Attached files
| file | filename |
|---|---|
| EX-32.2 - EXHIBIT 32.2 - WhiteHorse Finance, Inc. | tm2118591d1_ex32-2.htm |
| EX-32.1 - EXHIBIT 32.1 - WhiteHorse Finance, Inc. | tm2118591d1_ex32-1.htm |
| EX-31.2 - EXHIBIT 31.2 - WhiteHorse Finance, Inc. | tm2118591d1_ex31-2.htm |
| EX-31.1 - EXHIBIT 31.1 - WhiteHorse Finance, Inc. | tm2118591d1_ex31-1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Form 10-Q
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
or
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission file number: 814-00967
WHITEHORSE FINANCE, INC.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 45-4247759 | |
| (State or Other Jurisdiction of | (I.R.S. Employer | |
| Incorporation or Organization) | Identification No.) | |
| 1450 Brickell Avenue, 31st Floor | ||
| Miami, Florida | 33131 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(305) 381-6999
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
| Common Stock, par value $0.001 per share | WHF | The Nasdaq Stock Market LLC |
| (Nasdaq Global Select Market) | ||
| 6.50% Notes due 2025 | WHFBZ | The Nasdaq Stock Market LLC |
| (Nasdaq Global Select Market) |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ¨ | Accelerated filer | ¨ |
| Non-accelerated filer | x | Smaller reporting company | ¨ |
| Emerging growth company | ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ¨ No x
As of August 4, 2021 the Registrant had 20,841,977 shares of common stock, $0.001 par value, outstanding.
2
WhiteHorse Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
| June 30, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Investments, at fair value | ||||||||
| Non-controlled/non-affiliate company investments | $ | 602,576 | $ | 623,777 | ||||
| Non-controlled affiliate company investments | 6,008 | 15,717 | ||||||
| Controlled affiliate company investments | 61,891 | 51,241 | ||||||
| Total investments, at fair value (amortized cost $678,680 and $695,429, respectively) | 670,475 | 690,735 | ||||||
| Cash and cash equivalents | 10,329 | 8,062 | ||||||
| Restricted cash and cash equivalents | 7,037 | 7,549 | ||||||
| Restricted foreign currency (cost of $378 and $319, respectively) | 397 | 333 | ||||||
| Interest and dividend receivable | 7,076 | 6,532 | ||||||
| Amounts receivable on unsettled investment transactions | 1,021 | 4,717 | ||||||
| Escrow receivable | 2,236 | — | ||||||
| Prepaid expenses and other receivables | 1,154 | 1,061 | ||||||
| Total assets | $ | 699,725 | $ | 718,989 | ||||
| Liabilities | ||||||||
| Debt | $ | 358,719 | $ | 384,880 | ||||
| Distributions payable | 7,357 | 7,294 | ||||||
| Management fees payable | 3,357 | 3,354 | ||||||
| Incentive fees payable | 6,994 | 6,117 | ||||||
| Amounts payable on unsettled investment transactions | — | 497 | ||||||
| Interest payable | 1,848 | 1,870 | ||||||
| Accounts payable and accrued expenses | 1,437 | 1,708 | ||||||
| Advances received from unfunded credit facilities | 392 | 372 | ||||||
| Total liabilities | 380,104 | 406,092 | ||||||
| Commitments and contingencies (See Note 8) | ||||||||
| Net assets | ||||||||
| Common stock, 20,722,596 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 | 302,711 | 300,002 | ||||||
| Accumulated earnings | 16,889 | 12,874 | ||||||
| Total net assets | 319,621 | 312,897 | ||||||
| Total liabilities and total net assets | $ | 699,725 | $ | 718,989 | ||||
| Number of shares outstanding | 20,722,596 | 20,546,032 | ||||||
| Net asset value per share | $ | 15.42 | $ | 15.23 | ||||
See notes to the consolidated financial statements
3
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, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Investment income | ||||||||||||||||
| From non-controlled/non-affiliate company investments | ||||||||||||||||
| Interest income | $ | 14,148 | $ | 12,145 | $ | 28,960 | $ | 25,284 | ||||||||
| Fee income | 350 | 539 | 1,121 | 830 | ||||||||||||
| Dividend income | 65 | 30 | 109 | 79 | ||||||||||||
| From non-controlled affiliate company investments | ||||||||||||||||
| Dividend income | 717 | 263 | 967 | 538 | ||||||||||||
| From controlled affiliate company investments | ||||||||||||||||
| Interest income | 738 | 606 | 1,457 | 1,231 | ||||||||||||
| Dividend income | 1,325 | 240 | 2,699 | 393 | ||||||||||||
| Total investment income | 17,343 | 13,823 | 35,313 | 28,355 | ||||||||||||
| Expenses | ||||||||||||||||
| Interest expense | 3,811 | 3,223 | 7,613 | 6,891 | ||||||||||||
| Base management fees | 3,357 | 2,950 | 6,701 | 6,042 | ||||||||||||
| Performance-based incentive fees | 2,628 | 1,311 | 4,670 | 1,752 | ||||||||||||
| Administrative service fees | 170 | 171 | 341 | 342 | ||||||||||||
| General and administrative expenses | 875 | 730 | 1,696 | 1,610 | ||||||||||||
| Total expenses | 10,841 | 8,385 | 21,021 | 16,637 | ||||||||||||
| Net investment income before excise tax | 6,502 | 5,438 | 14,292 | 11,718 | ||||||||||||
| Excise tax | 402 | 198 | 592 | 376 | ||||||||||||
| Net investment income after excise tax | 6,100 | 5,240 | 13,700 | 11,342 | ||||||||||||
| Realized and unrealized gains (losses) on investments and foreign currency transactions | ||||||||||||||||
| Net realized gains (losses) | ||||||||||||||||
| Non-controlled/non-affiliate company investments | (555 | ) | (77 | ) | 7,605 | 433 | ||||||||||
| Non-controlled-affiliate company investments | — |
— |
— |
— |
||||||||||||
| Foreign currency transactions | (4 | ) | 70 | (3 | ) | 67 | ||||||||||
| Foreign currency forward contracts | (4 | ) | (6 | ) | (4 | ) | — |
|||||||||
| Net realized gains (losses) | (563 | ) | (13 | ) | 7,598 | 500 | ||||||||||
| Net change in unrealized appreciation (depreciation) | ||||||||||||||||
| Non-controlled/non-affiliate company investments | 4,407 | 15,841 | (2,568 | ) | (6,355 | ) | ||||||||||
| Non-controlled affiliate company investments | 755 | 871 | 321 | (1,130 | ) | |||||||||||
| Controlled affiliate company investments | (149 | ) | 1,111 | (269 | ) | (2,842 | ) | |||||||||
| Translation of assets and liabilities in foreign currencies | (40 | ) | (237 | ) | (102 | ) | 343 | |||||||||
| Foreign currency forward contracts | 1 | (2 | ) | — |
(3 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) | 4,974 | 17,584 | (2,618 | ) | (9,987 | ) | ||||||||||
| Net realized and unrealized gains (losses) on investments | 4,411 | 17,571 | 4,980 | (9,487 | ) | |||||||||||
| Net increase in net assets resulting from operations | $ | 10,511 | $ | 22,811 | $ | 18,680 | $ | 1,855 | ||||||||
| Per Common Share Data | ||||||||||||||||
| Basic and diluted earnings per common share | $ | 0.51 | $ | 1.11 | $ | 0.91 | $ | 0.09 | ||||||||
| Dividends and distributions declared per common share | $ | 0.36 | $ | 0.36 | $ | 0.71 | $ | 0.71 | ||||||||
| Basic and diluted weighted average common shares outstanding | 20,626,340 | 20,546,032 | 20,589,159 | 20,546,032 | ||||||||||||
See notes to the consolidated financial statements
4
WhiteHorse Finance, Inc.
