8.75% | 11/26/19 | 11/26/24 | 13,649 | 13,428 | 13,612 | 4.35 | |||||||||||||||||||||||||||||||||||
Food Retail | |||||||||||||||||||||||||||||||||||||||||||
AG Kings Holdings, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(4)(8) | P+ 11.00% (0.75% Floor) | 16.25% (2.00% PIK) | 8/10/16 | 08/10/21 | 21,755 | 8,612 | 7,600 | 2.43 | |||||||||||||||||||||||||||||||||||
Superpriority Secured Debtor-In-Possession Term Loan(4)(18) | L+ 10.00% (1.00% Floor) | 11.00% | 08/26/20 | 02/08/21 | 14,222 | 5,663 | 14,222 | 4.55 | |||||||||||||||||||||||||||||||||||
35,977 | 14,275 | 21,822 | 6.98 | ||||||||||||||||||||||||||||||||||||||||
Health Care Facilities | |||||||||||||||||||||||||||||||||||||||||||
Epiphany Dermatology | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.50% (1.00% Floor) | 8.50% | 12/04/20 | 12/01/25 | 3,500 | 3,414 | 3,414 | 1.09 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 7.50% (1.00% Floor) | 8.50% | 12/04/20 | 12/01/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
First Lien Secured Delayed Draw Loan(7) | L+ 7.50% (1.00% Floor) | 8.50% | 12/04/20 | 12/01/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Grupo HIMA San Pablo, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan A | L+ 9.00% | 9.22% | 05/15/19 | 04/30/19 | 3,855 | 3,855 | 2,613 | 0.84 | |||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan B | L+ 9.00% (1.50% Floor) | 10.50% | 02/01/13 | 04/30/19 | 13,511 | 13,511 | 9,161 | 2.93 | |||||||||||||||||||||||||||||||||||
Second Lien Secured Term Loan(8) | N/A | 15.75% (2.00% PIK) | 02/01/13 | 07/31/18 | 1,028 | 1,024 | — | — | |||||||||||||||||||||||||||||||||||
21,894 | 21,804 | 15,188 | 4.86 | ||||||||||||||||||||||||||||||||||||||||
Health Care Services | |||||||||||||||||||||||||||||||||||||||||||
CHS Therapy, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan A | L+ 7.75% (1.50% Floor) | 9.25% | 06/14/19 | 06/14/24 | 7,422 | 7,325 | 7,422 | 2.37 | |||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan C | L+ 7.75% (1.50% Floor) | 9.25% | 10/07/20 | 06/14/24 | 912 | 895 | 895 | 0.29 | |||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||
Ivy Rehab Holdings LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.75% (1.00% Floor) | 7.75% | 12/04/20 | 12/04/24 | 8,855 | $ | 8,682 | $ | 8,682 | 2.77% | |||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 6.75% (1.00% Floor) | 7.75% | 12/04/20 | 12/04/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
First Lien Secured Delayed Draw Loan(7) | L+ 6.75% (1.00% Floor) | 7.75% | 12/04/20 | 12/04/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Lab Logistics, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.25% (1.00% Floor) | 8.25% | 10/16/19 | 11/19/25 | 709 | 693 | 694 | 0.22 | |||||||||||||||||||||||||||||||||||
First Lien Secured Delayed Draw Loan | L+ 7.25% (1.00% Floor) | 8.25% | 10/16/19 | 09/25/23 | 5,236 | 5,209 | 5,236 | 1.67 | |||||||||||||||||||||||||||||||||||
PG Dental New Jersey Parent, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.75% (1.00% Floor) | 8.75% | 11/25/20 | 11/25/25 | 16,170 | 15,813 | 15,814 | 5.05 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan (7) | L+ 7.75% (1.00% Floor) | 8.75% | 11/25/20 | 11/25/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
39,304 | 38,617 | 38,743 | 12.37 | ||||||||||||||||||||||||||||||||||||||||
Home Furnishings | |||||||||||||||||||||||||||||||||||||||||||
