WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the "Company")
(NASDAQ:WHF) today reported its financial results for the quarter and
full year ended December 31, 2013.
2013 Summary Highlights
-
New investments of $264 million for the full year
-
Full year net investment income of $19.3 million
-
Full year distributions of $1.42
Jay Carvell, WhiteHorse Finance’s Chief Executive Officer commented, “In
our first full year as a public company, we invested approximately $264
million in new and existing loans, completed a public offering of $30
million of 6.5% senior notes, consistently delivered a distribution to
our shareholders and experienced no significant credit issues in our
portfolio. We remain committed to our disciplined investment rationale
which has allowed us to identify a number of high-quality investment
opportunities throughout the year. We believe we are well-positioned for
future growth and diversification given the robustness of our current
healthy pipeline and extensive deal sourcing network.”
Portfolio and Investment Activity
As of December 31, 2013, the fair value of WhiteHorse Finance’s
investment portfolio was $272.4 million, more than a 50% increase over
the prior year. The portfolio is entirely comprised of senior secured
loans. Additionally, WhiteHorse Finance’s portfolio consisted of 88.4%
variable-rate investments (indexed to LIBOR), which should position the
portfolio well for a potential rising interest rate environment. The
overall portfolio consisted of 21 positions across 19 companies with an
average investment size of $13.0 million and a weighted average cash
yield of 10.9%.
As of December 31, 2012, the fair value of WhiteHorse Finance’s
investment portfolio was $180.5 million.
For the three months ended December 31, 2013, WhiteHorse Finance
invested $113.4 million across nine companies, or $97.0 million in new
portfolio companies, $6.4 million in existing portfolio companies and
$10.0 million in refinancings of existing portfolio companies. Gross
proceeds from sales and repayments totaled $56.4 million for the same
period.
For the year ended December 31, 2013, the Company invested $263.8
million in 19 companies, or $199.4 million in new portfolio companies
and $9.9 million in existing portfolio companies and $54.5 million in
refinancings of existing portfolio companies. Gross proceeds from sales
and repayments totaled $169.5 million for the same period.
Results of Operations
For the three months and the year ended December 31, 2013, WhiteHorse
Finance reported net investment income of $4.2 million and $19.3
million, respectively.
For the three months and the year ended December 31, 2013, WhiteHorse
Finance reported unrealized appreciation on investments of $2.2 million
and unrealized depreciation on investments of $0.3 million, respectively.
For the three months and the year ended December 31, 2013, WhiteHorse
Finance reported a net increase in net assets of $6.3 million and $19.0
million, respectively.
The Company’s NAV was $227.0 million as of December 31, 2013, resulting
in NAV per share of $15.16, as compared with $229.0 million, or $15.30
per share, reported as of December 31, 2012.
Liquidity and Capital Resources
As of December 31, 2013, WhiteHorse Finance had cash and cash
equivalents of $96.0 million, compared with $187.8 million as of
December 31, 2012, inclusive of restricted cash. The decrease in cash on
hand was due primarily to deployment in new investments.
Distributions
On November 26, 2013, the Company declared a distribution of $0.355 per
share for the quarter ended December 31, 2013. The distribution was
payable on January 3, 2014 to stockholders of record as of December 19,
2013. This marks the fifth consecutive quarter that the Company has
declared a distribution at this rate.
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 full year earnings results at 10:00 a.m. ET on Thursday,
February 27, 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#
35793303. Investors may also access the call on the investor relations
portion of the Company’s website at http://phx.corporate-ir.net/phoenix.zhtml?c=251424&p=irol-IRHome.
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 6, 2014. The teleconference replay can be accessed by
dialing 404-537-3406 (domestic and international) and entering ID#
35793303. A webcast replay will also be available on the investor
relations portion of the Company’s website at http://phx.corporate-ir.net/phoenix.zhtml?c=251424&p=irol-IRHome.
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 managing
approximately $15 billion of capital as of February 27, 2014 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.