Consolidated Statements of Changes in Net Assets (Unaudited)
(in thousands, except share and per share data)
| Paid-in | Accumulated | |||||||||||||||||||
| Capital in | Undistributed | |||||||||||||||||||
| Common Stock | Excess of | (Overdistributed) | Total Net | |||||||||||||||||
| Shares | Par amount | Par | Earnings | Assets | ||||||||||||||||
| Balance at December 31, 2020 | 20,546,032 | $ | 21 | $ | 300,002 | $ | 12,874 | $ | 312,897 | |||||||||||
| Stock issued in connection with at-the-market offering | 37,803 | — | 590 | — | 590 | |||||||||||||||
| Net increase in net assets resulting from operations: | ||||||||||||||||||||
| Net investment income after excise tax | — | — | — | 7,600 | 7,600 | |||||||||||||||
| Net realized gains (losses) on investments | — | — | — | 8,161 | 8,161 | |||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | — | — | — | (7,592 | ) | (7,592 | ) | |||||||||||||
Distributions declared | — | — | — | (7,307 | ) | (7,307 | ) | |||||||||||||
| Balance at March 31, 2021 | 20,583,835 | $ | 21 | $ | 300,592 | $ | 13,736 | $ | 314,349 | |||||||||||
| Stock issued in connection with at-the-market offering | 124,252 | — | 1,894 | — | 1,894 | |||||||||||||||
| Stock issued in connection with dividend reinvestment plan | 14,509 | — | 225 | — | 225 | |||||||||||||||
| Net increase in net assets resulting from operations: | ||||||||||||||||||||
| Net investment income after excise tax | — | — | — | 6,100 | 6,100 | |||||||||||||||
| Net realized gains (losses) on investments | — | — | — | (563 | ) | (563 | ) | |||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | — | — | — | 4,974 | 4,974 | |||||||||||||||
Distributions declared | — | — | — | (7,358 | ) | (7,358 | ) | |||||||||||||
| Balance at June 30, 2021 | 20,722,596 | $ | 21 | $ | 302,711 | $ | 16,889 | $ | 319,621 | |||||||||||
| Paid-in | Accumulated | |||||||||||||||||||
| Capital in | Undistributed | |||||||||||||||||||
| Common Stock | Excess of | (Overdistributed) | Total Net | |||||||||||||||||
| Shares | Par amount | Par | Earnings | Assets | ||||||||||||||||
| Balance at December 31, 2019 | 20,546,032 | $ | 21 | $ | 300,744 | $ | 12,190 | $ | 312,955 | |||||||||||
| Net increase in net assets resulting from operations: | ||||||||||||||||||||
| Net investment income after excise tax | — | — | — | 6,102 | 6,102 | |||||||||||||||
| Net realized gains (losses) on investments | — | — | — | 513 | 513 | |||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | — | — | — | (27,571 | ) | (27,571 | ) | |||||||||||||
| Distributions declared | — | — | — | (7,294 | ) | (7,294 | ) | |||||||||||||
| Balance at March 31, 2020 | 20,546,032 | $ | 21 | $ | 300,744 | $ | (16,060 | ) | $ | 284,705 | ||||||||||
| Net increase in net assets resulting from operations: | ||||||||||||||||||||
| Net investment income after excise tax | — | — | — | 5,240 | 5,240 | |||||||||||||||
| Net realized gains (losses) on investments | — | — | — | (13 | ) | (13 | ) | |||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | — | — | — | 17,584 | 17,584 | |||||||||||||||
| Distributions declared | — | — | — | (7,294 | ) | (7,294 | ) | |||||||||||||
| Balance at June 30, 2020 | 20,546,032 | $ | 21 | $ | 300,744 | $ | (543 | ) | $ | 300,222 | ||||||||||
See notes to the consolidated financial statements
5
WhiteHorse Finance, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
| Six months ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities | ||||||||
| Net increase in net assets resulting from operations | $ | 18,680 | $ | 1,855 | ||||
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | ||||||||
| Paid-in-kind income | (686 | ) | (483 | ) | ||||
| Net realized gains on investments | (7,605 | ) | (433 | ) | ||||
| Net unrealized (appreciation) depreciation on investments | 2,517 | 10,328 | ||||||
| Net unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies | 102 | (343 | ) | |||||
| Net unrealized depreciation on foreign currency forward contracts | — |
3 | ||||||
| Accretion of discount | (3,505 | ) | (1,461 | ) | ||||
| Amortization of deferred financing costs | 661 | 511 | ||||||
| Acquisition of investments | (190,795 | ) | (66,942 | ) | ||||
| Proceeds from principal payments and sales of portfolio investments | 169,565 | 54,633 | ||||||
| Proceeds for sales of portfolio investments to STRS JV | 49,774 | 46,651 | ||||||
| Net changes in operating assets and liabilities: | ||||||||
| Interest and dividend receivable | (544 | ) | 110 | |||||
| Escrow receivable | (1,241 | ) | — |
|||||
| Prepaid expenses and other receivables | (93 | ) | 7,156 | |||||
| Amounts receivable on unsettled investment transactions | 3,696 | 63 | ||||||
| Amounts payable on unsettled investment transactions | (497 | ) | 4,899 | |||||