Sure Fit Home Products, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(8) | L+ 9.75% (1.00% Floor) | 10.75% | 10/26/18 | 07/13/22 | 5,229 | 5,111 | 4,019 | 1.28 | |||||||||||||||||||||||||||||||||||
Interactive Media & Services | |||||||||||||||||||||||||||||||||||||||||||
What If Media Group, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% (1.00% Floor) | 7.50% | 10/02/19 | 10/02/24 | 12,594 | 12,405 | 12,594 | 4.02 | |||||||||||||||||||||||||||||||||||
Internet & Direct Marketing Retail | |||||||||||||||||||||||||||||||||||||||||||
BBQ Buyer, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.00% (1.50% Floor) | 9.50% | 08/28/20 | 08/28/25 | 10,669 | 10,421 | 10,563 | 3.38 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 8.00% (1.50% Floor) | 9.50% | 08/28/20 | 02/28/21 | — | — | 8 | — | |||||||||||||||||||||||||||||||||||
Luxury Brand Holdings, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.00% (1.00% Floor) | 8.00% | 12/04/20 | 06/04/26 | 6,000 | 5,882 | 5,882 | 1.88 | |||||||||||||||||||||||||||||||||||
Potpourri Group, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.25% (1.50% Floor) | 9.75% | 07/03/19 | 07/03/24 | 18,390 | 18,099 | 18,238 | 5.83 | |||||||||||||||||||||||||||||||||||
35,059 | 34,402 | 34,691 | 11.09 | ||||||||||||||||||||||||||||||||||||||||
Investment Banking & brokerage | |||||||||||||||||||||||||||||||||||||||||||
JVMC Holdings Corp. (f/k/a RJO Holdings Corp) | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.25% (1.00% Floor) | 8.25% | 02/28/19 | 02/28/24 | 13,598 | 13,512 | 13,598 | 4.35 | |||||||||||||||||||||||||||||||||||
IT Consulting & Other Services | |||||||||||||||||||||||||||||||||||||||||||
AST-Applications Software Technology LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.00% (1.00% Floor) | 9.00% (1.00% PIK) | 01/10/17 | 01/10/23 | 4,019 | 3,988 | 4,019 | 1.28 | |||||||||||||||||||||||||||||||||||
RCKC Acquisitions LLC (dba KSM Consulting LLC) | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.25% (1.00% Floor) | 7.25% | 12/31/20 | 12/31/26 | 11,378 | 11,150 | 11,150 | 3.56 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 6.25% (1.00% Floor) | 7.25% | 12/31/20 | 12/31/26 | — | — | — | — | |||||||||||||||||||||||||||||||||||
First Lien Secured Delayed Draw Loan(7) | L+ 6.25% (1.00% Floor) | 7.25% | 12/31/20 | 12/31/22 | — | — | — | — | |||||||||||||||||||||||||||||||||||
15,397 | 15,138 | 15,169 | 4.84 | ||||||||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||
Leisure Facilities | |||||||||||||||||||||||||||||||||||||||||||
Honors Holdings, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(16) | L+ 7.97% (1.00% Floor) | 8.97% (0.50% PIK) | 09/06/19 | 09/06/24 | 9,427 | $ | 9,278 | $ | 8,296 | 2.65% | |||||||||||||||||||||||||||||||||
First Lien Secured Delayed Draw Loan(16) | L+ 7.61% (1.00% Floor) | 8.61% (0.50% PIK) | 09/06/19 | 09/06/24 | 4,643 | 4,597 | 4,086 | 1.31 | |||||||||||||||||||||||||||||||||||
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc) | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan A | L+ 3.25% (1.00% Floor) | 4.25% | 06/29/20 | 06/29/25 | 5,659 | 5,580 | 5,569 | 1.78 | |||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan B | N/A | 9.50% (9.50% PIK) | 06/29/20 | 06/29/25 | 1,164 | 1,138 | 1,133 | 0.36 | |||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan C(9) | N/A | 9.50% (9.50% PIK) | 06/29/20 | NA | 1,268 | 1,265 | 1,265 | 0.40 | |||||||||||||||||||||||||||||||||||
22,161 | 21,858 | 20,349 | 6.50 | ||||||||||||||||||||||||||||||||||||||||
