NEW YORK, Aug. 8, 2023 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the quarter ended June 30, 2023. In addition, the Company's board of directors has declared a distribution of $0.37 per share with respect to the quarter ended June 30, 2023. The distribution will be payable on October 3, 2023 to stockholders of record as of September 19, 2023.

Second Quarter 2023 Summary Highlights

  • Net Asset Value of $325.3 million, or $14.00 per share
  • Investment portfolio(1) totaling $728.4 million
  • STRS JV investment portfolio totaling $324.5 million
  • Gross investment deployments(2) of $23.8 million for the second quarter, including new originations of $19.3 million and $4.5 million of fundings for add-ons to existing investments
  • Net investment income of $10.6 million, or $0.456 per share
  • Core net investment income of $10.6 million, or $0.456 per share(3)
  • Second quarter distribution of $0.37 per share

Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "I am pleased to report that WhiteHorse's core net investment income increased by nearly 35% compared with the second quarter of 2022 and was well in excess of our regular dividend.  While we marked down some assets during the quarter and placed two portfolio companies on non-accrual, activity was limited to consumer-facing portfolio companies and certain portfolio companies that experienced challenges independent of economic conditions largely due to market pricing.  The investments in our existing portfolio were underwritten at modest leverage levels and are generally well positioned to service our debt in a rising interest rate environment.  Additionally, our portfolio remains overwhelmingly represented by non-cyclical or light cyclical borrowers.  The current market environment offers exceptionally attractive terms as terms and conditions in the lower middle market have returned to more normalized conditions and the quality of deals has improved.  Our pipeline has returned to an all-time high, and we continue to derive significant advantages from our three-tier sourcing architecture and our affiliation with H.I.G. Capital, a leader in the low and mid-markets.  The strength of the pipeline enables us to be conservative in our deal selection, and we are being cautious in the face of a weakening economy and remain focused on credits with compelling risk return characteristics.  The deals that we're continuing to work on are mostly non-cyclical or light cyclicals, and we continue to be highly selective about which credits we underwrite."

Portfolio and Investment Activity

As of June 30, 2023, the fair value of WhiteHorse Finance's investment portfolio was $728.4 million, compared with $749.2 million as of March 31, 2023. The portfolio as of June 30, 2023 consisted of 116 positions across 70 companies with a weighted average effective yield of 13.4% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $7.1 million with the overall portfolio comprised of approximately 81.3% first lien secured loans, 2.4% second lien secured loans, 2.2% equity and 14.1% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the London Interbank Offered Rate or Secured Overnight Financing Rate) with fixed rate securities representing only 0.8% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended June 30, 2023, WhiteHorse Finance made investments in three new portfolio companies for a total of $19.3 million and added a total of $4.5 million to existing portfolio companies. Proceeds from sales and repayments totaled approximately $28.8 million for the three months ended June 30, 2023, driven by three full realizations in Arcole Holding Corporation, Lenny & Larry's, LLC and Avision Holdings, LLC and received net repayments of $1.5 million related to revolver loans.

In addition to the transactions discussed above, during the three months ended June 30, 2023, WhiteHorse Finance transferred assets comprised of two new portfolio companies and one add-on investment, totaling $12.6 million to STRS JV in exchange for cash proceeds of $10.8 and a net investment in the STRS JV of $1.8 million.

WHF STRS Ohio Senior Loan Fund LLC

As of June 30, 2023, STRS JV's portfolio totaled $324.5 million, consisted of 32 portfolio companies and had a weighted average effective yield of 12.2%.

Results of Operations

For the three months ended June 30, 2023, the Company's net investment income was approximately $10.6 million, compared with approximately $7.9 million for the same period in the prior year, representing an increase of approximately 34.2%. The increase in net investment income for the year-over-year period was primarily attributable to higher investment income from interest income and STRS JV due to an increase in base rates. This was partially offset by an increase in interest expense, due to higher base rates, and higher incentive fee due to higher pre-incentive fee net investment income in the current period, slightly offset by a reversal of capital gains incentive fee accrual for the three months ended June 30, 2022. For the three months ended June 30, 2023, the Company's investment in STRS JV generated an annualized, gross investment yield of approximately 16.2%.

For the three months ended June 30, 2023, core net investment income(3) was $10.6 million, or $0.456 per share, compared with $7.8 million, or $0.334 per share for the same period in the prior year.

For the three months ended June 30, 2023, WhiteHorse Finance reported a net realized and unrealized loss on investments and foreign currency transactions of $6.7 million. This compares with the three months ended June 30, 2022 net realized and unrealized loss on investments and foreign currency transactions of $0.5 million. The decrease for the year-over-year period was primarily attributable to markdowns on the portfolio in the current quarter.

WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $3.9 million for the three months ended June 30, 2023, which compares with a net increase of $7.3 million for the three months ended June 30, 2022.

WhiteHorse Finance's net asset value was $325.3 million, or $14.00 per share, as of June 30, 2023, compared with $330.0 million, or $14.20 per share, as of March 31, 2023.

Liquidity and Capital Resources

As of June 30, 2023, WhiteHorse Finance had cash and cash equivalents of $23.1 million, compared with $22.2 million as of March 31, 2023, inclusive of restricted cash. As of June 30, 2023, the Company also had $96.4 million of undrawn capacity under its revolving credit facility. 

Distributions

The Company's board of directors has declared a distribution of $0.37 per share with respect to the quarter ending September 30, 2023. The distributions will be payable on October 3, 2023 to stockholders of record as of September 19, 2023.