| Management fees payable | 3 | (110 | ) | |||||
| Incentive fees payable | 877 | (821 | ) | |||||
| Accounts payable and accrued expenses | 268 | (598 | ) | |||||
| Interest payable | (22 | ) | (359 | ) | ||||
| Advances received from unfunded credit facilities | 20 | (125 | ) | |||||
| Net cash provided by operating activities | 40,635 | 54,534 | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from sales of common stock, net of offering costs | 2,483 | — |
||||||
| Borrowings | 106,818 | 74,095 | ||||||
| Repayments of debt | (133,701 | ) | (120,694 | ) | ||||
| Deferred financing costs | (46 | ) | — |
|||||
| Distributions paid to common stockholders, net of distributions reinvested | (14,376 | ) | (14,588 | ) | ||||
| Net cash used in financing activities | (38,822 | ) | (61,187 | ) | ||||
| Effect of exchange rate changes on cash | 4 | (7 | ) | |||||
| Net change in cash, cash equivalents and restricted cash | 1,817 | (6,660 | ) | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 15,946 | 27,546 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 17,763 | $ | 20,886 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Interest paid | $ | 6,979 | $ | 6,753 | ||||
| Non-cash exchanges of investments | 10,920 | 18,411 | ||||||
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of assets and liabilities that sum to the total of the same amounts presented in the consolidated statements of cash flows:
| June 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash and cash equivalents | $ | 10,329 | $ | 2,263 | ||||
| Restricted cash and restricted foreign currency | 7,434 | 18,623 | ||||||
| Total cash, cash equivalents and restricted cash presented in consolidated statements of cash flows | $ | 17,763 | $ | 20,886 | ||||
See notes to the consolidated financial statements
6
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
June 30, 2021
(in thousands)
| Issuer | Investment Type(1) | Floor | 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 | ||||||||||||||||||||||||||||
| SmartSign Holdings LLC | First Lien Secured Term Loan | 1.00% | L+ 7.50% | 8.50% | 08/21/20 | 10/11/24 | 7,705 | $ | 7,583 | $ | 7,705 | 2.41 | % | |||||||||||||||
| 7,705 | 7,583 | 7,705 | 2.41 | |||||||||||||||||||||||||
| Air Freight & Logistics | ||||||||||||||||||||||||||||
| Access USA Shipping, LLC | First Lien Secured Term Loan | 1.50% | L+ 8.00% | 9.50% | 02/08/19 | 02/08/24 | 5,083 | 5,043 | 5,083 | 1.59 | ||||||||||||||||||
| 5,083 | 5,043 | 5,083 | 1.59 | |||||||||||||||||||||||||
| Application Software | ||||||||||||||||||||||||||||
| Atlas Purchaser, Inc. (dba Aspect Software) | Second Lien Secured Term Loan | 0.75% | L+ 9.00% | 9.75% | 05/06/21 | 05/06/29 | 15,000 | 14,558 | 14,558 | 4.55 | ||||||||||||||||||
| Connexity, Inc. | First Lien Secured Term Loan | 1.50% | L+ 8.50% | 10.00% | 05/21/20 | 05/21/25 | 9,454 | 9,234 | 9,454 | 2.96 | ||||||||||||||||||
| Newscycle Solutions, Inc. | First Lien Secured Term Loan | 1.00% | L+ 7.00% | 8.00% | 06/14/19 | 12/29/22 | 3,229 | 3,202 | 3,217 | 1.01 | ||||||||||||||||||
| Newscycle Solutions, Inc.(7) | First Lien Secured Revolving Loan | 1.00% | L+ 7.00% | 8.00% | 06/14/19 | 12/29/22 | 169 | 168 | 168 | 0.05 | ||||||||||||||||||
| TaxSlayer LLC | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 12/31/20 | 12/31/26 | 6,779 | 6,655 | 6,655 | 2.08 | ||||||||||||||||||
| TaxSlayer LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.50% | 7.50% | 12/31/20 | 12/31/26 | — | — | — | — | ||||||||||||||||||
| 34,631 | 33,817 | 34,052 | 10.65 | |||||||||||||||||||||||||
| Automotive Retail | ||||||||||||||||||||||||||||
| Team Car Care Holdings, LLC(12) | First Lien Secured Term Loan | 1.02% | Base rate+ 7.99% | 9.01% | 02/26/18 | 02/23/23 | 15,678 | 15,561 | 15,629 | 4.89 | ||||||||||||||||||
| 15,678 | 15,561 | 15,629 | 4.89 | |||||||||||||||||||||||||
| Building Products | ||||||||||||||||||||||||||||
| Drew Foam Companies Inc | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 11/05/20 | 11/05/25 | 7,244 | 7,115 | 7,118 | 2.23 | ||||||||||||||||||
| LHS Borrower, LLC | First Lien Secured Term Loan | 1.00% | L+ 6.75% | 7.75% | 09/30/20 | 09/30/25 | 9,567 | 9,385 | 9,496 | 2.97 | ||||||||||||||||||
| LHS Borrower, LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.75% | 7.75% | 09/30/20 | 09/30/25 | — | — | 7 | — | ||||||||||||||||||
| 16,811 | 16,500 | 16,621 | 5.20 | |||||||||||||||||||||||||
| Cable & Satellite | ||||||||||||||||||||||||||||
| Bulk Midco, LLC(15) | First Lien Secured Term Loan | 1.00% | L+ 7.34% | 8.34% | 06/08/18 | 06/08/23 | 15,000 | 14,913 | 14,250 | 4.46 | ||||||||||||||||||
| 15,000 | 14,913 | 14,250 | 4.46 | |||||||||||||||||||||||||
| Construction & Engineering | ||||||||||||||||||||||||||||