Office Services & Supplies | |||||||||||||||||||||||||||||||||||||||||||
Empire Office, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.75% (1.50% Floor) | 8.25% | 04/12/19 | 04/12/24 | 10,736 | 10,595 | 10,489 | 3.35 | |||||||||||||||||||||||||||||||||||
Packaged Foods & Meats | |||||||||||||||||||||||||||||||||||||||||||
Lenny & Larry's, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan(17) | L+ 7.94% (1.00% Floor) | 8.94% (1.17% PIK) | 05/15/18 | 05/15/23 | 11,304 | 11,200 | 10,811 | 3.46 | |||||||||||||||||||||||||||||||||||
Personal Products | |||||||||||||||||||||||||||||||||||||||||||
Inspired Beauty Brands, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.00% (1.00% Floor) | 8.00% | 12/30/20 | 12/31/25 | 11,500 | 11,270 | 11,270 | 3.60 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 7.00% (1.00% Floor) | 8.00% | 12/30/20 | 12/31/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
11,500 | 11,270 | 11,270 | 3.60 | ||||||||||||||||||||||||||||||||||||||||
Property & Casualty Insurance | |||||||||||||||||||||||||||||||||||||||||||
Policy Services Company, LLC(5) | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.00% (1.00% Floor) | 7.00% | 03/06/20 | 05/31/24 | 6,240 | 5,987 | 6,115 | 1.95 | |||||||||||||||||||||||||||||||||||
Research & Consulting Services | |||||||||||||||||||||||||||||||||||||||||||
Comniscient Technologies LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.50% (1.00% Floor) | 8.50% | 10/13/20 | 10/13/25 | 6,962 | 6,830 | 6,830 | 2.18 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 7.50% (1.00% Floor) | 8.50% | 10/13/20 | 10/13/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Nelson Worldwide, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 9.25% (1.00% Floor) | 10.25% | 01/09/18 | 01/09/23 | 11,593 | 11,477 | 11,362 | 3.63 | |||||||||||||||||||||||||||||||||||
ALM Media, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% (1.00% Floor) | 7.50% | 11/25/19 | 11/25/24 | 14,962 | 14,728 | 14,439 | 4.61 | |||||||||||||||||||||||||||||||||||
33,517 | 33,035 | 32,631 | 10.42 | ||||||||||||||||||||||||||||||||||||||||
Restaurants | |||||||||||||||||||||||||||||||||||||||||||
LS GFG Holdings Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.00% (1.00% Floor) | 8.00% (1.00% PIK) | 11/30/18 | 11/19/25 | 11,240 | 10,442 | 9,779 | 3.13 | |||||||||||||||||||||||||||||||||||
Specialized Consumer Services | |||||||||||||||||||||||||||||||||||||||||||
True Blue Car Wash, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 7.12% (1.00% Floor) | 8.12% | 10/17/19 | 10/17/24 | 4,349 | 4,283 | 4,349 | 1.39 | |||||||||||||||||||||||||||||||||||
First Lien Secured Delayed Draw Loan | L+ 7.12% (1.00% Floor) | 8.12% | 10/17/19 | 10/17/24 | 2,014 | 1,997 | 2,014 | 0.64 | |||||||||||||||||||||||||||||||||||
6,363 | 6,280 | 6,363 | 2.03 | ||||||||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||
Specialized Finance | |||||||||||||||||||||||||||||||||||||||||||
Golden Pear Funding Assetco, LLC(5) | |||||||||||||||||||||||||||||||||||||||||||
Second Lien Secured Term Loan | L+ 10.50% (1.00% Floor) | 11.50% | 09/20/18 | 03/20/24 | 10,938 | $ | 10,810 | $ | 10,938 | 3.50% | |||||||||||||||||||||||||||||||||
Oasis Legal Finance, LLC(5) | |||||||||||||||||||||||||||||||||||||||||||
Second Lien Secured Term Loan | L+ 10.75% (1.00% Floor) | 11.75% | 09/09/16 | 03/09/22 | 12,500 | 12,446 | 12,500 | 3.99 | |||||||||||||||||||||||||||||||||||
WHF STRS Ohio Senior Loan Fund LLC | |||||||||||||||||||||||||||||||||||||||||||
