Business
WhiteHorse Finance, Inc. Announces Second Quarter 2019 Earnings Results
NEW YORK, Aug. 7, 2019 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (NASDAQ: WHF) today announced its financial results
About this update from Whitehorse Finance, Inc.
[{"type":"text","content":" NEW YORK, Aug. 7, 2019 /PRNewswire/ -- WhiteHorse Finance, Inc. (\"WhiteHorse Finance\" or the \"Company\") (NASDAQ: WHF) today announced its financial results for the quarter ended June 30, 2019. \nSecond Quarter 2019 Summary Highlights\nNet Asset Value of $315.9 million, or $15.38 per share New investments of $71.4 million Net investment income of $7.2 million, or $0.352 per share Core net investment income of $7.4 million, or $0.362 per share(1) Second quarter distribution of $0.355 per shareStuart Aronson, WhiteHorse Finance's Chief Executive Officer commented, \"During the second quarter we grew NAV by adding seven new first-lien originations and one add-on investment to our portfolio. First-lien senior-secured loans now account for 85% of our portfolio and our leverage ratio at the end of the second quarter was 79%, bringing us closer to our target leverage range of between 100 to 125%. Our strong origination activity helped partially offset the impact of underperformance in two of our credit positions as we enter an environment of slower economic growth. Following the close of the quarter, we activated our recently-launched joint venture, which we expect will contribute to future earnings. Going forward we will continue leveraging our differentiated three-tiered sourcing infrastructure backed by H.I.G. to prudently deploy capital into high credit quality opportunities which offer stable and attractive risk-adjusted returns and ultimately enhance shareholder value.\"\nPortfolio and Investment Activity\nAs of June 30, 2019, the fair value of WhiteHorse Finance's investment portfolio was $534.8 million, compared with $468.4 million as of March 31, 2019. The portfolio at June 30, 2019 consisted of 67 positions across 47 companies with an average debt investment size of $8.8 million and a weighted average effective yield of 11.3% on income-producing investments. The majority of the portfolio was comprised of senior secured loans, and these loans were substantially all variable-rate investments (primarily indexed to LIBOR), with nearly all performing floating rate investments having interest rate floors. \nDuring the three months ended June 30, 2019, WhiteHorse Finance made investments in seven new direct originations totaling $71.4 million. Also, the Company added $3.7 million to an existing portfolio company. Gross proceeds ...