| SFP Holding, Inc. | First Lien Secured Term Loan | 1.00% | L+ 6.25% | 7.25% | 06/22/21 | 09/01/23 | 2,295 | 2,246 | 2,272 | 0.71 | ||||||||||||||||||
| Tensar Corp. | First Lien Secured Term Loan | 1.00% | L+ 6.75% | 7.75% | 11/20/20 | 08/20/25 | 6,965 | 6,813 | 6,930 | 2.17 | ||||||||||||||||||
| 9,260 | 9,059 | 9,202 | 2.88 | |||||||||||||||||||||||||
| Construction Materials | ||||||||||||||||||||||||||||
| Claridge Products and Equipment, LLC | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 12/30/20 | 12/29/25 | 7,960 | 7,817 | 7,846 | 2.45 | ||||||||||||||||||
| Claridge Products and Equipment, LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.50% | 7.50% | 12/30/20 | 12/29/25 | — | — | 3 | — | ||||||||||||||||||
| 7,960 | 7,817 | 7,849 | 2.45 | |||||||||||||||||||||||||
| Commodity Chemicals | ||||||||||||||||||||||||||||
| Flexitallic Group SAS | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 10/28/19 | 10/29/26 | 11,893 | 11,671 | 11,299 | 3.54 | ||||||||||||||||||
| 11,893 | 11,671 | 11,299 | 3.54 | |||||||||||||||||||||||||
| Consumer Finance | ||||||||||||||||||||||||||||
| Maxitransfers Blocker Corp | First Lien Secured Term Loan | 1.00% | L+ 8.50% | 9.50% | 10/07/20 | 10/07/25 | 8,757 | 8,580 | 8,657 | 2.71 | ||||||||||||||||||
| Maxitransfers Blocker Corp(4)(7) | First Lien Secured Revolving Loan | 1.00% | L+ 8.50% | 9.50% | 10/07/20 | 10/07/25 | — | — | 9 | — | ||||||||||||||||||
| 8,757 | 8,580 | 8,666 | 2.71 | |||||||||||||||||||||||||
| Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
| Escalon Services Inc | First Lien Secured Term Loan | 1.00% | L+ 13.50% | 14.50% (13.00% Cash + 1.50% PIK) | 12/04/20 | 12/04/25 | 8,024 | 7,394 | 7,661 | 2.40 | ||||||||||||||||||
| FPT Operating Company, LLC/ TLabs Operating Company, LLC | First Lien Secured Term Loan | 1.00% | L+ 8.25% | 9.25% | 12/23/16 | 06/07/24 | 24,312 | 24,095 | 24,155 | 7.56 | ||||||||||||||||||
| Geo Logic Systems Ltd.(5)(12)(13) | First Lien Secured Term Loan | 1.00% | C+ 6.50% | 7.50% | 12/19/19 | 12/19/24 | 6,623 | 4,982 | 5,236 | 1.64 | ||||||||||||||||||
| Geo Logic Systems Ltd. (5)(7)(13) | First Lien Secured Revolving Loan | 1.00% | C+ 6.50% | 7.50% | 12/19/19 | 12/19/24 | — | — | (2 | ) | — | |||||||||||||||||
| E-Phoenix Acquisition Co. Inc. (dba Integreon) | First Lien Secured Term Loan | 1.00% | L+ 5.75% | 6.75% | 06/23/21 | 06/23/27 | 9,000 | 8,888 | 8,888 | 2.78 | ||||||||||||||||||
| 47,959 | 45,359 | 45,938 | 14.38 | |||||||||||||||||||||||||
See notes to the consolidated financial statements
7
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
June 30, 2021
(in thousands)
| Issuer | Investment Type(1) | Floor | 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 | 1.00% | L+ 6.00% | 7.00% | 10/24/18 | 10/24/24 | 13,538 | $ | 13,308 | $ | 13,538 | 4.24 | % | |||||||||||||||
| 13,538 | 13,308 | 13,538 | 4.24 | |||||||||||||||||||||||||
| Distributors | ||||||||||||||||||||||||||||
| Crown Brands, LLC(19) | Second Lien Secured Term Loan | 1.50% | L+ 10.50% | 12.00% | 12/15/20 | 01/08/26 | 4,379 | 4,287 | 3,673 | 1.15 | ||||||||||||||||||
| Crown Brands, LLC(19) | Second Lien Secured Delayed Draw Loan | 1.50% | L+ 10.50% | 12.00% | 12/15/20 | 01/08/26 | 650 | 650 | 545 | 0.17 | ||||||||||||||||||
| 5,029 | 4,937 | 4,218 | 1.32 | |||||||||||||||||||||||||
| Diversified Chemicals | ||||||||||||||||||||||||||||
| Sklar Holdings, Inc. | First Lien Secured Term Loan | 1.00% | L+ 7.75% | 8.75% | 11/13/19 | 05/13/23 | 7,451 | 7,335 | 7,451 | 2.33 | ||||||||||||||||||
| 7,451 | 7,335 | 7,451 | 2.33 | |||||||||||||||||||||||||
| Diversified Support Services | ||||||||||||||||||||||||||||
| NNA Services, LLC | First Lien Secured Term Loan | 1.50% | L+ 7.00% | 8.50% | 10/16/18 | 10/16/23 | 13,174 | 13,032 | 13,174 | 4.12 | ||||||||||||||||||
| 13,174 | 13,032 | 13,174 | 4.12 | |||||||||||||||||||||||||
| Education Services | ||||||||||||||||||||||||||||
| EducationDynamics, LLC | First Lien Secured Term Loan | 1.00% | L+ 7.75% | 8.75% | 11/26/19 | 11/26/24 | 12,232 | 12,059 | 12,232 | 3.83 | ||||||||||||||||||
| 12,232 | 12,059 | 12,232 | 3.83 | |||||||||||||||||||||||||
| Electronic Equipment & Instruments | ||||||||||||||||||||||||||||
| LMG Holdings, Inc. | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 04/30/21 | 04/30/26 | 6,836 | 6,704 | 6,704 | 2.10 | ||||||||||||||||||
| LMG Holdings, Inc.(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.50% | 7.50% | 04/30/21 | 04/30/26 | — | — | — | — | ||||||||||||||||||
| 6,836 | 6,704 | 6,704 | 2.10 | |||||||||||||||||||||||||
| Health Care Facilities | ||||||||||||||||||||||||||||
| Epiphany Dermatology | First Lien Secured Term Loan | 1.00% | L+ 7.50% | 8.50% | 12/04/20 | 06/22/23 | 3,483 | 3,415 | 3,431 | 1.07 | ||||||||||||||||||