(Financial Tables Follow)
|
|
|
WhiteHorse Finance, Inc.
|
|
Consolidated Statements of Assets and Liabilities
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
December 31, 2013
|
|
|
|
December 31, 2012
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at fair value (cost $272,608 and $180,377, respectively)
|
|
|
$
|
272,439
|
|
|
|
$
|
180,488
|
|
|
Cash and cash equivalents
|
|
|
|
92,905
|
|
|
|
|
156,123
|
|
|
Restricted cash and cash equivalents
|
|
|
|
3,078
|
|
|
|
|
31,646
|
|
|
Interest receivable
|
|
|
|
1,585
|
|
|
|
|
1,474
|
|
|
Deferred financing costs
|
|
|
|
3,827
|
|
|
|
|
3,184
|
|
|
Prepaid expenses and other receivables
|
|
|
|
319
|
|
|
|
|
367
|
|
|
Total assets
|
|
|
$
|
374,153
|
|
|
|
$
|
373,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Credit facility
|
|
|
$
|
25,000
|
|
|
|
$
|
51,250
|
|
|
Senior notes
|
|
|
|
30,000
|
|
|
|
|
-
|
|
|
Unsecured term loan
|
|
|
|
55,000
|
|
|
|
|
90,000
|
|
|
Distributions payable
|
|
|
|
5,317
|
|
|
|
|
1,616
|
|
|
Management fees payable
|
|
|
|
2,831
|
|
|
|
|
306
|
|
|
Payable for investments purchased
|
|
|
|
28,606
|
|
|
|
|
-
|
|
|
Accounts payable and accrued expenses
|
|
|
|
397
|
|
|
|
|
1,061
|
|
|
Total liabilities
|
|
|
|
147,151
|
|
|
|
|
144,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, 14,977,056 and 14,965,624 shares issued and
outstanding, par value $0.001 per share and 100,000,000 authorized
|
|
|
|
15
|
|
|
|
|
15
|
|
|
Paid-in capital in excess of par
|
|
|
|
228,646
|
|
|
|
|
228,466
|
|
|
Capital distributions in excess of net income
|
|
|
|
(854
|
)
|
|
|
|
-
|
|
|
Undistributed net investment income
|
|
|
|
-
|
|
|
|
|
1,164
|
|
|
Net realized losses on investments
|
|
|
|
-
|
|
|
|
|
(71
|
)
|
|
Net unrealized depreciation on investments
|
|
|
|
(805
|
)
|
|
|
|
(525
|
)
|
|
Total net assets
|
|
|
|
227,002
|
|
|
|
|
229,049
|
|
|
Total liabilities and total net assets
|
|
|
$
|
374,153
|
|
|
|
$
|
373,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding
|
|
|
|
14,977,056
|
|
|
|
|
14,965,624
|
|
|
Net asset value per share
|
|
|
$
|
15.16
|
|
|
|
$
|
15.30
|
|
|
|
|
|
|
WhiteHorse Finance, Inc.
|
|
Consolidated Statements of Operations
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
Three Months ended
December 31,
|
|
|
Years ended
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
Investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
8,615
|
|
|
$
|
15,931
|
|
|
$
|
37,617
|
|
|
$
|
44,793
|
|
|
Total investment income
|
|
|
8,615
|
|
|
|
15,931
|
|
|
|
37,617
|
|
|
|
44,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
1,271
|
|
|
|
1,131
|
|
|
|
5,341
|
|
|
|
1,131
|
|
|
Base management fees
|
|
|
1,289
|
|
|
|
306
|
|
|
|
4,811
|
|
|
|
306
|
|
|
Performance-based incentive fees
|
|
|
1,065
|
|
|
|
-
|
|
|
|
4,800
|
|
|
|
-
|
|
|
Administrative service fees
|
|
|
253
|
|
|
|
109
|
|
|
|
1,173
|
|
|
|
109
|
|
|
Organization costs
|
|
|
-
|
|
|
|
310
|
|
|
|
-
|
|
|
|
406
|
|
|
General and administrative expenses
|
|
|
568
|
|
|
|
347
|
|
|
|
2,182
|
|
|
|
640
|
|
|
Total expenses
|
|
|
4,446
|
|
|
|
2,203
|
|
|
|
18,307
|
|
|
|
2,592
|
|
|
Net investment income
|
|
|
4,169
|
|
|
|
13,728
|
|
|
|
19,310
|
|
|
|
42,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized (losses) gains on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized losses on investments
|
|
|
-
|
|
|
|
(489
|
)
|
|
|
-
|
|
|
|
(2,754
|
)
|
|
Net change in unrealized (depreciation) appreciation on investments
|
|
|
2,166
|
|
|
|
(5,264
|
)
|
|
|
(280
|
)
|
|
|
111
|
|
|
Net realized and unrealized losses gains on investments