On May 9, 2023, the Company declared a distribution of $0.37 per share for the quarter ended June 30, 2023, with distributions declared at or above $0.355 for the forty-third consecutive quarter since the Company's initial public offering. The distribution was paid on July 5, 2023 to stockholders of record as of June 21, 2023.

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 second quarter results for the period ended June 30, 2023 at 9:00 a.m. ET on Tuesday, August 8, 2023. To access the teleconference, please dial 800-343-5172 (domestic and international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ223. Investors may also access the call on the investor relations portion of the Company's website 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 August 15, 2023. The teleconference replay can be accessed by dialing 800-839-3012 (domestic and international). A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com.

About WhiteHorse Finance, Inc.

WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, ("H.I.G. Capital"). H.I.G. Capital is a leading global alternative asset manager with $58 billion of capital under management(4) across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling $102.4 million, at fair value.
(2) Excludes investments made in STRS JV.
(3) "Core net investment income" is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.
(4) Based on total capital commitments managed by H.I.G. Capital and affiliates.

SCHEDULE 1

As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses for the quarters ended June 30, 2023 and June 30, 2022.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended June 30, 2023 and June 30, 2022 (in thousands, except per share data):

June 30, 2023

June 30, 2022


Amount

 Per Share

Amount

 Per Share






Amounts





Amounts

Net investment income

$

10,592

$

0.456

$

7,877

$

0.339

Net impact of costs associated with refinancing of indebtedness

-


-


-


-

Accrual for capital gains incentive fee

-


-


(106)


(0.005)

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

-


-


-


-

Core net investment income

$

10,592

$

0.456

$

7,771

$

0.334

 

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)




June 30, 2023

December 31, 2022



(Unaudited)


Assets





Investments, at fair value





Non-controlled/non-affiliate company investments

$

607,111

$

650,535

Non-controlled affiliate company investments

6,262

9,533

Controlled affiliate company investments

114,979

100,160

Total investments, at fair value (amortized cost $760,023 and $782,429, respectively)

728,352

760,228

Cash and cash equivalents

10,412

9,508

Restricted cash and cash equivalents

10,624

14,683

Restricted foreign currency (cost of $2,027 and $2,066, respectively)

2,049

2,073

Interest and dividend receivable

7,220

7,814

Amounts receivable on unsettled investment transactions

11,770

283

Escrow receivable

711

711

Prepaid expenses and other receivables

1,039

1,174

Total assets

$

772,177

$

796,474







Liabilities





Debt (net of unamortized debt issuance costs of $3,938 and $4,718, respectively)

$

424,711

$

440,427

Distributions payable

8,600

8,251

Management fees payable

3,705

3,860

Incentive fees payable

5,115

5,618

Interest payable

2,750

2,774

Accounts payable and accrued expenses

1,467

2,329

Advances received from unfunded credit facilities

524

825

Unrealized depreciation on foreign currency forward contracts

9

3

Total liabilities

446,881

464,087







Commitments and contingencies












Net assets





Common stock, 23,243,088 and 23,243,088 shares issued and outstanding, par value
$0.001 per share, respectively, and 100,000,000 shares authorized

23

23

Paid-in capital in excess of par

339,240

339,240

Accumulated earnings (losses)

(13,967)

(6,876)

Total net assets

325,296

332,387

Total liabilities and total net assets

$

772,177

$

796,474

Number of shares outstanding

23,243,088

23,243,088

Net asset value per share

$

14.00

$

14.30

 

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)




Three months ended
June 30, 

Six months ended
June 30, 



2023

2022

2023

2022

Investment income











From non-controlled/non-affiliate company investments











Interest income

$

19,307

$

15,672

$

38,928

$

31,881

Payment-in-kind income

1,073

356

2,305

888

Fee income

920

679

1,953

1,141

Dividend income

17

79

32

168

From non-controlled affiliate company investments











Interest income

—

3

—

13

Payment-in-kind income

115

70

66

120

Dividend income

—

109

84

240

From controlled affiliate company investments











Interest income

2,328

1,459

4,538

2,586

Payment-in-kind income

496

—

908

—

Dividend income

1,339

1,573

2,945

2,997

Total investment income

25,595

20,000

51,759

40,034

Expenses











Interest expense

7,334

4,945

14,859

9,719

Base management fees

3,705

3,908

7,416

7,859

Performance-based incentive fees

2,648

1,837

5,324

3,264

Administrative service fees

170

170

341

341

General and administrative expenses

896

1,088

2,023

2,036

Total expenses

14,753

11,948

29,963

23,219

Net investment income before excise tax

10,842

8,052

21,796

16,815

Excise tax

250

175

500

399

Net investment income after excise tax

10,592

7,877

21,296

16,416













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











Net realized gains (losses)











Non-controlled/non-affiliate company investments

5

686

336

(17,498)

Non-controlled affiliate company investments

(339)

1,725

(339)

1,725

Foreign currency transactions

41

(61)

402

(342)

Foreign currency forward contracts

4

(8)

(3)

(8)

Net realized gains (losses)

(289)

2,342

396

(16,123)

Net change in unrealized appreciation (depreciation)











Non-controlled/non-affiliate company investments

(2,330)

(4,546)

(4,427)

12,570

Non-controlled affiliate company investments

(3,022)

(586)

(4,522)

(2,206)

Controlled affiliate company investments

(600)

1,502

(521)

1,672

Translation of assets and liabilities in foreign currencies

(458)

756

(829)