| Epiphany Dermatology(7) | First Lien Secured Revolving Loan | 1.00% | L+ 7.50% | 8.50% | 12/04/20 | 06/22/23 | — | — | 2 | — | ||||||||||||||||||
| Epiphany Dermatology(7) | First Lien Secured Delayed Draw Loan | 1.00% | L+ 7.50% | 8.50% | 12/04/20 | 06/22/23 | — | — | 14 | — | ||||||||||||||||||
| Grupo HIMA San Pablo, Inc.(8) | First Lien Secured Term Loan A | N/A | L+ 9.00% | 9.18% | 05/05/19 | 04/30/19 | 3,855 | 3,855 | 2,146 | 0.67 | ||||||||||||||||||
| Grupo HIMA San Pablo, Inc.(8) | First Lien Secured Term Loan B | 1.50% | L+ 9.00% | 10.50% | 02/01/13 | 04/30/19 | 13,511 | 13,511 | 7,521 | 2.35 | ||||||||||||||||||
| Grupo HIMA San Pablo, Inc.(8) | Second Lien Secured Term Loan | N/A | L+ 15.75% | 15.75% (13.75% Cash + 2.00% PIK) | 02/01/13 | 07/31/18 | 1,028 | 1,024 | — | — | ||||||||||||||||||
| 21,877 | 21,805 | 13,114 | 4.09 | |||||||||||||||||||||||||
| Health Care Services | ||||||||||||||||||||||||||||
| CHS Therapy, LLC | First Lien Secured Term Loan A | 1.50% | L+ 8.50% | 10.00% | 06/14/19 | 06/14/24 | 7,326 | 7,244 | 7,325 | 2.29 | ||||||||||||||||||
| CHS Therapy, LLC | First Lien Secured Term Loan C | 1.50% | L+ 8.50% | 10.00% | 10/07/20 | 06/14/24 | 901 | 886 | 901 | 0.28 | ||||||||||||||||||
| DCA Investment Holding, LLC | First Lien Secured Term Loan | 0.75% | L+ 6.25% | 7.00% | 03/12/21 | 03/12/27 | 7,060 | 6,959 | 6,959 | 2.18 | ||||||||||||||||||
| DCA Investment Holding, LLC(7) | First Lien Secured Delayed Draw Loan | 0.75% | L+ 6.25% | 7.00% | 03/12/21 | 03/12/27 | — | — | — | — | ||||||||||||||||||
| Ivy Rehab Holdings LLC | First Lien Secured Term Loan | 1.00% | L+ 6.75% | 7.75% | 12/04/20 | 12/04/24 | 8,811 | 8,660 | 8,811 | 2.76 | ||||||||||||||||||
| Ivy Rehab Holdings LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.75% | 7.75% | 12/04/20 | 12/04/24 | — | — | 9 | — | ||||||||||||||||||
| Ivy Rehab Holdings LLC(7) | First Lien Secured Delayed Draw Loan | 1.00% | L+ 6.75% | 7.75% | 12/04/20 | 12/04/24 | 377 | 370 | 398 | 0.12 | ||||||||||||||||||
| Lab Logistics, LLC | First Lien Secured Term Loan | 1.00% | L+ 7.25% | 8.25% | 10/16/19 | 09/25/23 | 1,161 | 1,141 | 1,153 | 0.36 | ||||||||||||||||||
| Lab Logistics, LLC | First Lien Secured Delayed Draw Loan | 1.00% | L+ 7.25% | 8.25% | 10/16/19 | 09/25/23 | 5,210 | 5,188 | 5,210 | 1.63 | ||||||||||||||||||
| PG Dental New Jersey Parent, LLC | First Lien Secured Term Loan | 1.00% | L+ 7.75% | 8.75% | 11/25/20 | 11/25/25 | 16,089 | 15,770 | 15,903 | 4.98 | ||||||||||||||||||
| PG Dental New Jersey Parent, LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 7.75% | 8.75% | 11/25/20 | 11/25/25 | — | — | 10 | — | ||||||||||||||||||
| 46,935 | 46,218 | 46,679 | 14.60 | |||||||||||||||||||||||||
| Heavy Electrical Equipment | ||||||||||||||||||||||||||||
| PPS CR Acquisition, Inc. (dba Power Plant Services) | First Lien Secured Term Loan | 1.00% | L+ 6.25% | 7.25% | 06/25/21 | 06/25/26 | 11,179 | 10,956 | 10,956 | 3.43 | ||||||||||||||||||
| PPS CR Acquisition, Inc. (dba Power Plant Services)(7) | First Lien Secured Revolving Loan | 1.00% | L+ 7.25% | 8.25% | 06/25/21 | 06/25/24 | 104 | 102 | 102 | 0.03 | ||||||||||||||||||
| 11,283 | 11,058 | 11,058 | 3.46 | |||||||||||||||||||||||||
| Home Furnishings | ||||||||||||||||||||||||||||
| Sure Fit Home Products, LLC | First Lien Secured Term Loan | 1.00% | L+ 9.75% | 10.75% | 04/12/21 | 07/13/23 | 4,982 | 4,868 | 4,434 | 1.39 | ||||||||||||||||||
| 4,982 | 4,868 | 4,434 | 1.39 | |||||||||||||||||||||||||
| Household Products | ||||||||||||||||||||||||||||
| The Kyjen Company, LLC (dba Outward Hound) | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 04/05/21 | 04/05/26 | 11,460 | 11,297 | 11,297 | 3.53 | ||||||||||||||||||
| The Kyjen Company, LLC (dba Outward Hound)(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.50% | 7.50% | 04/05/21 | 04/05/26 | 385 | 379 | 379 | 0.12 | ||||||||||||||||||
| 11,845 | 11,676 | 11,676 | 3.65 | |||||||||||||||||||||||||
| Interactive Media & Services | ||||||||||||||||||||||||||||
| What If Media Group, LLC | First Lien Secured Term Loan | 1.00% | L+ 7.00% | 8.00% | 10/02/19 | 10/02/24 | 17,448 | 17,194 | 17,356 | 5.43 | ||||||||||||||||||
| 17,448 | 17,194 | 17,356 | 5.43 | |||||||||||||||||||||||||
| Internet & Direct Marketing Retail | ||||||||||||||||||||||||||||
| BBQ Buyer, LLC | First Lien Secured Term Loan | 1.50% | L+ 8.00% | 9.50% | 08/28/20 | 08/28/25 | 12,666 | 12,396 | 12,878 | 4.03 | ||||||||||||||||||
| Luxury Brand Holdings, Inc. | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 12/04/20 | 06/04/26 | 5,970 | 5,863 | 5,970 | 1.87 | ||||||||||||||||||
| Potpourri Group, Inc. | First Lien Secured Term Loan | 1.50% | L+ 8.25% | 9.75% | 07/03/19 | 07/03/24 | 18,151 | 17,905 | 18,151 | 5.68 | ||||||||||||||||||
| 36,787 | 36,164 | 36,999 | 11.58 | |||||||||||||||||||||||||