|
|
|
2,166
|
|
|
|
(5,753
|
)
|
|
|
(280
|
)
|
|
|
(2,643
|
)
|
|
Net increase in net assets resulting from operations
|
|
$
|
6,335
|
|
|
$
|
7,975
|
|
|
$
|
19,030
|
|
|
$
|
39,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per common share (1)
|
|
$
|
0.423
|
|
|
|
N/A
|
|
|
$
|
1.27
|
|
|
|
N/A
|
|
|
Dividends and distributions declared per common share (1)
|
|
$
|
0.355
|
|
|
|
N/A
|
|
|
$
|
1.42
|
|
|
|
N/A
|
|
|
Basic and diluted weighted average common shares outstanding (1)
|
|
|
14,977,056
|
|
|
|
N/A
|
|
|
|
14,971,324
|
|
|
|
N/A
|
|
|
|
(1) Prior to December 4, 2012, the Company did not have common shares
outstanding and therefore weighted average shares outstanding
information and per share data for the year ended December 31, 2012 are
not provided.
|
|
|
WhiteHorse Finance, Inc.
|
|
Consolidated Schedule of Investments
|
|
December 31, 2013
|
|
(in thousands)
|
|
Investment Type
|
|
Spread
Above
Index(1)
|
|
|
Interest
Rate(2)
|
|
|
Maturity
Date
|
|
|
Principal
Amount
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Fair Value
As A
Percentage
Of
Net Assets
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Defense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ILC Industries, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+6.50%
|
|
|
|
8.00%
|
|
|
|
7/11/18
|
|
|
$
|
4,785
|
|
|
$
|
4,773
|
|
|
$
|
4,792
|
|
|
|
2.11
|
%
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
L+10.00%
|
|
|
|
11.50%
|
|
|
|
7/11/19
|
|
|
|
5,000
|
|
|
|
4,882
|
|
|
|
4,965
|
|
|
|
2.19
|
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,785
|
|
|
|
9,655
|
|
|
|
9,757
|
|
|
|
4.30
|
|
|
Building Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCO Funding Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+7.50%
|
|
|
|
9.50%
|
|
|
|
4/27/15
|
|
|
|
17,493
|
|
|
|
17,381
|
|
|
|
17,511
|
|
|
|
7.71
|
|
|
|
|
|
(2.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oasis Legal Finance, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
N/A(4)
|
|
|
|
10.50%
|
|
|
|
9/30/18
|
|
|
|
10,000
|
|
|
|
9,807
|
|
|
|
9,990
|
|
|
|
4.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sigue Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
L+9.00%
|
|
|
|
10.00%
|
|
|
|
12/27/18
|
|
|
|
25,000
|
|
|
|
24,501
|
|
|
|
24,500
|
|
|
|
10.79
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,000
|
|
|
|
34,308
|
|
|
|
34,490
|
|
|
|
15.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Processing & Outsourced Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future Payment Technologies, L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
L+10.00%
|
|
|
|
11.00%
|
|
|
|
12/31/18
|
|
|
|
35,000
|
|
|
|
33,600
|
|
|
|
33,600
|
|
|
|
14.80
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
(2.00% PIK)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Support Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smile Brands Group Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+6.25%
|
|
|
|
7.50%
|
|
|
|
8/16/19
|
|
|
|
11,970
|
|
|
|
11,741
|
|
|
|
11,874
|
|
|
|
5.23
|
|
|
|
|
|
(1.25% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARSloane Acquisition, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
L+10.50%
|
|
|
|
11.75%
|
|
|
|
10/1/20
|
|
|
|
4,000
|
|
|
|
3,922
|
|
|
|
4,036
|
|
|
|
1.78
|
|
|
|
|
|
(1.25% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,970
|
|
|
|
15,663
|
|
|
|
15,910
|
|
|
|
7.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance Learning, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
L+7.75%
|
|
|
|
8.75%
|
|
|
|
5/14/21
|
|
|
|
17,000
|
|
|
|
17,040