727

Foreign currency forward contracts

(12)

4

(6)

—

Net change in unrealized appreciation (depreciation)

(6,422)

(2,870)

(10,305)

12,763

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

(6,711)

(528)

(9,909)

(3,360)

Net increase in net assets resulting from operations

$

3,881

$

7,349

$

11,387

$

13,056













Per Common Share Data











Basic and diluted earnings per common share

$

0.17

$

0.32

$

0.49

$

0.56

Dividends and distributions declared per common share

$

0.37

$

0.36

$

0.80

$

0.71

Basic and diluted weighted average common shares outstanding

23,243,088

23,240,651

23,243,088

23,215,792

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2023

(in thousands)

Issuer

Investment Type(1)

Floor

Reference
Rate(2)

Spread
Above
Index

Interest
Rate(3)

Acquisition
Date(10)

Maturity
Date

Principal/
Share
Amount

Amortized
Cost

Fair
Value(11)

Fair Value
As A
Percentage
of Net
Assets

Debt Investments
























Advertising
























M&M OpCo. LLC (d/b/a Escalent, Inc.)

First Lien Secured Term Loan

1.00 %

SOFR

8.00 %

13.34 %

04/07/23

04/09/29

4,750

$

4,613

$

4,613

1.42

%

M&M OpCo. LLC (d/b/a Escalent, Inc.)

First Lien Secured Revolving Loan

1.00 %

SOFR

8.00 %

13.34 %

04/07/23

04/09/29

—

—

—

—



















4,613

4,613

1.42

Air Freight & Logistics
























Gulf Winds International Acquisition LLC (d/b/a Gulf Winds
International, Inc.)

First Lien Secured Term Loan

1.00 %

SOFR

7.00 %

12.19 %

12/16/22

12/18/28

4,829

4,697

4,731

1.45

Gulf Winds International Acquisition LLC (d/b/a Gulf Winds
International, Inc.)⁽⁷⁾

First Lien Secured Revolving Loan

1.00 %

SOFR

7.00 %

12.19 %

12/16/22

12/18/28

—

—

5

—

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

First Lien Secured Term Loan

1.00 %

SOFR

6.25 %

11.43 %

07/12/21

07/12/26

11,091

10,957

10,542

3.24

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

First Lien Secured Revolving Loan

1.00 %

SOFR

6.25 %

11.48 %

07/12/21

07/12/26

1,182

1,167

1,123

0.35

Transervice Holdings, Inc. (d/b/a Transervice Logistics, Inc.)

First Lien Secured Term Loan

2.00 %

SOFR

7.50 %

12.71 %

06/29/23

06/29/28

9,000

8,730

8,730

2.68



















25,551

25,131

7.72

Alternative Carriers
























Patagonia Holdco LLC (d/b/a Lumen LATAM)

First Lien Secured Term Loan

0.50 %

SOFR

5.75 %

10.79 %

08/05/22

08/01/29

14,515

12,230

12,414

3.82



















12,230

12,414

3.82

Application Software
























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

First Lien Secured Term Loan

0.75 %

LIBOR

5.25 %

10.39 %

08/29/22

05/08/28

3,082

2,643

2,348

0.72

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

Second Lien Secured Term Loan

0.75 %

SOFR

9.00 %

14.50 %

05/03/21

05/07/29

15,000

14,670

10,876

3.34

MBS Highway, LLC

First Lien Secured Term Loan

1.00 %

SOFR

7.50 %

12.63 %

10/13/22

10/13/27

9,429

9,227

9,217

2.83

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

First Lien Secured Term Loan

1.00 %

SOFR

7.00 %

12.34 %

06/14/19

12/29/23

3,164

3,163

3,101

0.95

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

First Lien Secured Revolving Loan

1.00 %

SOFR

7.00 %

12.34 %

06/14/19

12/29/23

267

267

261

0.08

UserZoom Technologies, Inc. (d/b/a UserZoom, Inc.)

First Lien Secured Term Loan

1.00 %

SOFR

7.50 %

12.42 %

01/12/23

04/05/29

9,819

9,546

9,626

2.95



















39,516

35,429

10.87

Asset Management & Custody Banks
























JZ Capital Partners Ltd.⁽⁴⁾⁽⁵⁾⁽²²⁾

First Lien Secured Term Loan

1.00 %

SOFR

7.00 %

12.22 %

01/26/22

01/26/27

10,286

10,139

10,181

3.13

JZ Capital Partners Ltd.⁽⁴⁾⁽⁵⁾⁽⁷⁾⁽²²⁾

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

7.00 %

12.22 %

01/26/22

01/26/27

—

—

24

0.01



















10,139

10,205

3.14

Automotive Retail
























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

First Lien Secured Term Loan

1.00 %

Base Rate

7.48 %

12.74 %

02/16/18

06/28/24

13,902

13,868

13,902

4.27



















13,868

13,902

4.27

Broadcasting
























Coastal Television Broadcasting Group LLC

First Lien Secured Term Loan

1.00 %

SOFR

7.00 %

12.43 %

12/30/21

12/30/26

7,573

7,467

7,417

2.28

Coastal Television Broadcasting Group LLC(7)

First Lien Secured Revolving Loan

1.00 %

SOFR

7.00 %

12.43 %

12/30/21

12/30/26

—

—

(2)

—



















7,467

7,415

2.28

Broadline Retail
























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

First Lien Secured Term Loan

1.50 %

SOFR

10.50 %

15.70% (13.70%
Cash + 2.00% PIK)

08/28/20

08/28/25

12,837

12,700

12,694

3.90

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

First Lien Secured Delayed Draw Loan

1.50 %

SOFR

10.50 %

15.70% (13.70%
Cash + 2.00% PIK)

12/02/21

08/28/25

2,617

2,588

2,588

0.80

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

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

11.65 %

12/04/20

06/04/26

5,280

5,224

5,266

1.62

Potpourri Group, Inc.