See notes to the consolidated financial statements
8
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
June 30, 2021
(in thousands)
| Issuer | Investment Type(1) | Floor | 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 | |||||||||||||||||
| Investment Banking & Brokerage | |||||||||||||||||||||||||||
| JVMC Holdings Corp. (f/k/a RJO Holdings Corp) | First Lien Secured Term Loan | 1.00% | L+ 7.25% | 8.25% | 02/28/19 | 02/28/24 | 13,163 | $ | 13,093 | $ | 13,163 | 4.12 | % | ||||||||||||||
| 13,163 | 13,093 | 13,163 | 4.12 | ||||||||||||||||||||||||
| IT Consulting & Other Services | |||||||||||||||||||||||||||
| AST-Applications Software Technology LLC | First Lien Secured Term Loan | 1.00% | L+ 8.00% | 9.00% (8.00% Cash + 1.00% PIK) | 01/10/17 | 01/10/23 | 3,988 | 3,965 | 3,988 | 1.25 | |||||||||||||||||
| Cennox Holdings Limited(5)(13) | First Lien Secured Term Loan | 1.00% | L+ 6.00% | 7.00% | 05/04/21 | 05/04/26 | 2,880 | 3,928 | 3,906 | 1.22 | |||||||||||||||||
| Cennox Holdings Limited(5)(7)(12)(13) | First lien Secured Revolving Loan | 2.50% | L+ 5.33% | 7.83% | 05/04/21 | 05/04/26 | 432 | 588 | 586 | 0.18 | |||||||||||||||||
| Core BTS, Inc. | First Lien Secured Term Loan | 1.50% | L+ 6.75% | 8.25% | 02/01/21 | 08/30/25 | 3,325 | 3,264 | 3,289 | 1.03 | |||||||||||||||||
| Core BTS, Inc. | First Lien Secured Delayed Draw Loan | 1.50% | L+ 6.75% | 8.25% | 02/01/21 | 08/30/25 | 1,663 | 1,631 | 1,628 | 0.51 | |||||||||||||||||
| 12,288 | 13,376 | 13,397 | 4.19 | ||||||||||||||||||||||||
| Leisure Facilities | |||||||||||||||||||||||||||
| Honors Holdings, LLC(16) | First Lien Secured Term Loan | 1.00% | L+ 7.81% | 8.81% (8.31% Cash + 0.50% PIK) | 09/06/19 | 09/06/24 | 9,440 | 9,300 | 9,156 | 2.86 | |||||||||||||||||
| Honors Holdings, LLC(16) | First Lien Secured Delayed Draw Loan | 1.00% | L+ 7.62% | 8.62% (8.04% Cash + 0.58% PIK) | 09/06/19 | 09/06/24 | 4,649 | 4,606 | 4,509 | 1.41 | |||||||||||||||||
| Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) | First Lien Secured Term Loan A | 1.00% | L+ 7.50% | 8.50% | 06/29/20 | 06/29/25 | 5,659 | 5,589 | 5,571 | 1.74 | |||||||||||||||||
| Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) | First Lien Secured Term Loan B | N/A | 9.50% | 9.50% (0.00% Cash + 9.50% PIK) | 06/29/20 | 06/29/25 | 1,219 | 1,196 | 1,187 | 0.37 | |||||||||||||||||
| Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.)(9) | First Lien Secured Term Loan C | N/A | 9.50% | 9.50% (0.00% Cash + 9.50% PIK) | 06/29/20 | NA | 1,268 | 1,265 | 1,218 | 0.38 | |||||||||||||||||
| 22,235 | 21,956 | 21,641 | 6.76 | ||||||||||||||||||||||||
| Leisure Products | |||||||||||||||||||||||||||
| PlayMonster LLC | First Lien Secured Term Loan | 1.00% | L+ 6.00% | 7.00% | 06/07/21 | 06/07/26 | 6,000 | 5,882 | 5,882 | 1.84 | |||||||||||||||||
| PlayMonster LLC(7) | First Lien Secured Delayed Draw Loan | 1.00% | L+ 6.00% | 7.00% | 06/07/21 | 06/07/26 | — | — | — | — | |||||||||||||||||
| 6,000 | 5,882 | 5,882 | 1.84 | ||||||||||||||||||||||||
| Office Services & Supplies | |||||||||||||||||||||||||||
| American Crafts, L.C. | First Lien Secured Term Loan | 1.00% | L+ 8.50% | 9.50% | 05/28/21 | 05/28/26 | 8,500 | 8,375 | 8,373 | 2.62 | |||||||||||||||||
| Empire Office, Inc. | First Lien Secured Term Loan | 1.50% | L+ 6.75% | 8.25% | 04/12/19 | 04/12/24 | 8,795 | 8,697 | 8,795 | 2.75 | |||||||||||||||||
| 17,295 | 17,072 | 17,168 | 5.37 | ||||||||||||||||||||||||
| Packaged Foods & Meats | |||||||||||||||||||||||||||
| Lenny & Larry's, LLC(17) | First Lien Secured Term Loan | 1.00% | L+ 8.41% | 9.41% (7.69% Cash + 1.72% PIK) | 05/15/18 | 05/15/23 | 11,046 | 10,966 | 10,554 | 3.30 | |||||||||||||||||
| 11,046 | 10,966 | 10,554 | 3.30 | ||||||||||||||||||||||||
| Personal Products | |||||||||||||||||||||||||||
| Inspired Beauty Brands, Inc. | First Lien Secured Term Loan | 1.00% | L+ 7.00% | 8.00% | 12/30/20 | 12/30/25 | 12,475 | 12,250 | 12,250 | 3.83 | |||||||||||||||||
| Inspired Beauty Brands, Inc.(7) | First Lien Secured Revolving Loan | 1.00% | L+ 7.00% | 8.00% | 12/30/20 | 12/30/25 | — | — | — | — | |||||||||||||||||
| 12,475 | 12,250 | 12,250 | 3.83 | ||||||||||||||||||||||||
| Property & Casualty Insurance | |||||||||||||||||||||||||||
| Policy Services Company, LLC (5) | First Lien Secured Term Loan | 1.00% | L+ 6.00% | 7.00% | 03/06/20 | 05/31/24 | 6,062 | 5,851 | 5,940 | 1.86 | |||||||||||||||||
| 6,062 | 5,851 | 5,940 | 1.86 | ||||||||||||||||||||||||
| Research & Consulting Services | |||||||||||||||||||||||||||
| ALM Media, LLC | First Lien Secured Term Loan | 1.00% | L+ 7.00% | 8.00% | 11/25/19 | 11/25/24 | 14,527 | 14,330 | 14,091 | 4.41 | |||||||||||||||||
| Nelson Worldwide, LLC | First Lien Secured Term Loan | 1.00% | L+ 10.25% | 11.25% (10.25% Cash + 1.00% PIK) | 01/09/18 | 01/09/23 | 10,639 | 10,558 | 10,533 | 3.30 | |||||||||||||||||