|
|
|
|
17,102
|
|
|
|
7.53
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Equipment & Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AP Gaming I, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+8.25%
|
|
|
|
9.25%
|
|
|
|
12/20/20
|
|
|
|
10,000
|
|
|
|
9,700
|
|
|
|
9,700
|
|
|
|
4.27
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Distributors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Decubitus Therapy, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+13.50%
|
|
|
|
15.00%
|
|
|
|
3/15/18
|
|
|
|
14,639
|
|
|
|
14,392
|
|
|
|
14,609
|
|
|
|
6.44
|
|
|
|
|
|
(1.50% Floor)
|
|
|
|
(3.00% PIK)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Revolving Loan
|
|
|
L+13.50%
|
|
|
|
15.00%
|
|
|
|
3/15/18
|
|
|
|
896
|
|
|
|
863
|
|
|
|
894
|
|
|
|
0.39
|
|
|
|
|
|
(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
|
|
|
|
9,901
|
|
|
|
10,060
|
|
|
|
4.43
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,535
|
|
|
|
25,156
|
|
|
|
25,563
|
|
|
|
11.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo HIMA San Pablo, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+9.00%
|
|
|
|
10.50%
|
|
|
|
1/31/18
|
|
|
|
14,888
|
|
|
|
14,631
|
|
|
|
14,798
|
|
|
|
6.52
|
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
N/A (4)
|
|
|
|
15.75%
|
|
|
|
7/31/18
|
|
|
|
1,000
|
|
|
|
956
|
|
|
|
989
|
|
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,888
|
|
|
|
15,587
|
|
|
|
15,787
|
|
|
|
6.96
|
|
|
|
|
|
|
WhiteHorse Finance, Inc.
|
|
Consolidated Schedule of Investments
|
|
December 31, 2013
|
|
(in thousands)
|
|
|
|
Investment Type
|
|
|
Spread
Above
Index(1)
|
|
|
Interest
Rate(2)
|
|
|
|
Maturity
Date
|
|
|
Principal
Amount
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Fair Value
As A
Percentage
Of
Net Assets
|
|
|
Homebuilding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orleans Homebuilders, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+8.50%
|
|
|
|
10.50%
|
|
|
|
2/14/16
|
|
|
$
|
16,345
|
|
|
$
|
16,410
|
|
|
$
|
16,508
|
|
|
|
7.27
|
%
|
|
|
|
|
(2.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated Telecommunication Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securus Technologies, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
|
L+7.75%
|
|
|
|
9.00%
|
|
|
|
4/30/21
|
|
|
|
8,090
|
|
|
|
8,012
|
|
|
|
8,066
|
|
|
|
3.55
|
|
|
|
|
|
(1.25% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bluestem Brands, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+6.50%
|
|
|
|
7.50%
|
|
|
|
12/6/18
|
|
|
|
10,000
|
|
|
$
|
9,800
|
|
|
|
9,840
|
|
|
|
4.33
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ProPetro Services, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+6.25%
|
|
|
|
7.25%
|
|
|
|
9/30/19
|
|
|
|
9,875
|
|
|
|
9,778
|
|
|
|
9,974
|
|
|
|
4.39
|
|
|
|
|
|
(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
|
|
|
|
17,776
|
|
|
|
18,072
|
|
|
|
7.96
|
|
|
|
|
|
(1.25% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMT Holdings 1, Ltd. & GMT Holdings 12, Ltd.(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
N/A(4)
|
|
|
|
25.00%
|
|
|
|
6/30/14
|
|
|
|
22,822
|
|
|
|
22,886
|
|
|
|
20,699
|
|
|
|
9.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution International, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
|
L+6.50%
|
|
|
|
7.50%
|
|
|
|
7/16/19
|
|
|
|
9,950
|
|
|
|
9,856
|
|
|
|
9,860
|
|
|
|
4.34
|
|
|
|
|
|
(1.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
276,753
|
|
|
$
|
272,608
|
|
|
$
|
272,439
|
|
|
|
120.02
|
%
|
|
|
|
|
(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.