First Lien Secured Term Loan

1.50 %

SOFR

8.25 %

13.50 %

07/03/19

07/03/24

13,993

13,930

13,993

4.30



















34,442

34,541

10.62

Building Products
























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

First Lien Secured Term Loan

1.00 %

CDOR

6.00 %

11.13 %

12/17/21

12/17/26

8,313

6,414

6,277

1.92

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

First Lien Secured Revolving Loan

1.00 %

CDOR

6.00 %

11.13 %

12/17/21

12/17/26

—

—

13

—

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

First Lien Secured Term Loan

1.00 %

SOFR

6.00 %

11.23 %

12/17/21

12/17/26

2,025

1,997

2,013

0.62

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

First Lien Secured Revolving Loan

1.00 %

SOFR

6.00 %

11.23 %

12/17/21

12/17/26

—

—

2

—

Trimlite Buyer LLC (d/b/a Trimlite LLC)⁽⁵⁾⁽¹³⁾⁽²³⁾

First Lien Secured Term Loan

1.00 %

CDOR

6.00 %

11.38 %

07/27/21

07/27/26

19,624

15,439

14,661

4.51



















23,850

22,966

7.05

Cable & Satellite
























Bulk Midco, LLC

First Lien Secured Term Loan

1.00 %

SOFR

7.50 %

12.70% (11.70%
Cash + 1.00% PIK)

10/28/22

06/10/24

19,208

$

19,142

$

18,668

5.74

%

Bulk Midco, LLC

First Lien Secured Revolving Loan

1.00 %

SOFR

7.50 %

12.70% (11.70%
Cash + 1.00% PIK)

10/28/22

06/10/24

2,000

1,977

1,944

0.60



















21,119

20,612

6.34

Commodity Chemicals
























FGI Acquisition Corp. (d/b/a Flexitallic Group SAS)

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

11.89 %

10/28/19

10/29/26

16,277

15,795

16,106

4.95

US Methanol Midco LLC (d/b/a US Methanol LLC)⁽²⁴⁾

First Lien Secured Term Loan

1.00 %

SOFR

7.75 %

12.93% PIK

12/20/22

12/20/27

4,972

4,868

4,874

1.50

US Methanol Midco LLC (d/b/a US Methanol LLC)⁽⁴⁾⁽⁷⁾⁽²⁴⁾

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

7.75 %


12/20/22

12/20/27

—

—

(81)

(0.02)



















20,663

20,899

6.43

Construction Materials
























Claridge Products and Equipment, LLC

First Lien Secured Term Loan

1.00 %

SOFR

8.00 %

13.39% (11.89%
Cash + 1.50% PIK)

12/30/20

12/29/25

7,409

7,338

6,907

2.12

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

First Lien Secured Revolving Loan

1.00 %

Base Rate

8.00 %

13.09% (11.59%
Cash + 1.50% PIK)

12/30/20

12/29/25

632

627

568

0.17



















7,965

7,475

2.29

Data Processing & Outsourced Services
























Future Payment Technologies, L.P.

First Lien Secured Term Loan

1.00 %

SOFR

8.25 %

13.51 %

12/23/16

12/05/25

22,288

22,179

22,129

6.80



















22,179

22,129

6.80

Distributors
























Foodservices Brand Group, LLC (d/b/a Crown Brands Group)

First Lien Secured Term Loan

1.00 %

SOFR

8.00 %

13.29 %

11/22/22

12/09/25

357

357

305

0.09

Foodservices Brand Group, LLC (d/b/a Crown Brands Group)⁽¹⁷⁾⁽¹⁹⁾

Second Lien Secured Term Loan

1.50 %

SOFR

6.50 %

11.70 %

11/22/22

01/08/26

5,171

5,119

1,429

0.44



















5,476

1,734

0.53

Diversified Chemicals
























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

First Lien Secured Term Loan

0.75 %

SOFR

5.75 %

11.18 %

11/16/21

12/01/26

7,880

7,582

7,102

2.18

Chase Products Co. (f/k/a Starco)⁽⁶⁾⁽²⁶⁾

First Lien Secured Term Loan

N/A

N/A

12.00 %

12.00% PIK

03/16/23

03/16/28

2,790

2,790

2,589

0.80



















10,372

9,691

2.98

Diversified Support Services
























NNA Services, LLC

First Lien Secured Term Loan

1.00 %

SOFR

6.75 %

12.14 %

08/27/21

08/27/26

9,635

9,559

9,262

2.85



















9,559

9,262

2.85

Education Services
























EducationDynamics, LLC

First Lien Secured Term Loan

1.00 %

SOFR

7.00 %

12.20% (11.70%
Cash + 0.50% PIK)

09/15/21

09/15/26

12,919

12,755

12,418

3.81

EducationDynamics, LLC(4)(7)

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

7.00 %

12.20% (11.70%
Cash + 0.50% PIK)

09/15/21

09/15/26

—

—

(44)

(0.01)

EducationDynamics, LLC(7)

First Lien Secured Revolving Loan

1.00 %

SOFR

7.00 %

12.20% (11.70%
Cash + 0.50% PIK)

09/15/21

09/15/26

—

—

(31)

(0.01)

EducationDynamics, LLC(4)

Subordinated Unsecured Term Loan

N/A

N/A

4.00 %

4.00 %

09/15/21

03/15/27

167

167

167

0.05



















12,922

12,510

3.84

Electric Utilities
























CleanChoice Energy, Inc.