| 25,166 | 24,888 | 24,624 | 7.71 | ||||||||||||||||||||||||
| Restaurants | |||||||||||||||||||||||||||
| LS GFG Holdings Inc. | First Lien Secured Term Loan | 1.00% | L+ 8.00% | 9.00% (7.00% Cash + 2.00% PIK) | 11/30/18 | 11/19/25 | 10,842 | 10,155 | 10,842 | 3.39 | |||||||||||||||||
| 10,842 | 10,155 | 10,842 | 3.39 | ||||||||||||||||||||||||
| Specialized Consumer Services | |||||||||||||||||||||||||||
| True Blue Car Wash, LLC | First Lien Secured Term Loan | 1.00% | L+ 7.12% | 8.12% | 10/17/19 | 10/17/24 | 4,293 | 4,236 | 4,293 | 1.34 | |||||||||||||||||
| True Blue Car Wash, LLC(7) | First Lien Secured Delayed Draw Loan | 1.00% | L+ 7.12% | 8.12% | 10/17/19 | 10/17/24 | 2,943 | 2,913 | 2,942 | 0.92 | |||||||||||||||||
| 7,236 | 7,149 | 7,235 | 2.26 | ||||||||||||||||||||||||
| Specialized Finance | |||||||||||||||||||||||||||
| Golden Pear Funding Assetco, LLC(5) | Second Lien Secured Term Loan | 1.00% | L+ 10.50% | 11.50% | 09/20/18 | 03/20/24 | 10,938 | 10,829 | 10,938 | 3.42 | |||||||||||||||||
| WHF STRS Ohio Senior Loan Fund LLC(4)(5)(7)(9)(14) | Subordinated Note | N/A | L+ 6.50% | 6.59% | 07/19/19 | N/A | 49,809 | 49,809 | 49,809 | 15.58 | |||||||||||||||||
| 60,747 | 60,638 | 60,747 | 19.00 | ||||||||||||||||||||||||
| Systems Software | |||||||||||||||||||||||||||
| IDIG Parent LLC | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 02/17/21 | 12/15/26 | 4,263 | 4,224 | 4,223 | 1.32 | |||||||||||||||||
| IDIG Parent LLC(7) | First Lien Secured Delayed Draw Loan | 1.00% | L+ 6.50% | 7.50% | 02/17/21 | 12/15/26 | — | — | — | — | |||||||||||||||||
| IDIG Parent LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.50% | 7.50% | 02/17/21 | 12/15/26 | — | — | — | — | |||||||||||||||||
| 4,263 | 4,224 | 4,223 | 1.32 | ||||||||||||||||||||||||
See notes to the consolidated financial statements
9
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
June 30, 2021
(in thousands)
| Issuer | Investment Type(1) |
Floor | 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 |
||||||||||||||||||
| Technology Hardware, Storage & Peripherals | ||||||||||||||||||||||||||||
Arcstor Midco, LLC |
First Lien Secured Term Loan |
1.00% | L+ 7.00% | 8.00% | 03/16/21 | 03/16/27 | 19,451 | $ | 19,081 | $ | 19,081 | 5.97 | % | |||||||||||||||
Source Code Midco, LLC |
First Lien Secured Term Loan | 1.00% | L+ 8.25% | 9.25% | 05/04/18 | 05/04/23 | 21,700 | 21,470 | 21,700 | 6.79 | ||||||||||||||||||
| Telestream Holdings Corporation | First Lien Secured Term Loan | 1.00% | L+ 8.75% | 9.75% | 10/15/20 | 10/15/25 | 15,155 | 14,738 | 14,882 | 4.66 | ||||||||||||||||||
| Telestream Holdings Corporation(7) | First Lien Secured Revolving Loan | 1.00% | L+ 8.75% | 9.75% | 10/15/20 | 10/15/25 | — |
— |
14 | — |
||||||||||||||||||
| 56,306 | 55,289 | 55,677 | 17.42 | |||||||||||||||||||||||||
| Trading Companies & Distributors | ||||||||||||||||||||||||||||
| LINC Systems, LLC | First Lien Secured Term Loan | 1.00% | L+ 6.50% | 7.50% | 02/24/21 | 02/24/26 | 4,167 | 4,090 | 4,090 | 1.28 | ||||||||||||||||||
| LINC Systems, LLC(7) | First Lien Secured Revolving Loan | 1.00% | L+ 6.50% | 7.50% | 02/24/21 | 02/24/26 | — |
— |
— |
— |
||||||||||||||||||
| 4,167 | 4,090 | 4,090 | 1.28 | |||||||||||||||||||||||||
| Total Debt Investments | 659,445 | $ | 649,140 | $ | 642,360 | 200.95 | % | |||||||||||||||||||||
| Equity Investments | ||||||||||||||||||||||||||||
| Data Processing & Outsourced Services | ||||||||||||||||||||||||||||
| Escalon Services Inc(4) | Warrants | N/A | N/A | N/A | 12/04/20 | N/A | 709 | $ | 476 | $ | 482 | 0.15 | % | |||||||||||||||
| 476 | 482 | 0.15 | ||||||||||||||||||||||||||
| Diversified Support Services | ||||||||||||||||||||||||||||
| Quest Events, LLC(4) | Preferred Units | N/A | N/A | N/A | 12/28/18 | 12/08/25 | 317 | 317 | — |
— |
||||||||||||||||||
| ImageOne Industries, LLC(4) | Common A Units | N/A | N/A | N/A | 09/20/19 | N/A | 225 | — |
164 | 0.05 | ||||||||||||||||||
| 317 | 164 | 0.05 | ||||||||||||||||||||||||||
| Health Care Services | ||||||||||||||||||||||||||||
| Lab Logistics(4) | Preferred Units | N/A | N/A | N/A | 10/29/19 | N/A | 2 | 857 | 905 | 0.28 | ||||||||||||||||||
| 857 | 905 | 0.28 | ||||||||||||||||||||||||||
| Internet & Direct Marketing Retail | ||||||||||||||||||||||||||||
| BBQ Buyer, LLC(4) | Shares | N/A | N/A | N/A | 08/28/20 | N/A | 1,100 | 1,100 | 2,728 | 0.85 | ||||||||||||||||||
| Ross-Simons Topco, LP(4) | Preferred Units | N/A | N/A | N/A | 12/04/20 | N/A | 600 | 600 | 840 | 0.26 | ||||||||||||||||||
| 1,700 | 3,568 | 1.11 | ||||||||||||||||||||||||||
| Investment Banking & Brokerage | ||||||||||||||||||||||||||||
| Arcole Holding Corp.(4)(5)(6)(18) | Shares | N/A | N/A | N/A | 10/01/20 | N/A | — |
