Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Q1 2019 Earnings Presentation
16 slides from Whitehorse Finance's earnings presentation, May 8, 2019
Slide 1: Earnings Presentation Quarter Ended March 31, 2019
Earnings Presentation Quarter Ended March 31, 2019 WhiteHorse Finance, Inc. NASDAQ: WHF (Common Stock) NASDAQ: WHFBZ (6.50% Notes due 2025)
Slide 2: Forward Looking Statements
1 References in this presentation to “WHF”, “we”, “us”, “our” and “the Company” refer to WhiteHorse Finance, Inc. This presentation and the information and views included herein do not constitute investment advice, or a recommendation or a n o ffer to enter into any transaction with the Company or a
Slide 3: WhiteHorse Finance Snapshot
2 WhiteHorse Finance Snapshot Company: WhiteHorse Finance, Inc. (“ WhiteHorse Finance” or the “Company”) : Equity Ticker: NASDAQ : WHF Market Cap: $301.6MM (1) NAV / Share: $15.33 Portfolio Fair Value: $468.4MM Current Dividend Yield: 9.7% (1) ; consistent quarterly dividends of $0.355 per share sin
Slide 4: Overview of WhiteHorse Finance, Inc.
Overview of WhiteHorse Finance, Inc. 3 Portfolio at Fair Value ($MM) NAV + Cumulative Dividends per share Note: As of December 31, 2018, unless otherwise noted. (1) Based on total capital commitments managed by H.I.G. Capital and affiliates (2) Represents number of companies not total number of inve
Slide 5: Overview of WhiteHorse Finance, Inc. (continued)
4 Overview of WhiteHorse Finance, Inc . (continued) Note: As of March 31, 2019 unless otherwise noted. (1) As of March 31, 2019. (2) Reflects life - to - date since IPO, and may exclude follow - on transactions. (3) Across 56 investments. (4) Reflects weighted average effective yield of income - pro
Slide 6: Summary of Quarterly Results
5 Summary of Quarterly Results Fiscal Quarter Highlights ▪ Total investments at fair value declined minimally to $468.4 million in Q1 2019 as compared to $469.6 million in Q4 2018. ▪ The Company made investments in 4 new portfolio companies for gross additions of $32.3 million, funded a small add -
Slide 7: Quarterly Operating Highlights
6 Quarterly Operating Highlights Note: N umbers may not foot due to rounding. (1) Net of fee waivers, if any. (2) Core net investment income is a non - GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it refl
Slide 8: Quarterly Balance Sheet Highlights
7 Quarterly Balance Sheet Highlights Note: Numbers may not foot due to rounding Unaudited Quarterly Financials Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 (USD in MM, expect per share data) Assets Investments at Fair Value 440.7$ 467.7$ 511.4$ 509.6$ 469.6$ 468.4$ Cash and Equivalents (1) 38.9 18.6 18.6 26.
Slide 9: Portfolio Highlights
Portfolio Highlights 8 Note: Not a guarantee of future performance or investment pace. (1) Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting from the amortization of fees and discounts) by (b) the weighted average cost of inv
Slide 10: Portfolio Trends
Portfolio Trends Historical Portfolio Trends 9 % Floating and % Fixed (Based on Fair Value ) % Instrument Type (Based on Fair Value) % Sponsored / Non - Sponsored (Based on Fair Value) % Non Accruals (Based on Fair Value) (1) Note: As of end of each year/quarter presented, unless otherwise noted. No
Slide 11: Borrower and Industry Diversity
10 Note: As of March 31, 2019, unless otherwise noted; numbers may not foot due to rounding. (1) Industry classifications based on GICS. Composition by Borrower (Based on Fair Value) Composition by Industry (1) (Based on Fair Value) 100% of WHF loans are senior secured Borrower and Industry Diversit
Slide 12: Effective Yield & Dividend Coverage
Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage (1) From IPO to March 31, 2019 11 Core NII (2) to Dividend Coverage Covered by $0.01 Covered by $0.04 Covered by $0.02 Missed by $0.01 Covered by $0.01 Missed by $0.00 Covered by $0.04 Covered by $0.00 Covered b
Slide 13: Funding Profile and Current Debt Outstanding
Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace . (1) As of March 31, 2019 WHF had $3.80MM of deferred debt issuance costs (2) Gross leverage excluding cash 3 Current Debt Outstanding (as of March 31, 2019) ($ in MM) Commitm
Slide 14: Appendix
13 Appendix
Slide 15: Origination Footprint (March 31, 2019)
Origination Footprint (March 31, 2019) Regional Direct Origination Footprint ▪ Scope of H.I.G. WhiteHorse market coverage results in consistent investment activity levels regardless of market conditions ▪ Dedicated direct lending team of 40 investment and origination professionals ▪ Regional footpri
Slide 16: Origination Pipeline Funnel
Origination Pipeline Funnel (1) 15 (1) Origination Pipeline figures reflect 2014 through March 31, 2019 Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance Over 40 WhiteHorse deal professionals dedicated to sourcing and underwriting for WHF 25 person b