First Lien Secured Term Loan

1.00 %

SOFR

7.58 %

12.73 %

10/12/21

10/12/26

15,955

15,672

15,743

4.84



















15,672

15,743

4.84

Environmental & Facilities Services
























Industrial Specialty Services USA LLC

First Lien Secured Term Loan

1.00 %

SOFR

6.75 %

12.14 %

12/31/21

12/31/26

11,827

11,661

11,408

3.51



















11,661

11,408

3.51

Health Care Facilities
























Bridgepoint Healthcare, LLC

First Lien Secured Term Loan

1.00 %

LIBOR

7.75 %

12.90 %

10/05/21

10/05/26

10,145

$

10,012

$

9,902

3.04

%

Bridgepoint Healthcare, LLC(7)

First Lien Secured Delayed Draw Loan

1.00 %

LIBOR

7.75 %

12.90 %

10/05/21

10/05/26

—

—

(14)

—

Bridgepoint Healthcare, LLC(7)

First Lien Secured Revolving Loan

1.00 %

LIBOR

7.75 %

12.90 %

10/05/21

10/05/26

—

—

(17)

(0.01)



















10,012

9,871

3.03

Health Care Services
























Lab Logistics, LLC

First Lien Secured Term Loan

1.00 %

SOFR

9.25 %

14.44 %

10/16/19

09/25/23

5,462

5,449

5,462

1.68

Lab Logistics, LLC

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

9.25 %

14.43 %

10/16/19

09/25/23

5,104

5,102

5,104

1.57

PG Dental New Jersey Parent, LLC

First Lien Secured Term Loan

1.00 %

LIBOR

9.50 %

14.69% (13.44%
Cash + 1.25% PIK)

11/25/20

11/25/25

13,276

13,137

12,483

3.84

PG Dental New Jersey Parent, LLC⁽¹²⁾

First Lien Secured Revolving Loan

1.00 %

Base Rate

9.00 %

15.85% (14.60%
Cash + 1.25% PIK)

11/25/20

11/25/25

704

696

662

0.20



















24,384

23,711

7.29

Health Care Supplies
























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

First Lien Secured Term Loan

0.75 %

SOFR

7.50 %

12.88 %

02/23/22

02/23/28

20,358

19,964

19,333

5.94



















19,964

19,333

5.94

Heavy Electrical Equipment
























Power Service Group CR Acquisition Inc. (d/b/a Power Plant
Services)

First Lien Secured Term Loan

1.00 %

SOFR

6.25 %

11.64 %

06/25/21

06/25/26

13,572

13,400

13,352

4.10

Power Service Group CR Acquisition Inc. (d/b/a Power Plant
Services)

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

6.25 %

11.64 %

07/11/22

06/25/26

2,090

2,053

2,056

0.63

Power Service Group CR Acquisition Inc. (d/b/a Power Plant
Services)⁽⁷⁾⁽¹²⁾

First Lien Secured Revolving Loan

1.00 %

Base Rate

6.25 %

11.58 %

06/25/21

06/25/24

1,045

1,039

1,041

0.32



















16,492

16,449

5.05

Home Furnishings
























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

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

11.61 %

10/12/21

10/12/26

20,721

20,447

20,505

6.30

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

First Lien Secured Revolving Loan

1.00 %

SOFR

6.50 %

11.75 %

10/12/21

10/12/26

832

821

828

0.25

Hollander Intermediate LLC (d/b/a Hollander Sleep Products,
LLC)

First Lien Secured Term Loan

2.00 %

SOFR

8.75 %

13.97 %

09/19/22

09/21/26

4,800

4,766

4,301

1.32



















26,034

25,634

7.87

Household Appliances
























Token Buyer, Inc. (d/b/a Therm-O-Disc, Inc.)

First Lien Secured Term Loan

0.50 %

SOFR

6.00 %

11.20 %

05/26/22

05/31/29

7,178

6,688

6,171

1.90



















6,688

6,171

1.90

Household Products
























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

First Lien Secured Term Loan

1.00 %

SOFR

7.50 %

13.14% (12.14%
Cash + 1.00% PIK)

04/05/21

04/05/26

11,357

11,264

10,564

3.25

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

First Lien Secured Revolving Loan

1.00 %

SOFR

7.50 %

13.14% (12.14%
Cash + 1.00% PIK)

04/05/21

04/05/26

—

—

(58)

(0.02)



















11,264

10,506

3.23

Industrial Machinery & Supplies & Components
























Project Castle, Inc. (d/b/a Material Handling Systems, Inc.)

First Lien Secured Term Loan

0.50 %

SOFR

5.50 %

10.41 %

06/09/22

06/01/29

8,313

7,560

6,899

2.12



















7,560

6,899

2.12

Interactive Media & Services
























MSI Information Services, Inc.