6,944 | 6,008 | 1.88 | ||||||||||||||||||
| 6,944 | 6,008 | 1.88 | ||||||||||||||||||||||||||
| IT Consulting & Other Services | ||||||||||||||||||||||||||||
| CX Holdco LLC(4) | Common Units | N/A | N/A | N/A | 05/04/21 | N/A | 660 | 660 | 660 | 0.21 | ||||||||||||||||||
| Keras Holdings, LLC(4) | Shares | N/A | N/A | N/A | 12/31/20 | N/A | 496 | 496 | 496 | 0.16 | ||||||||||||||||||
| 1,156 | 1,156 | 0.37 | ||||||||||||||||||||||||||
| Leisure Facilities | ||||||||||||||||||||||||||||
| Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.)(4) | Class A Common Stock | N/A | N/A | N/A | 06/29/20 | N/A | 2 | 1,955 | 184 | 0.06 | ||||||||||||||||||
| Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.)(4) | Warrants | N/A | N/A | N/A | 06/29/20 | 06/28/28 | 1 | 793 | 75 | 0.02 | ||||||||||||||||||
| 2,748 | 259 | 0.08 | ||||||||||||||||||||||||||
| Other Diversified Financial Services | ||||||||||||||||||||||||||||
| SFS Global Holding Company(4) | Warrants | N/A | N/A | N/A | 06/28/18 | 12/28/25 | — |
— |
— |
— |
||||||||||||||||||
| Sigue Corporation(4) | Warrants | N/A | N/A | N/A | 06/28/18 | 12/28/25 | 22 | 2,890 | 3,491 | 1.09 | ||||||||||||||||||
| 2,890 | 3,491 | 1.09 | ||||||||||||||||||||||||||
| Specialized Finance | ||||||||||||||||||||||||||||
| WHF STRS Ohio Senior Loan Fund(4)(5)(7)(14) | LLC Interests | N/A | N/A | N/A | 07/19/19 | N/A | 12,452 | 12,452 | 12,082 | 3.78 | ||||||||||||||||||
| 12,452 | 12,082 | 3.78 | ||||||||||||||||||||||||||
| Total Equity Investments | $ | 29,540 | $ | 28,115 | 8.79 | % | ||||||||||||||||||||||
| Total Investments | $ | 678,680 | $ | 670,475 | 209.74 | % | ||||||||||||||||||||||
See notes to the consolidated financial statements
10
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
June 30, 2021
(in thousands)
Forward Currency Contracts
| Currency to be | Currency to be | Unrealized | Unrealized | |||||||||||||||||
| Counterparty | sold | purchased | Settlement date | appreciation ($) | depreciation ($) | |||||||||||||||
| Morgan Stanley | C$ | 86 CAD | $ | 67 USD | 07/28/2021 | $ | — | $ | — | |||||||||||
| $ | — | $ | — |
| (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 USD LIBOR were 0.1%, 0.1% and 0.2%, respectively, as of June 30, 2021. The one, three and six-month GBP LIBOR were all 0.1% as of June 30, 2021. The CDOR and Prime was 0.4% and 3.25%, respectively, as of June 30, 2021. |
| (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 86.5% 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, 2021. See Note 8. |
| (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 209.8% of the Company’s net assets or 95.8% 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. See Note 5. |
| (12) | The investment was comprised of two contracts, which were indexed to different base rates, L 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 or British Pounds. |
| (14) | Investment is a controlled affiliate investment as defined by the 1940 Act. On January 14, 2019, the Company entered into an agreement (as described in Note 4 hereto) 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 in the 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 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) | 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 3.00% 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) | 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. |
| (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 2.00% PIK. |
See notes to the consolidated financial statements
11
WHITEHORSE FINANCE, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2020
(in thousands)
| Fair Value | |||||||||||||||||||||||||||||||
| As A | |||||||||||||||||||||||||||||||
| Spread | Principal/ | Percentage | |||||||||||||||||||||||||||||
| Above | Interest | Acquisition | Maturity | Share | Amortized | Fair | of Net | ||||||||||||||||||||||||
| Investment Type(1) | Index(2) | Rate(3) | Date(10) | Date | Amount | Cost | Value(11) | Assets | |||||||||||||||||||||||
| North America | |||||||||||||||||||||||||||||||
| Debt Investments | |||||||||||||||||||||||||||||||
| Advertising | |||||||||||||||||||||||||||||||
| Fluent, LLC | |||||||||||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 7.00% | 7.50 | % | 03/26/18 | 03/27/23 | 7,453 | $ | 7,453 | $ | 7,453 | 2.38 | % | |||||||||||||||||||
| (0.50% Floor) | |||||||||||||||||||||||||||||||
| SmartSign Holdings LLC | |||||||||||||||||||||||||||||||
| First Lien Secured Term Loan | L+ 7.50% | 8.50 | % | 08/21/20 | 10/11/24 | 7,744 | 7,603 | 7,706 | 2.46 | ||||||||||||||||||||||
| (1.00% Floor) | |||||||||||||||||||||||||||||||
| 15,197 | 15,056 | 15,159 | 4.84 | ||||||||||||||||||||||||||||
| Agricultural & Farm Machinery | |||||||||||||||||||||||||||||||