Subordinated Note(4)(5)(7)(9)(14) | L+ 6.50% | 6.65% | 07/19/19 | N/A | 41,073 | 41,073 | 41,073 | 13.13 | |||||||||||||||||||||||||||||||||||
64,511 | 64,329 | 64,511 | 20.62 | ||||||||||||||||||||||||||||||||||||||||
Specialty Chemicals | |||||||||||||||||||||||||||||||||||||||||||
Flexitallic Group SAS | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.50% (1.00% Floor) | 7.50% | 10/28/19 | 10/29/26 | 11,632 | 11,389 | 10,818 | 3.46 | |||||||||||||||||||||||||||||||||||
Systems Software | |||||||||||||||||||||||||||||||||||||||||||
Vero Parent, Inc. | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 6.00% (1.00% Floor) | 7.00% | 11/06/19 | 08/16/24 | 7,074 | 6,613 | 7,074 | 2.26 | |||||||||||||||||||||||||||||||||||
Technology Hardware, Storage & Peripherals | |||||||||||||||||||||||||||||||||||||||||||
Source Code Midco, LLC | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.25% (1.00% Floor) | 9.25% | 05/04/18 | 05/04/23 | 22,322 | 22,022 | 22,322 | 7.13 | |||||||||||||||||||||||||||||||||||
Telestream Holdings Corporation | |||||||||||||||||||||||||||||||||||||||||||
First Lien Secured Term Loan | L+ 8.75% (1.00% Floor) | 9.75% | 10/15/20 | 10/15/25 | 14,037 | 13,608 | 13,769 | 4.40 | |||||||||||||||||||||||||||||||||||
First Lien Secured Revolving Loan(7) | L+ 8.75% (1.00% Floor) | 9.75% | 10/15/20 | 10/15/25 | — | — | 15 | — | |||||||||||||||||||||||||||||||||||
36,359 | 35,630 | 36,106 | 11.54 | ||||||||||||||||||||||||||||||||||||||||
Total Debt Investments | 694,114 | 658,704 | 657,249 | 210.03 | |||||||||||||||||||||||||||||||||||||||
Equity Investments | |||||||||||||||||||||||||||||||||||||||||||
Asset Management & Custody Banks | |||||||||||||||||||||||||||||||||||||||||||
Arcole Holding Corp. Shares(4)(5)(6)(19) | N/A | N/A | 10/01/20 | N/A | — | 6,944 | 6,448 | 2.06 | |||||||||||||||||||||||||||||||||||
Data Processing & Outsourced Services | |||||||||||||||||||||||||||||||||||||||||||
Escalon Services Inc Warrants(4) | N/A | N/A | 12/04/20 | N/A | 709 | 476 | 476 | 0.15 | |||||||||||||||||||||||||||||||||||
Diversified Support Services | |||||||||||||||||||||||||||||||||||||||||||
Quest Events, LLC Preferred Units(4) | N/A | N/A | 12/28/18 | 12/08/25 | 317 | 317 | — | — | |||||||||||||||||||||||||||||||||||
ImageOne Industries, LLC Common A Units(4) | N/A | N/A | 09/20/19 | N/A | 225 | — | 14 | — | |||||||||||||||||||||||||||||||||||
542 | 317 | 14 | — | ||||||||||||||||||||||||||||||||||||||||
Health Care Services | |||||||||||||||||||||||||||||||||||||||||||
Lab Logistics Preferred Units(4) | N/A | N/A | 10/29/19 | N/A | 2 | 857 | 857 | 0.27 | |||||||||||||||||||||||||||||||||||
Internet & Direct Marketing Retail | |||||||||||||||||||||||||||||||||||||||||||
BBQ Buyer, LLC Shares(4) | N/A | N/A | 08/28/20 | N/A | 1,100 | 1,100 | 1,265 | 0.40 | |||||||||||||||||||||||||||||||||||
Ross-Simons Topco, LP Preferred Units(4) | N/A | N/A | 12/04/20 | N/A | 600 | 600 | 600 | 0.19 | |||||||||||||||||||||||||||||||||||
1,700 | 1,700 | 1,865 | 0.59 | ||||||||||||||||||||||||||||||||||||||||
IT Consulting & Other Services | |||||||||||||||||||||||||||||||||||||||||||
Keras Holdings, LLC Shares(dba KSM Consulting LLC)(4) | N/A | N/A | 12/31/20 | N/A | 496 | 496 | 496 | 0.16 | |||||||||||||||||||||||||||||||||||
Leisure Facilities | |||||||||||||||||||||||||||||||||||||||||||
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Class A Common Stock(4) | N/A | N/A | 06/29/20 | N/A | 2 | 1,955 | 282 | 0.09 | |||||||||||||||||||||||||||||||||||