First Lien Secured Term Loan

1.00 %

SOFR

7.75 %

12.95 %

04/25/22

04/24/26

7,531

7,425

7,157

2.20

MSI Information Services, Inc.(7)(12)

First Lien Secured Revolving Loan

1.00 %

Base Rate

6.95 %

14.60 %

04/25/22

04/24/26

375

370

332

0.10



















7,795

7,489

2.30

Investment Banking & Brokerage
























JVMC Holdings Corp. (fka RJO Holdings Corp)

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

11.71 %

02/28/19

02/28/24

9,325

9,312

9,325

2.87



















9,312

9,325

2.87

IT Consulting & Other Services
























ATSG, Inc.

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

11.72 %

11/12/21

11/12/26

3,809

$

3,758

$

3,735

1.15

%



















3,758

3,735

1.15

Leisure Facilities
























Honors Holdings, LLC (d/b/a Orange Theory)⁽¹⁵⁾⁽¹⁶⁾

First Lien Secured Term Loan

1.00 %

SOFR

8.85 %

14.24 %

09/06/19

09/06/24

9,440

9,359

9,286

2.85

Honors Holdings, LLC (d/b/a Orange Theory)⁽¹⁵⁾⁽¹⁶⁾

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

6.91 %

12.32 %

09/06/19

09/06/24

4,649

4,625

4,573

1.41

Lift Brands, Inc.

First Lien Secured Term Loan A

1.00 %

SOFR

7.50 %

12.70 %

06/29/20

06/29/25

5,546

5,512

5,517

1.70

Lift Brands, Inc.

First Lien Secured Term Loan B

N/A

N/A

9.50 %

9.50% PIK

06/29/20

06/29/25

1,383

1,371

1,314

0.40

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

First Lien Secured Term Loan C

N/A

N/A

9.50 %

9.50% PIK

06/29/20

N/A

1,580

1,577

1,563

0.48



















22,444

22,253

6.84

Leisure Products
























Playmonster Group LLC(6)(20)

Priority First Lien Secured Term Loan

1.00 %

SOFR

6.75 %

12.02% PIK

12/09/22

06/08/26

1,073

1,045

1,030

0.32

Playmonster Group LLC⁽⁶⁾⁽¹⁷⁾⁽²⁰⁾

First Lien Secured Term Loan

1.00 %

SOFR

9.00 %

14.22% PIK

01/24/22

06/08/26

3,930

3,661

2,396

0.74

Leviathan Intermediate Holdco, LLC

First Lien Secured Term Loan

1.50 %

SOFR

7.50 %

12.89 %

12/27/22

12/27/27

10,398

10,118

10,242

3.15

Leviathan Intermediate Holdco, LLC⁽⁷⁾

First Lien Secured Revolving Loan

1.50 %

SOFR

7.50 %

12.89 %

12/27/22

12/27/27

76

74

81

0.02



















14,898

13,749

4.23

Life Sciences Tools & Services
























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

Second Lien Secured Term Loan

0.50 %

LIBOR

8.00 %

13.19 %

11/23/21

12/16/29

5,000

4,939

4,827

1.48



















4,939

4,827

1.48

Office Services & Supplies
























American Crafts, LC⁽¹⁴⁾⁽²⁵⁾

Priority First Lien Secured Term Loan

1.00 %

SOFR

8.50 %

13.69% PIK

12/22/22

05/28/26

4,750

4,750

4,605

1.42

American Crafts, LC⁽¹⁴⁾⁽²⁵⁾

First Lien Secured Term Loan

1.00 %

SOFR

8.50 %

13.69% PIK

05/28/21

05/28/26

8,791

8,720

6,827

2.10

American Crafts, LC⁽¹⁴⁾⁽²⁵⁾

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

8.50 %

13.69% PIK

01/25/22

05/28/26

1,476

1,458

1,146

0.35

Empire Office, Inc.

First Lien Secured Term Loan

1.50 %

SOFR

6.75 %

12.00 %

04/12/19

04/12/24

11,342

11,296

11,342

3.49

Empire Office, Inc.

First Lien Secured Delayed Draw Loan

1.50 %

SOFR

6.75 %

12.00 %

08/17/21

04/12/24

4,640

4,608

4,640

1.43



















30,832

28,560

8.79

Personal Care Products
























Inspired Beauty Brands, Inc.

First Lien Secured Term Loan

1.00 %

LIBOR

7.00 %

12.32 %

12/30/20

12/30/25

11,205

11,093

11,094

3.41

Inspired Beauty Brands, Inc.(7)

First Lien Secured Revolving Loan

1.00 %

LIBOR

7.00 %

12.21 %

12/30/20

12/30/25

88

88

88

0.03



















11,181

11,182

3.44

Real Estate Development
























StoicLane MidCo, LLC (d/b/a StoicLane Inc.)

First Lien Secured Term Loan

1.00 %

SOFR

7.50 %

12.89 %

11/04/22

11/04/27

4,630

4,529

4,584

1.41

StoicLane MidCo, LLC (d/b/a StoicLane Inc.)⁽⁷⁾

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

7.50 %

12.89 %

11/04/22

11/04/27

5,573

5,483

5,556

1.71



















10,012

10,140

3.12

Real Estate Operating Companies
























Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)

First Lien Secured Term Loan

1.00 %

SOFR

8.00 %

13.20% (12.70%
Cash + 0.50% PIK)

12/02/22

12/02/27

5,139

5,003

5,012

1.54

Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾

First Lien Secured Delayed Draw Loan

1.00 %

SOFR

8.00 %

13.23% (12.73%
Cash + 0.50% PIK)

12/02/22

12/02/27

468

460

442

0.14

Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾

First Lien Secured Revolving Loan

1.00 %

SOFR

8.00 %

13.24% (12.74%
Cash + 0.50% PIK)