|
|
|
|
|
|
WhiteHorse Finance, Inc.
|
|
Consolidated Schedule of Investments
|
|
December 31, 2012
|
|
(in thousands)
|
|
|
|
Investment Type
|
|
Spread
Above
Index(1)
|
|
Interest
Rate(2)
|
|
|
Maturity
Date
|
|
Principal
Amount
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Fair Value
As A
Percentage
Of
Net Assets
|
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apparel, Accessories & Luxury Goods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
St. John Knits International, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
N/A(4)
|
|
|
13.00
|
%
|
|
3/3/15
|
|
$
|
11,769
|
|
|
$
|
11,827
|
|
|
$
|
12,040
|
|
|
|
5.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCO Funding Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
L+7.50%
|
|
|
9.50
|
%
|
|
4/27/14
|
|
|
17,671
|
|
|
|
17,352
|
|
|
|
17,671
|
|
|
|
7.71
|
|
|
|
|
(2.00% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Equipment & Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGS, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
L+10.00%
|
|
|
11.50
|
%
|
|
8/15/16
|
|
|
17,309
|
|
|
|
16,662
|
|
|
|
16,098
|
|
|
|
7.03
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Initial Delayed Draw
|
|
L+10.00%
|
|
|
11.50
|
%
|
|
8/15/16
|
|
|
1,129
|
|
|
|
1,087
|
|
|
|
1,050
|
|
|
|
0.46
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Secondary Delayed Draw
|
|
L+10.00%
|
|
|
N/A(5)
|
|
|
8/15/16
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,438
|
|
|
|
17,749
|
|
|
|
17,148
|
|
|
|
7.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genoa Healthcare, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan
|
|
L+11.00%
|
|
|
14.00
|
%
|
|
2/10/15
|
|
|
27,060
|
|
|
|
27,060
|
|
|
|
27,060
|
|
|
|
11.81
|
|
|
|
|
(3.00% Floor)
|
|
|
(1.50% PIK)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acella Pharmaceuticals, LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
L+13.00%
|
|
|
14.00
|
%
|
|
12/30/15
|
|
|
60,886
|
|
|
|
60,886
|
|
|
|
60,886
|
|
|
|
26.58
|
|
|
|
|
(1.00% Floor)
|
|
|
(3.00% PIK)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized Consumer Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Paid Legal Services, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan A
|
|
L+6.00%
|
|
|
7.50
|
%
|
|
12/31/16
|
|
|
1,437
|
|
|
|
1,363
|
|
|
|
1,447
|
|
|
|
0.63
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Secured Term Loan B
|
|
L+9.50%
|
|
|
11.00
|
%
|
|
12/31/16
|
|
|
7,929
|
|
|
|
7,898
|
|
|
|
7,802
|
|
|
|
3.41
|
|
|
|
|
(1.50% Floor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,366
|
|
|
|
9,261
|
|
|
|
9,249
|
|
|
|
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialized Finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMT Holdings 1, Ltd. & GMT Holdings 12, Ltd.(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien Secured Term Loan
|
|
N/A(4)
|
|
|
25.00
|
%
|
|
6/30/13
|
|
|
36,434
|
|
|
|
36,242
|
|
|
|
36,434
|
|
|
|
15.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments
|
|
|
|
|
|
|
|
|
|
$
|
181,624
|
|
|
$
|
180,377
|
|
|
$
|
180,488
|
|
|
|
78.80
|
%
|
|
|
|
|
(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)
|
|
The entire commitment was unfunded at December 31, 2012. The Company
earns a commitment fee of 5.00% on the unfunded amount.
|
|
|
Copyright Business Wire 2014