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Warrants(4) | N/A | N/A | 06/29/20 | 06/28/28 | 1 | 793 | 114 | 0.04 | |||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. | |||||||||||||||||||||||||||||||||||||||||||
Investment Type(1) | 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 | |||||||||||||||||||||||||||||||||||
3 | 2,748 | 396 | 0.13 | ||||||||||||||||||||||||||||||||||||||||
Other Diversified Financial Services | |||||||||||||||||||||||||||||||||||||||||||
RCS Creditor Trust Class B Units(4)(6) | N/A | N/A | 10/01/17 | N/A | 143 | $ | — | $ | — | —% | |||||||||||||||||||||||||||||||||
SFS Global Holding Company Warrants(4) | N/A | N/A | 06/28/18 | 12/28/25 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Sigue Corporation Warrants(4) | N/A | N/A | 06/28/18 | 12/28/25 | 22 | 2,890 | 3,498 | 1.12 | |||||||||||||||||||||||||||||||||||
165 | 2,890 | 3,498 | 1.12 | ||||||||||||||||||||||||||||||||||||||||
Specialized Finance | |||||||||||||||||||||||||||||||||||||||||||
NMFC Senior Loan Program I LLC Units(4)(5)(6) | N/A | N/A | 08/13/14 | 08/31/22 | 10,000 | 10,029 | 9,269 | 2.96 | |||||||||||||||||||||||||||||||||||
WHF STRS Ohio Senior Loan Fund LLC Interests(4)(5)(7)(14) | N/A | N/A | 07/19/19 | N/A | 10,268 | 10,268 | 10,167 | 3.25 | |||||||||||||||||||||||||||||||||||
20,268 | 20,297 | 19,436 | 6.21 | ||||||||||||||||||||||||||||||||||||||||
Total Equity Investments | 23,885 | 36,725 | 33,486 | 10.69 | |||||||||||||||||||||||||||||||||||||||
Total Investments | 717,999 | $ | 695,429 | $ | 690,735 | 220.72% | |||||||||||||||||||||||||||||||||||||
WHITEHORSE FINANCE, INC. |
CONSOLIDATED SCHEDULE OF INVESTMENTS |
December 31, 2020 |
(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 Canadian Dollar Offered Rate ("CDOR" or "C") or the U.S. Prime Rate as published by the Wall Street Journal ("Prime" or "P"). The one, three and six-month LIBOR were 0.1%, 0.2% and 0.3%, respectively, as of December 31, 2020. The Prime was 3.25% as of December 31, 2020. The CDOR was 0.5% as of December 31, 2020. |
(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 84% 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 December 31, 2020. |
(8) The investment is on non-accrual status. |
(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 221% of the Company's net assets or 96% 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 Spread Above Index and Interest Rate presented represent the weighted average of both contracts. |
(13) Principal amount is denominated 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 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 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 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) In August 2020, in conjunction with the AG Kings Holdings, Inc. bankruptcy, the Company converted approximately $14.2 million of its existing first lien secured term loan into a new superpriority secured debtor-in-possession term loan. |
(19) 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. |
(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 2.00% PIK. |
Contacts
Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
saronso[email protected]
or
Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
[email protected]
or
Sean Silva
Prosek Partners
646-818-9122
[email protected]
SOURCE WhiteHorse Finance, Inc.
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