12/02/22

12/02/27

474

462

463

0.14



















5,925

5,917

1.82

Research & Consulting Services
























Aeyon LLC⁽¹⁵⁾

First Lien Secured Term Loan

1.00 %

SOFR

8.88 %

13.97 %

02/10/22

02/10/27

8,865

8,737

8,860

2.72

ALM Media, LLC

First Lien Secured Term Loan

1.00 %

SOFR

6.00 %

11.39 %

11/25/19

11/25/24

12,932

12,859

12,853

3.95



















21,596

21,713

6.67

Specialized Consumer Services
























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

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

11.70 %

11/16/21

11/16/27

11,733

$

11,561

$

11,308

3.48

%

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

First Lien Secured Term Loan

1.00 %

SOFR

6.50 %

12.00 %

09/30/21

09/30/26

11,463

11,313

11,463

3.52

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

First Lien Secured Revolving Loan

1.00 %

SOFR

6.50 %

12.00 %

09/30/21

09/30/26

—

—

9

—



















22,874

22,780

7.00

Specialized Finance
























WHF STRS Ohio Senior Loan Fund LLC(4)(5)(7)(9)(14)(18)

Subordinated Note

N/A

LIBOR

6.50 %

11.66 %

07/19/19

N/A

81,472

81,472

81,472

25.05



















81,472

81,472

25.05

Systems Software
























Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC⁽¹⁷⁾

First Lien Secured Term Loan

1.00 %

SOFR

7.50 %

12.70% (8.95%
Cash + 3.75% PIK)

03/16/21

03/16/27

20,237

19,568

15,188

4.67



















19,568

15,188

4.67

Technology Hardware, Storage & Peripherals
























Telestream Holdings Corporation

First Lien Secured Term Loan

1.00 %

SOFR

9.75 %

14.99 %

10/15/20

10/15/25

15,844

15,607

15,758

4.84

Telestream Holdings Corporation(7)

First Lien Secured Revolving Loan

1.00 %

SOFR

9.75 %

14.94 %

10/15/20

10/15/25

932

918

930

0.29



















16,525

16,688

5.13


























Total Debt Investments
















$

714,793

$

691,671

212.59

%


























Equity Investments(21)
























Advertising
























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

Class A LLC Interests

N/A

N/A

N/A

N/A

12/15/21

N/A

218

$

268

$

296

0.09

%

Merriman Holdings LP (d/b/a Escalent, Inc.)⁽⁴⁾

Class A Units

N/A

N/A

N/A

N/A

04/07/23

N/A

277

333

333

0.10



















601

629

0.19

Air Freight & Logistics
























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

Class B Units

N/A

N/A

N/A

N/A

07/12/21

N/A

1,250

1,250

424

0.13



















1,250

424

0.13

Broadline Retail
























BBQ Buyer, LLC (d/b/a BBQGuys)⁽⁴⁾

Shares

N/A

N/A

N/A

N/A

08/28/20

N/A

1,100

1,100

1,176

0.36

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

Preferred Units

N/A

N/A

8.00 %

8.00% PIK

12/04/20

N/A

600

514

731

0.22



















1,614

1,907

0.58

Building Products
























PFB Holding Company, LLC (d/b/a PFB Corporation)⁽⁴⁾⁽¹³⁾

Class A Units

N/A

N/A

N/A

N/A

12/17/21

N/A

1

423

1,143

0.35



















423

1,143

0.35

Diversified Chemicals
























Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽²⁶⁾

Common Units

N/A

N/A

N/A

N/A

03/16/23

N/A

—

—

—

—

Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽²⁶⁾

Preferred Units

N/A

N/A

N/A

14.00% PIK

03/16/23

N/A

—

4,537

247

0.08



















4,537

247

0.08

Diversified Financial Services
























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

Warrants

N/A

N/A

N/A

N/A

06/28/18

12/28/25

—

—

—

—

Sigue Corporation(4)

Warrants

N/A

N/A

N/A

N/A

06/28/18

12/28/25

22

2,890

3,397

1.04



















2,890

3,397

1.04

Diversified Support Services
























Quest Events, LLC(4)

Preferred Units

N/A

N/A

N/A

N/A

12/28/18

12/08/25

350

350

200

0.06

ImageOne Industries, LLC(4)

Common A Units

N/A

N/A

N/A

N/A

09/20/19

N/A

232

6

21

0.01



















356

221

0.07

Education Services
























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

Preferred Units

N/A

N/A

12.00 %

12.00 %

09/15/21

N/A

167

167

73

0.02



















167

73

0.02

Environmental & Facilities Services
























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

Class A Units

N/A

N/A

N/A

N/A

12/29/21

N/A

83

$

825

$

972

0.30

%



















825

972

0.30

Industrial Machinery & Supplies & Components
























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

Class A Units

N/A

N/A

N/A

N/A

02/01/22

N/A

733

788

1,190

0.37



















788

1,190

0.37

Interactive Media & Services
























What If Media Group, LLC(4)

Common Units

N/A

N/A

N/A

N/A

07/02/21

N/A

851

851

1,618

0.50



















851

1,618

0.50

IT Consulting & Other Services
























CX Holdco LLC (d/b/a Cennox Inc.)⁽⁴⁾

Common Units

N/A

N/A

N/A

N/A

05/04/21

N/A

1,068

1,116

1,406

0.43

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

Shares

N/A

N/A

N/A

N/A

12/31/20

N/A

496

496

425

0.13

Vistria Blocked MGT Investor, LP (d/b/a MGT Consulting
Group)⁽⁴⁾

Series A Units

N/A

N/A

N/A

N/A

04/10/23

N/A

—

314

314

0.10



















1,926

2,145

0.66

Leisure Facilities
























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

Class A Common Stock

N/A

N/A

N/A

N/A

06/29/20

N/A

2

1,941

182

0.06

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

Warrants

N/A

N/A

N/A

N/A

06/29/20

06/28/28

1

793

74

0.02



















2,734

256

0.08

Leisure Products
























Playmonster Group Equity, Inc. (d/b/a Playmonster Group
LLC)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽²⁰⁾

Preferred Stock

N/A

N/A

14.00 %

14.00% PIK

01/24/22

N/A

36

3,600

—

—

Playmonster Group Equity, Inc. (d/b/a Playmonster Group
LLC)⁽⁴⁾⁽⁶⁾⁽²⁰⁾

Common Stock

N/A

N/A

N/A

N/A

01/24/22

N/A

72

460

—

—



















4,060

—

—

Office Services & Supplies
























American Crafts Holdings, LLC (d/b/a American Crafts,
LC)⁽⁴⁾⁽¹⁴⁾⁽²⁵⁾

Warrants

N/A

N/A

N/A

N/A

12/22/22

12/22/32

—

—

—

—

New American Crafts Holdings, LLC (d/b/a American Crafts,
LC)⁽⁴⁾⁽¹⁴⁾⁽²⁵⁾

Class A Units

N/A

N/A

N/A

N/A

03/16/23

N/A

1

—

—

—



















—

—

—

Paper & Plastic Packaging Products & Materials
























Max Solutions Inc.(4)

Common Stock

N/A

N/A

N/A

N/A

09/29/22

N/A

4

400

123

0.04



















400

123

0.04

Real Estate Operating Companies
























Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾⁽⁸⁾

Preferred Stock

N/A

N/A

N/A

8.00% PIK

12/02/22

N/A

200

200

200

0.06

Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾

Common Stock

N/A

N/A

N/A

N/A

12/02/22

N/A

400

400

233

0.07



















600

433

0.13

Specialized Consumer Services
























Camp Facility Services Parent, LLC (d/b/a Camp Construction
Services, Inc.)⁽⁴⁾⁽⁸⁾

Preferred Units

N/A

N/A

10.00 %

10.00% PIK

11/16/21

N/A

15

840

974

0.30



















840

974

0.30

Specialized Finance
























WHF STRS Ohio Senior Loan Fund(4)(5)(7)(14)(18)

LLC Interests

N/A

N/A

N/A

N/A

07/19/19

N/A

20,368

20,368

20,929

6.43



















20,368

20,929

6.43


























Total Equity Investments
















$

45,230

$

36,681

11.27

%


























Total Investments
















$

760,023

$

728,352

223.86

%

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

June 30, 2023

(in thousands)

Counterparty

Currency to be sold

Currency to be purchased

Settlement date

Unrealized
appreciation

Unrealized
depreciation

Morgan Stanley

C$

554

CAD

$

410

USD

 8/4/23

$

—

$

(9)

Total










$

—

$

(9)


(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"), provide collateral for the Company's credit facility, and are domiciled in the United States.

(2)

The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L"), the Secured Overnight Financing Rate ("SOFR" or "SF"), the Canadian Dollar Offered Rate ("CDOR" or "C"), the Sterling Overnight Index Average ("SONIA" or "S"), or the U.S. Prime Rate ("Prime" or "P") which may reset 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)

The investment or a portion of the investment does not provide collateral for the Company's credit facility.

(5)

Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 83.5% 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 June 30, 2023.

(8)

Preferred equity investment is a non-income producing security.

(9)

Security is perpetual with no defined maturity date.

(10)

Except as otherwise noted, all of the Company's portfolio company investments, which as of the date of the consolidated schedule of investments represented 223.86% of the Company's net assets or 94.3% 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 or SF and P, respectively. The Floor, Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(13)

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

(14)

Investment is a controlled affiliate investment as defined by the 1940 Act.

(15)

Investment is structured as a unitranche loan in which the Company may receive additional interest on its "last out" tranche of the portfolio company's senior term debt, which was previously syndicated into "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.

(16)

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

(17)

The investment is on non-accrual status.

(18)

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.

(19)

At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 1.50% PIK.

(20)

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

(21)

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

(22)

The issuer is domiciled in Guernsey.

(23)

The issuer is domiciled in Canada.

(24)

Investment is structured with a PIK period beginning with the first interest payment date through December 20, 2023, whereby accrued interest due on the loan is capitalized and added to the unpaid principal balance of the loan.

(25)

In March 2023, as a result of a restructuring agreement between the Company and American Crafts, LC, the Company's investments are controlled affiliate investments, as defined by the 1940 Act.

(26)

In March 2023, as part of a restructuring agreement between the Company and Sklar Holdings, Inc (d/b/a Starco), the Company's first lien secured term loan investment was converted into a new first lien secured term loan to Chase Products Co. (f/k/a Starco) and preferred units and common units of Pressurized Holdings, LLC (f/k/a Starco).

 

Contacts

Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
saronson@higwhitehorse.com

or

Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
jthomas@higwhitehorse.com

or

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

Cision View original content:https://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-second-quarter-2023-earnings-results-and-declares-quarterly-distribution-of-0-37-per-share-301895204.html

SOURCE WhiteHorse Finance, Inc.

Copyright 2023 PR Newswire

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